WPD Distribution Future Energy Scenarios 2020 - Methodology November 2020 - Western ...

Page created by Heather Juarez
 
CONTINUE READING
WPD Distribution Future Energy Scenarios 2020 - Methodology November 2020 - Western ...
WPD Distribution
Future Energy
Scenarios 2020

Methodology

November 2020

                   westernpower.co.uk
WPD Distribution Future Energy Scenarios 2020 - Methodology November 2020 - Western ...
westernpower.co.uk

Distribution Future   Summary
Energy Scenarios      •   Introduction to DFES

                      •   DFES methodology summary
Methodology           •   Stakeholder engagement

                      •   Data sources and evidence gathering

                      •   Creating the DFES projections

                      •   How the WPD DFES is reconciled to FES 2020

                          2
WPD Distribution Future Energy Scenarios 2020 - Methodology November 2020 - Western ...
westernpower.co.uk

Distribution Future   The Distribution Future Energy Scenarios outline
                      the range of credible futures for connections to the
Energy Scenarios      distribution network.

                      Using a scenario framework consistent with other
Methodology           distribution network operators and National Grid ESO
                      – known as the Future Energy Scenarios or FES –
                      these local stakeholder informed projections are
                      created on an annual cycle and encompass changes
                      in demand, storage and distributed generation,
                      including electrified transport and heat.

                      WPD works with Regen to create the Distribution
                      Future Energy Scenarios for all of our licence areas
                      on an annual cycle.

                         3
WPD Distribution Future Energy Scenarios 2020 - Methodology November 2020 - Western ...
Why Future Energy Scenarios?
The need for scenario based planning
With customer requirements            The DFES is used by WPD to
changing in an evolving energy        conduct a detailed review of its
system, the DFES is used to           network and how it will be
inform strategic network planning     impacted by each scenario. This
and investment for an uncertain       helps WPD to develop
future.                               reinforcement solutions to solve
                                      anticipated network constraints in
The DFES builds on historic           different years and under different
trends, as well as analyses of the    scenarios.
pipeline of near term projects, the
local resource factors and            The DFES is also used for RIIO-
stakeholder input to create a         ED2 business planning, and to
range of credible scenarios.          publicly signpost potential system
                                      flexibility needs.
The DFES also assesses the
potential growth of new technology
connections, such as electric
vehicles and chargers, battery
storage sites and heat pumps.

                                                                      4
westernpower.co.uk                                                          WPD DFES 2020 – Methodology
WPD Distribution Future Energy Scenarios 2020 - Methodology November 2020 - Western ...
The four WPD DFES scenarios
Incorporating the FES 2020 scenarios
The National Grid ESO FES            Additional local assumptions are
2020 scenarios are used in the       made by Regen and the WPD
WPD DFES 2020. The 2020              DFES team. For example, about
scenarios are significantly          the deployment of projects in the
different from those used in         pipeline, the lifetime of existing
previous WPD DFES studies due        projects, and the weighting of
to the introduction of three new     spatial factors such as affluence
net zero compliant scenarios by      and agricultural land grade.
National Grid.
                                     Three of the scenarios are
Key assumptions are published        compliant with the UK
by National Grid ESO for each of     government net zero emissions
the four scenarios. These are        target for 2050. Each of these
incorporated in the WPD DFES         scenarios achieves emissions
2020. The four FES 2020              reductions in a different way.
scenarios are defined by different
‘speeds of decarbonisation’ and
‘level of societal change’.

                                                                          5
westernpower.co.uk                                                            WPD DFES 2020 – Methodology
WPD Distribution Future Energy Scenarios 2020 - Methodology November 2020 - Western ...
A whole system approach
Building on the Net Zero South Wales innovation study
The Net Zero South Wales 2050              Learnings have been taken forward in
innovation project was undertaken as a     the WPD DFES 2020. In WPD DFES
partnership between Regen, WPD and         2020 over 3,000 small areas were
WWU with funding from the Network          assessed, incorporating a key
Innovation Allowance programme.            recommendation from the innovation
                                           study for greater spatial granularity.
This innovation project brought two
networks together, developing insights     The WPD DFES results can be directly
and value from an integrated approach      aggregated up to local authority areas,
to gas and electricity scenario planning   so that stakeholders or other networks
and exploring an increasingly flexible     can view results most relevant to them.
and cross-vector system.
                                           The number of technologies assessed
                                           was expanded based on learnings from
                                           the innovation study. Multiple low carbon
                                           heating technologies were assessed, as
                                           well as a full picture of waste treatment
                                           processes, including the potential for
                                           biomethane development.

