Results: Searching for 'UK Electricity Market'

This note provides an overview and guide to a process of assessment being undertaken by the UK Energy Research Centre Technology and Policy Assessment function (TPA), with support from the Carbon Trust.

The UKERC has consulted widely on the topics that the TPA needs to consider. It has chosen its preliminary topics carefully, in consultation with stakeholders and in accordance with defined criteria. Intermittency – used herein as shorthand for a range of issues that relate to the costs and electricity system impacts of the intermittent electrical output from wind, solar and some other forms of grid connected renewable generation – has emerged as one of two initial TPA assessment topics.

The TPA will undertake meta-analysis of existing work in order to seek gaps in knowledge, examine different modelling assumptions, and consider how well different pieces of work fit together. The assessment will seek to make clear where and why differences arise in terms of models, assumptions, scenarios and interpretation of findings. It will identify research gaps and provide a clear statement of the nature of the questions that remain.

A key goal is to achieve high standards of rigour and transparency. We have therefore set up a process that is inspired by the evidence based approach to policy assessment undertaken in healthcare, education and social policy, but that is not bound to any narrowly defined method or techniques. The approach entails tight specification of the means by which we will consult stakeholders and solicit expert input, highly specified searching of the relevant literature, and clear and transparent criteria against which relevant findings will be assessed. It is described in the Review Protocol, below.

An introduction to the subject matter and description of assessment activities are provided in this scoping note and protocol.

• the collection of electrical energy offshore from multiple renewable energy farms,
• the transportation of electrical energy generated by these offshore farms to the UK shoreline,
• the connection and integration into the onshore power system.

• a clear understanding of the key issues concerning the connection of multiple renewable energy farms off the UK coast
• assessments of the likely technical limits concerning the integration of offshore renewable energy systems into the UK power system
• recommendations for new, optimised solutions for the grid connection of multiple offshore renewable energy farms, including the provision of design concepts for offshore HVDC electrical systems
• identification of technology development opportunities for the industry.

• Distributed Smaller Windfarms
• Large Windfarms
• Very Large Windfarms
• Small Marine Case
• Medium Wave Case
• Large Tidal Case
• Combined Tidal and Wind Case

1. Offshore renewable scenarios – to define the timeline of the expected volumes of offshore renewable generation capacities
2. State of the art of offshore network technologies – establishment of the current state of the art of offshore network technologies and their prospective future development path
3. Analysis at individual farm level – identification of the challenges and resultant technology opportunities from connection of individual large-scale offshore wind or marine energy farms to the UKgrid system, and recommendations for connection solutions for investigation.
4. Analysis at multiple farm level – evaluation of the optimal architecture(s) that could be developed to collect, manage and transmit back to shore the electrical energy produced by multiple, large-scale offshore renewable energy farms.

• Description of the approach taken towards the modelling activities, the models developed, the software tools utilised, an overview of the studies performed (including performance, high level impact on the onshore system), details of the raw inputs and outputs of the studies, and an interpretation of these outputs. ?
• Methodologies for the optimal design and selection of the electrical infrastructure for individual offshore renewable energy farms, both for connections within a farm and for connections to the onshore system. This includes comments for potential new grid connection specifications relating to these infrastructure approaches and proposals for new and/or revised Grid Code requirements.
• ?Control system implications of the selected individual offshore renewable energy farm configurations.
• ?Preliminary comparative economic assessments of the connection of individual offshore renewable energy farms into the onshore UK grid. Data used has predominately been derived from previous1SKM studies for the ETI. Where new assumptions are made these are included in this report. ?
• Specific architectures from the scenarios report and the state of the Art Technology reports were considered together with some additional ideas such as polyphase systems and storage solutions. ?
• Further recommendations of the technology development opportunities for ETI.

1. Offshore renewable scenarios – to define the timeline of the expected volumes of offshore renewable generation capacities
2. State of the art of offshore network technologies – establishment of the current state of the art of offshore network technologies and their prospective future development path
3. Analysis at individual farm level – identification of the challenges and resultant technology opportunities from connection of individual large-scale offshore wind or marine energy farms to the UKgrid system, and recommendations for connection solutions for investigation.
4. Analysis at multiple farm level – evaluation of the optimal architecture(s) that could be developed to collect, manage and transmit back to shore the electrical energy produced by multiple, large-scale offshore renewable energy farms.

1. Offshore renewable scenarios – to define the timeline of the expected volumes of offshore renewable generation capacities
2. State of the art of offshore network technologies – establishment of the current state of the art of offshore network technologies and their prospective future development path
3. Analysis at individual farm level – identification of the challenges and resultant technology opportunities from connection of individual large-scale offshore wind or marine energy farms to the UKgrid system, and recommendations for connection solutions for investigation.
4. Analysis at multiple farm level – evaluation of the optimal architecture(s) that could be developed to collect, manage and transmit back to shore the electrical energy produced by multiple, large-scale offshore renewable energy farms.

• Distributed Smaller Windfarms
• Large Windfarms
• Very Large Windfarms
• Small Marine (tidal and wave)
• Medium Wave
• Large Tidal
• Combined Tidal and Wind

1. Offshore renewable scenarios – to define the timeline of the expected volumes of offshore renewable generation capacities
2. State of the art of offshore network technologies – establishment of the current state of the art of offshore network technologies and their prospective future development path
3. Analysis at individual farm level – identification of the challenges and resultant technology opportunities from connection of individual large-scale offshore wind or marine energy farms to the UKgrid system, and recommendations for connection solutions for investigation.
4. Analysis at multiple farm level – evaluation of the optimal architecture(s) that could be developed to collect, manage and transmit back to shore the electrical energy produced by multiple, large-scale offshore renewable energy farms.

• There were two main primary areas of focus for offshore network technologies:.
  1. Submarine cable systems - critical to the development of networks because they contribute such a significant element in terms of project cost, risk and technology developments and also impact on the optimisation of system architectures.
  2. HVDC systems utilising technology which currently exists are able to be applied to support the development of offshore renewables for projects which are growing in size,complexity and connection distance
• Interoperability and control issues and barriers to integration of technologies from different suppliers were not seen as significant.
• Major bottlenecks in the supply chain over the next 30 years - excluding those linked to wind turbines, the major constraint identified was that of subsea cables, where there is no UK subsea cable manufacturing capability.
• Technology Opportunities where ETI could focus future research: -
  • HVDC voltage standardisation ?
  • HVDC circuit breakers ?
  • HVDC multi-terminal control standardisation ?
  • HVAC collector voltage optimisation studies ?
  • Offshore cable reliability and repair improvements ?
  • Pilot projects to connect small generation sized units using direct DC connections ?
  • Alternative technologies for production of higher voltage power electronic devices
  • ?Alternatives to replace HVAC export cables
  • ?Offshore platform design including standardisation on approach for fire protection.
  • ?Marinisation of offshore connection equipment

• the collection of electrical energy offshore from individual and multiple renewable energy farms,
• the transportation of bulk electrical energy generated by these offshore farms to the UK shoreline,
• the connection and integration of these offshore farms into the onshore power system.

