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Notes on completion

Before completing this form, please refer to the LCN Fund Governance Document.

Please use the default font (Verdana size 10) in your submission, the text entry areas

are predetermined and should not be changed. Please ensure all content is contained

within the boundaries of the text areas. The full-completed submission should not

exceed 9 pages

in total.

Ofgem will publish all the information contained within the Screening submission.

DNO Group

Participant DNOs

DNO area

Project title

Project summary

Estimated Project funding

Please provide an approximate figure of the total cost of the project and the LCN funding you are applying for.

Total cost of Project

LCN funding

requested

Low Carbon Networks Fund

Screening Submission Pro-forma

SSE plc

Southern Electric Power Distribution (SEPD)

SEPD and Scottish Hydro Electric Power Distribution areas

I²EV - Innovation-squared: managing unconstrained EV connections

SEPD believes that is essential that a commercial framework is created which allows

third parties to safely and securely develop and test new low carbon technologies on

distribution networks. The I

EV project will deliver valuable learning on managing the

strain placed on the distribution network by increased uptake of electrical vehicles.

However, the most valuable aspect of I

EV is that it has been conceived and will be

managed by a non-DNO. I

EV will create a blueprint for the interaction of DNOs and

third parties. It is in this spirit that SEPD has invited EA Technology to complete the

Initial Screening Submission Pro-forma. The content is endorsed by SEPD, the project's

participant DNO, but is written by EA Technology.

Forecast growth in electric vehicles (EVs) in Great Britain will lead to local overloading

of distribution networks (DECC 2050 Pathways). Over two years, I²EV will give DNOs a

cost effective solution that reduces network reinforcement, demonstrates a new project

delivery framework using a third party project lead, and supports EV market growth.

Innovation 1 (technical): New technology EA Technology has independently

developed 'Esprit' ('the technology'), a novel monitoring and control solution to manage

the supply of electricity to EVs connected to distribution networks. Field trials of the

technology will be conducted on a range of representative networks and EVs.

Innovation 2 (commercial): A novel commercial arrangement I²EV will be

delivered as a project by a third party innovation technology provider, with a

contractual arrangement placed to ensure that the DNO can meet the requirements of

the LCN Fund and other obligations. A project framework blueprint will be developed.

£3.4m

£2.5m

Problem

Please provide a narrative which explains the Problem(s) which the Project is seeking to address.

Method(s)

Please describe the Method(s) which are being trialled. Please outline how the Method(s) could solve the Problem. The type of

Method should be identified where possible e.g. technical or commercial.

Problem 1 (technical): Increased stresses on the network - overload due to

market growth of EVs Government forecasts that 1.7 million electric vehicles (EVs)

will enter the market by 2020 (Meeting Carbon Budgets, CCC Report, October 2009);

up to 80% of passenger car distance could be powered by electricity by 2050 (DECC

2050 Pathways analysis report, 2010). Peak energy demand could increase by 36%,

resulting in 'a profound impact on the utilisation of generation and network capacity in

the electricity system' (Advanced Smart Metering report, Imperial College/ENA, March

2010). Even at lower end forecasts, without the optimisation of demand side

technology, this analysis indicates that this GB market growth is set to lead to local

overloading of distribution networks.

The I²EV project will provide DNOs with a cost effective solution that avoids network

reinforcement while at the same time supports the growth of EVs. Potential costs

savings in terms of reducing stresses on the network due to EVs range from £0.5bn to

£10bn (ENA/Imperial College).

Problem 2 (commercial): Developing commercial structures for rapid solution

deployment by third party providers This project will demonstrate how non-DNOs

can lead projects in a structured contractual framework to ensure development of

adoptable solutions from third party providers.

SSE has worked with EA Technology to select a project that addresses a single technical

problem with a single technical solution - allowing focus on the structure as well as the

technical aspects of the project.

The I²EV project will be led by EA Technology who will be contracted to deliver:

- Customer engagement followed by modelling;

- Design of trials: sign-off for specifying, installing and testing equipment on the live

network with DNO

- Stakeholder engagement mechanisms (stakeholders include electricity customers,

manufacturers of both EVs and EV chargers)

The I²EV project will demonstrate how a non-network company can, through a novel

contractual arrangement, access the LCNF Fund to deliver a low carbon solution. I²EV

will explore and report upon associated barriers and risks.

Method 1 (technical): Modelling and trials of the technology Modelling and trials

will aim to prove that the technology works, with customer support, on a range of LV

network types: cable, overhead line, mixed, heavily and lightly populated circuits. The

technical aspects of the trials will consist of installing monitor-controllers (MC) at

distribution substations, with active sockets (AS) installed in customer installations.

