Electricity Network Innovation Strategy - The Voice of the Networks - March 2020 - Energy Networks Association
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The Voice of the Networks Electricity Network Innovation Strategy March 2020
Contents Electricity Distribution Electricity Transmission
Foreword................................................03
1 1
Introduction...........................................04
Our strategy..........................................05
2 2
How to get involved............................06
Principles and outcomes 3
4
Customer benefit.................................08
Collaboration........................................09 2 3
Carbon impact.....................................10
5
6
Data and outputs.................................11
Scale up and roll out............................12
1
Shared network innovation themes
Consumer vulnerability........................14
1 2 1
Net zero and the energy transition......16
System operation:
Optimised assets and practices..........18 3 4 2
Flexibility and commercial evolution....20
5 6 3
Whole energy system..........................22
Next steps.............................................24 This Electricity Network Innovation Strategy has been produced
by Energy Networks Association (ENA) and the GB Electricity
Licensed Network Operators (LNOs). ENA is our voice,
representing the ‘wires and pipes’ transmission and distribution
02 network operators for gas and electricity in the UK and Ireland.
Foreword We are pleased to present this revised and refreshed Electricity Network Innovation Strategy. This document sets out for you, our stakeholders, what our high-level ambitions and priorities are for network innovation. Innovation in our energy networks is playing We published our first strategy in 2018. a key role in the transformation of the energy It helped us to align our priorities, share system for a zero carbon future. Innovation thinking and avoid duplicating efforts. But projects allow us to better understand how we felt it could go further. We recognise to integrate and roll out new technologies, there is still work to be done in joining practices and markets and help to tackle the up with the gas network companies and wider energy challenges we face. facilitating whole energy system approaches. Funding mechanisms, including the Network Therefore, this revised strategy has shared Innovation Allowance (NIA) and Network principles and themes with the Gas Network Innovation Competition (NIC) administered Innovation Strategy. We are moving towards by Ofgem, are enabling an extensive producing one shared strategy in the future. portfolio of projects that are changing how We also recognise that there are innovators our energy system works and delivering out there that we haven’t engaged with significant financial, energy security and yet. We hope this strategy enables them environmental benefits to customers. to better understand our key themes and We are working in partnership with each principles and how to get involved. other, with innovators, businesses and local communities to invest in trialling new technologies and business models. We recognise that we cannot solve the complex challenges in the energy system on our own. ENA is the voice of the networks and brings David Smith together all the innovation managers to Chief Executive consider challenges that require innovative solutions, share learning and develop robust Randolph Brazier processes for collaboration. Head of Innovation & Development Energy Networks Association 03 Electricity Network Innovation Strategy
Introduction
Electricity network innovation Innovation projects allow us to Innovation strategy
spend 2008 to 2019 understand how to integrate new stakeholder engagement
technologies and practices into
NIA
our energy networks, benefiting Expert interviews
(24
0
– our customers and facilitating our (20 interviews)
transition to a net zero future.
£1 jects)
pr
o
74m
Distribution led
Identified themes and principles
313 This revised Electricity Network Innovation
LCNF
Strategy was co-created with our for testing with stakeholders
projects
stakeholders (see the engagement process
8 IC
(64
£3
pr 0 m
ts)
on the right). The strategy sets out the key
–
50 m
N
ec
£
pr
je
themes and principles that will guide a
oj
ct
Online consultation,
o
s) (9
joined up approach to innovation by both round table and webinars
the electricity and gas networks.
£942m
(108 participants)
We are building on an extensive innovation
624 projects portfolio. Since 2008, £942 million has been
Distribution led Transmission & invested in innovation activities delivering Validation of approach.
£604m significant benefits for customers.*
System Operator led
£338m Modifications to themes and principles
The key funding mechanisms we use
are the NIA, NIC and previously the Low
NIC Carbon Networks Fund (LCNF). However, Stakeholder workshops
(10 – this strategy looks more widely at how we
p and webinar (113 participants)
can join up with wider UK energy innovation
£1 jects)
ro
programmes.