                                                                    6
westernpower.co.uk                                                                     WPD DFES 2020 – Methodology
WPD Distribution Future Energy Scenarios 2020 - Methodology November 2020 - Western ...
WPD DFES Methodology
Methodology in brief                                                                                        Update underlying
                                                                                                              scenario data
Overview                                                                                                      February - March
Local factors are used, with assumptions from National Grid FES, to project
the deployment of each technology type for four scenarios at a granular level.

1. Baseline:                             3. Stakeholder engagement
Data is collected on the current         Local information is collected from     Reconciliation between                                Stakeholder engagement
                                                                                    FES and DFES                                                April – May
installed capacity, or number of         consultation with developers and a             February            Annual                         Event report published
installed units, for each individual     survey of local authorities, this is                               process
technology type.                         combined with analysis of existing
                                         trends and spatial data.
2. Pipeline
Proposed sites that may connect in       4. Scenario projections                       DFES publication              Scenario analysis and data validation
the near term are individually           (2020-2050)                                 November - December                          June - October
                                                                                      Suite of documents
assessed and developers contacted        Near term technology deployment is           plus data published
where possible.                          extrapolated to create the                                                              FES publication
                                         projections at the ESA level in the                                                         July
                                                                                                                             New scenarios published
                                         medium and long term, incorporating
                                         local resource factors.

                                                                        7
westernpower.co.uk                                                                                                    WPD DFES 2020 – Methodology
WPD Distribution Future Energy Scenarios 2020 - Methodology November 2020 - Western ...
Electricity Supply Areas
Spatial granularity
DFES analysis is produced from          An ESA is: The geographical area
the bottom up, using small              supplied by a Primary Substation
geographic cells called ‘Electricity    (which contains WPD owned
Supply Areas’ (ESAs).                   distribution substations) providing
                                        supplies at a voltage below 33 kV;
Each ESA represents a block of          or a customer directly supplied at
demand and generation as visible        132, 66 or 33 kV or by a dedicated
from the distribution network. This     Primary Substation.
way, projected new connections by
scenario are linked to specific parts   These network-informed spatial
of the network, allowing for            areas are also split by local
detailed network analysis.              authority borders. This means the
                                        WPD DFES 2020 results may be
The attributes of the ESA informs       directly aggregated up to local
the deployment of each individual       authority areas.
technology type, for instance local
windspeed or number of houses.                                                Individual ESAs, split by
                                                                              local authority borders

                                                                       8
westernpower.co.uk                                                                                        WPD DFES 2020 – Methodology
WPD Distribution Future Energy Scenarios 2020 - Methodology November 2020 - Western ...
Stakeholder engagement
Overview
WPD and Regen ran four                 Developers of sites in the
consultation events in May 2020,       pipeline were contacted where
engaging with 266 attendees in         possible, including sites with
webinars across the four licence       planning applications.
areas.
                                       Wider industry consultation is
Regen also contacted every local       also completed for each
authority in the WPD licence           technology where possible.
areas to collate data on new           Information is gathered
developments                           predominantly through direct
                                       conversations as well as through
As part of the discussion with         existing industry networks and
local authorities, local authorities   events.
were surveyed for plans or
policies supporting low carbon
infrastructure.
                                                                            A report summarising the consultation webinars and the feedback received are
                                                                            available on the WPD website:
                                                                            westernpower.co.uk/distribution-future-energy-scenarios-regional-information

                                                                        9
westernpower.co.uk                                                                                                             WPD DFES 2020 – Methodology
WPD Distribution Future Energy Scenarios 2020 - Methodology November 2020 - Western ...
Stakeholder engagement
Stakeholder consultation events
The consultation events were       After the events, a summary
held online in May 2020, with      report was published, detailing
266 participants across the four   the content covered, as well as
webinars.                          how the comments raised would
                                   be incorporated into the DFES
The webinars participants had      analysis.
the opportunity to answer live
polls regarding detailed           For example, participants
assumptions made in the DFES       suggested that the large number
analysis.                          of potential solar projects could
                                   begin to connect from 2022, and
The participants were also able    that battery storage would be
to raise questions and critiques   superseded by other energy
during and after these sessions.   storage technologies in the
                                   future.

