Transcript Document
Capacity to Customers Dissemination Event 27 January 2015 1 Steve Cox Head of Engineering 2 Housekeeping Mobile phones Breaks FIRE ? Fire alarms Main Q&A at end of day 3 Connecting the North West £12 billion of network assets 4.9 million 2.4 million 25 terawatt hours 4 Our innovation strategy Offer new services and choice for the future ‘Fit and forget’ Generate value for customers now Maximise use of existing assets Delivering value to customers Proven technology deployable today Innovative solutions to real problems 5 Our smart grid development Leading work on developing smart solutions Deliver value from existing assets Customer choice Four flagship products (second tier) £36 million Capacity to Customers C2C, CLASS and Smart Street demonstrate demand response 6 Agenda C2C Introduction Technical and academic overview Customer research (technical impact) Lunch Customer research (commercial) Commercial review and case studies Summary and next steps 7 What is Capacity to Customers? Capacity to Customers unlocks latent capacity on the electricity network Capacity to Customers Technical innovation Utilised capacity Current demand New commercial contracts Latent capacity Combines proven technology and new commercial contracts Facilitates connection of new demand and generation without reinforcement Remote control equipment on HV circuit and close the NOP Enhanced network management software Effectively doubles the available capacity of the circuit Innovative demand side response contracts Allow us to control a customer’s consumption on a circuit at the time of fault 8 C2C structure and partners Technology build Trials and research Customer engagement Learning and dissemination 9 Traditional network design F A B E C D Normal open point 10 C2C network design F A B E C D Automated restoration software Remote automation Mid-point closed 11 Quality of supply innovation Fault statistics for HV circuits HV 2500 3,600 80% 20% Cumulative faults 2000 1500 1000 500 Faults HV circuits 1000 2000 3000 Number of circuits 12 The C2C concept New customers Existing customers Reduced charge for connecting to the network A variable revenue stream dependent upon level of flexibility 13 Key hypotheses Demand reduction Creates a post fault demand response capability Active network management Network automation creates self healing capability and facilitates capacity release Efficiency Defers/ optimises reinforcement and reduces carbon intensity Domestic customers Commercial customers Closed ring configuration is acceptable to customers Existing or new customers can directly benefit financially by providing the demand response 14 QUESTIONS & ANSWERS 15 Paul Turner Programme Manager 16 Agenda C2C Introduction Technical and academic overview Customer research (technical impact) Customer research (commercial) Commercial review and case studies Summary and next steps 17 How C2C fault management works NOP NOP NOP 18 How C2C fault management works C2C events per year: Maximum duration per event: C2C event start time: 2 Protected day: 1 day, on Friday, August 10, 2014 8 hours Protected time: 09:00 to 17:00 15 minutes Current events per year: 0 19 How C2C fault management works 00:00:00 20 How C2C fault management works 00:00:30 21 How C2C fault management works 00:00:45 22 How C2C fault management works RESTORATION 38 % 00:01:00 23 How C2C fault management works RESTORATION 75 % 00:03:00 24 How C2C fault management works RESTORATION 75 % 00:45:00 25 How C2C fault management works RESTORATION 88 % 00:47:00 26 How C2C fault management works RESTORATION 88 % 00:48:00 27 How C2C fault management works RESTORATION 100 % 00:50:00 28 How C2C fault management works C2C events per year: Maximum duration per event: C2C event start time: 2 Protected day: 1 day, on Friday, August 10, 2014 8 hours Protected time: 09:00 to 17:00 15 minutes Current events per year: 1 29 Restoration time NUMBER OF CUSTOMERS RESTORATION TIME RESTORATION 00:01:00 38 % 00:03:00 75 % 00:47:00 88 % 00:50:00 100 % 30 Architecture SCADA CIM/SOAP NETWORK MODEL 31 P2/6 change consultation Recognise …… Gather views … Short term Granted Mixed views …… customer load modification to P2/6, management and on ability of ER P2/6 explicitly including a from P2/6 allderogation DNOs regarding demand response ‘Security of Supply’ effects of2side DSR on the the need C C for trial this circuits derogation 32 C2C academic research How … When … What … £ … does the network perform ... ? … is it cost effective ...? … is the carbon impact ... ? 33 Steven Blair University of Strathclyde 34 Network performance results overview Main objectives – C2C hypotheses Overview of results and analysis Demand capacity DG capacity Losses Power quality Fault levels 35 Applicable C2C hypotheses Customers Reduces power losses Quality Release significant capacity to customers from existing infrastructure Reduce like-forlike power losses initially but this benefit will gradually erode as newly released capacity is utilised Improve power quality resulting from stronger electrical networks 36 Assessing the base case 37 Assessing impact of network configuration Radial C2C Interconnected C2C 38 Assessing the impact of demand growth 39 C2C demand capacity – uniform growth 40 C2C demand capacity – uniform growth Average increase in demand capacity: + 59% radial + 66% interconnected 41 C2C demand capacity – “point” load growth 42 C2C DG capacity 43 C2C DG capacity Average increase in DG capacity: + 175% radial + 225% interconnected 44 Losses – as demand increases Interconnected C2C “activated” NOP closed 45 Losses – effect of network configuration 46 Losses – summary of results (for maximum connected demand) 47 Power quality monitoring 77 “PQube” devices installed for C2C trial Three-phase voltage and current measurements THD and flicker Objectives • • • Validate data Compare radial vs. interconnected operation Can C2C operation affect power quality? 