18m
Transmission &
System Operator led
This strategy sets out how we want to work
311 Addition of one principle and
NIA
with you, the innovators, on new solutions
projects
that can help us deliver safe, resilient five focus areas per theme
(30
–£
21
networks that facilitate the net zero transition
0p
je 7m
ro
ct
s) and meet the needs of our customers.
LCNF – £3m *This does not include other funding, such as the Innovation Funding Incentive or Innovate UK.
Strategy content finalised
Independent research by Pöyry showed that under the previous LCNF regime, electricity
(1 project) network innovation projects alone will deliver £1.7bn of benefits to customers by 2031.
Energy Networks Association 04 Electricity Network Innovation Strategy
Our strategy Objectives, themes and principles
3
Optimised assets
This strategy is centred around our and practices
three overarching objectives, which are
o n
2 4
co
tra the
reflected in five key principles and five
i ti
Fl erc
m
ns
ex ia
em nd
m
network innovation themes.
ib l e
st a
ilit v
sy ero
y olu
gy z
an t
K INNOV
The underlying principles and outcomes apply
er Net
R
d ion
to all innovation activity and will be considered at
O AT
all stages of innovation projects, from inception W
en
environm
through to delivery and dissemination. r an en
T
e
IO
v t
li ble netw all
SHARED NE
e ina
The shared network innovation themes are the ta or
N
us k
D
y
priority innovation areas, which we have identified
s
THEMES
cons ers and
with the help of our stakeholders. These five NETWORK
Whole ene
M e et th e net
y
n et w ork
themes provide us with a shared strategic INNOVATION
um
vulnerabilit
Consumer
a s afe
system
direction, help innovators understand how OBJECTIVES
they can work with us and provide a means of 1 5
in
ed
nt
ne
categorising and tracking innovation investment. in
ta
so
li e
w M a re
rgy
or f
However, it is worth noting that often projects will
si
ku d
sers an
sit under multiple themes. IN
PR
ES
Under each theme in this strategy we set out CI O M
PL
what it means for electricity network innovation, ES AN D O UTC
the top five focus areas identified through the
Cu Ben
ll p
stakeholder engagement process and case
ro u
t
ou
st efi
d le
om t
an Sca
studies of previous or live projects.
er
The strategy is deliberately high level. We want to Co
give you, our stakeholders, information on where llab t a and
ora Da tputs
tion
we need ideas, at the same time as not being Carbon ou
prescriptive and closing the door to problems/ Impact
solutions that we have not yet considered.
Energy Networks Association 05 Electricity Network Innovation StrategyHow to get involved
We are keen to work with a wide range of innovators. A key purpose
of this strategy is to help you to better understand what
we are looking for and how to get involved.
5
The high-level guide below maps out the key stages in
getting an innovation project off the ground and
indicates which areas of this strategy can
4
help. It also signposts you to further
resources and collaboration
portals. 3 Funding opportunities Develop proposal
Sign up for information about Identify partners, develop and
funding opportunities. submit your project proposal.
2
Network Innovation Smarter Networks Portal
Local or national?
Collaboration Portal f Sharing learning
If your idea can be applied f Share information f Collaborate on new projects
anywhere, go through one
f Find partners
of the national services (see
1 Innovation right). f Propose new project ideas Innovation Funding Service
themes If it is specific to a
for all network companies f Online application and
Understand our priority to consider collaboration tool
transmission, system or local
Principles themes for innovation distribution operator, make f Information on all active
Get a sense of how and where your ideas EIC hub funding competitions
contact directly.
we work by looking fit in by reading about f Access the latest opport
at our principles our innovation themes f Innovation websites unities from some member Innovator Support Portal
(pages 8-12). (pages 14-23). f Innovation strategies network companies
f Funding finder tool
f Connect with a global
f Events f Connect with innovators
Regulated price control of networks – Ofgem regulates network community of innovators
activity – including innovation – through the RIIO price control process. f Newsletters f Search for funding and
and experts
The new price control period (RIIO-2) will begin in April 2021 for
transmission and April 2023 for distribution, which may mean changes f Innovation calls/ access support resources
to the scope and governance of our innovation activity.
competitions.