                                                                        A report summarising the consultation webinars and the feedback received are
                                                                        available on the WPD website:
                                                                        westernpower.co.uk/distribution-future-energy-scenarios-regional-information

                                                                   10
westernpower.co.uk                                                                                                         WPD DFES 2020 – Methodology
Engagement with local authorities
Using local authority plans in DFES
New housing and non-domestic developments are sources of           New developments process overview
new demand on the electricity network. Local authority
development plans are incorporated into DFES to include the          Provide local
localised impact on the distribution network.                       authority with
                                                                                                                           Assumptions
                                                                          new         Check new             Assign
Data collection                                                                                                             applied to
                                                                    developments      data against      developments
                                                                                                                           produce low,
                                                                    data from the     most recent      to ESAs (using
Regen created an online database of all new development data           previous           local           locational
                                                                                                                           medium and
collected during earlier DFES studies. This was then shared with                                                           high growth
                                                                    study, request    documents              data)
                                                                                                                            scenarios
the local authority planners. Updated data provided by the local    verification or
                                                                        update
authorities is verified against most recent local documents, and
classified by:

                                                                   “
•   Development type:
•   Domestic or non-domestic by individual use classes
•   Location                                                               Over 10,000 new development

                                                                                                                                   ”
•   Total number of homes or floorspace
•   Development stage
                                                                         records were processed as part of
•   Plan period                                                                  WPD DFES 2020
•   Land type

                                                                    11
westernpower.co.uk                                                                                            WPD DFES 2020 – Methodology
Engagement with local authorities
Assessing local authority local plans
Creating deployment rates for the four scenarios
Once processed and verified, the                        Historic trends in new developments
individual developments are                             are also used to provide estimates
projected to be built at a schedule                     for a low, medium, and high level of
based on the source data.                               deployment. These are then
A delay in this schedule is applied to                  assigned to the FES 2020 scenarios
sites in the medium and long term –                     for the near and medium term as
which varied by scenario to capture                     detailed below:
the envelope of uncertainty.                            Steady Progression
Stakeholder feedback also                               Low deployment
suggested some delays in the near                       Consumer Transformation
term due to COVID-19.                                   Medium deployment
The delay methodology means that                        System Transformation
the precise spatial data and scale of                   Medium deployment
development is maintained, but the
period over which the sites are built                   Leading the Way
varies.                                                 High deployment

                                                   12
westernpower.co.uk                                              WPD DFES 2020 – Methodology
Engagement with local authorities
Assessment of local authority local plans
Not all local authority plans      Each individual development      Example of source data trajectory build rates
extend out to 2030 or later,       is also assigned to an ESA,
and as a result there is a         the part of the network to
natural reduction in the data      which it is most likely to
available for the analysis of      connect.
planned developments.              Though some of these sites
To compensate for this             are already visible to WPD
reduction, additional dwellings    through accepted demand
and commercial floorspace          connection offers, many are
were modelled, with locations      not.
weighted towards areas of          New build deployment also
similar characteristics to those   feeds into the other DFES
that have seen recent              models for heat pumps,
deployment of new                  rooftop solar PV, and electric
developments.                      vehicle charger uptake,
                                   among others.

                                                                    13
westernpower.co.uk                                                                                              WPD DFES 2020 – Methodology
Engagement with local authorities
Survey of local policies
Local authorities in the WPD          Local policies are expected to
area were surveyed for local          change significantly year on
plans and policies which may          year. Through an annual iteration
affect the uptake of new low          of the DFES this process will be
carbon technologies included in       expanded to make the surveys
the DFES analysis.                    more comprehensive over time.
This included waste treatment         The local factors and policies will
policies, electric vehicle charging   therefore be updated and
infrastructure or clean air zones,    verified annually with relevant
or specific policies supporting       local authorities.
renewable energy deployment.
The surveys provided valuable
insight into multiple factors which
fed into the uptake modelling.
                                                                             Clean air zones are assumed to contribute to an increased use of electric vehicles in the local area

                                                                        14
westernpower.co.uk                                                                                                                          WPD DFES 2020 – Methodology
Creating the DFES projections
Overview and process
Baseline                         Medium term (2025-2035)
The baseline process             Key growth factors and               Near term   Medium term         Long term
establishes the deployment of    stakeholder perspectives are
each technology to date and      used to create four scenario
identifies historic growth       projections, with assumptions
trends and local factors.        linked to FES 2020.
Near term (2020-2025)            Long term (2035-2050)
Sites which may connect in       Key uncertainties in
the near term are individually   technology improvements and
assessed for planning            costs are incorporated in an
applications, network            envelope of scenario
connection offers, and           projections. Data is reported
developer progress.              in 5-year stages from 2035.