48 Quantifying impact of C2C on power quality Validate time synchronisation Find observation windows for fair comparison Ensure data windows are complete 49 C2C: change in power quality? Radial C2C Interconnected C2C THD Flicker (Pst) Minor impact on THD and flicker 50 Change in THD: theoretical results Monte Carlo simulations Randomised: • Feeder impedances • Harmonic injection • Demand 51 Fault levels for C2C operation Three causes of potential increase in fault level: Fault-contributing demand growth (motors) DG growth Interconnection – reduced fault path impedance Must investigate increase at: • Primary substations • NOPs 52 Fault level increase +12% Interconnected operation ~1% at primary ~12% at NOP C2C adds, at most +12% at primary +22% at NOP As of 2014, most circuits at +22% HV design fault level 60% of design rating at primary 10-50% of design rating at NOP 250 MVA 53 Conclusions Reduction due to Interconnected Interconnected C2C operation C2C has very Fault levels are C2C operation generally little observable unlikely to releases more impact on constrain C2C Maximum Up to 225% capacity than power quality adoption ~0.3% increase increase in DG Radial C2C in losses (as % capacity of demand) Up to 66% increase in demand capacity Results depend significantly on circuit topology and load/DG locations There are no “typical” circuits 54 Visualisation of C2C monitoring data http://c2c.eee.strath.ac.uk/ 55 Eduardo Martinez-Cesena University of Manchester 56 Objectives and outline Objectives Present the developed distribution network expansion assessment framework and underlying results Highlight the conditions that allow C2C to be applied Outline Background: Traditional distribution planning and the C2C method Investment assessment: Ofgem’s CBA framework Methodology: Proposed CBA framework Results: The 36 TRIAL networks 57 Current distribution planning paradigm (a) Normal operation NOP (open) (b) Contingency NOP (open) (c) Emergency NOP (closed) Traditional practices lead to costly investments in spare capacity to comply with security criteria l This spare capacity is seldom used 58 The C2C method – overview Traditional C 2C Loads: Inflexible Interruptible Loads: Inflexible NOP (normally open) Constraints: Preventive security Thermal Voltage Expectations: – Automated NOP (normally closed) DSR DSR Constraints: Corrective security Thermal Voltage Expectations: Increased capacity Lower CI and CML Reduced power losses The C2C method facilitates the evolution from passive and preventive to active and corrective distribution networks 59 CBA – Overview and drawbacks Ofgem released a Cost Benefit Analysis (CBA) framework for the assessment investments at the distribution level ££ ! Facilitates consistent assessment and comparison of different investment options, such as reinforcements and the C2C method CBA is deterministic Assessment is dependent on scenario characteristics of the solution objectives No systematic approach to formulate a baseline or other investment strategies is provided 60 CBA methodology – generalities The proposed approach is based on Ofgem’s CBA, detailed DSR models, demand growth scenarios and bespoke simulation and optimisation engines 61 Methodology – Imperfect forecasts 25 Scenario 1 Imperfect forecasts Demand growth (%) 20 Scenario 2 Scenario 3 15 Scenario 4 10 5 Scenario 5 0 1 6 11 16 21 Time period (years) 62 Simulated investment strategies Baseline Traditional line and substation reinforcements needed whenever firm capacity is approached C 2C Closure of NOP and investments in network automation and DSR needed to defer or avoid investments recommended by the baseline and traditional reinforcements only when DSR has been exhausted 63 Optimised investment strategies NPCI NPCI+S OSI (Optimal OSS (Optimal investment Scheme investment Scheme based on the NPCI): based on the NPCI+S): Optimal combinations of Optimal combination of traditional line and traditional line and substation substation reinforcements and C2C reinforcements and C2C interventions to interventions to minimise investment minimise investment costs and social costs 64 Simulation and optimisation engines Scen. 2 Baseline C2C Upgrade Year Line1-2 Substation Line2-3 4 5 15 NPCI:669 k£ NPCI+S:1265 k£ 4 Line1-2 Substation 9 10 NPCI:452 k£ NPCI+S:1039 k£ 5 Line1-2 5 NPCI:227 k£ NPCI+S:780 k£ OSI Upgrade Year Upgrade C2C Substation Line1-2 5 17 17 C2C Line1-2 Substation NPCI:623 k£ NPCI+S:1053 k£ C2C 10 NPCI:241 k£ NPCI+S:712 k£ C2C 6 NPCI:55 k£ NPCI+S:468 k£ OSS Year Upgrade 5 17 17 C2C Line1-2 Substation NPCI:606 k£ NPCI+S:1232 k£ C2C 10 NPCI:226 k£ NPCI+S:853 k£ C2C 6 NPCI:39 k£ NPCI+S:632 k£ Year 1 17 17 NPCI:626 k£ NPCI+S:1021 k£ C2C 1 NPCI:247 k£ NPCI+S:645 k£ C2C 1 NPCI:59 k£ NPCI+S:428 k£ 65 C2C