Energy Networks Association 06 Electricity Network Innovation StrategyPrinciples and outcomes Customer benefit Collaboration Carbon impact Data and outputs Scale up and roll out 07
PRINCIPLE
Customer benefit
Customer benefit should be at the centre of all network innovation
activity. Benefits will range from efficiency savings and a better
customer experience to societal benefits, such as the accelerated
decarbonisation of our energy system.
Our customers are everyone who connects We don’t just consider how the outcomes of Customer benefit
to our network or who pays an energy innovation projects will affect customers, but
bill. All innovation activity should aim to also how we interact with customers during at the centre
deliver clear benefits to these customers, in project delivery.
particular: When customers are directly involved in
f Accelerated decarbonisation of our projects we make sure that we manage Project
energy system their expectations and communicate in a inception
f Efficiency improvements that reduce transparent and open way. We are inclusive
network costs, lowering electricity bills for and consider the harder to reach customers.
customers When customers are indirectly affected by
projects, we will minimise disruptions and
f A safer and more secure energy network clearly communicate with them. Dissemination Customer Project
f A more reliable energy supply We will also explore how innovations
of learning Benefit delivery
f A reduced impact on the environment can improve customer service whenever
f An inclusive approach to participation possible. This may relate to how we interact
in the energy transition, with a focus on with customers, deliver connections or new
markets such as local flexibility markets. Scale up
vulnerable consumers
and roll out
f A positive impact on our employees and We recognise that communities and regions (where justified
by the benefits)
supply chains are different and have different needs.
f Wider socio-economic benefits, such as Therefore, we each develop our own
job creation and improved public health/ innovation strategies that reflect the specific
air quality. needs of customers in our regions.
Energy Networks Association 08 Electricity Network Innovation StrategyPRINCIPLE
Collaboration
Network innovation activity should provide shared learning, avoid duplication and increase collaboration
between network companies and the wider energy sector. Network innovation should also be joined up with
wider UK energy innovation programmes.
While each of us has our own strategy for f Gas Goes Green Programme – sharing We recognise the need to collaborate with
innovation, we strongly believe that gas and learning and working collaboratively to a wide range of innovators to create better
electricity and wider industry collaboration deliver net zero gas in a smart, flexible ideas and real-world outcomes. Page 6 of
is key to ensuring we maximise the value to and balanced energy system this strategy sets out the main routes to get
customers. This is why we have a joined-up f Low Carbon Technology Working involved. For example, we work with third
strategy and shared principles and themes Group – representatives from the party organisations, such as EIC and Innovate
with the gas networks. electricity networks meet regularly UK, to collaborate with thousands of small-to-
Under ENA, there are a range of initiatives with industry, BEIS and Ofgem to medium sized enterprises (SMEs).
that facilitate collaboration between us as agree strategies and processes for low We also collaborate with other funding
network and system operators. They include: carbon technologies that connect to the programmes that support innovation work
electricity network such as Innovate UK and BEIS’ innovation
f Smarter Networks Portal – a repository
Electricity Innovation Managers and funds, however, there is the potential
for Ofgem-funded projects. With f
Gas Innovation Governance Group to increase and better coordinate this
automatic notification of new projects
– regular meetings to coordinate collaboration to ensure our customers
and key learning. It also shares project
innovation activities benefit.
registration documents to enable
collaboration before project kick off f Annual key showcase and conference
f Open Networks Project – sharing events – such as the Low Carbon
learning and working collaboratively to Networks & Innovation Conference,
change how the networks operate to Electricity Innovation Forums and the Gas
facilitate the transition to a smart, flexible Innovation Showcase.
energy system
Energy Networks Association 09 Electricity Network Innovation StrategyPRINCIPLE
Carbon impact
Innovation activities should have a High level carbon impact assessment for innovation projects
positive impact on achieving the UK’s
net zero emissions target whenever
possible. Therefore, the potential Will the delivery of your innovation project have a significant carbon impact?
carbon impact of an innovation
project should be considered. No Yes
Facilitating and accelerating the UK’s transition Estimate potential impact at project initiation
to net zero is a key theme of our innovation
strategy, for example, through connecting
Is there anything that can be done to reduce the carbon impact?
renewable sources of energy or reducing
losses (see pages 16 and 17).
