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Energy
Networks
Association
Open Networks
Future Worlds Stakeholder Event
London
3rd September 2018
Welcome amp Introduction
Nigel Turvey
ENA Open Networks Project Chair
3
Housekeeping
Amenities
Both male and female toilets can be found in the corridor
Emergency Exit
Fire escape door is located in the corridor Signage can be found above entrance
There are no scheduled fire alarms for today
Should there be an emergency the alarm will sound and instructions will be give via the PA
system
Wifi
Login ENA Wireless
Password R0ut3rEn3rgy
Tea amp Coffee
Tea coffee and biscuits can be found next to reception or the members area
Attendance Sheet
Please sign the attendance sheet located in the far corner before departing
If you require any further information wish to take part in the consultation or are interested in hearing more
about the ENA Open Networks Project please email us at opennetworksenergynetworksorg
4
Slido
Slido is an interactive platform we are using for our QampA segments and general
feedback You are able to ask questions via Slido at any point throughout the
presentation and we will address as many of them as possible at the end of each
session If you wish to ask a question verbally please wait until the allotted QampA
segment
bull Link
ndash Website wwwslidocom
ndash AppGoogle Play store ndash search and download lsquoSlidorsquo
bull Event code ndash ENAFutureWorlds (non-case sensitive)
bull Login ndash Full name
bull Password ndash ENA (case sensitive)
Feedback Poll
We are taking feedback on Slido which is in the form of a lsquopollrsquo which you are able to
access within the appwebsite Please leave your rating and feedback before you depart
to ensure we can improve the effectiveness at future events
Introduction | Open Networks Project
Nigel Turvey
ENA Open Networks Project Chair
6
Open Networks
bull Open Networks (ON) is pan industry initiative that is laying the
foundations of a smart flexible energy system in the UK
bull Taking a whole system approach ON looks at the transition to DSO
that will create new markets and enable flexibility
bull ON is a key forum for addressing the challenges around evolving
roles and responsibilities in the short medium and long term
bull ON is a key initiative to deliver Government policy set out in the
Ofgem and BEIS Smart Systems and Flexibility Plan the
Governmentrsquos Industrial Strategy and the Clean Growth Plan
bull We are working in collaboration with Ofgem BEIS 10 of UK and
Irelandrsquos electricity network operators and other key stakeholders
from the industry
7
Collaborating Members
8
Objectives amp Timeline
The objectives of the Open Networks Project are to
1 Develop improved T-D processes around connections planning shared TSODSO services and
operation
2 Assess the gaps between the experience our customers currently receive and what they would like
and identify any further changes to close the gaps within the context of lsquolevel playing fieldrsquo and common
T amp D approach
3 Develop a more detailed view of the required transition from DNO to DSO including the impacts on
existing organisation capability
4 Consider the charging requirements of enduring electricity transmissiondistribution systems
9
Stakeholder Engagement
8 5
Undertaken 4 consultations amp planned another 2
4 webinars and 2 focus groups completed with stakeholders
Published our material on ENA website
40
Workstream 1 | T-D Process
Sotiris Georgiopoulos
UK Power Networks
11
T ndash D Process (WS1)
WS1 Products
1 Investment Processes
2 DER Services Procurement
3 Industry Framework Interactions
4 Reliability Standards amp Emergency Requirements
5 Whole System FES
6 Regional Service Requirements
7 ANM Information
8 System Wide Resource Register
9 TSO-DSO Transmission Impacts
10 Facilitating Connections ndash Current Practice for
Flexible Resources
11 Facilitating Connections ndash Action Plan and Report
12 TSODSO amp DER Data Requirements
13 Operational Data amp Control Architectures
Focussing on whole system
approaches across T and D to put in
place improved investment and
operational planning processes
Building on Phase 1 work eg DER
Services
Benefits
bull DER service opportunities
bull Input to Whole System Investment
bull Better information for stakeholders
bull Ongoing network reliability
Workstream 2 | Customer Experience
Jason Brogden
ENA Open Networks Project Director
13
Customer Experience
WS2 Products
1 Good Practice ahead of Connection
Applications
2 Management of Capacity
3 Explanation of lsquoTermsrsquo amp lsquoDefinitionsrsquo
4 Information on Flexibility Services
5 Good Practice Following Connection
Applications
6 Guidance on Post Connection Changes
7 Provision of Constraint Information
8 2017 Product Updates
Improve information for
customers to support network
connection and service provision
Benefits
bull Enhanced information on
connections amp services
bull More consistent customer
experience
bull Better practice across Network
Operators
bull Improved use of capacity
Workstream 3 | DSO Transition
Stewart Reid
Scottish amp Southern Electricity Networks
15
DSO Transition
WS3 Products
1 SGAM Modelling of DSOs and DER Procurement
2 Further SGAM Modelling of DSO Functionality
3 Market Agnostic DSO Elements
4 Independent Impact Assessment of Models
5 DSO Model Validation amp Review Including Public
Consultation
6 Key Enablers for DSO
7 Further Trials to Address Gaps in DSO Functionality
8 Preferred DSO Models amp Proposed Implementation
Plan
Develop and model DSO
functionality
Proposed implementation plan and
ldquono regretsrdquo DSO actions
Impact Assessment of different
DSO models
bull Independently reviewed
bull Build evidence base to provide to
policy-makers
Benefits
bull Articulation of DSO value
bull Early implementation of key areas
of DSO functionality to benefit
customers
bull More consistent DNO practice
Workstream 4 | Network Charging
Nigel Turvey
ENA Open Networks Project Chair
17
Network Charging
bull Support Ofgemrsquos CFF (Charging Futures Forum) and related Task Forces
bull Support Ofgemrsquos CDB (Charging Delivery Body) in translating the results from the CFF into manageable actions and ensuring their delivery
bull Provide support on charging to the wider Open Networks project
bull Develop recommendations to remove inefficient signals in charging and remuneration of TSODSO services
bull WS4 have contributed significantly to the delivery of the Electricity Network Access amp Forward Looking Charges Final Report and Conclusions report delivered under the CFF Task Forces
bull httpwwwchargingfuturescommedia1203access-and-flc-final-report-and-conclusionspdf
Coffee Break
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Welcome amp Introduction
Nigel Turvey
ENA Open Networks Project Chair
3
Housekeeping
Amenities
Both male and female toilets can be found in the corridor
Emergency Exit
Fire escape door is located in the corridor Signage can be found above entrance
There are no scheduled fire alarms for today
Should there be an emergency the alarm will sound and instructions will be give via the PA
system
Wifi
Login ENA Wireless
Password R0ut3rEn3rgy
Tea amp Coffee
Tea coffee and biscuits can be found next to reception or the members area
Attendance Sheet
Please sign the attendance sheet located in the far corner before departing
If you require any further information wish to take part in the consultation or are interested in hearing more
about the ENA Open Networks Project please email us at opennetworksenergynetworksorg
4
Slido
Slido is an interactive platform we are using for our QampA segments and general
feedback You are able to ask questions via Slido at any point throughout the
presentation and we will address as many of them as possible at the end of each
session If you wish to ask a question verbally please wait until the allotted QampA
segment
bull Link
ndash Website wwwslidocom