study results All demand The substation Line DSR profiles were is assumed to reinforcement availability was scaled up to have a costs were assumed to be trigger line headroom of assumed to be 1, 2 or 5 blocks reinforcements 3%, 8%, 18% 100%, 50% (0.5 MW each after an and 40% and 25% of block) additional 3% their calculated demand growth value 66 Assessment of the 36 trial networks NPCI as a function of line reinforcement costs 350 300 NPCI 250 200 150 NPCI as a function of line reinforcement costs 100 50 0 0 20 40 60 80 Line reinforcement costs (%) Baseline C2C OSI 100 120 OSS 67 Assessment of the 36 trial networks NPCI as a function of substation headroom 500 NPCI 400 300 NPCI as a function of line reinforcement costs 200 100 0 0 10 20 30 Substation headroom (%) Baseline C2C OSI 40 50 OSS 68 Assessment of the 36 trial networks NPCI as a function of DSR availability 350 300 NPCI 250 200 150 NPCI as a function of line reinforcement costs 100 50 0 0 1 2 3 4 5 Maximum amount of DSR blocks available Baseline C2C OSI 6 OSS 69 Concluding remarks £ C2C based investment The optimised Under the baseline strategies tend to investment strategies assumptions, the C2C outperform the baseline (ie, OSI and OSS) tend based and optimised when reinforcement to outperform other strategies generally costs are significant strategies in most outperform the baseline and, particularly, when a cases by combining by 14% NPCI (6% substation C2C an traditional NPCI+S) and 33% NPCI reinforcement is nigh interventions (30% NPCI+S), respectively 70 Assessment of the 36 trial networks NPCI+S as a function of line reinforcement costs NPCI+S 1000 900 800 700 600 500 400 300 200 100 0 NPCI as a function of line reinforcement costs 0 20 40 60 80 Line reinforcement costs (%) Baseline C2C OSI 100 120 OSS 71 Assessment of the 36 trial networks NPCI+S as a function of substation headroom 1200 NPCI+S 1000 800 600 NPCI as a function of line reinforcement costs 400 200 0 0 10 20 30 Substation headroom (%) Baseline C2C OSI 40 50 OSS 72 Assessment of the 36 trial networks NPCI+S as a function of DSR availability 1000 NPCI+S 800 600 NPCI as a function of line reinforcement costs 400 200 0 0 1 2 3 4 5 Maximum amount of DSR blocks available Baseline C2C OSI 6 OSS 73 John Broderick The Tyndall Centre 74 What are the carbon impacts of C2C? Increased network capacity key to decarbonising UK energy systems Emissions Business as usual baseline Emissions reduction What does C2C offer over traditional reinforcement? Approach based on UN Clean Development Mechanism Emissions after implementation or project tp = Project Start Time (t) 75 Headlines £ C2C substantially reduces the immediate carbon impact of additional network capacity, potentially up to 250 tCO2e per circuit Optimum reinforcement with a combination of C2C and traditional asset upgrades would be least cost and deliver a lower carbon system than C2C alone Savings of up to 55% of carbon impact over a 45 year time frame observed in some circuits, although median benefit is ~10% Facilitated reductions can be substantial but are usually smaller than benefit of losses reduction 76 Net carbon impact Emissions impacts (reductions and increases) over 45 year period are modest, typically ±10%, and vary substantially between circuits Absolute Net Carbon Impact, Demand Growth Scenario 3 7000 Net Carbon Impact tCO2e 6000 5000 4000 3000 2000 1000 0 Base Sc3 IC2C Sc3 77 Net carbon impact Impacts are lower if reinforcement is assumed to be driven by the growth of renewable DG The C2C method is more beneficial in these circumstances 3000 Absolute net carbon impact, RDG scenario 3 Net Carbon Impact tCO2e 2500 2000 1500 1000 500 0 Base Sc3 IC2C Sc3 OSS Sc3 78 What are the carbon impacts of C2C? Scope and classification of impacts Adopt GHG Protocol core principles for calculating emissions reductions “Asset carbon” Relevance discrete measure of emissions embodied in materials and construction Completeness “Operational carbon” continuous measure of indirect emissions from changes in losses, related to the UK grid carbon intensity Consistency Transparency “Facilitated reductions” indirect effects on low carbon generators or consumers due to quicker release of capacity Accuracy 79 What are the carbon impacts of C2C? Calculation approach and data sources Assets Operations Facilitated reductions Trial customer quotations indicate type of assets used in each example Network power flow modelling for quantities of losses Databases for emissions factors: Bath University ICE v2.0, EcoInvent v2.2, Institute of Civil Engineers (ICE) CESMM3 Carbon & Price Guidebook (2011) OfGEM, DECC and National Grid Future Energy Scenarios for grid emissions factor Assumptions on low carbon technology performance from literature Cost Benefit Analysis modelling for network reinforcement under multiple scenarios 80 Asset carbon findings Cable is not the only source of asset carbon in network reinforcement GHG emissions per km HV cable installed Emissions from civil works are overlooked but substantial, especially when under carriageways Impacts are at least seven times greater than Turconi et al’s estimate of ~7 tCO2e/km 81 Asset carbon findings Emissions embodied in assets for traditional reinforcement at potential C2C sites 60.0 50.0 40.0 tCO2e 30.0 20.0 10.0 0.0 MMU Student Customer 1 Union Europlast