UKERCs response provides commentary and analysis on many of the wide range of topics encompassed in the consultation. This includes the overall vision and objectives, case for change, the evaluation criteria defined by BEIS, locational pricing and local markets, lessons from other countries, changes to wholesale markets and incentives for low carbon generation, flexibility and capacity.

Our response provides detailed and evidence-based analysis on each of these complex topics, drawing on UKERC research and wider outputs. We highlight some of the complex trade-offs involved and argue for a cautious and gradualist approach that builds on the progress already made in some areas.

• variation in capacity growth requirements;
• available physical space; and
• land value

• smart grid solutions;
• fault current limiters;
• energy storage; and
• conventional reinforcement

1. Evaluate the potential role and economics of plug-in vehicles in the low carbon transport system: generate a quantified understanding of the market potential, cost models and carbon benefits case under defined scenarios of infrastructure investments, government intervention packages and finance model options across a number of key plug-in vehicle type/size/capability points; and
2. Develop the technology tool-kit for delivering an intelligent infrastructure: create a verified open interoperability architecture and generate information to aid infrastructure planning (e.g. to indicate how many recharging points are needed and where they should be located, what mix of power levels are required, how the impact of plug-in vehicle recharging on the electricity distribution network should be managed, how the overall system can be simplified for consumers, etc).

• PiEV recharging infrastructure requirements are presented for domestic, commercial and public applications.
• Power requirements, which are fundamental to determine PiEV connection capacities and ultimately system design solutions are determined for a range of recharging scenarios.
• Significant standards are discussed.
• A description of technology options is carried out for connectors, recharge points, DC recharging, inductive recharging and mitigation measures such as local load management and energy storage.
• The requirements capture, standards review and technology options are used to present system designs for a range of scenarios

1. Evaluate the potential role and economics of plug-in vehicles in the low carbon transport system: generate a quantified understanding of the market potential, cost models and carbon benefits case under defined scenarios of infrastructure investments, government intervention packages and finance model options across a number of key plug-in vehicle type/size/capability points; and
2. Develop the technology tool-kit for delivering an intelligent infrastructure: create a verified open interoperability architecture and generate information to aid infrastructure planning (e.g. to indicate how many recharging points are needed and where they should be located, what mix of power levels are required, how the impact of plug-in vehicle recharging on the electricity distribution network should be managed, how the overall system can be simplified for consumers, etc).

1. wall box (e.g. for domestic or workplace locations);
2. public charge post (e.g. for use on street);
3. DC charger (for very high power transfer); and
4. inductive charger (to avoid physical connections).

1. Evaluate the potential role and economics of plug-in vehicles in the low carbon transport system: generate a quantified understanding of the market potential, cost models and carbon benefits case under defined scenarios of infrastructure investments, government intervention packages and finance model options across a number of key plug-in vehicle type/size/capability points; and
2. Develop the technology tool-kit for delivering an intelligent infrastructure: create a verified open interoperability architecture and generate information to aid infrastructure planning (e.g. to indicate how many recharging points are needed and where they should be located, what mix of power levels are required, how the impact of plug-in vehicle recharging on the electricity distribution network should be managed, how the overall system can be simplified for consumers, etc).

• The key finding is that moderate uptake of plug-in vehicles could cause significant challenges for distribution networks, if demand from recharging is uncontrolled.
• The constraints arise largely from voltage drop and unbalance, violation of transformer and cable thermal limits, increases in network losses, fault levels and issues such as harmonics and step voltage changes.
• Traditional network reinforcement, by way of substation upgrades and cable reinforcement, is likely to be increasingly inefficient in terms of accommodating the incremental and unpredictable loads expected from plug-in vehicles and heat-pumps.
• If uptake is expected to be significant, a ‘smart grid’ approach is recommended.

1. Evaluate the potential role and economics of plug-in vehicles in the low carbon transport system: generate a quantified understanding of the market potential, cost models and carbon benefits case under defined scenarios of infrastructure investments, government intervention packages and finance model options across a number of key plug-in vehicle type/size/capability points; and
2. Develop the technology tool-kit for delivering an intelligent infrastructure: create a verified open interoperability architecture and generate information to aid infrastructure planning (e.g. to indicate how many recharging points are needed and where they should be located, what mix of power levels are required, how the impact of plug-in vehicle recharging on the electricity distribution network should be managed, how the overall system can be simplified for consumers, etc).

1. evaluate the different ways in which recharging infrastructure may be provided in the UK and recommend the requirements for the UK deployment;
2. evaluate the main cost drivers for plug-in vehicle recharging infrastructure, enabling a realistic forecast to be generated; and
3. determine the regulatory, legislative and commercial issues associated with recharging infrastructure and recommend how they should evolve for the UK deployment.

1. Evaluate the potential role and economics of plug-in vehicles in the low carbon transport system: generate a quantified understanding of the market potential, cost models and carbon benefits case under defined scenarios of infrastructure investments, government intervention packages and finance model options across a number of key plug-in vehicle type/size/capability points; and
2. Develop the technology tool-kit for delivering an intelligent infrastructure: create a verified open interoperability architecture and generate information to aid infrastructure planning (e.g. to indicate how many recharging points are needed and where they should be located, what mix of power levels are required, how the impact of plug-in vehicle recharging on the electricity distribution network should be managed, how the overall system can be simplified for consumers, etc).

• Stage 1: Concept Design (definition of hypotheses, model development and experimental design)
• Stage 2: Detail Design (planning the implementation of an environment to test the models developed in Stage 1)
• Stage 3: Construction (implementation and pre-commissioning testing environment)
• Stage 4: Operation (data-gathering, analysis and hypothesis/model testing)
• Stage 5: Exploitation (evaluation, communication, standardisation, etc)

1. Evaluate the potential role and economics of plug-in vehicles in the low carbon transport system: generate a quantified understanding of the market potential, cost models and carbon benefits case under defined scenarios of infrastructure investments, government intervention packages and finance model options across a number of key plug-in vehicle type/size/capability points; and
2. Develop the technology tool-kit for delivering an intelligent infrastructure: create a verified open interoperability architecture and generate information to aid infrastructure planning (e.g. to indicate how many recharging points are needed and where they should be located, what mix of power levels are required, how the impact of plug-in vehicle recharging on the electricity distribution network should be managed, how the overall system can be simplified for consumers, etc).