The MC ensures that the load of all EV chargers does not take the load above the rating

of the LV circuit. The initial proving trials will be conducted on cable and overhead line

LV networks that are located in the SEPD area, where communications have been

proved on an earlier IFI funded assessment project. A key aspect will be in

understanding customers' attitude and behaviour to managed EV control; I²EV will

enlist the support of a social science academic partner to this end.

Upon successful completion of the initial trials, extensive in-situ field trials will be

conducted in areas primed for high penetrations of EVs. The I²EV project will link to

initiatives including the Isle of Wight (EcoIsland); other locations are being considered.

Method(s) continued

Funding commentary

Provide a commentary on the accuracy of your funding estimate. If the Project has phases, please identify the approximate

cost of each phase

Specific Requirements (please tick which of the specific requirements this project fulfils)

A specific piece of new (i.e. unproven in GB) equipment (including control and communications

systems and software) that has a Direct Impact on the Distribution System)

A novel arrangement or application of existing Distribution System equipment (including control and

communications systems software)

A novel operational practice directly related to the operation of the Distribution System

A novel commercial arrangement

Solution to problem 1: If successful, the technology will provide GB DNOs with a low

cost, easy to implement, alternative to traditional network reinforcement when faced

with networks overloading due to unconstrained connection of EV chargers. The

technology could also be used to control other significant demand types, eg heat

pumps.

Method 2 (commercial): Lead project management by non-DNO innovation

technology provider EA Technology, will assume absolute responsibility for project

management of I²EV, from project inception to delivery. The field trials will be designed

by the third party, who will then work in partnership with SSE to conduct the field trials.

Where possible the installation and commissioning of the technology on live electricity

networks will be subcontracted to third parties.

Solution to problem 2: In order to provide access to the network, a blueprint

commercial and operational framework will be developed between DNO (SSE) and

non-network company (EA Technology). The blueprint will address issues and risks to

both DNO and third party delivery body while ensuring compliance with the

requirements of LCN Fund governance.

Phase 1 (technology proof of concept): A minimum of 20 charging units, in different

network configurations. Each of the 20 units will incorporate a dummy load to prove

the concept of EV charging cycles.

Phase 2 (larger scale trial roll out): A minimum of 200 charging units, across 20 LV

feeders will be deployed in real environments. We would aim to link these deployments

to clusters of EVs.

The project costs are based on assessments made by our in house specialists and our

project partners; their accuracy will be further refined prior to final submission. The

project will leverage funding from local and national sources.

✔

Accelerates the development of a low carbon energy sector & has the potential to

deliver net financial benefits to existing and/or future customers. Merged evaluation

criteria, as set out in decision letter.

The DNO must demonstrate that the Solution makes a contribution to the Carbon Plan and has the potential to deliver

financial benefits.

The I

EV project facilitates the expedient connection of EVs to the DNO LV network and

avoids the possibility of the DNO becoming a barrier to multiple EV connections along a

particular LV feeder; when multiple EVs wish to connect to a portion of network, the

local feeder may not be sufficiently rated to accommodate this load. In order to avoid

overstressing the feeder and interrupting supplies to all customers fed via this circuit,

the DNO would need to engage in reinforcement work, ie installing cables or overhead

lines with higher rating. This would be time-consuming and result in the DNO forming a

barrier to connection of multiple EVs. However, spare capacity does exist in these

feeders, but it is time dependent, ie there may not be any spare capacity (or

“headroom”) at times of peak demand; if some demand could be moved to other times

of the day then this latent capacity could be utilised. Such profile changing may

become possible through smart metering, but this is unlikely to be in effect until 2019,

and will not be in widespread use before RIIO-ED2 in 2023. In the meantime,

clustering of EVs is likely observed in certain network areas, and not always as a result

of an obvious reason (eg geography), but could be “irrational” (eg neighbours wishing

to “keep up with the Jones'” by purchasing an EV). It is this sporadic clustering that

may result in the biggest problems for DNOs.

Carbon Plan - Solution 1: The technology that forms the basis of the solution to the

problem of increased stresses on the network - overload due to market growth of EVs,

wholly aligns with the UK Government's Carbon Plan. Under s.1.12 in the Carbon Plan's

'Vision for 2050', low carbon transport, and in particular, EVs, are cited as being at the

heart of the step change needed to reduce emissions. The Carbon Plan also recognises

that the grid will be faced with increased demands. The technology solution under the

I²EV project addresses the inevitable additional stress on the network from EVs. The

technology facilitates the connection of EVs without the need for excessive network

reinforcement, thereby minimising costs.

