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Tier-1-proforma-seasonal-generation-deployment-v2 Slide 1

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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 font size 9) 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 4 pages
in total.
First Tier Pro-forma
Project title
DNOs
Participant DNOs
Project summary
Problem(s)
Please provide a narrative which explains the Problem(s) which being addressed by the Project.
Registration Date
14-Jul-11
Seasonal Generation Deployment
Western Power Distribution (Midlands)
WPD
Future energy scenarios clearly shows that peak demand on the distribution network is set to increase. This project will
explore a solution to reduce the impact on the existing network from such peaks. It will test the technical aspects
associated with controllable demand and automated generation, and development of innovative commercial
arrangements for generation availability and operation. The project will deliver new learning on the cost effectiveness
of such arrangements.
The project will consist of two phases:
Phase 1 will involve the installation of a single point of generation at an 11kV substation site. The key objective of phase
1 will be to initiate, develop and deploy the engineering interface, commercial arrangement and first stage generation
control methodology.
Phase 2 will utilise existing network connected generation along with strategically placed generation connected to a
contiguous section of 11kV network, which will be a test within a more complex network environment. This will
provide a platform for commercial arrangements and control methodologies to be further developed.
Networks are currently designed and operated by Distribution Network Operators (DNOs) to cater for an
unconstrainted peak demand (mainly in winter). As energy consumptions switches to electricity from oil and gas (for
heating and transport) these peaks are forecast to become much more pronounced. Building networks to cater for an
unconstrained peak will become increasingly unacceptable, especially as the quantity of distributed generation and
interruptible demand increase. This project will investigate generation utilisation via innovative commercial
arrangements and novel automated control solutions to overcome the temporary stresses witnessed on the network.
Scope and Objectives
Please describe the scope and objectives of the Project should be clearly defined including the benefits which should directly
accrue to the Distribution System.
Success Criteria
Please give details of how the DNO will evaluate whether the Project has been successful.
Method(s)
This section should set out the Method or Methods that will be trialled in order to solve the Problem. The type of Method
should be identified where possible e.g. technical or commercial.
Problem(s) continued
Utilise existing or new network connected generation provided for standby generation purposes, export with a PPA, or
generation for `STOR', along with seasonal generation (typically only currently operated during summer at large
festivals and concerts). The generation in all instances will be owned and operated by either a customer and/or an
aggregator. Through commercial arrangements and control methodologies WPD will utilise this generation on a
seasonal basis (winter) to provide controllable peak demand management.
For phase 1, seasonal generation will be installed at Harbury Substation; this generation will be operated by Flexitricity.
Installing it within a Substation is for the purpose of providing a closely controlled environment to deploy the
commercial and control models and methodology, therefore minimising the project risk.
For phase 2, the range of generation we plan to utilise will be any that a customer or aggregator has and/or will make
available, chosen through a carefully controlled process to ensure it can provide a suitable network benefit.
This phase will allow a future real network environment to be demonstrated.
• Development and deployment of an automated network generation control system
• Development and deployment of an Commercial Availability and Operating Arrangement - “DNO to DSO” by
developing the opportunities of a DNO managing and operating integrated generation
• Increase network flexibility and security through robust generation installation
• Capital deferment business case
Develop and deploy an automated network generation control system. To provide network support through the
integration of an automated demand triggered generation system. Develop and deploy an Availability and Commercial
Operating arrangement - “DNO to DSO”. Provide a commercial arrangement similar to the "STOR “ Short Term
Operating Reserve” arrangements between aggregators and National Grid (NG), but specifically tailored to reflect the
needs of the local grid rather than GB system balancing. To increase network flexibility and security through the use of
robust generation. To ensure that the engineering model and commercial framework are aligned in order to provide
maximum benefit for existing assets and end user customers. Assess the benefit from capital deferment, by
complimenting existing network assets with strategic generation thus maximising asset life.
· Install and commission seasonal generation set
· Ability to accommodate additional load without the need for large-scale network reinforcement through
peak lopping techniques
· New commercial arrangements reflecting the needs of the local grid
· Development of an engineering interface and control methodology
· Assessment of the business case for deferring capital expenditure on the network
Risks
The DNO should highlight any material, known risks that could impact the Project’s costs and/or programmes.
Scale of project
Please justify the scale of the Project. In particular, you should explain why there would be less potential for new learning if
the Project were a smaller scale.
Geographical area
Details of where the Trial(s) will take place. If the Project is a collaboration, the DNO area(a) in which the Trial(s) take place
should be identified.
Potential for new learning
Detail what the parties hope to learn and how the learning will be disseminated.
TRL
This should be between 5-8 to be eligible for Tier 1 Funds.
Predicted start and end dates.
DNOs should provide an estimate of the expected project starting and completion dates.
Start Date: End Date:
Project partners and external funders
Please give details of actual or potential Project Partners and External Funding Support as appropriate
7
08/2011
04/2013
Partners confirmed to date: Flexitricity
· Ability to use temporary seasonal DG to lop peaks - reliability, contribution to design standards, etc
· Suitabilily of contracting exisiting DG to lop local peaks - reliability, contribution to design standards, etc
· Develop a local market mechanism
· Identify customer apetite for participating in such a scheme
· Assess business case
· Identify regulatory / other barriers
· Explore interaction with STOR and other market mechanisms
· Possibility of generator unavailability - mitigation: working initially with Flexitricity & Aggreko
· Limited customer interest to suitably size phase 2 of the project - mitigation: DG customer group and
engagement
Integrating a single point of generation for the first phase limits risk by simplifying technical and commercial
arrangements, whilst producing adequate data for project validation analysis to be utilised prior to the initiation of
phase 2.
Having availability and accessibility of a number of generating sources in phase 2 will allow the commercial
arrangements and control methodology to be suitably developed to replicate the future real network environment.
1st Phase: Harbury, Warwickshire.
2nd Phase: Dependant on learning and analysis of 1st phase.
Please tick if the project conforms to the default IPR arrangements set out in
the LCN Fund Governance Document?
The DNO should indicate if the Project does not conform to the default IPR conditions. A justification for alternative arrangements and why the Project
should still be approved must be provided, in accordance with paragraph 2.18 of the Governance Document.
Please tick if you do not consent to the First tier pro-forma being published in
full.
If you do not consent please identify any information in the completed First Tier LCN
Project Registration that you do not wish to be published.
The DNO must demonstrate that it (or its Project Partners) will face commercial harm from its disclosure and that
information is considered eligible for exemption under the Freedom of Information Act 2000 or the Environmental
Information Regulations 2004.
All information submitted within the First Tier LCN Project Registration Pro-forma will be made available on the Ofgem
website, unless Ofgem has agreed otherwise as part of the Registration process set out above.
Estimated Project funding
An indication of the revenue allowed for within the DPCR5
settlement that is likely to be saved as a result of the project.
An indication of the total Allowable First Tier Project
Expenditure that the DNO expects to reclaim the for the
whole project.
Revenue allowed for in
the DPCR5 Settlement (£)
Indicative total Allowable
First Tier Project
Expenditure (£)
Please tick if the project involves making payments to related undertakings
The DNO must set out all payments that it proposes to make to itself or any Related Undertaking. Further, if a payment is to
be made to any Related Undertaking that is a Distribution System User, the DNO must demonstrate that it has offered the
same terms to similar Distribution System Users on the part of the network that is within the Project boundary and has used
reasonable endeavours to identify such Users.
£0.00
£300,000.00
✔
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