ndash AppGoogle Play store ndash search and download lsquoSlidorsquo
bull Event code ndash ENAFutureWorlds (non-case sensitive)
bull Login ndash Full name
bull Password ndash ENA (case sensitive)
Feedback Poll
We are taking feedback on Slido which is in the form of a lsquopollrsquo which you are able to
access within the appwebsite Please leave your rating and feedback before you depart
to ensure we can improve the effectiveness at future events
Introduction | Open Networks Project
Nigel Turvey
ENA Open Networks Project Chair
6
Open Networks
bull Open Networks (ON) is pan industry initiative that is laying the
foundations of a smart flexible energy system in the UK
bull Taking a whole system approach ON looks at the transition to DSO
that will create new markets and enable flexibility
bull ON is a key forum for addressing the challenges around evolving
roles and responsibilities in the short medium and long term
bull ON is a key initiative to deliver Government policy set out in the
Ofgem and BEIS Smart Systems and Flexibility Plan the
Governmentrsquos Industrial Strategy and the Clean Growth Plan
bull We are working in collaboration with Ofgem BEIS 10 of UK and
Irelandrsquos electricity network operators and other key stakeholders
from the industry
7
Collaborating Members
8
Objectives amp Timeline
The objectives of the Open Networks Project are to
1 Develop improved T-D processes around connections planning shared TSODSO services and
operation
2 Assess the gaps between the experience our customers currently receive and what they would like
and identify any further changes to close the gaps within the context of lsquolevel playing fieldrsquo and common
T amp D approach
3 Develop a more detailed view of the required transition from DNO to DSO including the impacts on
existing organisation capability
4 Consider the charging requirements of enduring electricity transmissiondistribution systems
9
Stakeholder Engagement
8 5
Undertaken 4 consultations amp planned another 2
4 webinars and 2 focus groups completed with stakeholders
Published our material on ENA website
40
Workstream 1 | T-D Process
Sotiris Georgiopoulos
UK Power Networks
11
T ndash D Process (WS1)
WS1 Products
1 Investment Processes
2 DER Services Procurement
3 Industry Framework Interactions
4 Reliability Standards amp Emergency Requirements
5 Whole System FES
6 Regional Service Requirements
7 ANM Information
8 System Wide Resource Register
9 TSO-DSO Transmission Impacts
10 Facilitating Connections ndash Current Practice for
Flexible Resources
11 Facilitating Connections ndash Action Plan and Report
12 TSODSO amp DER Data Requirements
13 Operational Data amp Control Architectures
Focussing on whole system
approaches across T and D to put in
place improved investment and
operational planning processes
Building on Phase 1 work eg DER
Services
Benefits
bull DER service opportunities
bull Input to Whole System Investment
bull Better information for stakeholders
bull Ongoing network reliability
Workstream 2 | Customer Experience
Jason Brogden
ENA Open Networks Project Director
13
Customer Experience
WS2 Products
1 Good Practice ahead of Connection
Applications
2 Management of Capacity
3 Explanation of lsquoTermsrsquo amp lsquoDefinitionsrsquo
4 Information on Flexibility Services
5 Good Practice Following Connection
Applications
6 Guidance on Post Connection Changes
7 Provision of Constraint Information
8 2017 Product Updates
Improve information for
customers to support network
connection and service provision
Benefits
bull Enhanced information on
connections amp services
bull More consistent customer
experience
bull Better practice across Network
Operators
bull Improved use of capacity
Workstream 3 | DSO Transition
Stewart Reid
Scottish amp Southern Electricity Networks
15
DSO Transition
WS3 Products
1 SGAM Modelling of DSOs and DER Procurement
2 Further SGAM Modelling of DSO Functionality
3 Market Agnostic DSO Elements
4 Independent Impact Assessment of Models
5 DSO Model Validation amp Review Including Public
Consultation
6 Key Enablers for DSO
7 Further Trials to Address Gaps in DSO Functionality
8 Preferred DSO Models amp Proposed Implementation
Plan
Develop and model DSO
functionality
Proposed implementation plan and
ldquono regretsrdquo DSO actions
Impact Assessment of different
DSO models
bull Independently reviewed
bull Build evidence base to provide to
policy-makers
Benefits
bull Articulation of DSO value
bull Early implementation of key areas
of DSO functionality to benefit
customers
bull More consistent DNO practice
Workstream 4 | Network Charging
Nigel Turvey
ENA Open Networks Project Chair
17
Network Charging
bull Support Ofgemrsquos CFF (Charging Futures Forum) and related Task Forces
bull Support Ofgemrsquos CDB (Charging Delivery Body) in translating the results from the CFF into manageable actions and ensuring their delivery
bull Provide support on charging to the wider Open Networks project
bull Develop recommendations to remove inefficient signals in charging and remuneration of TSODSO services
bull WS4 have contributed significantly to the delivery of the Electricity Network Access amp Forward Looking Charges Final Report and Conclusions report delivered under the CFF Task Forces
bull httpwwwchargingfuturescommedia1203access-and-flc-final-report-and-conclusionspdf
Coffee Break
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
3
Housekeeping
Amenities
Both male and female toilets can be found in the corridor
Emergency Exit
Fire escape door is located in the corridor Signage can be found above entrance
There are no scheduled fire alarms for today
Should there be an emergency the alarm will sound and instructions will be give via the PA
system
Wifi
Login ENA Wireless
Password R0ut3rEn3rgy
Tea amp Coffee
Tea coffee and biscuits can be found next to reception or the members area
Attendance Sheet
Please sign the attendance sheet located in the far corner before departing
If you require any further information wish to take part in the consultation or are interested in hearing more
about the ENA Open Networks Project please email us at opennetworksenergynetworksorg
4
Slido
Slido is an interactive platform we are using for our QampA segments and general
feedback You are able to ask questions via Slido at any point throughout the
presentation and we will address as many of them as possible at the end of each
session If you wish to ask a question verbally please wait until the allotted QampA
segment
bull Link
ndash Website wwwslidocom
ndash AppGoogle Play store ndash search and download lsquoSlidorsquo
bull Event code ndash ENAFutureWorlds (non-case sensitive)
bull Login ndash Full name
bull Password ndash ENA (case sensitive)
Feedback Poll
We are taking feedback on Slido which is in the form of a lsquopollrsquo which you are able to
access within the appwebsite Please leave your rating and feedback before you depart
to ensure we can improve the effectiveness at future events
Introduction | Open Networks Project
Nigel Turvey
ENA Open Networks Project Chair
6
Open Networks
bull Open Networks (ON) is pan industry initiative that is laying the
foundations of a smart flexible energy system in the UK
bull Taking a whole system approach ON looks at the transition to DSO
that will create new markets and enable flexibility
bull ON is a key forum for addressing the challenges around evolving
roles and responsibilities in the short medium and long term
bull ON is a key initiative to deliver Government policy set out in the
Ofgem and BEIS Smart Systems and Flexibility Plan the
Governmentrsquos Industrial Strategy and the Clean Growth Plan
bull We are working in collaboration with Ofgem BEIS 10 of UK and
Irelandrsquos electricity network operators and other key stakeholders
from the industry
7
Collaborating Members
8
Objectives amp Timeline
The objectives of the Open Networks Project are to
1 Develop improved T-D processes around connections planning shared TSODSO services and