Financial Benefits - Solution 1: The technology is a low cost, easy to implement

alternative to network reinforcement. From ENA / Imperial College analysis (Benefits of

Advanced Smart Metering for Demand Response Based Control of Distribution

Networks, March 2010), potential cost savings in terms of reducing stresses on the

network due to EVs range from £0.5bn to £10bn, with the work carried out under the

Smart Grids Forum Workstream 2 estimating the costs to DNOs associated with EVs at

being £6bn between 2012 and 2050. Carbon savings and cost savings will be quantified

as the project is in delivery, and results disseminated to all UK DNOs. It is anticipated

that the technology to be trialed has the potential to deliver the solution at lower cost,

and more expediently, than the most efficient method currently in use on the GB

distribution system, ie network reinforcement.

Carbon Plan - Solution 2: Low carbon transport is a priority under s.1.12 of the

Carbon Plan. The solution contributes to the Carbon Plan by allowing the expedient

connection of EVs through an in depth understanding of how and where intelligent

charging units could be used, thereby allowing the rapid deployment of techniques to

manage the anticipated increase in penetration of low carbon technologies such as EVs.

Financial Benefits - Solution 2: The project will seek to demonstrate the extent to

which third party delivery of innovation projects could be more efficient than the

projects being merely led by the host DNO.

Has a Direct Impact on the operation of the distribution network

A Second Tier Project must demonstrate that the Method(s) being trialled will have a Direct Impact (as defined in v.4 of the

Governance Document) on the operation of a DNO's Distribution System.

Generate knowledge that can be shared amongst all network operators

The DNO must explain the learning which it expects the Method(s) it is trialling to deliver. The DNO must demonstrate that it

has a robust methodology in place to capture the learning from the Trial(s).

Direct Impact of Method 1 (technical): Modelling and trials of the technology

The technology is a specific piece of new (unproven) equipment (including control and

communications systems and software) that has a Direct Impact on the LV Distribution

System. The technology prevents a circuit from being required to supply more power

than it is capable of; a Direct Impact will be seen due to the need to change the

operation of the network, which will provide significant benefits to suppliers and

customers throughout GB - once proven, implementation of the technology will reduce

the need for expensive reinforcement to facilitate EVs.

Alternatives include the DNO signalling to customers; issues include the complex

market arrangements (priority between TSO, suppliers and DNO for controllable load),

and the need for buy-in of customers.

Direct Impact of Method 2 (commercial): Lead project management by

non-DNO innovation technology provider SEPD is keen to see the rapid

development of innovative solutions on the network, broad engagement with third

parties and an open door for truly collaborative trials is an effective tool for the

acceleration of this process. This project will test the types of commercial and

contractual arrangements that need to be in place to maximise the benefit of these

arrangements.

Learning resulting from Method 1 (technical): Modelling and trials The I²EV

project will demonstrate the performance and capability of the technology. If proven to

be effective the technology will offer DNOs a low cost, easy to implement alternative to

network reinforcement that will revolutionise the connection of EVs in the UK, saving

the DNOs the expense of reinforcement costs - the projected savings are still to be

quantified, between ISP and full bid. The trial results will be captured and presented to

all DNOs through dissemination channels as established in the project's communications

strategy and plan. Level of cost efficiency of implementation and roll-out, and

acceptability of approach to customers will also be reported upon.

Learning resulting from Method 2 (commercial): Lead project management by

non-DNO innovation technology provider The prototype commercial and

operational framework will be disseminated as a blueprint to all DNOs for use in future

projects, together with recommendations of relevant changes to commercial contracts.

The novel commercial structure will mean that EA Technology will be contractually

obliged to deliver knowledge relevant to the delivery of the solution to SSE, ie how to

deploy the technology and the potential savings that it can deliver. These outputs will

be made available to the GB DNO community in full, through a robust communications

strategy and plan. Learning from Methods 1 and 2 will be captured as a core function of

the project management process and methodology via methods including workshops,

newsletters, reports and contract templates.

Please tick if the project conforms to the default IPR arrangements set out in

the LCN Fund Governance Document?

If the DNO wishes to deviate from the default requirement for IPR then it must demonstrate how the learning will be

disseminated to other DNOs.

Focus on Methods that are at the trialling stage

Demonstrate why you have not previously used this Solution (including where the Solution involves commercial

arrangements) and why LCN funding is required to undertake it. This must include why you would not run the trial as part of

your normal course of business and why the Solution is not R&D.

✔

The Esprit technology is the Background IP of EA Technology Limited having been

devised, designed, patented and developed without external funding.

The Foreground IP associated with demonstrating the performance, capability and

deployment options of the technology on live LV networks from I²EV will be actively

shared to the DNO community in accordance with the terms of the LCN Fund

Governance arrangements.