                                                                 15
westernpower.co.uk                                                                              WPD DFES 2020 – Methodology
Creating the DFES projections
Data sources for deployment to date
The primary source of data for     The baseline registrations for
the baseline of connected          electric vehicles are based on
generation and storage sites is    Department for Transport data at
WPD connection agreement           local authority level. This
data. For the WPD DFES 2020        information is then distributed to
study, the cut-off data for this   ESAs based upon demographic
data is the beginning of April     factors that reflect the
2020.                              characteristics of early adopters.
Additional data records are        The baseline of heat pump and
sourced from public subsidy        direct electric heating
records and other sources such     installations is based on analysis
as the Feed in Tariff, the         of Energy Performance
Capacity Market, planning          Certificate data and Renewable
records and the Renewable Heat     Heat Incentive reports.
Incentive.

                                                                    16
westernpower.co.uk                                                       WPD DFES 2020 – Methodology
Creating the DFES projections
The pipeline analysis process

                                                                             “
Sites with an accepted network         Factors which are specific to
connection offer are individually      different technologies were also          Over 350 individual
assessed to establish when and if      included in the pipeline research.
they will connect. Records of
planning applications, network
                                       For example Capacity Market
                                       activity is a key factor in the
                                                                                 pipeline sites were
connection offers, and online
information is used to assess
                                       pipeline treatment of thermal
                                       generation and storage pipeline
                                                                                 assessed, across a
progress.                              sites.
                                                                                 range of generation
Where possible, direct discussions     The planning applications of the
are had with the developers of the     individual pipeline sites are also        and storage

                                                                                                          ”
pipeline sites to identify the stage   assessed. The weighting given to
of development and key factors
affecting the connection year.
                                       a successful or undecided
                                       planning application varies by
                                                                                 technologies.
                                       technology, as planning is a larger
                                       barrier for some generation
                                       technology types than others.

                                                                      17
westernpower.co.uk                                                                          WPD DFES 2020 – Methodology
Creating the DFES projections
                          Projections driven      Wind       Solar      Hydro        AD         Fossil     Diesel     Heat     Electric   Energy    Marine     Biomass
                          by:                                           power        biogas     gas                   pumps    vehicles   storage   energy

Technology-specific       Analysis of pipeline
projections are           sites                      ●          ●          ●            ●          ●          ●         ○        ○          ●          ●          ●
created at ESA level to
                          ESA-level resource
create the DFES
                          availability               ●          ●          ●            ●          ○          ○         ○        ○          ○          ●          ●
projections.
                          The business-case for
                          development                ●          ●          ●            ●          ●          ●         ●        ●          ●          ●          ●
                          ESA-level social
                          factors                    ○          ●          ○            ●          ○          ○         ●        ●          ●          ○          ○
   Key:
                          FES 2020                   ●          ●          ●            ●          ●          ●         ●        ●          ●          ●          ●
                          assumptions
       ●                                           In line    In line    In line      In line    In line    In line   Led by    Led by    Led by     In line    In line
   Core factor            Local authority
                          factors                    ●          ●          ●            ●          ●          ○         ●        ●          ●          ●          ●
       ●
                          National policies and
 Secondary factor
                          regulations                ●          ●          ●            ●          ●          ●         ●        ●          ●          ●          ●
       ○                  Local stakeholder
     Unused               input                      ●          ●          ●            ●          ●          ●         ●        ●          ●          ●          ●

                                                                                18
westernpower.co.uk                                                                                                                   WPD DFES 2020 – Methodology
Creating the DFES projections
                                                            Proportion of homes
                                                            not connected to the
Demographic and social factors                              gas network
                                                            Source:
Projections for household-    These demographic and         UK Gov LSOA estimates of
                                                            households not connected to the gas
scale technologies such       social factors are assumed    network
as heat pumps, rooftop        to have a greater impact in
solar PV and battery          the near term, during
electric cars, are most       which low carbon              DFES uses local factors to
                                                            model the uptake of new
affected by demographic       technologies move from        technologies. People in off-gas
and social factors.           being niche to more           properties are currently more
                                                            likely to install low carbon heat
                              widespread adoption. In       technologies such as heat
For example heat pump         the medium and long term      pumps.
deployment is impacted by     therefore, uptake is much
off-gas homes, building       more widely distributed.
types, and energy
efficiency ratings. These
factors interact with other
factors such as affluence
or national policies or
financial incentives.