operation
2 Assess the gaps between the experience our customers currently receive and what they would like
and identify any further changes to close the gaps within the context of lsquolevel playing fieldrsquo and common
T amp D approach
3 Develop a more detailed view of the required transition from DNO to DSO including the impacts on
existing organisation capability
4 Consider the charging requirements of enduring electricity transmissiondistribution systems
9
Stakeholder Engagement
8 5
Undertaken 4 consultations amp planned another 2
4 webinars and 2 focus groups completed with stakeholders
Published our material on ENA website
40
Workstream 1 | T-D Process
Sotiris Georgiopoulos
UK Power Networks
11
T ndash D Process (WS1)
WS1 Products
1 Investment Processes
2 DER Services Procurement
3 Industry Framework Interactions
4 Reliability Standards amp Emergency Requirements
5 Whole System FES
6 Regional Service Requirements
7 ANM Information
8 System Wide Resource Register
9 TSO-DSO Transmission Impacts
10 Facilitating Connections ndash Current Practice for
Flexible Resources
11 Facilitating Connections ndash Action Plan and Report
12 TSODSO amp DER Data Requirements
13 Operational Data amp Control Architectures
Focussing on whole system
approaches across T and D to put in
place improved investment and
operational planning processes
Building on Phase 1 work eg DER
Services
Benefits
bull DER service opportunities
bull Input to Whole System Investment
bull Better information for stakeholders
bull Ongoing network reliability
Workstream 2 | Customer Experience
Jason Brogden
ENA Open Networks Project Director
13
Customer Experience
WS2 Products
1 Good Practice ahead of Connection
Applications
2 Management of Capacity
3 Explanation of lsquoTermsrsquo amp lsquoDefinitionsrsquo
4 Information on Flexibility Services
5 Good Practice Following Connection
Applications
6 Guidance on Post Connection Changes
7 Provision of Constraint Information
8 2017 Product Updates
Improve information for
customers to support network
connection and service provision
Benefits
bull Enhanced information on
connections amp services
bull More consistent customer
experience
bull Better practice across Network
Operators
bull Improved use of capacity
Workstream 3 | DSO Transition
Stewart Reid
Scottish amp Southern Electricity Networks
15
DSO Transition
WS3 Products
1 SGAM Modelling of DSOs and DER Procurement
2 Further SGAM Modelling of DSO Functionality
3 Market Agnostic DSO Elements
4 Independent Impact Assessment of Models
5 DSO Model Validation amp Review Including Public
Consultation
6 Key Enablers for DSO
7 Further Trials to Address Gaps in DSO Functionality
8 Preferred DSO Models amp Proposed Implementation
Plan
Develop and model DSO
functionality
Proposed implementation plan and
ldquono regretsrdquo DSO actions
Impact Assessment of different
DSO models
bull Independently reviewed
bull Build evidence base to provide to
policy-makers
Benefits
bull Articulation of DSO value
bull Early implementation of key areas
of DSO functionality to benefit
customers
bull More consistent DNO practice
Workstream 4 | Network Charging
Nigel Turvey
ENA Open Networks Project Chair
17
Network Charging
bull Support Ofgemrsquos CFF (Charging Futures Forum) and related Task Forces
bull Support Ofgemrsquos CDB (Charging Delivery Body) in translating the results from the CFF into manageable actions and ensuring their delivery
bull Provide support on charging to the wider Open Networks project
bull Develop recommendations to remove inefficient signals in charging and remuneration of TSODSO services
bull WS4 have contributed significantly to the delivery of the Electricity Network Access amp Forward Looking Charges Final Report and Conclusions report delivered under the CFF Task Forces
bull httpwwwchargingfuturescommedia1203access-and-flc-final-report-and-conclusionspdf
Coffee Break
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
4
Slido
Slido is an interactive platform we are using for our QampA segments and general
feedback You are able to ask questions via Slido at any point throughout the
presentation and we will address as many of them as possible at the end of each
session If you wish to ask a question verbally please wait until the allotted QampA
segment
bull Link
ndash Website wwwslidocom
ndash AppGoogle Play store ndash search and download lsquoSlidorsquo
bull Event code ndash ENAFutureWorlds (non-case sensitive)
bull Login ndash Full name
bull Password ndash ENA (case sensitive)
Feedback Poll
We are taking feedback on Slido which is in the form of a lsquopollrsquo which you are able to
access within the appwebsite Please leave your rating and feedback before you depart
to ensure we can improve the effectiveness at future events
Introduction | Open Networks Project
Nigel Turvey
ENA Open Networks Project Chair
6
Open Networks
bull Open Networks (ON) is pan industry initiative that is laying the
foundations of a smart flexible energy system in the UK
bull Taking a whole system approach ON looks at the transition to DSO
that will create new markets and enable flexibility
bull ON is a key forum for addressing the challenges around evolving
roles and responsibilities in the short medium and long term
bull ON is a key initiative to deliver Government policy set out in the
Ofgem and BEIS Smart Systems and Flexibility Plan the
Governmentrsquos Industrial Strategy and the Clean Growth Plan
bull We are working in collaboration with Ofgem BEIS 10 of UK and
Irelandrsquos electricity network operators and other key stakeholders
from the industry
7
Collaborating Members
8
Objectives amp Timeline
The objectives of the Open Networks Project are to
1 Develop improved T-D processes around connections planning shared TSODSO services and
operation
2 Assess the gaps between the experience our customers currently receive and what they would like
and identify any further changes to close the gaps within the context of lsquolevel playing fieldrsquo and common
T amp D approach
3 Develop a more detailed view of the required transition from DNO to DSO including the impacts on
existing organisation capability
4 Consider the charging requirements of enduring electricity transmissiondistribution systems
9
Stakeholder Engagement
8 5
Undertaken 4 consultations amp planned another 2
4 webinars and 2 focus groups completed with stakeholders
Published our material on ENA website
40
Workstream 1 | T-D Process
Sotiris Georgiopoulos
UK Power Networks
11
T ndash D Process (WS1)
WS1 Products
1 Investment Processes
2 DER Services Procurement
3 Industry Framework Interactions
4 Reliability Standards amp Emergency Requirements
5 Whole System FES
6 Regional Service Requirements
7 ANM Information
8 System Wide Resource Register
9 TSO-DSO Transmission Impacts
10 Facilitating Connections ndash Current Practice for
Flexible Resources
11 Facilitating Connections ndash Action Plan and Report
12 TSODSO amp DER Data Requirements
13 Operational Data amp Control Architectures
Focussing on whole system
approaches across T and D to put in
place improved investment and
operational planning processes
Building on Phase 1 work eg DER
Services
Benefits
bull DER service opportunities
bull Input to Whole System Investment
bull Better information for stakeholders
bull Ongoing network reliability
Workstream 2 | Customer Experience
Jason Brogden
ENA Open Networks Project Director
13
Customer Experience
WS2 Products
1 Good Practice ahead of Connection
Applications
2 Management of Capacity
3 Explanation of lsquoTermsrsquo amp lsquoDefinitionsrsquo
4 Information on Flexibility Services
5 Good Practice Following Connection
Applications
6 Guidance on Post Connection Changes
7 Provision of Constraint Information
8 2017 Product Updates
Improve information for
customers to support network
connection and service provision
Benefits
bull Enhanced information on
connections amp services