1. Evaluate the potential role and economics of plug-in vehicles in the low carbon transport system: generate a quantified understanding of the market potential, cost models and carbon benefits case under defined scenarios of infrastructure investments, government intervention packages and finance model options across a number of key plug-in vehicle type/size/capability points; and
2. Develop the technology tool-kit for delivering an intelligent infrastructure: create a verified open interoperability architecture and generate information to aid infrastructure planning (e.g. to indicate how many recharging points are needed and where they should be located, what mix of power levels are required, how the impact of plug-in vehicle recharging on the electricity distribution network should be managed, how the overall system can be simplified for consumers, etc).

• This work package identified six principal actors:
  • Government & Regulation
  • Electric Vehicle Charging Services
  • Vehicle and Infrastructure Providers
  • Other Service Providers
  • Electricity Supply Chain
  • Electric Vehicles and Owners / Users
• From the information flow and motivations between these actor, an an open architecture solution is proposed.
• Implementation could be
  
  • Strategic, ie planned for long term results on a large scale, or
  • Organic ie piecemeal, adapting to immediate local needs.
• Standards will be needed to allow interconnectivity of devices and data flow.
• Recommended next steps include
  • Publication and wide dissemination of the proposed system architecture.
  • Ongoing engagement of a broad range of stakeholders
  • Investment in a demonstration project
  • Engagement of key stakeholders in the Government and regulatory space

1. Evaluate the potential role and economics of plug-in vehicles in the low carbon transport system: generate a quantified understanding of the market potential, cost models and carbon benefits case under defined scenarios of infrastructure investments, government intervention packages and finance model options across a number of key plug-in vehicle type/size/capability points; and
2. Develop the technology tool-kit for delivering an intelligent infrastructure: create a verified open interoperability architecture and generate information to aid infrastructure planning (e.g. to indicate how many recharging points are needed and where they should be located, what mix of power levels are required, how the impact of plug-in vehicle recharging on the electricity distribution network should be managed, how the overall system can be simplified for consumers, etc).

• Executive Summary (also available as a separate document)
• Section 1: Introduction
• Section 2: Infrastructure Requirements
• Section 3: Business Design
• Section 4: System Design
• Section 5: Realization
• Appendices (in separate documents)
  • A - supporting Section 2 (Infrastructure Requirements)
    
    • A1: Intelligent Infrastructure Requirements
    • A2: Intelligent Infrastructure Standards Requirement
  • B -supporting Section 3 (Business Design)
    
    • B: Conceptual Business Architecture
  • C - supporting Section 4 (System Design)
    • C1: Conceptual Application Architecture
    • C2: Conceptual Data Architecture
    • C3: Conceptual TechnicalArchitecture
  • D - supporting Section 5 (Realization)
    • D1: Plan for Architecture Realisation
    • D2: Standards Gap Assessment Report
    • D3: Delivery Phases, Options, Costs and Risks

1. Evaluate the potential role and economics of plug-in vehicles in the low carbon transport system: generate a quantified understanding of the market potential, cost models and carbon benefits case under defined scenarios of infrastructure investments, government intervention packages and finance model options across a number of key plug-in vehicle type/size/capability points; and
2. Develop the technology tool-kit for delivering an intelligent infrastructure: create a verified open interoperability architecture and generate information to aid infrastructure planning (e.g. to indicate how many recharging points are needed and where they should be located, what mix of power levels are required, how the impact of plug-in vehicle recharging on the electricity distribution network should be managed, how the overall system can be simplified for consumers, etc).

• Introduction
• High Level System Context Views
• System Context Diagram – Inputs and Outputs
• Key Events and Data Entity Definitions
• Non Functional Requirements
• High Level Initial Use Case Model
• Appendix 1 : Acceptance Criteria
• Appendix 2 : Intelligence Levels

1. Evaluate the potential role and economics of plug-in vehicles in the low carbon transport system: generate a quantified understanding of the market potential, cost models and carbon benefits case under defined scenarios of infrastructure investments, government intervention packages and finance model options across a number of key plug-in vehicle type/size/capability points; and
2. Develop the technology tool-kit for delivering an intelligent infrastructure: create a verified open interoperability architecture and generate information to aid infrastructure planning (e.g. to indicate how many recharging points are needed and where they should be located, what mix of power levels are required, how the impact of plug-in vehicle recharging on the electricity distribution network should be managed, how the overall system can be simplified for consumers, etc).

• Introduction
• Context for Vehicle Standards Requirements
• Candidate Areas for Standards
• Appendix 1 : Examples of current activity on standards
• Appendix 2 : Sources

1. Evaluate the potential role and economics of plug-in vehicles in the low carbon transport system: generate a quantified understanding of the market potential, cost models and carbon benefits case under defined scenarios of infrastructure investments, government intervention packages and finance model options across a number of key plug-in vehicle type/size/capability points; and
2. Develop the technology tool-kit for delivering an intelligent infrastructure: create a verified open interoperability architecture and generate information to aid infrastructure planning (e.g. to indicate how many recharging points are needed and where they should be located, what mix of power levels are required, how the impact of plug-in vehicle recharging on the electricity distribution network should be managed, how the overall system can be simplified for consumers, etc).

• ExecutiveOverview
• Introduction
• Development of the Model
• Evolutionary Models
• Possible Further Use of the CBM

1. Evaluate the potential role and economics of plug-in vehicles in the low carbon transport system: generate a quantified understanding of the market potential, cost models and carbon benefits case under defined scenarios of infrastructure investments, government intervention packages and finance model options across a number of key plug-in vehicle type/size/capability points; and
2. Develop the technology tool-kit for delivering an intelligent infrastructure: create a verified open interoperability architecture and generate information to aid infrastructure planning (e.g. to indicate how many recharging points are needed and where they should be located, what mix of power levels are required, how the impact of plug-in vehicle recharging on the electricity distribution network should be managed, how the overall system can be simplified for consumers, etc).