No Yes
Innovation projects developing and
implementing solutions to other themes in this
Statement at project initiation Changes to project plans
strategy will also have an impact on carbon
emissions.
Statement at project initiation
Network companies already consider and aim
to reduce the environmental impacts of all their
activities, including innovation. In many cases Are the project outcomes designed to have a direct impact on greenhouse gas emissions?
the carbon impacts of innovation projects
may be low, for example, innovations in cyber Yes No
security, safety and customer service. Where
carbon impacts of innovation projects are Estimate potential impact at project initiation No further action
potentially significant, network companies will
consider whether there are ways of avoiding or Revised potential impact in project closedown report
reducing emissions, without compromising the
objectives of the project.
Energy Networks Association 10 Electricity Network Innovation StrategyPRINCIPLE
Data and outputs
The outputs of network innovation activity should be made available to Energy Data Taskforce:
all interested parties in a consistent and accessible format. Maximising the value of data
All network innovation projects should, The outputs of an innovation project, as well
where possible, make the following available as the data and information generated, can
and accessible: also be valuable for future learning, follow-
up projects or new ideas. Making innovation
f Key project outcomes and learning from
project data and insights available will help
undertaking the project
f An overview of the key outputs and
attract a wider range of innovators and Outcomes
encourage spin-off ideas. Maximising the value
results from the project
Therefore, we take the view that data from
f Project datasets, data tables and innovation activities should be ‘presumed
supporting information (such as method open’, as set out by the Energy Data
statements, registers or process Taskforce. It should also be ‘discoverable,
diagrams) searchable and understandable’, with
f Key qualitative and quantitative common ‘structures, interfaces and Principles
information that may be of use to future standards’ and be ‘secure and resilient’.
Presumed open
innovation projects. Outputs from innovation projects can all be
A successful innovation project will provide found on the Smarter Networks Portal and Discoverable, searchable
an opportunity to further develop or on individual network company websites. and understandable
implement an idea, technology or process We will be revising the Smarter Networks
Portal in 2020 and considering how we can Structures,interfaces
through to business as usual.
improve the service it provides. and standards
Secure and resilient
Energy Networks Association 11 Electricity Network Innovation StrategyPRINCIPLE
Scale up and roll out
A key objective of network innovation activity should be to deliver
transformational change, taking viable initiatives forward to business Benefits Framework
as usual deployment and to identify methods to scale up and roll out development
new practices, processes and technologies.
Innovation is about trialling, testing and To ensure that we are delivering value
verifying ideas. It is also about developing for money to our customers and wider Summer 2020
new approaches, practices and processes. stakeholders, we continuously improve f Finalising Benefits
Proven innovations and successful or our processes to make sure that we get Framework
impactful projects should be taken forward maximum value from innovation deployment.
to wider implementation across the sector In preparation for RIIO-2, we are working
as cost effectively as possible. This is how with the gas networks to develop a
benefits for customers are maximised. measurement framework that enables
We are committed to ensuring that new consistent reporting for network innovation. Autumn 2020
innovations are adopted to business as This is designed to benefit customers and f RIIO-2 gas and
usual. We do this in several ways: the wider industry by increasing transparency transmission
on the outcomes of network innovation determinations
f We involve key staff in the innovation projects, and what they have delivered. f ENA revising Smarter
process before transitioning to business Networks Portal
Under the proposed benefits framework,
as usual to lead the adoption of new
we will assess the outputs of our innovation
approaches
projects and the potential they have to
f We have created specific roles or teams deliver benefits for customers. This will
to prepare for and facilitate future change consider benefits for the organisation
f We ensure that engineering and proposing the project, other network Autumn 2021
f Implement Benefits
regulatory standards, industry codes and operators and wider stakeholders. We
propose to report innovation benefits using Framework
policies are updated (or created) as a f Implement Smarter
result of innovation projects the new framework for RIIO-2, the next
price control period starting 1 April 2021 Networks Portal
f We collaborate between network for system operation, gas networks and changes
companies to facilitate the deployment electricity transmission, and for electricity
of solutions at scale. distribution from 1 April 2023.