bull More consistent customer
experience
bull Better practice across Network
Operators
bull Improved use of capacity
Workstream 3 | DSO Transition
Stewart Reid
Scottish amp Southern Electricity Networks
15
DSO Transition
WS3 Products
1 SGAM Modelling of DSOs and DER Procurement
2 Further SGAM Modelling of DSO Functionality
3 Market Agnostic DSO Elements
4 Independent Impact Assessment of Models
5 DSO Model Validation amp Review Including Public
Consultation
6 Key Enablers for DSO
7 Further Trials to Address Gaps in DSO Functionality
8 Preferred DSO Models amp Proposed Implementation
Plan
Develop and model DSO
functionality
Proposed implementation plan and
ldquono regretsrdquo DSO actions
Impact Assessment of different
DSO models
bull Independently reviewed
bull Build evidence base to provide to
policy-makers
Benefits
bull Articulation of DSO value
bull Early implementation of key areas
of DSO functionality to benefit
customers
bull More consistent DNO practice
Workstream 4 | Network Charging
Nigel Turvey
ENA Open Networks Project Chair
17
Network Charging
bull Support Ofgemrsquos CFF (Charging Futures Forum) and related Task Forces
bull Support Ofgemrsquos CDB (Charging Delivery Body) in translating the results from the CFF into manageable actions and ensuring their delivery
bull Provide support on charging to the wider Open Networks project
bull Develop recommendations to remove inefficient signals in charging and remuneration of TSODSO services
bull WS4 have contributed significantly to the delivery of the Electricity Network Access amp Forward Looking Charges Final Report and Conclusions report delivered under the CFF Task Forces
bull httpwwwchargingfuturescommedia1203access-and-flc-final-report-and-conclusionspdf
Coffee Break
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Introduction | Open Networks Project
Nigel Turvey
ENA Open Networks Project Chair
6
Open Networks
bull Open Networks (ON) is pan industry initiative that is laying the
foundations of a smart flexible energy system in the UK
bull Taking a whole system approach ON looks at the transition to DSO
that will create new markets and enable flexibility
bull ON is a key forum for addressing the challenges around evolving
roles and responsibilities in the short medium and long term
bull ON is a key initiative to deliver Government policy set out in the
Ofgem and BEIS Smart Systems and Flexibility Plan the
Governmentrsquos Industrial Strategy and the Clean Growth Plan
bull We are working in collaboration with Ofgem BEIS 10 of UK and
Irelandrsquos electricity network operators and other key stakeholders
from the industry
7
Collaborating Members
8
Objectives amp Timeline
The objectives of the Open Networks Project are to
1 Develop improved T-D processes around connections planning shared TSODSO services and
operation
2 Assess the gaps between the experience our customers currently receive and what they would like
and identify any further changes to close the gaps within the context of lsquolevel playing fieldrsquo and common
T amp D approach
3 Develop a more detailed view of the required transition from DNO to DSO including the impacts on
existing organisation capability
4 Consider the charging requirements of enduring electricity transmissiondistribution systems
9
Stakeholder Engagement
8 5
Undertaken 4 consultations amp planned another 2
4 webinars and 2 focus groups completed with stakeholders
Published our material on ENA website
40
Workstream 1 | T-D Process
Sotiris Georgiopoulos
UK Power Networks
11
T ndash D Process (WS1)
WS1 Products
1 Investment Processes
2 DER Services Procurement
3 Industry Framework Interactions
4 Reliability Standards amp Emergency Requirements
5 Whole System FES
6 Regional Service Requirements
7 ANM Information
8 System Wide Resource Register
9 TSO-DSO Transmission Impacts
10 Facilitating Connections ndash Current Practice for
Flexible Resources
11 Facilitating Connections ndash Action Plan and Report
12 TSODSO amp DER Data Requirements
13 Operational Data amp Control Architectures
Focussing on whole system
approaches across T and D to put in
place improved investment and
operational planning processes
Building on Phase 1 work eg DER
Services
Benefits
bull DER service opportunities
bull Input to Whole System Investment
bull Better information for stakeholders
bull Ongoing network reliability
Workstream 2 | Customer Experience
Jason Brogden
ENA Open Networks Project Director
13
Customer Experience
WS2 Products
1 Good Practice ahead of Connection
Applications
2 Management of Capacity
3 Explanation of lsquoTermsrsquo amp lsquoDefinitionsrsquo
4 Information on Flexibility Services
5 Good Practice Following Connection
Applications
6 Guidance on Post Connection Changes
7 Provision of Constraint Information
8 2017 Product Updates
Improve information for
customers to support network
connection and service provision
Benefits
bull Enhanced information on
connections amp services
bull More consistent customer
experience
bull Better practice across Network
Operators
bull Improved use of capacity
Workstream 3 | DSO Transition
Stewart Reid
Scottish amp Southern Electricity Networks
15
DSO Transition
WS3 Products
1 SGAM Modelling of DSOs and DER Procurement
2 Further SGAM Modelling of DSO Functionality
3 Market Agnostic DSO Elements
4 Independent Impact Assessment of Models
5 DSO Model Validation amp Review Including Public
Consultation
6 Key Enablers for DSO
7 Further Trials to Address Gaps in DSO Functionality
8 Preferred DSO Models amp Proposed Implementation
Plan
Develop and model DSO
functionality
Proposed implementation plan and
ldquono regretsrdquo DSO actions
Impact Assessment of different
DSO models
bull Independently reviewed
bull Build evidence base to provide to
policy-makers
Benefits
bull Articulation of DSO value
bull Early implementation of key areas
of DSO functionality to benefit
customers
bull More consistent DNO practice
Workstream 4 | Network Charging
Nigel Turvey
ENA Open Networks Project Chair
17
Network Charging
bull Support Ofgemrsquos CFF (Charging Futures Forum) and related Task Forces
bull Support Ofgemrsquos CDB (Charging Delivery Body) in translating the results from the CFF into manageable actions and ensuring their delivery
bull Provide support on charging to the wider Open Networks project
bull Develop recommendations to remove inefficient signals in charging and remuneration of TSODSO services
bull WS4 have contributed significantly to the delivery of the Electricity Network Access amp Forward Looking Charges Final Report and Conclusions report delivered under the CFF Task Forces
bull httpwwwchargingfuturescommedia1203access-and-flc-final-report-and-conclusionspdf
Coffee Break
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
6
Open Networks
bull Open Networks (ON) is pan industry initiative that is laying the
foundations of a smart flexible energy system in the UK
bull Taking a whole system approach ON looks at the transition to DSO
that will create new markets and enable flexibility
bull ON is a key forum for addressing the challenges around evolving
roles and responsibilities in the short medium and long term
bull ON is a key initiative to deliver Government policy set out in the
Ofgem and BEIS Smart Systems and Flexibility Plan the
Governmentrsquos Industrial Strategy and the Clean Growth Plan
bull We are working in collaboration with Ofgem BEIS 10 of UK and
Irelandrsquos electricity network operators and other key stakeholders
from the industry
7
Collaborating Members
8
Objectives amp Timeline
The objectives of the Open Networks Project are to
1 Develop improved T-D processes around connections planning shared TSODSO services and
operation
2 Assess the gaps between the experience our customers currently receive and what they would like
and identify any further changes to close the gaps within the context of lsquolevel playing fieldrsquo and common
T amp D approach