• ExecutiveOverview
• Introduction
• Overall Conceptual Component Relationship Diagram
• Conceptual Component Relationship Diagrams – Evolutionary Phases .
• Conceptual Component Relationship Diagrams – Static Relationship View
• Conceptual Application Architecture - Component Descriptions
• Conceptual Application Architecture – Component Interaction Matrix
• Overview of potential component context for domestic charging
• Conceptual Application Architecture – Logical Layers

1. Evaluate the potential role and economics of plug-in vehicles in the low carbon transport system: generate a quantified understanding of the market potential, cost models and carbon benefits case under defined scenarios of infrastructure investments, government intervention packages and finance model options across a number of key plug-in vehicle type/size/capability points; and
2. Develop the technology tool-kit for delivering an intelligent infrastructure: create a verified open interoperability architecture and generate information to aid infrastructure planning (e.g. to indicate how many recharging points are needed and where they should be located, what mix of power levels are required, how the impact of plug-in vehicle recharging on the electricity distribution network should be managed, how the overall system can be simplified for consumers, etc).

• Executive Overview
• Context and Scope for Conceptual Data Architecture
• High Level Subject Area Data Model
• Conceptual Data Model .
• Relationship to other artefacts .

1. Evaluate the potential role and economics of plug-in vehicles in the low carbon transport system: generate a quantified understanding of the market potential, cost models and carbon benefits case under defined scenarios of infrastructure investments, government intervention packages and finance model options across a number of key plug-in vehicle type/size/capability points; and
2. Develop the technology tool-kit for delivering an intelligent infrastructure: create a verified open interoperability architecture and generate information to aid infrastructure planning (e.g. to indicate how many recharging points are needed and where they should be located, what mix of power levels are required, how the impact of plug-in vehicle recharging on the electricity distribution network should be managed, how the overall system can be simplified for consumers, etc).

• Executive Overview
• Operational Modelling
• Conceptual Technical Architecture Content .
• Walkthrough Diagrams
• Relationship to other artefacts
• Appendix: Outline for non functional characteristics and levels

1. Evaluate the potential role and economics of plug-in vehicles in the low carbon transport system: generate a quantified understanding of the market potential, cost models and carbon benefits case under defined scenarios of infrastructure investments, government intervention packages and finance model options across a number of key plug-in vehicle type/size/capability points; and
2. Develop the technology tool-kit for delivering an intelligent infrastructure: create a verified open interoperability architecture and generate information to aid infrastructure planning (e.g. to indicate how many recharging points are needed and where they should be located, what mix of power levels are required, how the impact of plug-in vehicle recharging on the electricity distribution network should be managed, how the overall system can be simplified for consumers, etc).

• Executive Overview
• Introduction
• Prerequisites
• Stage 2 the Scope of the Intelligent Infrastructure
• Stage 2 Plan on a Page
• Intelligent Infrastructure Components
• Appendix 1: Conceptual Functional Description
• Appendix 2: Capability View of the Component Business Model for the EV Market (relevant to the Intelligent Infrastructure)

1. Evaluate the potential role and economics of plug-in vehicles in the low carbon transport system: generate a quantified understanding of the market potential, cost models and carbon benefits case under defined scenarios of infrastructure investments, government intervention packages and finance model options across a number of key plug-in vehicle type/size/capability points; and
2. Develop the technology tool-kit for delivering an intelligent infrastructure: create a verified open interoperability architecture and generate information to aid infrastructure planning (e.g. to indicate how many recharging points are needed and where they should be located, what mix of power levels are required, how the impact of plug-in vehicle recharging on the electricity distribution network should be managed, how the overall system can be simplified for consumers, etc).

• Executive Overview
• Introduction
• Key messages
• Standards Required
• Process and Governance for the Development of Standards
• List of Candidate Areasfor Standards
• Existing Standards Bodies Activity

1. Evaluate the potential role and economics of plug-in vehicles in the low carbon transport system: generate a quantified understanding of the market potential, cost models and carbon benefits case under defined scenarios of infrastructure investments, government intervention packages and finance model options across a number of key plug-in vehicle type/size/capability points; and
2. Develop the technology tool-kit for delivering an intelligent infrastructure: create a verified open interoperability architecture and generate information to aid infrastructure planning (e.g. to indicate how many recharging points are needed and where they should be located, what mix of power levels are required, how the impact of plug-in vehicle recharging on the electricity distribution network should be managed, how the overall system can be simplified for consumers, etc).

• Executive Overview
• IntroductionRecap of the Intelligent Infrastructure Requirements (Smart Phase)
• Effect of Emerging Technologies on the Intelligent Infrastructure
• Systems Integration and Settlement within the Intelligent Infrastructure
• Intelligent Infrastructure Realization, Budgetary Estimates (Smart Phase)
• Appendix A: Conceptual Design Detail
• Appendix B: Budgetary Estimates for Simple Evolutionary Phase
• Appendix C: Budgetary Estimates for Semi-Intelligent Evolutionary Phase
• Appendix D: Requirements Recap - High Level Use Cases

1. Evaluate the potential role and economics of plug-in vehicles in the low carbon transport system: generate a quantified understanding of the market potential, cost models and carbon benefits case under defined scenarios of infrastructure investments, government intervention packages and finance model options across a number of key plug-in vehicle type/size/capability points; and
2. Develop the technology tool-kit for delivering an intelligent infrastructure: create a verified open interoperability architecture and generate information to aid infrastructure planning (e.g. to indicate how many recharging points are needed and where they should be located, what mix of power levels are required, how the impact of plug-in vehicle recharging on the electricity distribution network should be managed, how the overall system can be simplified for consumers, etc).

• Moderate uptake of plug-in vehicles could cause significant challenges for distribution networks if demand from recharging is uncontrolled
• Traditional network reinforcement, by way of substation upgrades and cable reinforcement, is likely to be increasingly inefficient
• Distribution Network Operators (DNOs) will need to move away from the conventional, passive reinforcement approach towards a ‘smart grid’ approach
• Success isalso reliant on effective consumer engagement, the costs of which are challenging to forecast.

This paper considers GB electricity market and network regulatory arrangements in the context of transitioning to a low carbon electricity system. By considering some of the primary features of a low carbon electricity system and building on themes raised by a previous UKERC Supply Theme paper (Baker, 2009), the paper attempts to identify what characteristics an appropriate market and regulatory framework would need to posses. The paper goes on to consider how existing market arrangements perform in these areas and the possible need for change.

