Demand response conference report
Operations & Assets
Operations & Assets
Conference Demand Response and Future Networks, 17 March, Birmingham
The Speakers Features of the future network
Howard Porter chief executive, BEAMA
“Even if regulators and politicians don’t believe in climate change challenges, the fact that gas may be turned off at any time doesn’t half focus minds.”
Expect the unexpected “Be flexible and adapt to the future” – that is the clarion call for networks.
A
t the Demand Response and Future Networks Conference in Birmingham last month, sponsored by the Met Office and Schneider Electric, the message from the speakers was clear: as the world grows smarter, energy networks must adapt to the challenges that come as part of the decarbonisation of the energy system. “Customer buy-in is key,” said British Gas regulatory manager Tabish Khan. “Smart metering will lay the foundations and change the dynamic customers have with the energy system.” Maxine Frerk, interim senior partner at Ofgem, emphasised the importance of getting customers engaged by giving them the opportunity to participate in “as many different ways as they can”. Over the past 20 years the networks have brought more focus to bear on improving service. “We’ve moved to manage the system rather than the assets,” said Scottish Power’s future networks manager, Martin Hill. Yet despite this progress, networks are far from having a clear vision of their role, and business model, in a world of smarter energy. Today they are grappling with the question: is energy a commodity or a service? If the latter is true, then data will become an increasingly critical network asset. Richard Noakes of HP Enterprise Services
24 | 10th - 16th April 2015 | UTILITY WEEK
declared that “data needs to be managed and value extracted from it”. Looking to the future, the next five years are going to be vital in delivering on 2030 climate change targets – aims that cannot be met unless the networks mobilise for change, with full government support and utilities investing alongside. Neither should gas networks be forgotten. Angus McIntosh of Scotia Gas Networks reminded delegates of the important role gas will play in decarbonisation and urged the electricity networks not to bear the full burden of the integration of renewables. Newcastle University researcher Myriam Neaimeh, who chaired the final session, summed up the day with an outline of how to solve the increasingly complex challenges facing the networks. “Solutions include demand response,” she said. “We are used to the supply following the demand; we need to start thinking of how the demand can follow the supply.” Collaboration is essential in meeting these challenges, delegates and speakers concluded. “Customers, distribution network operators, National Grid, new players and regulators need to talk together, especially as some initiatives seem to conflict with others, to have a successful transformation of our energy system,” said Neaimeh.
Tabish Khan regulatory manager, British Gas
“The important thing about energy is that the people who can benefit the most are the fuel poor and vulnerable, who are slow adopters of technology. It needs to be accessible to everyone.” Zoltan Zavody head of Grid, Renewable UK
“The connection process [of distributed generation] needs to be efficient. We need to maintain a strong TSO-DNO interface and make sure generators know what’s going on in terms of system needs and commercial opportunities for the future, so they can provide an efficient and economic service.”
1. The energy networks must be flexible and adapt to future challenges.
Roger Hey future networks manager, Western Power Distribution
“It’s a business revolution for a DNO. Not having a relationship with customers – this is a new dimension – it’s a different type of relationship when you’re talking about demand-side response.”
Simon Brooke smart metering programme manager, Electricity North West
“When you want to put your network back together because of a fault, you need to make sure demand on the network isn’t above the capacity of the assets you currently have. The simple principle of capacity to customers is not asking for a demand response system normal, but for a demand response system abnormal.”
Five key points
2. The networks must establish a new kind of relationship with customers and encourage them to engage more with the energy market. Martin Hill, future networks manager, Scottish Power There are five key features that networks must consider in the successful transition from distribution network operator to distribution system operator. • Visibility – monitoring across the network to help inform some of the gaps that we may have from smart metering data. • Controllability – the enhancement of existing automation in order to cope with the increasing bidirection of power flow in the infrastructure, control of reactive power and voltage on the system, as well as the traditional power flows. • Intelligence – the use of
Nigel Fox energy demand manager, National Grid
“Some new technologies and generators
visibility and controllability to make greater use of the available capacity. • Interoperability – the development of common standards across the network to allow for faster integration and greater sharing of data. • Commercial mechanisms – new arrangements will be needed with network users to provide greater flexibility to manage the system at a more dynamic rate. These commercial mechanisms could include demand response, network management, interoperable contracts with customers, and voltage control.
can provide primary response a lot quicker than 30 seconds. Some can do it in five seconds. There’s no reason an interconnector could not provide a service in as little as two seconds. The faster you can provide a service, the less product you need.”
3. Data and information from new technologies must be managed to extract value. 4. Customers who can benefit the most from new technologies are the fuel poor and vulnerable. They must be encouraged to adopt such technology. 5. The industry, government and stakeholders must collaborate to guarantee a successful transformation of our energy system.