3 Develop a more detailed view of the required transition from DNO to DSO including the impacts on
existing organisation capability
4 Consider the charging requirements of enduring electricity transmissiondistribution systems
9
Stakeholder Engagement
8 5
Undertaken 4 consultations amp planned another 2
4 webinars and 2 focus groups completed with stakeholders
Published our material on ENA website
40
Workstream 1 | T-D Process
Sotiris Georgiopoulos
UK Power Networks
11
T ndash D Process (WS1)
WS1 Products
1 Investment Processes
2 DER Services Procurement
3 Industry Framework Interactions
4 Reliability Standards amp Emergency Requirements
5 Whole System FES
6 Regional Service Requirements
7 ANM Information
8 System Wide Resource Register
9 TSO-DSO Transmission Impacts
10 Facilitating Connections ndash Current Practice for
Flexible Resources
11 Facilitating Connections ndash Action Plan and Report
12 TSODSO amp DER Data Requirements
13 Operational Data amp Control Architectures
Focussing on whole system
approaches across T and D to put in
place improved investment and
operational planning processes
Building on Phase 1 work eg DER
Services
Benefits
bull DER service opportunities
bull Input to Whole System Investment
bull Better information for stakeholders
bull Ongoing network reliability
Workstream 2 | Customer Experience
Jason Brogden
ENA Open Networks Project Director
13
Customer Experience
WS2 Products
1 Good Practice ahead of Connection
Applications
2 Management of Capacity
3 Explanation of lsquoTermsrsquo amp lsquoDefinitionsrsquo
4 Information on Flexibility Services
5 Good Practice Following Connection
Applications
6 Guidance on Post Connection Changes
7 Provision of Constraint Information
8 2017 Product Updates
Improve information for
customers to support network
connection and service provision
Benefits
bull Enhanced information on
connections amp services
bull More consistent customer
experience
bull Better practice across Network
Operators
bull Improved use of capacity
Workstream 3 | DSO Transition
Stewart Reid
Scottish amp Southern Electricity Networks
15
DSO Transition
WS3 Products
1 SGAM Modelling of DSOs and DER Procurement
2 Further SGAM Modelling of DSO Functionality
3 Market Agnostic DSO Elements
4 Independent Impact Assessment of Models
5 DSO Model Validation amp Review Including Public
Consultation
6 Key Enablers for DSO
7 Further Trials to Address Gaps in DSO Functionality
8 Preferred DSO Models amp Proposed Implementation
Plan
Develop and model DSO
functionality
Proposed implementation plan and
ldquono regretsrdquo DSO actions
Impact Assessment of different
DSO models
bull Independently reviewed
bull Build evidence base to provide to
policy-makers
Benefits
bull Articulation of DSO value
bull Early implementation of key areas
of DSO functionality to benefit
customers
bull More consistent DNO practice
Workstream 4 | Network Charging
Nigel Turvey
ENA Open Networks Project Chair
17
Network Charging
bull Support Ofgemrsquos CFF (Charging Futures Forum) and related Task Forces
bull Support Ofgemrsquos CDB (Charging Delivery Body) in translating the results from the CFF into manageable actions and ensuring their delivery
bull Provide support on charging to the wider Open Networks project
bull Develop recommendations to remove inefficient signals in charging and remuneration of TSODSO services
bull WS4 have contributed significantly to the delivery of the Electricity Network Access amp Forward Looking Charges Final Report and Conclusions report delivered under the CFF Task Forces
bull httpwwwchargingfuturescommedia1203access-and-flc-final-report-and-conclusionspdf
Coffee Break
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
7
Collaborating Members
8
Objectives amp Timeline
The objectives of the Open Networks Project are to
1 Develop improved T-D processes around connections planning shared TSODSO services and
operation
2 Assess the gaps between the experience our customers currently receive and what they would like
and identify any further changes to close the gaps within the context of lsquolevel playing fieldrsquo and common
T amp D approach
3 Develop a more detailed view of the required transition from DNO to DSO including the impacts on
existing organisation capability
4 Consider the charging requirements of enduring electricity transmissiondistribution systems
9
Stakeholder Engagement
8 5
Undertaken 4 consultations amp planned another 2
4 webinars and 2 focus groups completed with stakeholders
Published our material on ENA website
40
Workstream 1 | T-D Process
Sotiris Georgiopoulos
UK Power Networks
11
T ndash D Process (WS1)
WS1 Products
1 Investment Processes
2 DER Services Procurement
3 Industry Framework Interactions
4 Reliability Standards amp Emergency Requirements
5 Whole System FES
6 Regional Service Requirements
7 ANM Information
8 System Wide Resource Register
9 TSO-DSO Transmission Impacts
10 Facilitating Connections ndash Current Practice for
Flexible Resources
11 Facilitating Connections ndash Action Plan and Report
12 TSODSO amp DER Data Requirements
13 Operational Data amp Control Architectures
Focussing on whole system
approaches across T and D to put in
place improved investment and
operational planning processes
Building on Phase 1 work eg DER
Services
Benefits
bull DER service opportunities
bull Input to Whole System Investment
bull Better information for stakeholders
bull Ongoing network reliability
Workstream 2 | Customer Experience
Jason Brogden
ENA Open Networks Project Director
13
Customer Experience
WS2 Products
1 Good Practice ahead of Connection
Applications
2 Management of Capacity
3 Explanation of lsquoTermsrsquo amp lsquoDefinitionsrsquo
4 Information on Flexibility Services
5 Good Practice Following Connection
Applications
6 Guidance on Post Connection Changes
7 Provision of Constraint Information
8 2017 Product Updates
Improve information for
customers to support network
connection and service provision
Benefits
bull Enhanced information on
connections amp services
bull More consistent customer
experience
bull Better practice across Network
Operators
bull Improved use of capacity
Workstream 3 | DSO Transition
Stewart Reid
Scottish amp Southern Electricity Networks
15
DSO Transition
WS3 Products
1 SGAM Modelling of DSOs and DER Procurement
2 Further SGAM Modelling of DSO Functionality
3 Market Agnostic DSO Elements
4 Independent Impact Assessment of Models
5 DSO Model Validation amp Review Including Public
Consultation
6 Key Enablers for DSO
7 Further Trials to Address Gaps in DSO Functionality
8 Preferred DSO Models amp Proposed Implementation
Plan
Develop and model DSO
functionality
Proposed implementation plan and
ldquono regretsrdquo DSO actions
Impact Assessment of different
DSO models
bull Independently reviewed
bull Build evidence base to provide to
policy-makers
Benefits
bull Articulation of DSO value
bull Early implementation of key areas
of DSO functionality to benefit
customers
bull More consistent DNO practice
Workstream 4 | Network Charging
Nigel Turvey
ENA Open Networks Project Chair
17
Network Charging
bull Support Ofgemrsquos CFF (Charging Futures Forum) and related Task Forces
bull Support Ofgemrsquos CDB (Charging Delivery Body) in translating the results from the CFF into manageable actions and ensuring their delivery
bull Provide support on charging to the wider Open Networks project
bull Develop recommendations to remove inefficient signals in charging and remuneration of TSODSO services
bull WS4 have contributed significantly to the delivery of the Electricity Network Access amp Forward Looking Charges Final Report and Conclusions report delivered under the CFF Task Forces
bull httpwwwchargingfuturescommedia1203access-and-flc-final-report-and-conclusionspdf
Coffee Break
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
8
Objectives amp Timeline
The objectives of the Open Networks Project are to