                                                            19
westernpower.co.uk                                                                                WPD DFES 2020 – Methodology
Creating the DFES projections
Geographic resource assessments                            Agricultural land
                                                           grade
Projections for generation   Distance from housing,
technologies such as         proximity to the
                                                           Resource factors are key to
onshore wind and solar       distribution network and      the uptake and location of
farms are weighted           agricultural land grade are   several renewable
                                                           technologies.
towards more                 also included in the
geographical and             spatial analysis.             Solar farms are typically
resource factors.                                          found on lower grade
                             These spatial resource        agricultural land, however
                                                           other spatial factors such as
Renewable generation is      assessments are verified      hill slope, housing and
particularly reliant on      against existing projects,    network availability are all
                                                           critical too.
areas of good resource,      pipeline sites and in
for instance high wind       conversation with
speed or solar irradiance.   developers.
Other key considerations
are natural constraints
including ground slope
angle, National Parks and
other protected areas.

                                                           20
westernpower.co.uk                                                                         WPD DFES 2020 – Methodology
DFES reconciliation with FES
Reporting consistency across DFES and FES
The WPD DFES 2020 uses the same             The set of underlying assumptions in FES
scenario definitions as the National Grid   2020 are incorporated wherever possible
ESO FES 2020. This means there is a         in WPD DFES. Further technology-specific
common and consistent framework and         assumptions are made in DFES, for
set of assumptions that allow for           example around the deployment of
comparison between the studies. The         projects in the pipeline.
scenarios are updated annually by the
FES team.                                   Like the range of FES documents, the
                                            suite of WPD DFES publications is
The technology types used in DFES and       designed to suit a variety of stakeholder
FES data have been standardised for         needs. A summary of results and the
better consistency. In some areas, Regen    underlying assumptions by each
and WPD have included greater detail. For   technology is published for each licence
example, the standard ‘I&C’ demand          area, alongside the data available through
technology type is divided into 10 sub-     the WPD DFES map hub. A summary of
                                                                                         DFES results are available online at the WPD map hub
technologies for WPD DFES, as these         the stakeholder consultation event, these
developments can have wide ranging          methodology slides and a DFES ‘in 5
impacts on the network.                     minutes’ report are also published.

                                                                  21
westernpower.co.uk                                                                                     WPD DFES 2020 – Methodology
DFES reconciliation with FES
Data reconciliation across DFES and FES
The WPD DFES results are produced at ESA           Any technology specific assumptions and
level and as part of the analysis is aggregated    reasons for variance between the local DFES
up to be compared with FES data published at       and FES results are published in the WPD
both national and GSP level.                       DFES summary reports for each licence area.
The WPD DFES uses FES as a framework and           Typical regional and local variations include:
benchmark but in addition reflects the regional
and local factors for each technology and          •   Resource availability
scenario. Therefore some variance between          •   Historic factors
the DFES and FES views is expected.
                                                   •   Political factors
This variation is typically greatest in the near
term as the DFES projections are based             •   Stakeholder input
primarily on analysis of the pipeline sites.
                                                   •   Pipeline analysis
In the medium and long term there is more
convergence, although specific local resource      •   New technology adoption factors              DFES results are available online at the WPD map hub

availability or factors raised by stakeholders
continue to affect the DFES results out to 2050.

                                                                       22
westernpower.co.uk                                                                                                WPD DFES 2020 – Methodology
Next steps
The WPD DFES 2020 suite of output                  If you have any questions in relation to
documents is now available online:                 WPD’s Network Strategy work, please
•     Stakeholder feedback summary                 contact WPD on the details below:
      reports – available here                     Email:
•     Data available through the map hub           wpdnetworkstrategy@westernpower.co.uk
•     Technology results and assumptions           By post:
      reports                                      Network Strategy Team
•     Methodology walkthrough slides               Western Power Distribution
                                                   Feeder Road
•     DFES Regional Review summary                 Bristol
      reports                                      BS2 0TB

The DFES is an annual process conducted by WPD and Regen, the WPD DFES 2021
process will begin in February 2021.
WPD Distribution Managers are in contact with local authorities to discuss the results.
The stakeholder engagement process runs from February to July 2021, if you have
information to feed into the creation of the local factors for the DFES 2021 please get in
contact using the above details.                                                              DFES results are available online at the WPD map hub

                                                                        23
westernpower.co.uk                                                                                      WPD DFES 2020 – Methodology
If you have any questions in relation to WPD’s
          Network Strategy work, please contact WPD on the
          details below:
          Email: wpdnetworkstrategy@westernpower.co.uk

westernpower.co.uk
You can also read