Energy Networks Association 12 Electricity Network Innovation StrategyShared network
innovation themes
Consumer vulnerability
Net zero and the energy transition
Optimised assets and practices
Flexibility and commercial evolution
Whole energy system
1301 Consumer vulnerability
THEME
Exploring how best to support the needs of consumers in vulnerable
circumstances today and in the future, ensuring that everyone can
experience the benefits of the energy transition and any adverse effects
of change is minimised.
Vulnerable consumers are those significantly As the Distribution Network Operators
less able to protect their interests in the (DNOs) become Distribution System
energy market and/or are more likely to Operators (DSOs), relationships with
suffer detriment. Vulnerability can take consumers are likely to change. There will
different forms and can change over time. be greater opportunities for us to engage
Causes include, but are not limited to: directly, for example through flexibility
markets, and we want these markets to be
f Financial
inclusive and accessible.
f Technological
Innovation allows us to explore how best
f Locational to support the needs of consumers in
f Demographical vulnerable circumstances and to take a
f Health and wellbeing. more inclusive approach. This could take the
form of new services, data and management
It is often those consumers in vulnerable practices, technologies or partnerships.
circumstances that are most likely to
find it difficult to engage with changing
technologies and benefits. There is a risk
that the energy transition could put them at
a greater disadvantage.
Energy Networks Association 14 Electricity Network Innovation Strategy01 Consumer vulnerability
THEME
Stakeholder feedback 5 focus areas Case studies
These are the five focus areas that Social CMZ
13% stakeholders have identified as the Scottish and Southern Electricity Networks
near-term priorities: This project aims to provide an
accessible and visible route for
11% 1 Understand and remove barriers communities to engage and offer
to adopting new technologies and flexibility services. Where there is
services for vulnerable consumers constraint on the system, SSEN is
working with National Energy Action
76% 2 Facilitate building resilient local
communities
and Energy Action Scotland to
explore how community groups could
provide a solution, avoiding network
3 Support the fuel poor and improve
reinforcement.
affordability for consumers
Is consumer vulnerability a key
theme for network innovation? Urban Energy Club
4 Explore how to reduce the financial
UK Power Networks
Yes No Don’t know impact of net zero on vulnerable
Urban Energy Club will test how the
consumers
virtual allocation of shared assets can
Improve engagement and visibility support a more inclusive approach
5
3 between vulnerable consumers and of procuring network flexibility from
2 4 the networks. domestic customers living in blocks of
37 flats.
…ensuring that everyone
1
5
can experience the benefits
How important would you rate this of the energy transition.
theme out of 5?
Energy Networks Association 15 Electricity Network Innovation Strategy02 Net zero and the energy transition
THEME
Facilitating and accelerating the UK’s transition to net zero greenhouse
gas emissions before 2050.
The transition to net zero greenhouse gas alongside increases in energy efficiency also
emissions will require: need to be managed in smart and cost-
effective ways.
f Even greater levels of low and zero
carbon electricity generation We need to develop commercial models
f Increased electrification of transport and and technical solutions that will facilitate
heat customer choice in a cost-effective way,
while at the same time managing the
f An increase in flexibility, for example impact on the networks. We believe that
through smart technologies and services in order to serve our customers’ evolving
f An increase in energy efficiency and needs, we need increased engagement and
changes in demand patterns communication, as well as transparency and
f New ways of understanding and efficiency in our plans and priorities.
managing system stability We also recognise the importance of
f A whole energy system approach. cross-vector coordination and planning to
efficiently manage the interactions between
This creates both opportunities and electricity, gas, heat, transport and waste in
challenges for us. Having more low carbon the energy transition.
technologies and distributed generation
We need to be ready to facilitate the
connected to our networks means that
transition to net zero and accelerate it
we need to be much smarter in how we
wherever possible.
manage them. We will need new ways
of accessing flexibility to support the
variable output from renewables, as well as
improving our practices of active network
management and grid interconnection.