1 Develop improved T-D processes around connections planning shared TSODSO services and
operation
2 Assess the gaps between the experience our customers currently receive and what they would like
and identify any further changes to close the gaps within the context of lsquolevel playing fieldrsquo and common
T amp D approach
3 Develop a more detailed view of the required transition from DNO to DSO including the impacts on
existing organisation capability
4 Consider the charging requirements of enduring electricity transmissiondistribution systems
9
Stakeholder Engagement
8 5
Undertaken 4 consultations amp planned another 2
4 webinars and 2 focus groups completed with stakeholders
Published our material on ENA website
40
Workstream 1 | T-D Process
Sotiris Georgiopoulos
UK Power Networks
11
T ndash D Process (WS1)
WS1 Products
1 Investment Processes
2 DER Services Procurement
3 Industry Framework Interactions
4 Reliability Standards amp Emergency Requirements
5 Whole System FES
6 Regional Service Requirements
7 ANM Information
8 System Wide Resource Register
9 TSO-DSO Transmission Impacts
10 Facilitating Connections ndash Current Practice for
Flexible Resources
11 Facilitating Connections ndash Action Plan and Report
12 TSODSO amp DER Data Requirements
13 Operational Data amp Control Architectures
Focussing on whole system
approaches across T and D to put in
place improved investment and
operational planning processes
Building on Phase 1 work eg DER
Services
Benefits
bull DER service opportunities
bull Input to Whole System Investment
bull Better information for stakeholders
bull Ongoing network reliability
Workstream 2 | Customer Experience
Jason Brogden
ENA Open Networks Project Director
13
Customer Experience
WS2 Products
1 Good Practice ahead of Connection
Applications
2 Management of Capacity
3 Explanation of lsquoTermsrsquo amp lsquoDefinitionsrsquo
4 Information on Flexibility Services
5 Good Practice Following Connection
Applications
6 Guidance on Post Connection Changes
7 Provision of Constraint Information
8 2017 Product Updates
Improve information for
customers to support network
connection and service provision
Benefits
bull Enhanced information on
connections amp services
bull More consistent customer
experience
bull Better practice across Network
Operators
bull Improved use of capacity
Workstream 3 | DSO Transition
Stewart Reid
Scottish amp Southern Electricity Networks
15
DSO Transition
WS3 Products
1 SGAM Modelling of DSOs and DER Procurement
2 Further SGAM Modelling of DSO Functionality
3 Market Agnostic DSO Elements
4 Independent Impact Assessment of Models
5 DSO Model Validation amp Review Including Public
Consultation
6 Key Enablers for DSO
7 Further Trials to Address Gaps in DSO Functionality
8 Preferred DSO Models amp Proposed Implementation
Plan
Develop and model DSO
functionality
Proposed implementation plan and
ldquono regretsrdquo DSO actions
Impact Assessment of different
DSO models
bull Independently reviewed
bull Build evidence base to provide to
policy-makers
Benefits
bull Articulation of DSO value
bull Early implementation of key areas
of DSO functionality to benefit
customers
bull More consistent DNO practice
Workstream 4 | Network Charging
Nigel Turvey
ENA Open Networks Project Chair
17
Network Charging
bull Support Ofgemrsquos CFF (Charging Futures Forum) and related Task Forces
bull Support Ofgemrsquos CDB (Charging Delivery Body) in translating the results from the CFF into manageable actions and ensuring their delivery
bull Provide support on charging to the wider Open Networks project
bull Develop recommendations to remove inefficient signals in charging and remuneration of TSODSO services
bull WS4 have contributed significantly to the delivery of the Electricity Network Access amp Forward Looking Charges Final Report and Conclusions report delivered under the CFF Task Forces
bull httpwwwchargingfuturescommedia1203access-and-flc-final-report-and-conclusionspdf
Coffee Break
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
9
Stakeholder Engagement
8 5
Undertaken 4 consultations amp planned another 2
4 webinars and 2 focus groups completed with stakeholders
Published our material on ENA website
40
Workstream 1 | T-D Process
Sotiris Georgiopoulos
UK Power Networks
11
T ndash D Process (WS1)
WS1 Products
1 Investment Processes
2 DER Services Procurement
3 Industry Framework Interactions
4 Reliability Standards amp Emergency Requirements
5 Whole System FES
6 Regional Service Requirements
7 ANM Information
8 System Wide Resource Register
9 TSO-DSO Transmission Impacts
10 Facilitating Connections ndash Current Practice for
Flexible Resources
11 Facilitating Connections ndash Action Plan and Report
12 TSODSO amp DER Data Requirements
13 Operational Data amp Control Architectures
Focussing on whole system
approaches across T and D to put in
place improved investment and
operational planning processes
Building on Phase 1 work eg DER
Services
Benefits
bull DER service opportunities
bull Input to Whole System Investment
bull Better information for stakeholders
bull Ongoing network reliability
Workstream 2 | Customer Experience
Jason Brogden
ENA Open Networks Project Director
13
Customer Experience
WS2 Products
1 Good Practice ahead of Connection
Applications
2 Management of Capacity
3 Explanation of lsquoTermsrsquo amp lsquoDefinitionsrsquo
4 Information on Flexibility Services
5 Good Practice Following Connection
Applications
6 Guidance on Post Connection Changes
7 Provision of Constraint Information
8 2017 Product Updates
Improve information for
customers to support network
connection and service provision
Benefits
bull Enhanced information on
connections amp services
bull More consistent customer
experience
bull Better practice across Network
Operators
bull Improved use of capacity
Workstream 3 | DSO Transition
Stewart Reid
Scottish amp Southern Electricity Networks
15
DSO Transition
WS3 Products
1 SGAM Modelling of DSOs and DER Procurement
2 Further SGAM Modelling of DSO Functionality
3 Market Agnostic DSO Elements
4 Independent Impact Assessment of Models
5 DSO Model Validation amp Review Including Public
Consultation
6 Key Enablers for DSO
7 Further Trials to Address Gaps in DSO Functionality
8 Preferred DSO Models amp Proposed Implementation
Plan
Develop and model DSO
functionality
Proposed implementation plan and
ldquono regretsrdquo DSO actions
Impact Assessment of different
DSO models
bull Independently reviewed
bull Build evidence base to provide to
policy-makers
Benefits
bull Articulation of DSO value
bull Early implementation of key areas
of DSO functionality to benefit
customers
bull More consistent DNO practice
Workstream 4 | Network Charging
Nigel Turvey
ENA Open Networks Project Chair
17
Network Charging
bull Support Ofgemrsquos CFF (Charging Futures Forum) and related Task Forces
bull Support Ofgemrsquos CDB (Charging Delivery Body) in translating the results from the CFF into manageable actions and ensuring their delivery
bull Provide support on charging to the wider Open Networks project
bull Develop recommendations to remove inefficient signals in charging and remuneration of TSODSO services
bull WS4 have contributed significantly to the delivery of the Electricity Network Access amp Forward Looking Charges Final Report and Conclusions report delivered under the CFF Task Forces
bull httpwwwchargingfuturescommedia1203access-and-flc-final-report-and-conclusionspdf
Coffee Break
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Workstream 1 | T-D Process
Sotiris Georgiopoulos
UK Power Networks
11
T ndash D Process (WS1)
WS1 Products
1 Investment Processes
2 DER Services Procurement
3 Industry Framework Interactions
4 Reliability Standards amp Emergency Requirements
5 Whole System FES
6 Regional Service Requirements
7 ANM Information
8 System Wide Resource Register
9 TSO-DSO Transmission Impacts
10 Facilitating Connections ndash Current Practice for
Flexible Resources