Customer 2 Warburton's Bakery G-Mex Metrolink Customer 3 Customer 4 Cable ELBR Lane House Farm Customer 5 Duct Trial quotations illustrated the scale and proportion of assets likely to be deployed at single sites l Data was fed into scenario modelling 82 Asset carbon approach GHG emissions LoadFirm growth percapacity kmscenarios HV cable installed Asset Carbon Impact 83 Asset carbon findings Box plot of asset carbon reduction Across the 36 circuits and five demand growth scenarios, asset carbon savings are up to 260tCO2e 300 250 100 50 OSS Sc5 OSS Sc4 OSS Sc3 OSS Sc2 OSS Sc1 IC2C Sc5 IC2C Sc4 IC2C Sc3 0 IC2C Sc2 For 8% of cases the same physical investments as traditional reinforcement are required to deliver the necessary capacity but at a later date 150 IC2C Sc1 tCO2e 200 84 Operations carbon approach capacity Carbon content LoadFirm growth of grid electricity scenarios scenarios Operations Carbon Impact 85 tCO2e 600 500 400 300 200 100 0 -100 -200 Whalley Range Woodley Whalley Range Woodley IC2C Carbon Reduction - Renewable Distributed Generation IC2C carbon reduction – renewable distributed generation scenario 3 Scenario 3 St Annes -1400 St Annes Spa Road South East Macc Sale Royton Roman Rd Reddish Vale Musgrave Moss Nook Monton Middleton… Levenshulme 2 Levenshulme Hyndburn Rd Hyde Holme Rd Higher Mill Heywood Griffin Greenhill Green Lane Great Harwood Farnworth Exchange St Droylsden East Dickinson St Denton East Crown Lane Clover Hill Chatsworth St Chassen Rd Chamber Hall Castleton ASSETS Spa Road South East Macc Sale Royton Roman Rd Reddish Vale Musgrave Moss Nook Monton Middleton… Levenshulme 2 Levenshulme Hyndburn Rd Hyde Holme Rd Higher Mill Heywood Griffin Greenhill Green Lane Great Harwood Farnworth Exchange St Droylsden East Dickinson St Denton East Crown Lane Clover Hill Chatsworth St Chassen Rd -900 Chamber Hall Ashton on… -400 Castleton 100 Ashton on… tCO2e Operations carbon findings ICCarbon reduction -–Demand demand Growth growth scenario 33 IC2C Reduction Scenario 2C carbon 1100 600 OPERATIONS 86 tCO2e 700 600 500 400 300 200 100 0 -100 -200 -300 Woodley Whalley Range St Annes Spa Road Woodley Whalley Range St Annes Spa Road South East Macc Sale Royton Roman Rd Reddish Vale Musgrave Moss Nook Monton Middleton Junction Levenshulme 2 Levenshulme Hyndburn Rd Hyde Holme Rd Higher Mill Heywood Griffin Greenhill Green Lane Great Harwood Farnworth Exchange St Droylsden East Dickinson St Denton East Crown Lane Clover Hill Chatsworth St Chassen Rd Chamber Hall Castleton Ashton on Mersey ASSETS South East Macc Sale Royton Roman Rd Reddish Vale Musgrave Moss Nook Monton Middleton… Levenshulme 2 Levenshulme Hyndburn Rd Hyde Holme Rd Higher Mill Heywood Griffin Greenhill Green Lane Great Harwood Farnworth Exchange St Droylsden East Dickinson St Denton East Crown Lane Clover Hill Chatsworth St Chassen Rd Chamber Hall Castleton 3600 3100 2600 2100 1600 1100 600 100 -400 -900 -1400 Ashton on Mersey tCO2e Operations carbon findings OSS Carbon Reduction - Demand Growth Scenario 3 OSS carbon reduction – demand growth scenario 3 OPERATIONS OSS Carbon Reduction - Renewable Distributed Generation OSS carbon reduction – renewable distributed generation scenario 3 Scenario 3 87 Facilitated reductions Facilitated carbonReduction reduction for Facilitated Carbon for EV EV demand Demandgrowth Growth 30.0 25.0 tCO2e 20.0 15.0 10.0 5.0 0.0 IC2C Sc1 IC2C Sc2 IC2C Sc3 IC2C Sc4 IC2C Sc5 Facilitated Carbon Reduction for Renewable Distributed Facilitated carbon reduction for renewable distributed generation Generation 200.0 180.0 160.0 tCO2e 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 IC2C Sc1 IC2C Sc2 IC2C Sc3 IC2C Sc4 IC2C Sc5 88 Sensitivity to scenario assumptions Demand Growth Scenarios OSS Approach 3500 3000 Carbon Reduction /tCO2e 2500 2000 Sc1 Sc2 Sc3 Sc4 Sc5 1500 1000 500 0 -500 -1000 Largest benefit generally under Scenario 4 l Least under Scenario 1 89 Sensitivity to scenario assumptions Renewable Distributed Generation Scenarios OSS Approach 700 Sc1 600 Sc2 Sc3 Sc4 Sc5 Carbon Reduction /tCO2e 500 400 300 200 100 0 -100 -200 -300 Renewable DG less consistent but largest benefit also generally under Scenario 4 and least under Scenario 5 90 Sensitivity to scenario assumptions IC1400 2C Gone Green net carbon reduction (RDG scenario 1) Whalley Range Spa Road Sale Roman Rd Musgrave Monton Levenshulme 2 Hyndburn Rd Holme Rd Heywood Greenhill Great Harwood Exchange St Dickinson St Crown Lane -600 Chatsworth St -100 Chamber Hall 400 Ashton on Mersey tCO2e 900 Carbon content of grid electricity scenarios IC2C CCGT net carbon reduction (RDG scenario 1) 1400 Whalley Range Spa Road Sale Roman Rd Musgrave Monton Levenshulme 2 Hyndburn Rd Holme Rd Heywood Greenhill Great Harwood Exchange St Dickinson St Crown Lane -600 Chatsworth St -100 Chamber Hall 400 Ashton on Mersey tCO2e 900 Grid emissions factors assumptions make a larger difference than variation between growth scenarios Reductions in losses are more significant if they are assumed to come from a high carbon source 91 tCO2e -100 -300 -500 -700 Woodley Whalley Range St Annes Spa Road South East Macc Sale Royton Roman Rd Reddish Vale Musgrave Moss Nook Monton Middleton Junction Levenshulme 2 Levenshulme Hyndburn Rd Hyde Holme Rd Higher Mill Heywood Griffin Greenhill Green Lane Great Harwood Farnworth Exchange St Droylsden