Changes in demand patterns from the
electrification of heat and transport
Energy Networks Association 16 Electricity Network Innovation Strategy02 Net zero and the energy transition
THEME
Stakeholder feedback 5 focus areas Case studies
These are the five research areas that Smart Street
1% 1 %
stakeholders have identified as the Electricity North West
near-term priorities: Smart Street trialled an integrated
system comprising advanced
1 Facilitate the adoption of flexibility and optimisation software and network
smart systems assets to simultaneously manage
power flow and voltage on the High
2 Facilitate and enable the electrification Voltage (HV) and low voltage (LV)
of heat and transport networks in real time to release
additional capacity for the connection
Facilitate the efficient connection of low
98 % 3
and zero carbon electricity generation
of low carbon technologies.
Is net zero and the energy system transition
Wide Area Monitoring, Protection
4 Understand the operational impact of
a key theme for network innovation? & Control (WAMPAC)
long duration reserve services on the
SP Energy Networks
Yes No Don’t know network
SP Energy Networks has worked over
5 Contribute to a UK-wide methodology a series of projects to improve system
for calculating the cost of carbon. stability via Wide Area Monitoring to
3 facilitate the connection of low carbon
2 4 generation and improve network
reliability. In 2014, project VISOR saw
Facilitating and accelerating the use of Phasor Measurement Units
(PMUs) to identify and manage sub-
the UK’s transition to net zero
47
1
5
synchronous oscillations, then in 2016
greenhouse gas emissions through project MIGRATE, delivered
solutions to monitor and forecast Area
How important would you rate this before 2050.
Inertia and System Strength.
theme out of 5?
Energy Networks Association 17 Electricity Network Innovation Strategy03 Optimised assets and practices
THEME
Developing and implementing industry leading techniques for optimising
assets and practices for energy networks.
Optimising assets and practices includes Rapid decarbonisation, changing electricity
improving our: demand and generation patterns,
digitalisation, changing weather patterns, an
f Capability
aging workforce and managing new security
f Resilience threats are just some of the issues we are
f Reliability responding to.
f Safety Investing in our infrastructure, preparing
f Security our networks for change and adapting our
practices and processes to meet these
f Health
changes is vital if we are to continue to
f Environmental impact deliver an effective electricity network and
f Digitalisation strategy. service.
Network innovation enables us to test and
Many of the activities in this area are
improve new technologies, optimise our
considered business as usual, however
operational and management practices and
innovation will accelerate improvements and
focus on the people that keep our networks
enable more unconventional approaches to
safe, secure and reliable every day.
be tested.
Continuous improvement is required to
ensure we are delivering value for money
for our customers and can proactively
respond to changes in the energy system.
Energy Networks Association 18 Electricity Network Innovation Strategy03 Optimised assets and practices
THEME
Stakeholder feedback 5 focus areas Case studies
These are the five focus areas that Distributed ReStart
3% 4% stakeholders have identified as the National Grid ESO (Electricity System
Operator) and SP Energy Networks
near-term priorities:
Distributed ReStart explores how
1 Improve the visibility of customers and Distributed Energy Resources (DER)
their behaviour in Great Britain can be used to restore
power in the highly unlikely event of a
2 Enable digitalisation for network and total or partial blackout of the National
system optimisation Electricity Transmission System.
Reduce and mitigate unplanned
93% 3
outages, supply interruptions and
Virtual Site Acceptance Testing &
Training (VSATT)
wider disruptions National Grid Electricity Transmission
Is optimised assets and practices a
key theme for network innovation? Minimise the impact of networks on This project aims to develop and
4 demonstrate the first phase of a digital
Yes No Don’t know the environment
substation. This involves developing a
5 Ensure future skill requirements and test platform, simulation and modelling
workforce resilience. of interoperability and performance
3 testing for substations and how they
2 4 interface with the electricity system.