11 Facilitating Connections ndash Action Plan and Report
12 TSODSO amp DER Data Requirements
13 Operational Data amp Control Architectures
Focussing on whole system
approaches across T and D to put in
place improved investment and
operational planning processes
Building on Phase 1 work eg DER
Services
Benefits
bull DER service opportunities
bull Input to Whole System Investment
bull Better information for stakeholders
bull Ongoing network reliability
Workstream 2 | Customer Experience
Jason Brogden
ENA Open Networks Project Director
13
Customer Experience
WS2 Products
1 Good Practice ahead of Connection
Applications
2 Management of Capacity
3 Explanation of lsquoTermsrsquo amp lsquoDefinitionsrsquo
4 Information on Flexibility Services
5 Good Practice Following Connection
Applications
6 Guidance on Post Connection Changes
7 Provision of Constraint Information
8 2017 Product Updates
Improve information for
customers to support network
connection and service provision
Benefits
bull Enhanced information on
connections amp services
bull More consistent customer
experience
bull Better practice across Network
Operators
bull Improved use of capacity
Workstream 3 | DSO Transition
Stewart Reid
Scottish amp Southern Electricity Networks
15
DSO Transition
WS3 Products
1 SGAM Modelling of DSOs and DER Procurement
2 Further SGAM Modelling of DSO Functionality
3 Market Agnostic DSO Elements
4 Independent Impact Assessment of Models
5 DSO Model Validation amp Review Including Public
Consultation
6 Key Enablers for DSO
7 Further Trials to Address Gaps in DSO Functionality
8 Preferred DSO Models amp Proposed Implementation
Plan
Develop and model DSO
functionality
Proposed implementation plan and
ldquono regretsrdquo DSO actions
Impact Assessment of different
DSO models
bull Independently reviewed
bull Build evidence base to provide to
policy-makers
Benefits
bull Articulation of DSO value
bull Early implementation of key areas
of DSO functionality to benefit
customers
bull More consistent DNO practice
Workstream 4 | Network Charging
Nigel Turvey
ENA Open Networks Project Chair
17
Network Charging
bull Support Ofgemrsquos CFF (Charging Futures Forum) and related Task Forces
bull Support Ofgemrsquos CDB (Charging Delivery Body) in translating the results from the CFF into manageable actions and ensuring their delivery
bull Provide support on charging to the wider Open Networks project
bull Develop recommendations to remove inefficient signals in charging and remuneration of TSODSO services
bull WS4 have contributed significantly to the delivery of the Electricity Network Access amp Forward Looking Charges Final Report and Conclusions report delivered under the CFF Task Forces
bull httpwwwchargingfuturescommedia1203access-and-flc-final-report-and-conclusionspdf
Coffee Break
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
11
T ndash D Process (WS1)
WS1 Products
1 Investment Processes
2 DER Services Procurement
3 Industry Framework Interactions
4 Reliability Standards amp Emergency Requirements
5 Whole System FES
6 Regional Service Requirements
7 ANM Information
8 System Wide Resource Register
9 TSO-DSO Transmission Impacts
10 Facilitating Connections ndash Current Practice for
Flexible Resources
11 Facilitating Connections ndash Action Plan and Report
12 TSODSO amp DER Data Requirements
13 Operational Data amp Control Architectures
Focussing on whole system
approaches across T and D to put in
place improved investment and
operational planning processes
Building on Phase 1 work eg DER
Services
Benefits
bull DER service opportunities
bull Input to Whole System Investment
bull Better information for stakeholders
bull Ongoing network reliability
Workstream 2 | Customer Experience
Jason Brogden
ENA Open Networks Project Director
13
Customer Experience
WS2 Products
1 Good Practice ahead of Connection
Applications
2 Management of Capacity
3 Explanation of lsquoTermsrsquo amp lsquoDefinitionsrsquo
4 Information on Flexibility Services
5 Good Practice Following Connection
Applications
6 Guidance on Post Connection Changes
7 Provision of Constraint Information
8 2017 Product Updates
Improve information for
customers to support network
connection and service provision
Benefits
bull Enhanced information on
connections amp services
bull More consistent customer
experience
bull Better practice across Network
Operators
bull Improved use of capacity
Workstream 3 | DSO Transition
Stewart Reid
Scottish amp Southern Electricity Networks
15
DSO Transition
WS3 Products
1 SGAM Modelling of DSOs and DER Procurement
2 Further SGAM Modelling of DSO Functionality
3 Market Agnostic DSO Elements
4 Independent Impact Assessment of Models
5 DSO Model Validation amp Review Including Public
Consultation
6 Key Enablers for DSO
7 Further Trials to Address Gaps in DSO Functionality
8 Preferred DSO Models amp Proposed Implementation
Plan
Develop and model DSO
functionality
Proposed implementation plan and
ldquono regretsrdquo DSO actions
Impact Assessment of different
DSO models
bull Independently reviewed
bull Build evidence base to provide to
policy-makers
Benefits
bull Articulation of DSO value
bull Early implementation of key areas
of DSO functionality to benefit
customers
bull More consistent DNO practice
Workstream 4 | Network Charging
Nigel Turvey
ENA Open Networks Project Chair
17
Network Charging
bull Support Ofgemrsquos CFF (Charging Futures Forum) and related Task Forces
bull Support Ofgemrsquos CDB (Charging Delivery Body) in translating the results from the CFF into manageable actions and ensuring their delivery
bull Provide support on charging to the wider Open Networks project
bull Develop recommendations to remove inefficient signals in charging and remuneration of TSODSO services
bull WS4 have contributed significantly to the delivery of the Electricity Network Access amp Forward Looking Charges Final Report and Conclusions report delivered under the CFF Task Forces
bull httpwwwchargingfuturescommedia1203access-and-flc-final-report-and-conclusionspdf
Coffee Break
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Workstream 2 | Customer Experience
Jason Brogden
ENA Open Networks Project Director
13
Customer Experience
WS2 Products
1 Good Practice ahead of Connection
Applications
2 Management of Capacity
3 Explanation of lsquoTermsrsquo amp lsquoDefinitionsrsquo
4 Information on Flexibility Services
5 Good Practice Following Connection
Applications
6 Guidance on Post Connection Changes
7 Provision of Constraint Information
8 2017 Product Updates
Improve information for
customers to support network
connection and service provision
Benefits
bull Enhanced information on
connections amp services
bull More consistent customer
experience
bull Better practice across Network
Operators
bull Improved use of capacity
Workstream 3 | DSO Transition
Stewart Reid
Scottish amp Southern Electricity Networks
15
DSO Transition
WS3 Products
1 SGAM Modelling of DSOs and DER Procurement
2 Further SGAM Modelling of DSO Functionality
3 Market Agnostic DSO Elements
4 Independent Impact Assessment of Models
5 DSO Model Validation amp Review Including Public
Consultation
6 Key Enablers for DSO
7 Further Trials to Address Gaps in DSO Functionality
8 Preferred DSO Models amp Proposed Implementation
Plan
Develop and model DSO
functionality
Proposed implementation plan and
ldquono regretsrdquo DSO actions
Impact Assessment of different
DSO models
bull Independently reviewed
bull Build evidence base to provide to
policy-makers
Benefits
bull Articulation of DSO value
bull Early implementation of key areas
of DSO functionality to benefit
customers
bull More consistent DNO practice
Workstream 4 | Network Charging
Nigel Turvey
ENA Open Networks Project Chair
17
Network Charging
bull Support Ofgemrsquos CFF (Charging Futures Forum) and related Task Forces
bull Support Ofgemrsquos CDB (Charging Delivery Body) in translating the results from the CFF into manageable actions and ensuring their delivery