East Dickinson St Denton East Crown Lane Clover Hill Chatsworth St Castleton Woodley Whalley Range St Annes Spa Road South East… Sale Royton Roman Rd Reddish Vale Musgrave Moss Nook Monton Middleton… Levenshulme 2 Levenshulme Hyndburn Rd Hyde Holme Rd Higher Mill Heywood Griffin Greenhill Green Lane Great Harwood Farnworth Exchange St Droylsden East Dickinson St Denton East Crown Lane Clover Hill Chatsworth St Chassen Rd Chamber Hall -800 Chassen Rd -600 Chamber Hall -400 Ashton on… -200 Castleton 0 Ashton on Mersey tCO2e Sensitivity to scenario assumptions 20 years OSS net carbon reduction (demand growth scenario 1) 600 400 200 -1000 45 years OSS net carbon reduction (demand growth scenario 1) 700 500 300 100 92 Conclusions A new methodology has been demonstrated finding C2C substantially More detail and Circuits are reduces the understanding currently not immediate carbon than simple optimised for impact of “capacity release” losses additional measures is minimisation. network capacity, possible and Combination of potentially up to worthwhile C2C and 250 tCO2e per traditional asset circuit upgrades would be least cost and deliver a lower carbon system With optimum combination, savings of up to 55% of carbon impact over 45 years have been observed although median benefit is ~10%. Assumed grid emissions factors pay a large role in determining the quantitative but not qualitative outcomes 93 QUESTIONS & ANSWERS 94 Kate Quigley Future Networks Customer Manager 95 Agenda C2C Introduction Technical and academic overview Customer research (technical impact) Customer research (commercial) Commercial review and case studies Summary and next steps 96 Customer hypotheses and objectives Domestic customers Commercial customers Closed ring configuration is acceptable to customers Existing or new customers can directly benefit financially by providing the demand response To engage with domestic customers about C2C To understand the impact of C2C on customers’ supplies To communicate C2C to industrial and commercial (I&C) customers To explore the appeal of C2C and the uptake of C2C contracts 97 Customer hypotheses and objectives Domestic customers Commercial customers Closed ring configuration is acceptable to customers Existing or new customers can directly benefit financially by providing the demand response To engage with domestic customers about C2C To understand the impact of C2C on customers’ supplies To communicate C2C to industrial and commercial (I&C) customers To explore the appeal of C2C and the uptake of C2C contracts 98 Engaged customer panel Carlisle - domestic Manchester - domestic Manchester – I&C Cross section of customers Three phases of research 3 x 90 minute focus groups Objective: to identify the optimum method of communicating C2C in a simple manner to domestic customers on trial circuits 99 ECP recommendations Should we communicate with customers on trial circuits? Yes Why should we do so? Important public information with good news about our customers’ electricity supply What format should the communication take? A simply worded leaflet What should it say? Our role as DNO, benefits of C2C, power cut advice, priority service register, contact details When should it be delivered? Delivered proactively before trial started in April 2013 To whom should it be delivered? All customers on trial circuits 100 Lesson learned – domestic customers Relationship between DNO and supplier still confusing Customers are supplier focussed C2C is too complex for many customers to understand Customers think it’s their right to know about changes to their supply, particularly if message is positive Information should be simple and informative Customers want to know more about their DNO Customers want to know what to do in a power cut 101 Understanding impact on customers Objective: To understand the impact of C2C on customers’ supplies Measure customers’ Compare perceptions perceptions of with customers not on power quality trial circuits Dissemination 102 David Pearmain Advanced Methods Director Impact Research 103 Summary of surveys completed 656 quantitative interviews 5 groups of customers I&C customers who have signed up to the trial • Target of 10 interviews per wave • Completed 17 interviews in YTD I&C customers who have not signed up to the trial but are on trial circuits • Target of 10 interviews per wave • Completed 30 interviews in YTD Domestic customers who are on trial circuits • Target of 100 interviews per wave • Completed 312 interviews in YTD Domestic customers who are not on trial circuits • Target of 100 interviews per wave • Completed 301 interviews in YTD New connections who have signed up to the trial • Target of 10 interviews per wave • Completed 2 interviews in YTD 104 Power cut frequency Do you feel the frequency of power cuts has increased, decreased or stayed the same since April/start of C2C? YTD I&C customers signed up to the trial I&C customers signed up to the trial (17) Net% 12% I&C thetrial trialcircuits but on I&Ccustomers customersnot notsigned signedup up,toon trial circuits (27) 4% Domestic customers on trial circuits Domestic customers on trial circuits (295) 8% 82% 81% Decreased 15% 89% Domestic customers not on trial circuits 7% Domestic customers not on trial circuits (286) New connections signed up to the trial New connections signed up to