38
…industry leading techniques
1
5
for optimising assets and
How important would you rate this practices for energy networks.
theme out of 5?
Energy Networks Association 19 Electricity Network Innovation Strategy04 Flexibility and commercial evolution
THEME
Developing and testing innovative solutions to increase the flexibility,
transparency and efficiency of the energy system, enabling information
to be more open and networks to be more responsive to change.
The electricity networks are going through We have developed six commitments for
a period of rapid change and we need to delivering flexibility services. We will:
be able to respond quickly and efficiently. f Champion a level playing field
Increasing the flexibility of our networks to
cope with peaks in generation or demand f Ensure visibility and accessibility
will optimise reinforcement costs. f Conduct procurement in an open and
More and more distributed energy resource transparent manner
(DER) is becoming flexible, which means f Provide clarity on the dispatch of services
the ability to control or schedule demand f Provide regular, consistent and
and/or generation. Flexible technology can transparent reporting
include batteries, electric vehicles (EVs) f Work together towards whole energy
and Demand Side Response (DSR). These
system outcomes.
technologies can provide ‘flexibility services’
to us to help solve congestion issues on our New commercial models may emerge from
networks and release additional capacity, the digitalisation of the energy system and
which then allows connection of more low increase in data availability, for example from
carbon technologies. smart meters. We will work with the wider
Flexibility markets are one of the evolving industry to identify opportunities to increase
commercial arrangements that enable the efficiency of network operations.
customers to interact with us and sell
flexibility services. Other commercial
arrangements, including linking with national
energy markets, will need to be explored to
ensure customers can interact with us to
support the operation of a smart network.
Energy Networks Association 20 Electricity Network Innovation Strategy04 Flexibility and commercial evolution
THEME
Stakeholder feedback 5 focus areas Case studies
Project ENTIRE
8% These are the five focus areas that
Western Power Distribution
stakeholders have identified as the
3% near-term priorities: The project sought to identify and
address many of the key challenges
1 Enable domestic flexibility, local energy a DNO is presented with as demand
markets, EVs and smart charging side response and other commercial
service capabilities develop, alongside
2 Trial and implement innovative traditional engineering and asset
arrangements to support network management roles of the DNO. The
management and flexibility project created a roadmap for WPD’s
89% Maximise the opportunities of smart
regions, as well as other DNOs, to
3 assist development of a commercial
meters, data and network charging service capability and deliver increased
Is flexibility and commercial evolution
a key theme for network innovation? reforms value to their customers.
Yes No Don’t know 4 Identify regulatory barriers and make Activating Community
recommendations for reform Engagement (ACE)
Northern Powergrid
5 Develop flexible connection arrange
3 ments and mechanisms to inform how The ACE project investigated
2 4 customers generate and use electricity. gamification as a way to drive consumer
37 engagement with demandside
response. The project addressed
the challenges of engagement by
…increasing the flexibility, creating fun and rewarding incentives
1
5
transparency and efficiency of through the GenGame app.
How important would you rate this the energy system.
theme out of 5?
Energy Networks Association 21 Electricity Network Innovation Strategy05 Whole energy system
THEME
Enabling joined up and efficient approaches across multiple aspects of
the energy system around planning, forecasting, design, construction,
operation, maintenance and data.
A whole energy system approach requires Rapid decarbonisation of our energy system
us to look beyond our own networks and will change the demand and generation
develop our understanding of how we interact patterns on both the gas and electricity
with and impact on the wider energy system. networks.