The future of networks is on the agenda at Utility Week Live incorporating Iwex. Register now for your free place: www.utilityweeklive.co.uk
UTILITY WEEK | 10th - 16th April 2015 | 25
Operations & Assets
Conference Demand Response and Future Networks, 17 March, Birmingham
The Speakers Features of the future network
Howard Porter chief executive, BEAMA
“Even if regulators and politicians don’t believe in climate change challenges, the fact that gas may be turned off at any time doesn’t half focus minds.”
Expect the unexpected “Be flexible and adapt to the future” – that is the clarion call for networks.
A
t the Demand Response and Future Networks Conference in Birmingham last month, sponsored by the Met Office and Schneider Electric, the message from the speakers was clear: as the world grows smarter, energy networks must adapt to the challenges that come as part of the decarbonisation of the energy system. “Customer buy-in is key,” said British Gas regulatory manager Tabish Khan. “Smart metering will lay the foundations and change the dynamic customers have with the energy system.” Maxine Frerk, interim senior partner at Ofgem, emphasised the importance of getting customers engaged by giving them the opportunity to participate in “as many different ways as they can”. Over the past 20 years the networks have brought more focus to bear on improving service. “We’ve moved to manage the system rather than the assets,” said Scottish Power’s future networks manager, Martin Hill. Yet despite this progress, networks are far from having a clear vision of their role, and business model, in a world of smarter energy. Today they are grappling with the question: is energy a commodity or a service? If the latter is true, then data will become an increasingly critical network asset. Richard Noakes of HP Enterprise Services
24 | 10th - 16th April 2015 | UTILITY WEEK
declared that “data needs to be managed and value extracted from it”. Looking to the future, the next five years are going to be vital in delivering on 2030 climate change targets – aims that cannot be met unless the networks mobilise for change, with full government support and utilities investing alongside. Neither should gas networks be forgotten. Angus McIntosh of Scotia Gas Networks reminded delegates of the important role gas will play in decarbonisation and urged the electricity networks not to bear the full burden of the integration of renewables. Newcastle University researcher Myriam Neaimeh, who chaired the final session, summed up the day with an outline of how to solve the increasingly complex challenges facing the networks. “Solutions include demand response,” she said. “We are used to the supply following the demand; we need to start thinking of how the demand can follow the supply.” Collaboration is essential in meeting these challenges, delegates and speakers concluded. “Customers, distribution network operators, National Grid, new players and regulators need to talk together, especially as some initiatives seem to conflict with others, to have a successful transformation of our energy system,” said Neaimeh.
Tabish Khan regulatory manager, British Gas
“The important thing about energy is that the people who can benefit the most are the fuel poor and vulnerable, who are slow adopters of technology. It needs to be accessible to everyone.” Zoltan Zavody head of Grid, Renewable UK
“The connection process [of distributed generation] needs to be efficient. We need to maintain a strong TSO-DNO interface and make sure generators know what’s going on in terms of system needs and commercial opportunities for the future, so they can provide an efficient and economic service.”
1. The energy networks must be flexible and adapt to future challenges.
Roger Hey future networks manager, Western Power Distribution
“It’s a business revolution for a DNO. Not having a relationship with customers – this is a new dimension – it’s a different type of relationship when you’re talking about demand-side response.”
Simon Brooke smart metering programme manager, Electricity North West
“When you want to put your network back together because of a fault, you need to make sure demand on the network isn’t above the capacity of the assets you currently have. The simple principle of capacity to customers is not asking for a demand response system normal, but for a demand response system abnormal.”
Five key points
2. The networks must establish a new kind of relationship with customers and encourage them to engage more with the energy market. Martin Hill, future networks manager, Scottish Power There are five key features that networks must consider in the successful transition from distribution network operator to distribution system operator. • Visibility – monitoring across the network to help inform some of the gaps that we may have from smart metering data. • Controllability – the enhancement of existing automation in order to cope with the increasing bidirection of power flow in the infrastructure, control of reactive power and voltage on the system, as well as the traditional power flows. • Intelligence – the use of
Nigel Fox energy demand manager, National Grid
“Some new technologies and generators
visibility and controllability to make greater use of the available capacity. • Interoperability – the development of common standards across the network to allow for faster integration and greater sharing of data. • Commercial mechanisms – new arrangements will be needed with network users to provide greater flexibility to manage the system at a more dynamic rate. These commercial mechanisms could include demand response, network management, interoperable contracts with customers, and voltage control.
can provide primary response a lot quicker than 30 seconds. Some can do it in five seconds. There’s no reason an interconnector could not provide a service in as little as two seconds. The faster you can provide a service, the less product you need.”
3. Data and information from new technologies must be managed to extract value. 4. Customers who can benefit the most from new technologies are the fuel poor and vulnerable. They must be encouraged to adopt such technology. 5. The industry, government and stakeholders must collaborate to guarantee a successful transformation of our energy system.
The future of networks is on the agenda at Utility Week Live incorporating Iwex. Register now for your free place: www.utilityweeklive.co.uk
UTILITY WEEK | 10th - 16th April 2015 | 25