The aim of the paper is to contribute to the debate on energy market reform that is now underway. Currently, discussion seems to be focussing primarily on how to ensure adequate investment in low carbon and, in the medium term, conventional generation to meet the UKs climate change and security of supply goals. Delivering the necessary generation capacity is clearly crucial and by reviewing some of the mechanisms that could be used to encourage investment, this paper attempts to contribute in this area. However, the paper also addresses other areas where reform may be required but that have, to date, received less attention; issues such as arrangements to ensure efficient dispatch and energy balancing, efficient mechanisms to deal with network congestion and measures necessary to facilitate demand side participation.

The approach taken by the paper is incremental in nature, focussing on how current market arrangements may need to develop in the coming years, rather than proposing radical change. It is likely that successfully decarbonising the electricity sector may ultimately require a fundamentally different market design and that change, particularly in relation to low-carbon investment, may be requiredsooner rather than later. However, the transition to a low carbon electricity system will be gradual and arguably best served by incremental change in response to demonstrated need.

This meeting of independent experts addressed institutional arrangements for implementing UK Electricity Market Reform (EMR). It was convened jointly by the UK Energy Research Centre (UKERC) and the Imperial College Centre for Energy Policy and Technology (ICEPT). Institutional issues are closely tied to arrangements for a proposed Capacity Mechanism. Discussions at the workshop reflected this link.

The meeting considered both the general shape of the Electricity Market Reform (EMR) package and the four specific elements proposed in the Department for Energy and Climate Change (DECC) and HM Treasury (HMT) consultations. This summary covers first the generic aspects and then, more briefly, the four specific elements.

This report is an account of the discussion; comments are nonattributed. Opinions expressed in the report do not necessarily represent UKERC’s views. Arrangements for the meeting were facilitated by the UKERC Meeting Place.

This briefing note describes the amount of gas contained within Great Britain’s gas transmission and distribution networks, and how this changes over a day to support variations in demand. The hourly data covers the 63-month period from 2013-01-01 to 2018-03-07.

The amount of gas contained within the higher-pressure tiers of Britain’s gas transmission and distribution network is termed ‘linepack’; literally, it is the amount of gas packed into the pipelines.

Linepack is proportional to the pressure of the gas in the pipelines, increasing the pressure increases the amount of gas, and thus the energy contained therein. The amount of linepack changes throughout the day due to the varying levels of pipeline pressure. This flexing of pressure provides a method to help match the supply and demand for gas within a day.

The scale of energy that can be stored and released by varying linepack highlights its importance as a means of operational flexibility, helping to balance the changes in national primary energy demand.

The scale of the within-day flexibility currently provided by the natural gas transmission and distribution networks points to a formidable energy systems challenge; how to provide low-carbon within-day flexibility to future energy systems at a reasonable cost.

1. Construction of a set of socio-technical scenarios of air conditioning uptake,
2. Dynamic building simulation to estimate half hourly power consumption of air conditioning in archetypal single buildings,
3. Addition of air conditioning demand to existing prediction of 2050 national grid demand (National Grid Two Degrees 2050 scenario).

• Representative electricity transmission network model: Electricity networks modelled for 275kV and 400 kV network capacity
  • The increase in the costs is proportional to the increase in the network length for the same network capacity and installation date.
  • For the same installation date, NPV total per km is higher for the higher capacity network.
• Representative Electricity Distribution Model: Electricity network modelled in rural, semi-urban, urban and London context
  • The share of costs represented by each of the Assemblies changes slightly from 2020 to 2040, following the same trend in all contexts, except for London.
  • Residential connections represent one of the highest costs in all contexts.
  • The LV network makes a high contribution to total cost in the urban context while in London the LV substations make the highest contribution.
  • First costs per capita increase as the context changes from rural through to urban areas.
  • First costs per capita decrease slightly from urban to London contexts.
  • The NPVs per capita increase as the density increases.
  • One additional factor that influences costs in different contexts is their different lifecycle profiles.
• Generic upgrade costs at transmission scale: upgrading existing 275kV and 400kV lines to increase capacity by ~100%
  • For the same installation date, Capex NPV per km is higher for the installation of a higher voltage network.
  • Opex NPV per km is higher for higher voltages
• Rapid car charging: upgrading existing distribution networks to allow for connection of rapid car charging units
  • Costs for the upgrade of the distribution network are dominant in all variations and contexts.
  • For the same number of connection points at the same installation date the installation of rapid charge connections is more costly in the semi-urban context.
  • he first costs and NPV per connection fall as the number of connections increases, which indicates that it is more cost effective to install a group of charging points than isolated single charging points.
• Rapid car charging: impact of network reinforcement that could be required due to significant increase in electric vehicles in a residential context (semi-urban and urban)
• The analysis is based on the assumption that there is a 50% increase in peak load due to a significant increase in the use of EVs.
• The LV network represents the highest share of reinforcement costs in all contexts, with costs per capita being higher in urban areas than semi-urban areas.
• Storage v reinforcement: analysis to explore the costs of storage compared with conventional reinforcement in three different applications –increase in local demand; distributed energy exporting to grid; installation of rapid car charging units
  • The analysis suggests that considering current prices for electricity storage,l reinforcement is cheaper both in terms of Capex and Opex.
  • Car charging: local generation may improve the potential for storage if the existing OHL has limited potential to charge batteries during periods of low demand.
• Fault Current Limiter v Reinforcement
  • Conventional reinforcement is currently more cost effective than refurbishment of the substation with the installation of the FCL
• Power electronics: assessing the costs of using power electronics using STATCOMS for rural windfarms with utility scale battery storage
  • STATCOMs: the costs of the complementary utility scale battery dominate. 
  • The impact of the utility scale battery on the costs of the project increases at the later installation date
• Power electronics: assessing the costs of using power electronics using back-to-back HVDC connection for coupling DNO networks
  • The costs of the back-to-back converter dominate
• Cost comparison of up grading HVAC vs installing new HVDC at transmission level in rural areas–within an existing wayleave and in a new wayleave
  • One of the main differences between HVDC and HVAC is intransmission losses.
  • There is significant uncertainty with the planning consent process for installing new or refurbishing existing HVDC OHLs in the UK

• Technical Barriers
  • Line Commutated Converters (LCC)
  • Voltage Source Converters (VSC)
  • Converting AC Transmission Lines to DC Transmission
  • Underground DC Transmission
  • Multi-terminal VSC
  • HVDC Circuit Breakers
• Non-Technical Barriers
  • Costs Associated with Multi-terminal HVDC Links
  • Environmental Concerns
  • Supply Chain Issues