There are multiple aspects to the energy We need to better understand the
system and different ways of applying whole interaction between gas and electricity
energy system thinking. These can include networks through joint forecasting and
thinking across: planning. It is also important that we work
with cities and regional bodies to reflect local
f Electricity and gas networks
needs and differences in approach.
f Transmission and distribution networks
The increase in use of flexibility resources
f Transport, buildings, power and industry must also be optimised on a system-wide
sectors basis, which means greater coordination
f Water, waste and telecommunications between distribution and transmission
utilities networks.
f Networks, generators and consumers A big part of a whole energy system
f Local energy systems, cities and regions. approach is transparency and openness. We
understand that by sharing more operational
Decisions and actions taken in one part information, data, investment plans and
of the system increasingly have impacts innovation ideas, we can enable greater
for the wider system. Therefore we coordination as well as new innovations to
need to coordinate around planning, come forward.
forecasting, design, construction, operation,
maintenance and data to identify potential
problems and the best and most cost-
effective solutions.
Energy Networks Association 22 Electricity Network Innovation Strategy05 Whole energy system
THEME
Stakeholder feedback 5 focus areas Case studies
These are the five research areas that Zero 2050 South Wales
9%
stakeholder have identified as the near- National Grid Gas Transmission, National
8% term priorities:
Grid Electricity Transmission, Wales & West
Utilities and Western Power Distribution
1 Collaborate on enabling the growth Zero 2050 aims to develop plausible,
and operation of emerging low carbon optimised decarbonisation pathways
solutions for the whole energy system in South
Wales. This collaborative project
2 Develop whole system coordinated includes all representatives from
83 % cost benefit analysis electricity and gas transmission and
distribution networks. The project
3 Join up approaches to regional covers bottom-up demand scenario
network planning and forecasting modelling for the South Wales region
Is whole energy system a key
theme for network innovation? Improve access to and visibility of using multi-vector analysis. It will
4 develop the net-zero pathways, while
Yes No Don’t know energy network data
considering the regional socioeconomic
Coordinate the operation of a whole aspects.
5
energy system.
Swindon Green City Vision
3
2 4 Wales & West Utilities, Scottish and Southern
37
Electricity Networks
Green City was a joint project between
gas and electricity networks to
…joined up and efficient explore how to invest efficiently across
1
5
approaches across multiple different energy networks to support
decarbonisation while keeping costs
How important would you rate this aspects of the energy system. down for customers.
theme out of 5?
Energy Networks Association 23 Electricity Network Innovation StrategyNext steps
In the next two years we are committed to open up network innovation to a wider range of innovators who
can bring new skills and thinking to transforming the energy system.
We asked stakeholders what we could do to We will review and update this strategy
engage companies and people in network
innovation and received a list of ideas, Our commitments again in 2022. At that stage we will
check with you, our stakeholders, that
including: Between 2020 and 2022, we are the principles and innovation themes are
committed to providing guidance and the right ones. We will also work towards
f Sharing information at events
information around how to engage with combining the gas and electricity innovation
f Producing a guide to network innovation strategies to reflect a more holistic, whole
network innovation, by:
f Liaising directly with potential innovators energy system approach to innovation.
f Using trade associations and other 1 Reviewing our engagement If you have any questions or would like to
umbrella organisations to share methods and channels discuss the innovation strategy in more
information detail, please get in touch:
f Running workshops, deep dives and 2 Hosting the annual dissemination innovation@energynetworks.org
conference
hackathons
Reporting on deployment of successful
3 Updating the Smarter Networks
f
ideas Portal and the Network Innovation
f Improving consistency in application Collaboration Portal
processes between network companies
f Producing webinars to share learning 4 Issuing a joint call for proposals
f Better use of social media for latest for the Network Innovation
updates. Competition (NIC)
We have taken on board the feedback and 5 Reporting on network innovation
will be reviewing our engagement channels, benefits.
both through ENA and within our individual
companies.
Energy Networks Association 24 Electricity Network Innovation StrategyEnergy Networks Association
4 More London Riverside
London SE1 2AU
Tel +44 (0)20 7706 5100
www.energynetworks.org
@EnergyNetworks
Energy Networks Association
© ENA 2020
Energy Networks Association Limited is a company
registered in England & Wales No. 04832301.
Registered office: 4 More London Riverside, London SE1 2AUYou can also read