Solution 1 (technical): The technology that forms the basis of the solution to the

problem of increased stresses on the network - overload due to market growth of EVs -

has not yet been released to the market. The solution is at the laboratory testing stage

(TRL5), with plans to be ready for wide-scale in-situ testing on live networks (TRL7) by

Q3-Q4 2012. Therefore the technology will be beyond R&D stage at I²EV project

commencement. I²EV will provide a large enough field trial to rigorously test the

technology on real LV networks, with real EVs and with real customers. LCN funding is

required to undertake the trials and resultant GB-wide dissemination of results and

learning to DNOs, which would not otherwise form part of SSE's usual course of

business. The magnitude of the field trials required make the project relevant to LCN

Second Tier funding. The technology has not been trialled previously by SSE due to the

nascent nature of EVs. The balance of risks make it timely for the I²EV project to

commence now given the projected acceleration of EV uptake and associated stresses

on the existing network. It is worth noting that the technology underpinning I²EV could

be equally applicable to heat pumps.

Solution 2 (commercial): LCN funding under Tier 2 is required to develop a blueprint

commercial and operational framework for use between DNO and third party innovation

technology provider development and roll-out to all GB DNOs. The development of this

lies outside SSE's usual course of business and is timely given the projected launch of

Network Innovation Competition funding in 2015.

Project Partners and external resourcing/funding

The DNO should provide details of any Project Partners who will be actively involved in the Project and are prepared to devote

time, resources and/or funding to the Project. If the DNO has not identified any specific Project Partners, it should provide

details of the type of Project Partners it wishes to attract to the Project.

Derogations or exemptions

The DNO should outline if they consider that the Project will require any derogations, exemptions or changes to the regulatory

arrangements.

Network and EV charging cycle modelling - EA Technology

Customer (social) modelling - Academic partner

Liaison with EV manufacturers - EA Technology with EV manufacturers

Phase 1 trials - easy location where comms is already proven - EA Technology with

subcontractors involved in deployment and commissioning

Phase 2 trials - End-to-end testing in remote locations - EA Technology with

subcontractors involved in deployment and commissioning

Activities to support the transfer to DNOs' Business-As-Usual - EA Technology

Independent verification of results - Academic partner

Project Dissemination - Blah d Blah Ltd (EA Technology's creative communications

agency)

Project Management and support - EA Technology - a proven track record in

delivering LCN Fund projects including Northern Powergrid's Customer-Led Network

Revolution (CLNR) and SSE's New Thames Valley Vision (NTVV)

All aspects of I²EV will require SSE input and/or sign-off which has been costed into the

project.

There are potential derogations regarding the connections process, as this will be a new

type of constrained demand connection which will not be offered to all customers.

Further details will be explored in the development of the full bid.

Customer impact

The DNO should outline any planned interaction with Customers or Customer’s premises as part of the Project, and any other

direct customer impact (such as amended contractual or charging arrangements, or supply interruptions).

Please use the following section to add any further detail you feel may support your

submission.

Customer Impact of Method 1 (technical): Modelling and trials of the

technology The intention is to seek volunteers (customers) to participate in the

engagement, assessment of receptivity and trials. For the initial trials it will be

necessary to connect the technology on the DNO side of the meter, which will mean a

short interruption of supply and therefore have a potential impact on the customer. For

the full-scale trials it will be necessary to connect the technology on the customer side

of the meter; a separate circuit from the consumer unit to the EV socket. This will

mean a short interruption of supply to the customer in that property.

It is anticipated that the main barrier to uptake of I²EV will be social, ie will customers

accept less than 100% charging of EVs due to 'spread' of charging capacity? I²EV will

need to model, gain and assess customer reactions, then trial the technology to

determine reflection of reality.

Customer Impact of Method 2 (commercial): Lead project management by

non-DNO innovation technology provider The resultant blueprint contractual

agreement will change the nature of the connection agreement between the DNO and

the customer.

SEPD endorsement:

Under the principles of the new commercial arrangements being trialled in this bid EA

Technology has prepared this document with our endorsement.

We believe that this bid will provide valuable learning for DNOs in particular in relation

to working closely with third parties in the trialling of novel solutions on existing DNO

networks in a manner that ensures that LCN Fund governance and other license and

legal requirements are maintained.

Contact name

Contact Address

E-mail

Direct telephone line

Job title

Stewart Reid

Southern Electric Power Distribution

Inveralmond House

200 Dunkeld Road

Perth

PH1 3AQ

Stewart.A.Reid@sse.com (Jennifer.McGregor@sse.com)

01738 455746

Future Networks And Policy Manager

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