the trial (2) 6% 2% 87% 50% Stayed the same +6% -11% +6% 0% 6% 50% -50% Increased The majority of customers claim there has been no change in the frequency of power cuts since the trial started If a change has been detected on C2C circuits, overall it is a positive one 105 Power cuts on trial circuits Have you experienced a power cut at your property since April 2013? YTD I&Ccustomers customerssigned signed to I&C upup to the trial the trial Have you recently noticed any dips or spikes in your power from time to time? YTD 1 -customers I&C customers whoup have I&C signed to signed up to the trialthe (n=17) trial 24% I&C customers not signed up to I&C customers not signed the trial but on trial circuits up, on trial circuits 21% 2 - I&C customers who have not I&C up customers signed to the trialnot butsigned are on up, on (n=30) trial circuits trial circuits Domestic customers on trial Domestic customers circuits on trial circuits 19% 3 - Domestic customers who Domestic customers are on trial on circuits trial (n=312) circuits DomesticDomestic customerscustomers not on trial circuits not on trial circuits New connections signed up to New connections the up trialto the trial signed 19% 23% 19% 4 - Domestic customers who Domestic customers are not onnot trialon circuits (n=301) trial circuits 27% 100% 5 - New connections who have New connections signed up to the trial signed up to the(2)trial 26% 0% The proportion of domestic customers who claim to have experienced a power cut since C2C began is significantly lower for those on trial circuits 106 Power cut comparison How does the total number of power cuts you have experienced in the last year compare to previous years? YTD 1 - I&C customers who have signed I&C customers signed up up to to the the trial trial (n=7) 14% 2 - I&C customers who have not signed up to the I&C customers not signed up, on trial circuits trial but are on trial circuits (n=7) 14% 3 - Domestic customers who are on trial circuits Domestic customers on trial circuits (n=86) 4 - Domestic customers who are not on trial Domestic customers not on trial circuits circuits (n=90) Less than in previous years 43% 23% Similar to previous years -29% 43% 29% 11% Net % 57% -43% 79% 45% 10% 32% +2% -9% More than in previous years Domestic customers on non-trial circuits are more likely to have noticed changes in the number of faults they have experienced over the last year 107 Power cut duration Do you feel the duration of power cuts has increased, decreased or stayed the same since April/start of C2C? YTD 1 - I&C customers who have signed up to the I&C customers signed up to the trial trial (9) 2 - I&C customers who have not signed up to I&C customers not signed up, on trial circuits the trial but are on trial circuits (12) 11% 17% 3 - Domestic customers who are on trial circuits Domestic (177) customers on trial circuits 4% 4 - Domestic customers who are not on trial Domestic customers not on trial circuits circuits (154) 9% 5 - New connections who have signed up to the New connections trial (1)signed up to the trial Decreased Net % 89% 67% 95% 0% 17% 1% 89% 2% 0% +3% +7% -100% 100% Stayed the same +11% Increased Domestic customers on non-trial circuits are more likely to feel fault durations have decreased since the start of C2C 108 Length of power cut To what extent did you find the length of the power cut acceptable? Acceptable (8-10) 40% 47% 49% 65% Ambivalent (4-7) 43% 37% 34% Unacceptable (1-3) 26% 17% Total C2C Monitoring (48) 15% 17% 10% Total C2C Post Fault Total CLASS (213) SDIs C2C Post Fault (564) (133) Our reactive post fault survey has indicated that where SDIs are detected on C2C circuits they enhance power quality perception 109 Dips and spikes Q20 – Do you feel the number of dips and spikes has increased, decreased or stayed the same since April/start of C2C ? YTD 1 - I&C customers who have signed up to the trial 6% I&C customers (17) signed up to the trial 94% 2 - I&C customers who have not signed up to the I&C customers not up, on(26) trial circuits 4% trial but are onsigned trial circuits Decreased 8% 95% 4 - Domestic customers who are not on trial Domestic customers not on trial circuits 5% circuits (281) 0% 0% 88% 3 - Domestic customers who are on trial circuits Domestic (298) customers on trial circuits 3% 5 - New connections who have signed up to the New connections trial (2)signed up to the trial Net% 2% 88% 50% 7% 50% Stayed the same +6% -4% +1% -2% -50% Increased Customers on C2C circuits are also less likely to have noticed any variations in dips & spikes 110 Comparing perception of faults to reality Trial Circuits Reality – Had a fault Perception – Had a fault Perception – Didn’t have a fault 3% 12% Reality – Didn’t have a fault 15% 70% Control Circuits Reality – Had a fault 4% 20% Reality – Didn’t have a fault 20% Perception – Had a fault 56% Perception – Didn’t have a fault Significantly more customers on control circuits misattribute observations of faults 111 Comparing perception of faults to reality Reality Perception 20% 13% 3 minutes or less 41% 38% Between 4 minutes and 1 hour 20% 13% From 3 hours up to 8 hours More than 8 hours On trial circuits (49) Between 4 minutes and 1 hour 19% 33% From 1 hour up to 3 hours 21% 15% 3 minutes or less 0% Not on trial circuits (56) 54% 57% From 1 hour up to 3 hours From 3 hours up to 8 hours