• Appendix A.Barriers to Development of FACTS Devices in UK Grid (Task 4; begins on page 11)
  • The FACTS (Flexible AC Transmission Systems) devices considered in this report, SVCs, STATCOMs and TCSCs, do not appear to have any major technological barriers to further utilisation and development. The major barriers for further utilisation are cost and footprint.
  • Historically in the UK, the advantages offered by the FACTS devices have not, generally, been deemed to merit the high costs and large footprints required. However, this may change as more generation is sited far away from load centres.The requirement to control greater power flows over a larger transmission network will necessitate more voltage and power flow control equipment.
  • It does not appear that cost of the systems will diminish greatly but some of the alternatives, such new lines, are increasingly more expensive and problematic. These drivers and the likely expansion of HVDC may put a strain on the small core of engineers competent to design FACTS and HVDC devices.
  • Each of the active network management technologies discussed have individual barriers to development but the largest general concern expressed by network operators is that of creating niche pockets of non-standard technology around the network and causing legacy problems. To overcome these issues it will be necessary to develop and demonstrate modular solutions that will allow staff to plan, design, maintain and operate ANM systems across the network in a standard manner, preferably not too dissimilar to current methods. The use of ANM has the potential to change the operation of the transmission and distribution networks in the UK but it will be necessary to develop and adopt flexible industry standards and frameworks to allow this to occur.
    
    
• Appendix B.Environmental and Social Impacts of FACTS Devices in UK Grid (Task 5; starts page 37)
  • This report is focussed on the potential environmental and social impacts associated with the application of FACTS (Flexible AC Transmission Systems) in the UK transmission and distribution network to provide enhanced network power flows and as a result release more capacity within the T&D systems.
  • The assessment was done in terms of ecology, designated sites, noise, overhead lines, substations, mitigation options, construction noise, landscape and visual impact, air quality, cultural heritage, hydrology, land contamination, land use, waste, access and traffic management, socio-economic factors (such as employment, benefits to local businesses during construction, loss of recreational areas) EMF exposure and impacts on carbon balance.
  • When considering each candidate technology the characteristic that appears to have the most influence on the potential for environmental impacts is the associated footprint. Another important consideration is that all but one of the options would be sited alongside an existing substation while the other requires the development of an entirely new site.
  • With these factors in mind the two preferred candidate options from an environmental perspective are:
    • Static synchronous compensators (STATCOMs); and
    • Thyristor Controlled Series Compensators (TCSCs) at either end of the selected line

• There are a number of important issues in the onshore grid system that is a function of the grid network, rather than the technologies themselves.
• New wide band-gap materials such as silicon carbide (SiC) andgallium nitride have the potential to deliver increased power electronic device voltage ratings, reduced switching losses, and raised operating temperatures. This has the potential for significant impact on the cost and performance of power electronic converters.
• The deployment of TCSCs on selected transmission corridors in the UK may improve the grid system’s ability to recover to stable operation following selected (unplanned) double circuit outages.
• In some circumstances, HVDC transmission can provide benefits by enabling long distance power transmission, eliminating reactive power flows from long HVAC cable circuits and enabling asynchronous system connections.
• The conversion of selected transmission corridors from AC to HVDC may improve the grid system’s ability to recover to stable operation following selected (unplanned) double circuit outages
• Multi-terminal HVDC (necessary for embedding DC interconnectors in a meshed system) is feasible with both LCC and VSC technologies.
• For a given transmission tower (‘pylon’) size significantly more power can be transmitted on a DC circuit than on an AC circuit (typically two to three times).
• There appears to be no benefit case for converting individual transmission lines in the UK Grid to HVDC to gain additional transmission capacity
• A total of 26 specific technology opportunity areas were identified by the project consortium as worth further examination by the ETI.

• Section 2: The conversion process and the resulting harmonics generated at HVdc terminals, and filtering requirements and the relevant standards.
• Section 3: Options, issues and experience with conversion of AC overhead linesto HVDC lines.
• Section 4: HVDC cable technology
• Section 5: Multi-terminal HVSC controls.

• Technologies Overview
• Power Electronic Devices
• Flexible AC Transmission Systems (FACTS) Devices
• Active Network Management
• HVDC Transmission Technology and Multi-Terminal Schemes
• Performance of Technologies Integrated into UK Grid
• Social and Environmental Impacts
• Technical and Non-Technical Barriers
• Multi-Criteria Technology Assessment
• Opportunities

• Appendix A: TransGrid Solutions Report : Assessment of Performance of Onshore HVDC Systems Integrated into the UK AC Grid (WP2 Task 2; starts on page 12)
  This study looked at integrating HVdc technology into the UK grid by converting existing HVac lines into HVdc lines in order to improve the transmission capacity in selected transmission corridors. The outcome of this study is a qualitative assessment that evaluates the performance of the system following the conversion of selected AC lines to Voltage Source Converter (VSC) HVdc and Line-Commutated Converter (LCC) HVdc, and makes a comparison with the performance of the system without the line conversions. Each line conversion scenario therefore compared three schemes: VSC HVdc, LCC HVdc and AC. Schemes were compared exclusively in terms of their relative impact on transmission system performance, rather than on aspects such as cost or environmental impact.
• Appendix B: Impact of new onshore multi-terminal HVDC (WP 2 Task 3; starts on page 108)
  This report has focused on evaluating the impact of replacing an existing HVAC transmission circuit with an HVDC scheme. As can be seen in section 2.2.3, the required post-fault ratings, for a UK 400 kV double circuit transmission corridor, are in excess of 4 GW. In complying with SQSS specifications, there is negligible benefit of attempting to increase this transmission corridor capacity by replacing it with an onshore HVDC scheme primarily due to economic reasons. The benefits of using an onshore HVDC scheme could be maximised by installing a lowerrating (<4 GW) onshore HVDC cable link in parallel with an existing transmission corridor. However the impact of this application has not been studied as part of this report.

1. Feasibility of new technology application:Assessment ofthe feasibility of using new technologies now emerging in the marketplace, and those in development, to provide increased T&D capacity and improved management of network power flows, in order to facilitate increasedrenewable energy installation levels in the UK.
2. Feasibility of onshore multi-terminal HVDC:Assessment of the technical feasibility of an onshore multi-terminal HVDC systemdeployed in the UK, its performance when integrated with an existing AC gridnetwork, and the technology implications and benefits case for the conversion of existing AC lines to DC operation.

