Author(s): Northern Gas Networks, Northern Powergrid, Scottish and Southern Energy Power Distribution, Scottish Power Transmission, SGN, UK Power Networks
As with the electricity network the gas network is well established. It offers national main land coverage, serving approximately 80% of homes in the UK. Homes not connected to the gas grid tend to be either in more remote locations, where it is less cost-effective to provide a connection to the gas grid, or certain types of homes in urban areas which have electric heating (e.g. many apartment buildings).
Changes to the way gas is used have the potential to profoundly affect the gas network, both in terms of where physical assets are needed and how they are operated.
With decarbonisation as the major driving factor the pressure is to reduce gas consumption, in particular in the domestic sector, the largest consuming sector. However, there could be short-term increases in gas consumption in other sectors and even the emergence of new gas consuming sectors.
There are numerous implications for the gas network with the potential requirement for decommissioning of major parts of the network, building new assets and radical changes to the way the network that emerges operates.
These changes bring a focus on the investment and policy decisions that will be needed to ensure that the most cost-effective choices are made in each location for what needs to be built, what needs to be decommissioned and how the continuing gas network integrates with the wider energy system.
This report summarises key themes emerging from the Energy Technologies Institute’s (ETI) project ‘Enabling efficient networks for low carbon futures’. The project aimed to explore the options for reforming the governance and regulatory arrangements to enable major changes to, and investment in, the UK’s energy network infrastructures. ETI commissioned four expert perspectives on the challenges and options facing the UK.
Summaries of the papers produced in carrying out this project are contained in the appendix to this paper and the full papers are published alongside this summary paper.
Energy governance and regulation frameworks – time for a change ? Keith MacLean, February 2016
Enabling efficient future energy networks – what governance and regulation will be needed in 2030 ?. Robert Hull, February 2016
Enabling efficient networks for low carbon futures. Jorge Vasconcelos, February 2016
Markets, Policy and Regulation in a Low Carbon Future. John Rhys, January 2016
The Infrastructure Cost Calculator is a network transition costing tool. It uses a robust, centrally stored database to enable the calculation and comparison of transition costs across the four main energy vectors: electricity, gas, heat and hydrogen. Users can defi ne and compare different scenarios to understand long term investments for a UK transition to a low carbon energy network.
The calculator uses data on the costs and performance associated with fi xed energy infrastructure.The user is able to defi ne and compare infrastructure options associated with a variety of energy generation and demand scenarios across different timescales.The calculator allows the user to compare capital and operating costs, identifying areas of high cost and providing analysis to understand the impact of a wide range of variables; including cost trends, location and start time. The cost ofnew infrastructure or refurbishing, re-purposing and abandoning existing network infrastructure across any scale or level of complexity can be carried out using a clean user friendly interface
Liam Lidstone presented “Multi-Vector Integration” during the session “Integrated and centralised planning for gas and electric networks” at Utility Week Live. This presentation covers
The UK energy system
Integrating networks to optimise across energy vectors
The Networks Jigsaw event took place on the 5th September 2017. The aim of the event was to explore the importance of energy networks and the challenges these networks face in order to support the evolving way energy is provided and consumed in the UK. Speakers at this event included the ETI’s Director of Strategy Development Jo Coleman, Energy Storage and Distribution Programme Manager Rebecca Sweeney, Strategy Manager Liam Lidstone, Strategy Analyst Alex Buckman and Head of Innovation at the Energy Systems Catapult Eric Brown. This report contains the presentations from the event.
ETI’s Strategy Manager Liam Lidstone presented “Transitioning to a low carbon energy system: network challenges” at All Energy 2017 in Glasgow. This presentation covers
ETI’s Strategy Manager Liam Lidstone presents “UK Energy Networks - Transition Challenges” at a Business Energy and Industrial Strategy (BEIS) talk. This presentation covers
Energy networks as a part of the energy system
Energy system scenarios
Network transition challenges
Transitioning electricity networks
Transitioning gas networks
Transitioning heat networks
Transitioning hydrogen networks
Integrating networks to optimise across energy vectors
Balancing supply and demand
Policy and economic factors
Systems thinking is critical, which means across vectors and up and down the energy supply chain.
Over the coming decades the UK energy system will need to transition in order to meet challenging greenhouse gas emissions reductions targets. Population growth, changing demographics, and changing patterns of energy use will all affect how energy needs to be provided.
Equally, the availability of natural resources, the maturity of technologies, their relative costs and the various factors that influence their sustainability, will all affect the ways in which energy can be produced and supplied.
For a variety of practical and economic reasons, energy is rarely created in the location it is ultimately consumed. Networks perform the vital role of transporting energy from where it is produced to where it is required. They also perform a crucial role in helping to balance supply and demand, ensuring that energy is not only available in the right locations but also atthe right time. This part of their role is likely to take on greater significance as the energy system evolves.
Currently, most of the UK’s energy is moved around the country, and sometimes beyond, by electricity and gas networks, and the liquid fuel supply system (e.g. petrol and diesel). The roles of these networks will inevitably change as the ways in which we provide and consume energy evolve and as other networks emerge, not least those carrying heat and hydrogen. It is imperative that all of these networks are fit for purpose and robust enough to respond to future uncertainties. Choices need to be made about which networks to build, develop, maintain or decommission, as well as where and when to do so. As networks can take years or even decades to build, the right decisions must be made ahead of need. Equally, once they are built, networks cannot easily be movedor changed, so decisions need to beright for the long term.
It is also likely that there will need to be significantly more interaction between different parts of the energy system in the future, and therefore, by implication, there will need to be more interaction between the respective networks. Consequently, decisions about the future of networks should also consider how other energy networks are likely to evolve.
All of the above is in the context of significant uncertainty; any future network investments therefore need to be robust in the face of a range of possible transition pathway outcomes.
In this insight report we set out some of the key issues faced over the coming decades in pursuing different choices in relation to energy networks. We have focused on electricity, gas, heat and hydrogen networks, which we believe have vital roles to playover the period out to 2050. Our analysis also highlights the importance of CO2 networks and transport fuel over that period out to 2050.
