Next steps for heat networks in the UK: Digitalisation - Royal Danish Embassy - 4th March 2020 - Alex Fox
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Next steps for heat networks in the UK: Digitalisation Royal Danish Embassy – 4th March 2020 – Alex Fox
Overview: 1) SSE Group & Enterprise 2) Smart Cities Digital 3) PIRI Energy 4) Project DC 5) HaaS – a ‘social’ opportunity?
Introduction to the SSE Group Supporting the low-carbon transition Our vision SSEN Transmission SSE Renewables To be a leading energy provider in a low carbon world Our purpose Energy Provide energy needed today and strive for a better Thermal world of energy for tomorrow Customer SSEN Distribution Solutions (incl Energy SSE Airtricity) Our strategy To create value for shareholders and society from Energy Portfolio Management developing, owning and operating energy and related Enterprise and Investments infrastructure and services in a sustainable way Distributed Energy Contracting Rail Telecoms
Digital Services is developing three different platforms, which will come together under the Smart Cities banner Platforms Capabilities Partners • Building on current ESG capabilities (remote monitoring and Smart Buildings control of buildings Platform • Expanding to provide more insight and action for customers based on Machine Learning and AI • Building on Mayflower CMS (lighting control) Smart Cities and • Comms network and power already on a street, building on that Places Platform network to add other sensors, collecting and analysing data through the Mayflower platform • Building on Smart Grid Solutions capabilities • Energy control, management and trading platform to allow us to EaaS Platform optimise our customer sites and assets. Being built in phases, increasing automation
Energy as a Service Platform – trading and local grid stabilisation Energy Trading Markets The platform can: Aggregation Platform Building Energy Site Energy • Collect data from assets Optimisation Optimisation • Remotely control those assets – ie turn on/off, up/down • Group assets (to allow us to control remotely/for trading purposes) Building • Set asset parameters • Automated scheduling and Private network dispatch • Data visualisation, analytics, Distribution Network reporting • Integrated with SSE trading desk Transmission Network
Growing a sustainable city - PIRI Peterborough Integrated Renewables Infrastructure Integrating: • Heat • Power • Mobility
Creating impact PIRI delivers value to individuals and businesses alike Business As Usual Project PIRI Multi-utility infrastructure delivery means a lower Energy Costs No cost benefits to pass onto consumers. capital cost and therefore lower bills for consumers. . Locally produced energy from Waste. All No low carbon certainty with energy/services services/energy received low carbon as standard. Carbon purchased. No compromises. “Top down” tariff setting without visibility of Transparent tariff setting using a “bottom up” Transparency costing approach and no committed savings. costing approach to determine long-term % savings. Separate bills and no connection between “As a Service” integrated billing for heat, electricity Customer Service and mobility. Once a customer, each can benefit electricity, heat and EV charging services. from all services e.g. heat, electricity, EV charging. Due to capacity constraints, increasing costs to Low carbon technology/infrastructure made Infrastructure install low carbon technology e.g. EV available at cost effective connection charging/heat pumps/solar PV. cost/cost included within tariffs.
Heat networks data collection – ‘Project DC’ • Learning; understanding behaviour; & adapting Wisdom • Allowing us to move on to greater capability. • With 15-minute interval data, we’re able to fully understand the demand Knowledge profiles from each of our operational networks • Don’t have to rely on potentially out of date benchmarks and design standards when designing new systems Information • We can also prove, beyond doubt, that networks do not need to be so oversized to the degree they almost always are in the UK ! Data • The principal benefit being that we can start to deliver systems which are inherently more efficient and cheaper for the customer.
Digital heat future – Heat as a Service • As mentioned at the top – we’re looking to make HaaS a fourth ‘digital’ project in SSE Enterprise; & apply it to a heat network, however… • Heat is the biggest component of a consumers energy bill – think vulnerable & fuel poor HaaS: • Concerns regarding HaaS and driving the right Purchasing ‘plans’ behaviour for warmth by time, instead of kWhr’s. • We have a lot of power through data, & mustn’t be naïve about how deep that will go • New business models in energy are most commonly only ‘techno-economic’.
What should we be doing with ‘digital’ in heat (& energy)? • Can’t retrofit the social element to business models – historically this has been over- looked • Might this be around increasing the role and stake that the consumer has? • Is there anything in the Ofgem concept to “stack value”? • To me, the answer – particularly for heat – is in the data of networked systems • This should be seen as an opportunity, not a threat – competitive advantage atm.
In summary • We’re undoubtedly moving towards ‘as a service’ business models across the entire energy system • SSE Enterprise is going to trial HaaS on a heat network • Can’t retrofit the social element – needs to be built Digital in at the outset Energy • This isn’t a constraint; it’s an advantage • HaaS is a great opportunity to deliver social value, but what do you think? • What should we be doing with ‘digital’ in heat (& energy)?
Thank you – SSE Heat Networks – our aim is to be the most trusted heat supplier SSE Riverlight | Alex Fox e: alex.fox@sse.com t: 07776 603626
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