• Appendix A. Smarter Grid Solutions Report: Technology Options, Benefits and Barriers Workshop Review (Task 6; starts page 11)
  The main objectives of the workshop were to:
  • Ensure all participants are informed about project activities and expected outcomes
  • Consider the relative merits of the technologies under review
  • Identify all issues that translate into benefits or barriers for the technologies under review
  • Identify and prioritise assessment criteria
  • Assess the range of opinions on uncertain, controversial and subjective issues
  • •Identify and assess technology development opportunities
  The workshop satisfied all of these objectives
  
  
• Appendix B. Smarter Grid Solutions Report: Multi-Criteria Assessment of Technologies (Task 7; starts page 42)
  This workshop looked at the interaction between various factors in selecting the most appropriate area of further investigation. The assessment results indicated that the assessment criteria would be fulfilled most effectively by pursuing the following development options:
  
  • Investigate use of energy storage to help solve ANM constraints
  • Commission work on new HVDC systems/topologies
  • Prompt changes in regulatory framework to change business drivers
  • Develop effective DC breaker or blocking capability
  An alternative interpretation of the analysis is to focus on the one criterion that was ranked most highly, which was the potential to reduce CO₂ emissions. The development options that were considered to perform best for this single criterion were:
  • Prompt changes in regulatory framework to change business drivers
  • Support R&D in new devices for greater capability/performance
  • Commission work on new HVDC systems/topologies
  • Develop effective DC breaker or blocking capability
  • Investigate use of energy storage to help solve ANM constraints
  Energy storage was highlighted as being of particular interest and very relevant to the challenges faced in connecting more renewables to the existing system. It is an important outcome of this work that energy storage did not feature amongst the technologies identified for consideration but when industry stakeholders discussed the objectives and context for the assessment energy storage was highlighted as being of value.
  It is perceived that the technology could be effective in meeting the assessment criteria, including enhancing network capacity and allowing more renewables to connect, but some changes to the regulatory environment may be necessary for this solution to be used widely.

• The principel barriers to deployment of power electronic converterse and distribution level are cost and losses. These are expected to be overcome by advances in technology.
• SVC technology works effectively but is expensive.
• STATCOMS have a limited track record and higher costs and losses
• Barriers to using series compensation in the UK include the extensive modelling required, and the potential for introducing sub-synchronous resonance into the network
• There are no notable barriers to the deployment of phase shifting transformers, which are already in use in the UK
• The main barrier to using dynamocthermal rating is the disruption to existing assumptions and methods in planning and operation of the netowrk.
• Barriers to deployment of active voltage managment include the relatively tight range of acceptable voltages and hte potatneial large impact of generation, the complexity of the relationship between voltages at different parts of a network and the output of connected generation, and the rate of change of voltage and speed of response required.
• Demand side management requires a contractural agreement between the network operator and the user defining the amount of load that can be removed or assigned to the user, the modality of the control and tariffs and penalties applied.

• Energy networks are a core part of the energy system
• Overarching challenges for transitioning networks
• Integrating networks to optimiseacross energy vectors and deliver flexibility
• Decarbonising heat through single and multi-vector routes
• To what extent is energy storage needed?
• Using H₂ storage to maximise use of CCS investment in the power system
• How might storage be operated?
• Salt caverns for hydrogen storage in conjunction with flexible turbines
• Pumped Heat Electrical Storage

The UKERC response to the ofgem consultation 'Getting more out of our electricity networks by reforming access and forward-looking charging arrangements'

The following analysis revisits the relationships between the reserve requirements, the capacity margins needed to maintain the reliability of supplies, the costs of intermittency, the capacity credit for intermittent generation, and several other quantities. It is not put forward as a substitute for full-blown modelling studies, but does provide a reminder of principles and an independent means of checking results. It rests on a few key parameters, principally the means, standard deviations and ranges of the frequency distributions of the various quantities. Whilst this is a simplification, it helps to make the underlying relationships more transparent and enables the analyst to explore the effects of changes in assumptions. It begins with a basic case and then relaxes the assumptions.

There are three questions which recur throughout the paper:

1. What are the required additions to reserves to maintain the reliability of supplies when intermittent generation is substituted for thermal generation? It is unquestionable that the margin will need to rise when the variance of thesupplies increases if supply reliability is to be maintained—but by how much? An alternative way of putting the question is what is the ‘capacity credit’ (defined below) that can be given to intermittent generation?
2. What is the associated increase in system costs that would result from building more wind and less thermal generation?
3.  At the project level, how can we compare the costs of a large wind farm say with the thermal alternative? To answer this, we need to know the answer to (1) above—how much extra ‘reserve’ or ‘backup’ capacity is required for the intermittent resource, and of course what its costs will be.

The paper does not answer questions as to what the optimum reserve margin should be or how it should be determined. There is a long debate on the role of markets and regulation for determining reserve margins which this paper does not get into. Suffice it to say that whatever policy position is taken: (a) in actuality there is at all times a reserve margin, which is the difference between available capacity and demand; (b) this quantity is of interest and needs to be monitored since when it declines the probability of losing load increases; (c) when for policy purposes estimates of the costs of introducing intermittent resources onto the system are being made it is necessary to compare like-with-like such that the costs of introducing them, including the costs of maintaining the reliability of supplies, can be compared with the costs of the alternatives.

This Consultation Response to the House of Lords Science and Technology Committee Inquiry into the resilience of electricity infrastructure.In this response we discuss whether theUKs electricity system is resilient to peaks in consumer demand and sudden shocks, andhow the costs and benefits of investing in electricity resilience are assessed and decisions made.

This report aims to understand and quantify these impacts, and therefore addresses the question ‘What is the evidence on the impacts and costs of intermittent generation on the British electricity network, and how are these costs assigned?’ It is based on a review of over 200 international studies.

This Working Paper has been motivated by the growth of distributed energy resources (DER) on the electricity system in Britain, i.e. generation, storage and flexible demand that is connected at distribution network voltages, and the consultation published by Ofgem and BEIS in November 2016 on the subject of electricity system flexibility. It aims to give a very basic and rapid introduction to some of the issues and their origins.

This UKERC Research Landscape provides an overview of the competencies and publicly funded activities in electric power conversion research, development and demonstration (RD&D) in the UK. It covers the main funding streams, research providers, infrastructure, networks and UK participation in international activities.

