130/08/2017 1

Network  Losses  Dissemination  Event

London7  June  2017

Barry  Hatton  – Director  of  Asset  Management,  UK  Power  Networks

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About  UK  Power  Networks

Measure Data %  of  industry

End  customers 8.2m 28%Population  served c.20m -­New  metered  connections* 46,000 32%

Distributed  generation  connected 8.5GW 31%

ED1 totex  allowance  (2012/13  prices) £6,029m 25%

Energy  distributed 84.8TWh 28%Peak  demand 16GW N/A

Three  distribution  networks:• London• East  of  England• South  East  of  England

*  Average   per   annum   2010/11-­2014/15

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The  safestThe  best  employer

The  most  reliableThe  best  service

The  most  innovative

The  lowest  cost

…and  consistently  best  performing  DNO  2015  – 2018/9

0.05 0.07 0.08 0.12 0.2 0.25

0.47

0

0.5

UKPN DNO  1 DNO  2 DNO  3 DNO  4 DNO  5 DNO  6

The  safest

Lost   time   incidents/100   employees

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An   employer  of  choice

The  most  innovative

Our  performance  – A  strong  track  record

69  39  

78  

30  

-­

50  

100  

The  most  reliable

CI      CML   CML  

7.6 8.1 8.4 8.5

6.08.010.0

2012/13 2013/14 2014/15 2015/16

A  good  service  provider

Ofgem  broad  measure

76 81 84 87 89 105

0

100

200

UKPN NPG ENWL WPD SSE SPEN

The  lowest  cost

2015/16  average  domestic  distribution  costs  (£  2015/16  prices)

Growth  inElectric  Vehicles  

• Over  300  electric  buses  in  London  by  2020

• 100k  Plug-­in  vehicles  sold  in  the  UK  (56%YoY  growth)

• 12k  charge  points  

Storage  Market  Boom

• Over  800MW  of  accepted  storage  offers

• 13GW  of  enquiries

Growth  in  DG

• 8.5GW  of  DG  connected,  doubled  in  the  last  5  years

• First  Solar  /  Storage  schemes  with  no  subsidy  support

Pace  and  scale  of  change  is  increasing

We  are  adapting  to  meet  the  changing  market  needs

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We  expect  the  growth  in  intermittent  generation  to  continue

1% 10%

25%

3%

3%

8%

7%

14%

28%

11%

10%

5%

30%19%

37% 30%21%

11% 14% 13%

0%

20%

40%

60%

80%

100%

2011 2015 2030Solar Storage Wind Nuclear Coal Gas Other

GB  installed  generation  capacity  by  type

Source:  2016  National  Grid  Future  Energy  Scenarios  and    2016  Digest  of  UK  Energy  Statistics  

86%

14%2011  -­%  of  generation  connected

Transmission Distribution

86%

58%42%

2030  -­%  of  generation  connected

Transmission Distribution

58%

Electricity  Distribution  will  require  attractive  levels  of  investment  to  connect  and  manage  this  DG

14%

42%

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The  Transmission  System  Operator  (TSOs)  will  increasingly  rely  on  Distribution  connected   resources  to  manage   the  system

The  impact  of  these  changes  is  being  felt  nowUK  energy  from  coal  hits  zero  for  first  time  in  over  100  years  

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“The UK could save £17-40 bn across the electricity system from now to 2050 by deploying flexibility technologies”

Imperial  College  London,    November  2016

Distribution  networks  are  key  to  delivering  cost  effective  decarbonisation  in  the  UK  market  

UK  Power  Networks’  response  is  targeted  at  maximising  our  share  of  this  value

“Three innovations will help us deliver this –interconnection, storage, and demand flexibility – which have the potential to displace part of the need for new generating capacity, to save money for businesses and domestic consumers and help the UK meet its climate reduction targets. The saving could be as large as £8 billion a year by 2030.”

National  Infrastructure  Commission,  March  2016

© 2017. UK Power Networks. All rights reserved 9

The  distributed  energy  world  in  2030Distribution  networks  acting  as  a  facilitator  for  a  wide  range  of  energy  resources  and  market  models    

The  UKPN  world  in  2030

~4  GW  of  storage  

~13  GW  of  solar

~1.2  -­ 2m  electric  vehicles

Order  of  magnitude  increase  in  risk,  complexity  and  cost  

Enabled  by:  

• Smart  meters

• Distributed  Generation  

• Storage  

• Micro  Grids  

• Community  Energy  and  peer-­to-­peer  

• Electric  Vehicles

• Smart  appliances

• Market  and  regulatory  reform

• Demand   flexibility  

Transitioning  from  DNO  to  DSO  Distribution  System  Operator  roles

1.  SO  requests  demand  turn  up  or  down  from  DSO

2.  DSO  contracts  with  generator  to  deliver  

response  to  SO  without  constraining  its  network

=  Distributed  Energy  Resources  /  Aggregators

Overall  effect  is  to  deliver  SO  service  efficiently  while  maintaining  reliabilitySO

DSO

Keeping  the  lights on

Fair  and  cost

effective  grid  access

Efficient  and  economic  network  

development

Supporting  whole  system  

optimisation

Enablingmarkets

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Transitioning  from  DNO  to  

DSO  

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• Using  data  from  previous  Innovation  projects  such  as  Low  Carbon  London,  Flexible  Plug  and  Play  and  Smarter  Network  Storage  we  are  understanding  how  the  DSO  transition  will  affect  losses.  

Understanding  the  DSO  transition

• Keeping  costs  down  by  managing  losses.Efficient  and  

economic  network  development

• The  increasingly  active  relationship  between  the  DSO,  distribution  network  customers  and  the  GBSO  requires  additional  coordination  between  the  GBSO  and  DSO  to  ensure  a  beneficial  whole  system  approach  to  managing  the  local  and  national  electricity  networks.  This  coordinated  approach  should  reveal  the  locational  value  of  DER,  help  to  optimise  losses,  and  provide  the  means  to  keep  the  system  secure,  doing  so  in  a  cost-­effective  manner.

Supporting  whole  system  

optimisation

Network  losses  in  the  DSO  transition

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Key  components  of  our  strategy

Building  organisational  capability

Losses  Programme  of  Work  

(LDR  &  Strategy)

Stakeholder  engagement

LDR  learning  transferred  back  into  business  activities  and  processes  

Our  losses  programme  objectives

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• We  have  a  strong  track  record  of  performance  and  will  apply  the  same  focus  to  network  losses

• We  plan  to  build  on  the  success  of  the  first  LDR  determination

• We  aim  to  lead  the  wider  national  and  international  community  in  the  development  and  implementation  of  loss  management  techniques

• We  are  committed  to  continual  improvement  of  current  approaches  as  our  knowledge  increases

• We  endeavour  to  develop  concepts  and  approaches  that  are  original  and  innovative  (Contact  voltage  losses  for  example)

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