More than 8 hours 17% 26% 8% 2% 0% On trial circuits (54) Not on trial circuits (80) There were a greater number of SDI faults under C2C conditions 112 Post fault surveys 14% Cumbria Domestic 59% Lancashire 27% Manchester & Peak 81% Commercial 19% 703 surveys conducted between April 2013 and July 2014 113 Acceptability of faults Levels of acceptance 65% 41% Shorter Up to 3 minutes Longer 4 or more minutes Our reactive post fault survey has indicated that where SDIs are detected on C2C circuits they enhance power quality perception 114 Acceptability of fault duration Acceptability of all durations Domestic 51% Acceptability of power cut durations by customer type (Top 3 box %) 80% 70% 60% 68% 65% 48% 50% 40% Commercial 29% 42% 44% 35% 30% 33% 20% 25% 25% 4 min to 1 hour Longer than 1 hour 10% 0% SDIs Total Domestic Commercial Commercial customers are less tolerant of faults SDIs significantly improve levels of acceptance for all customers 115 Priority service customers post fault surveys SDIs PSR Non-PSR 54% 9% 25% 11% 66% 26% 64% 4 mins to 1 hour PSR Non-PSR 12% 35% 52% 24% 43% 33% 38% Longer than 1 hour PSR Non-PSR 13% 52% 23% Bottom 30% 65+ year olds are generally more understanding and accepting of power cut durations 36% 47% Middle 40% 30% Top 30% There is no evidence to suggest that rolling out C2C would have any adverse effect on PSR customers Customers with medical equipment are least likely to find length of power cuts acceptable 116 Post fault survey conclusions 2 in 5 customers remember when the fault occurred unprompted Changes in fault frequency are more discernible to customers Commercial customers are more sensitive to faults Duration drives power quality perception Those who experience SDIs notice improvement in their fault quality PSR/older customers are more accepting of faults SDIs are more acceptable, but less so for longer duration faults C2C can affect the wider business - less strain on contact centre 117 Customer engagement Overall, customers are not observing material changes in their power supply quality Lessons Learnt Power quality perception is consistent across our trial and control groups The last fault duration is more likely to be an SDI on trial circuits (enhancing perception) Faults under C2C conditions are not having an adverse effect on power quality perception 118 QUESTIONS & ANSWERS 119 LUNCH 120 Agenda C2C Introduction Technical and academic overview Customer research (impact) Customer research (commercial) Commercial review and case studies Summary and next steps 121 Customer hypotheses and objectives Domestic customers Commercial customers Closed ring configuration is acceptable to customers Existing or new customers can directly benefit financially by providing the demand response To engage with domestic customers about C2C To understand the impact of C2C on customers’ supplies To communicate C2C to industrial and commercial (I&C) customers To explore the appeal of C2C and the uptake of C2C contracts 122 Communications with I&C customers Objective: To explore the appeal and potential uptake of C2C to I&C customers Targeted mailshot to I&C customers on C2C circuits Seminar for new connections customers Project video 123 Project video 124 I&C customer survey 181 quantitative interviews Phone recruitment + online questionnaire Fieldwork 12 July – 10 August 2012 £ Respondents to have responsibility for electricity supply Is there an appetite in the I&C market for C2C? What is the level of interest by sector? What contract elements will make C2C attractive? 125 Is there an appetite for C2C 52% 31% 26% of customers found the C2C concept appealing would recommend opting into a C2C contract precontract of customers would recommend opting into a C2C contract postcontract 126 What is the level of interest by sector? All customers % (180) Manufacturing & processing % (82) Other sectors % (98) Appeal 52 49 54 Recommend (pre-contract) 31 25 35 Recommend (post-contract) 26 21 31 Key interest metric Level of appeal is slightly lower for manufacturing & processing Gap is more significant for recommendation (10%) 127 What makes C2C contracts attractive? Contract Key days Reward Value of reward £ Length of contract has the biggest single influence on take up Safeguarded days significantly increase take up rates The variation in reward is important, but not as critical as the other components Much higher levels of reward are required to significantly drive up participation 128 Barriers to C2C contracts Uncertainty regarding disruption or multiple disruptions Flexible protected days and option for protected circuits Appeal of value added offerings Maximum outages per annum and duration to be defined Effects on the customer’s business Understand price level 129 Summary of I&C customer engagement C2C is appealing to I&C customers Contracts signed Appeal Barriers Greatest barrier is customer uncertainty about reliability of supply Tailored contracts important Length of contract had biggest influence Learning Safeguarded days increase take up Higher levels of reward drive up participation Key learning used to Appeal lower C for manufacturing & structure 2C commercial processing contracts 130 Post acceptance surveys Decision to accept £ Financial rewards 56% Frequency of interruptions 19% Protected days/times 19% Benefits of signing up Financial