UKERC ENERGY RESEARCH LANDSCAPE: ELECTRIC POWER CONVERSION

• Section 1: An overview which includes a broad characterisation of research activity in the sector and the key research challenges
• Section 2: An assessment of UK capabilities in relation to wider international activities, in the context of market potential
• Section 3: Major funding streams and providers of basic research along with a brief commentary
• Section 4: Major funding streams and providers of applied research along with a brief commentary
• Section 5: Major funding streams for demonstration activity along with major projects and a brief commentary
• Section 6: Research infrastructure and other major research assets (e.g. databases, models)
• Section 7: Research networks, mainly in the UK, but also European networks not covered by the EU Framework Research and Technology Development (RTD) Programmes
• Section 8: UK participation in energy-related EU Framework Research and Technology Development (RTD) Programmes
• Section 9: UK participation in wider international initiatives, including those supported by the International Energy Agency

This UKERC Research Landscape provides an overview of the competencies and publicly funded activities in electricity transmission and distribution research, development and demonstration (RD&D) in the UK. It covers the main funding streams, research providers, infrastructure, networks and UK participation in international activities.

UKERC ENERGY RESEARCH LANDSCAPE: ELECTRICITY TRANSMISSION AND DISTRIBUTION

• Section 1: An overview which includes a broad characterisation of research activity in the sector and the key research challenges
• Section 2: An assessment of UK capabilities in relation to wider international activities, in the context of market potential
• Section 3: Major funding streams and providers of basic research along with a brief commentary
• Section 4: Major funding streams and providers of applied research alongwith a brief commentary
• Section 5: Major funding streams for demonstration activity along with major projects and a brief commentary
• Section 6: Research infrastructure and other major research assets (e.g. databases, models)
• Section 7: Research networks, mainly in the UK, but also European networks not covered by the EU Framework Research and Technology Development (RTD) Programmes
• Section 8: UK participation in energy-related EU Framework Research and Technology Development (RTD) Programmes
• Section 9: UK participation in wider international initiatives, including those supported by the International Energy Agency

The UK power system experienced a period of significant and rapid expansion during the late 1980s and in the 1990s. Many power generation assets are now approaching the end of their useful life and need to be replaced as we decarbonise the overall energy system. Developments in distributed generation and other technologies open important questions as to whether the traditional approaches to development and operation of power systems are still adequate and whether the anticipated major re-investment in transmission and distribution networks could be avoided by adopting new technologies such as smart grids, smart meters and a greater emphasis on demand side participation.

High level research issues identified within the UKERC Energy Supply theme cover a number of areas, including:

• Aging infrastructure replacement strategies before failure - models and tools for condition monitoring - risk management of existing T&D infrastructure
• Energy security & system security
• Environmental sustainability reducing the impact of electricity production, transportation and use on the environment (strive to reduce greenhouse gases responsible for climate change) - need to incorporate climate change driven constraints into system planning and operation (EU renewables targets; 80% 2050 CO2 targets; Meeting UK carbon budgets will require large scale decarbonisation of the electricity sector by 2030)
• Integration of distributed generation including intermittent energy technologies & micro generation - what type of network architecture - reliability and power quality - communication and control aspects of networks - incorporation of demand response and demand side participation (impact of smart meters) - role of energy storage
• Incorporation of smart meters and smart grids (impact on demand and networks)
• Transmission (on- and offshore) and distribution network planning under uncertainty of intermittent renewable resources such as wind and the uncertainty of markets and regulatory policy
• Interaction between electricity and gas networks - Integrated network (multi energy vector) research and optimisation
• Encouraging network innovation and low carbon generation through regulation and market design
• Assessing the potential of heat networks
• Impact of greater European market/network integration (gas and electricity)

These projects are reviewed in this report and from these high level research issues, some of the key research challenges identified are summarised as follows:

• Identifying and quantifying the costsand benefits of community heating and energy systems
• Quantifying Costs and Benefits of Integrating UK and EU Energy Infrastructures
• Smart meters and demand side participation
• The role of gas in the UK energy system
• Resilience of gas systems
• Compatibility of energy market and climate objectives and risks in a post EMR world

UKERC endorses the principles underlying the proposed package of reforms and supports the broad direction and aspirations of the EMR. However we believe that the package is unnecessarily complex and that some important issues, such as governance arrangements and price transparency in wholesale markets have received insufficient attention, or are absent.

A system of feed-in tariffs differentiated by and tailored to specific technologies, coupled with a capacity mechanism, would be sufficient to deliver the twin goals of promoting investment in low carbon generation and ensuring security of supply.

The feed-in tariff (FiT) is the key element of the EMR package. However, a one size fits all approach to FiT design is not appropriate. Low carbon technologies are diverse in terms of technological maturity, cost structure and risk profiles and different technologies may merit different approaches.

We regret that fixed FiTs have been excluded as they are the lowest risk option and they have a proven track record globally in encouraging investment in renewables. Contracts for differences (CfDs) may be appropriate for nuclear, while biomass generation and CCS could be supported by premium FiTs. The Emission Performance Standard (EPS) appears to be the most dispensable part of the EMR packages since other measures, such as carbon price support, will effectively inhibit investment in new unabated coal in the UK.

A capacity mechanism will be needed to give assurance that sufficient capacity will be installed to guarantee security of supply though it may be some time before the mechanism is needed.

We would recommend approaching auctions for FiTs with caution as, for many technologies, the pre-conditions for a successfulauction are not in place. These include the need for established technologies, a vibrant, diversified and competitive market, and a well developed supply chain. Administered prices or beauty contest type tenders could be used initially with a move to auctioning at a later date.

The key risk associated with the proposed package is that its complexity and uncertainty surrounding its implementation could lead to an investment hiatus threatening the attainment of both low carbon generation and security of supply goals.

• Without the adoption of a more holistic approach that addresses BETTA structural reform and network regulation, it is difficult to see how a satisfactory resolution of the transmission access issue can be achieved.
• It is proposed that more strategic and unified development of the onshore and offshore network together with the provision of interconnection would be encouraged through common or at least zonal ownership of offshore transmission assets, while cost-effectiveness and the efficient delivery of assets could be achieved through tendering and outsourcing construction.
• Modern distribution networks are not typically designed to accommodate generation; a number of technical and operational challenges will need to be addressed in order for the connection of significant amounts of distributed generation on these networks.
• The consequences of intermittency or variability of input will need to be managed by a combination of retaining conventional plant and developing demand response. Additionally, interconnection with adjacent transmission systems and improved forecasting of wind resource and maintaining geographic diversity of wind generation could also reduce the impacts of intermittency.
• The role of smart grids will be to enhance the capacity and utilisation of the electricity grid (both transmission and distribution) by means other than investing in traditional transmission assets and, via the deployment of smart metering, massively increase the contribution of the demand side to system security and the decarbonisation of the heat and transport sectors.
• UKERC is concerned that a major opportunity will be missed unless there is a timely change to a regulatory regime that encourages objective and costefficient choices between investment and smart grid solutions.