rewards 69% £ Environmentally friendly 25% Minimise disruption 19% Surveys confirm importance of rewards and minimising disruption 131 QUESTIONS & ANSWERS 132 Simon Brooke Smart Metering Programme Manager 133 Agenda C2C Introduction Technical and academic overview Customer research (technical impact) Customer research (commercial) Commercial review and case studies Summary and next steps 134 Objectives Commercial customers Network operation Purchase a demand response from existing and new customers thereby creating a new market Promote the use of commercial solutions to address network constraints To develop contract templates for purchasing C2C demand response To discover a purchase price for C2C demand response To evaluate the channels to purchase C2C demand response To purchase C2C demand response within trials 135 Development of customer proposition 1 Understanding our customers 2 Commercial arrangement development 3 Trial purchase of C2C demand response 4 Trial results and lessons learnt 136 Engagement with our customers 1 Understanding our customers ! Lessons Learnt Uncertainty regarding disruption or multiple disruptions Maximum outages per annum and duration to be defined Flexible protected days and option for protected circuits 137 Contract arrangements 2 Commercial arrangement development Demand and generation New customers Existing customers NTC DCUSA Managed connection agreement Construction & installation agreement Contract Contract 138 Contract arrangements Simplified contract templates Lessons Learnt Optional elements based on customer feedback Separate agreement for controllable switch 139 Purchase demand response 3 Trial purchase of C2C demand response (existing customers) Customer survey contact list evaluated Engagement materials developed Small manufacturers targeted first Customers on trial C2C networks invited to seminars Npower & Flexitricity contacted potential trial participants An individual working with key account manager 140 Price model demonstration Customer interface developed for presentation purposes Presentations crucial to customer’s understanding of the C2C product 141 Purchase demand response One point of contact throughout contact and negotiations Lessons Learnt Key is understanding customer’s business and potential impact £ Market price discovery through negotiations – options less important Discuss implementation approach 142 Purchase demand response 3 Trial purchase of C2C demand response (new customers) C2C trial area and application process published Potential customers invited to seminars All applications evaluated for C2C solution Qualifying customers received standard and C2C offers Meeting offers made to talk through both solutions 143 Purchase demand response Both offers delivered together within Guaranteed Standard timescales Lessons Learnt Customers valued meetings for explaining C2C solution Again key to securing contract is helping customer understand potential impact Higher acceptance for customer engaged early (in seminars) 144 Trial results and lessons learnt 4 Trial results and lessons learnt Ten C2C demand response contracts with existing customers Achieved Direct contact with our customers is the most effective £ C2C demand response purchase price defined Ten C2C demand response contracts with connection customers 145 Demand response results (existing) Size, sector and price of DR from existing customers 130kVA 630kVA 30 600kVA £k / MVA / yr 25 20 15 341kVA 130kVA 800kVA 10 487kVA 5 800kVA Utilities Leisure 5200kVA Manufacturing 1800kVA Retail 146 Demand response results (existing) Post fault response is attractive to customers and Electricity North West Lessons Learnt Wide range of trial participants, appears most favourable to small manufacturers Very attractive to multiple site operators 147 Demand response results (new) New connection customers' managed capacity, kVA by sector 14,000 9900kVA 10500kVA 12,000 10,000 7050kVA 5000kVA 8000kVA kVA 8,000 6,000 500kVA 2700kVA 4,000 2,000 500kVA Utilities 600kVA IT 6000kVA Manufacturing Transportation 148 Demand response results (new) Good range of enduring post fault DR capacities Lessons Learnt New DR predominantly from small manufacturers again Post fault DR can operate in with other DR programmes 149 QUESTIONS & ANSWERS 150 Agenda C2C Introduction Technical and academic overview Customer research (technical impact) Customer research (commercial) Commercial review and case studies Summary and next steps 151 Project benefits summary Full set of results and learning from Capacity to Customers will be included in closedown report available on our website in March 2015 Rapidly deployable solution Reinforcement deferral Develops new DR market Cost deferral Carbon reduction £ Will better Releases Creates post exploit existing network fault demand assets, thus capacity for use response cost-effective by customers’ market which is and quickly LCTs less intrusive to implemented customers Can defer reinforcement costs and the time taken to complete the associated works Minimises carbonintensive infrastructure 152 QUESTIONS & ANSWERS 153 Want to know more? e [email protected] www.enwl.co.uk/thefuture 0800 195 4141 @ElecNW_News linkedin.com/company/electricity-north-west facebook.com/ElectricityNorthWest youtube.com/ElectricityNorthWest Thank you for your time and attention 154