bull Provide support on charging to the wider Open Networks project
bull Develop recommendations to remove inefficient signals in charging and remuneration of TSODSO services
bull WS4 have contributed significantly to the delivery of the Electricity Network Access amp Forward Looking Charges Final Report and Conclusions report delivered under the CFF Task Forces
bull httpwwwchargingfuturescommedia1203access-and-flc-final-report-and-conclusionspdf
Coffee Break
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
13
Customer Experience
WS2 Products
1 Good Practice ahead of Connection
Applications
2 Management of Capacity
3 Explanation of lsquoTermsrsquo amp lsquoDefinitionsrsquo
4 Information on Flexibility Services
5 Good Practice Following Connection
Applications
6 Guidance on Post Connection Changes
7 Provision of Constraint Information
8 2017 Product Updates
Improve information for
customers to support network
connection and service provision
Benefits
bull Enhanced information on
connections amp services
bull More consistent customer
experience
bull Better practice across Network
Operators
bull Improved use of capacity
Workstream 3 | DSO Transition
Stewart Reid
Scottish amp Southern Electricity Networks
15
DSO Transition
WS3 Products
1 SGAM Modelling of DSOs and DER Procurement
2 Further SGAM Modelling of DSO Functionality
3 Market Agnostic DSO Elements
4 Independent Impact Assessment of Models
5 DSO Model Validation amp Review Including Public
Consultation
6 Key Enablers for DSO
7 Further Trials to Address Gaps in DSO Functionality
8 Preferred DSO Models amp Proposed Implementation
Plan
Develop and model DSO
functionality
Proposed implementation plan and
ldquono regretsrdquo DSO actions
Impact Assessment of different
DSO models
bull Independently reviewed
bull Build evidence base to provide to
policy-makers
Benefits
bull Articulation of DSO value
bull Early implementation of key areas
of DSO functionality to benefit
customers
bull More consistent DNO practice
Workstream 4 | Network Charging
Nigel Turvey
ENA Open Networks Project Chair
17
Network Charging
bull Support Ofgemrsquos CFF (Charging Futures Forum) and related Task Forces
bull Support Ofgemrsquos CDB (Charging Delivery Body) in translating the results from the CFF into manageable actions and ensuring their delivery
bull Provide support on charging to the wider Open Networks project
bull Develop recommendations to remove inefficient signals in charging and remuneration of TSODSO services
bull WS4 have contributed significantly to the delivery of the Electricity Network Access amp Forward Looking Charges Final Report and Conclusions report delivered under the CFF Task Forces
bull httpwwwchargingfuturescommedia1203access-and-flc-final-report-and-conclusionspdf
Coffee Break
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Workstream 3 | DSO Transition
Stewart Reid
Scottish amp Southern Electricity Networks
15
DSO Transition
WS3 Products
1 SGAM Modelling of DSOs and DER Procurement
2 Further SGAM Modelling of DSO Functionality
3 Market Agnostic DSO Elements
4 Independent Impact Assessment of Models
5 DSO Model Validation amp Review Including Public
Consultation
6 Key Enablers for DSO
7 Further Trials to Address Gaps in DSO Functionality
8 Preferred DSO Models amp Proposed Implementation
Plan
Develop and model DSO
functionality
Proposed implementation plan and
ldquono regretsrdquo DSO actions
Impact Assessment of different
DSO models
bull Independently reviewed
bull Build evidence base to provide to
policy-makers
Benefits
bull Articulation of DSO value
bull Early implementation of key areas
of DSO functionality to benefit
customers
bull More consistent DNO practice
Workstream 4 | Network Charging
Nigel Turvey
ENA Open Networks Project Chair
17
Network Charging
bull Support Ofgemrsquos CFF (Charging Futures Forum) and related Task Forces
bull Support Ofgemrsquos CDB (Charging Delivery Body) in translating the results from the CFF into manageable actions and ensuring their delivery
bull Provide support on charging to the wider Open Networks project
bull Develop recommendations to remove inefficient signals in charging and remuneration of TSODSO services
bull WS4 have contributed significantly to the delivery of the Electricity Network Access amp Forward Looking Charges Final Report and Conclusions report delivered under the CFF Task Forces
bull httpwwwchargingfuturescommedia1203access-and-flc-final-report-and-conclusionspdf
Coffee Break
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
15
DSO Transition
WS3 Products
1 SGAM Modelling of DSOs and DER Procurement
2 Further SGAM Modelling of DSO Functionality
3 Market Agnostic DSO Elements
4 Independent Impact Assessment of Models
5 DSO Model Validation amp Review Including Public
Consultation
6 Key Enablers for DSO
7 Further Trials to Address Gaps in DSO Functionality
8 Preferred DSO Models amp Proposed Implementation
Plan
Develop and model DSO
functionality
Proposed implementation plan and
ldquono regretsrdquo DSO actions
Impact Assessment of different
DSO models
bull Independently reviewed
bull Build evidence base to provide to
policy-makers
Benefits
bull Articulation of DSO value
bull Early implementation of key areas
of DSO functionality to benefit
customers
bull More consistent DNO practice
Workstream 4 | Network Charging
Nigel Turvey
ENA Open Networks Project Chair
17
Network Charging
bull Support Ofgemrsquos CFF (Charging Futures Forum) and related Task Forces
bull Support Ofgemrsquos CDB (Charging Delivery Body) in translating the results from the CFF into manageable actions and ensuring their delivery
bull Provide support on charging to the wider Open Networks project
bull Develop recommendations to remove inefficient signals in charging and remuneration of TSODSO services
bull WS4 have contributed significantly to the delivery of the Electricity Network Access amp Forward Looking Charges Final Report and Conclusions report delivered under the CFF Task Forces
bull httpwwwchargingfuturescommedia1203access-and-flc-final-report-and-conclusionspdf
Coffee Break
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Workstream 4 | Network Charging
Nigel Turvey
ENA Open Networks Project Chair
17
Network Charging
bull Support Ofgemrsquos CFF (Charging Futures Forum) and related Task Forces
bull Support Ofgemrsquos CDB (Charging Delivery Body) in translating the results from the CFF into manageable actions and ensuring their delivery
bull Provide support on charging to the wider Open Networks project
bull Develop recommendations to remove inefficient signals in charging and remuneration of TSODSO services
bull WS4 have contributed significantly to the delivery of the Electricity Network Access amp Forward Looking Charges Final Report and Conclusions report delivered under the CFF Task Forces
bull httpwwwchargingfuturescommedia1203access-and-flc-final-report-and-conclusionspdf
Coffee Break
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
17
Network Charging
bull Support Ofgemrsquos CFF (Charging Futures Forum) and related Task Forces
bull Support Ofgemrsquos CDB (Charging Delivery Body) in translating the results from the CFF into manageable actions and ensuring their delivery
bull Provide support on charging to the wider Open Networks project
bull Develop recommendations to remove inefficient signals in charging and remuneration of TSODSO services
bull WS4 have contributed significantly to the delivery of the Electricity Network Access amp Forward Looking Charges Final Report and Conclusions report delivered under the CFF Task Forces
bull httpwwwchargingfuturescommedia1203access-and-flc-final-report-and-conclusionspdf
Coffee Break
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Coffee Break
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Ofgem PerspectiveEdwin Tammas-Williams
Ofgem
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
20
RPI-X RIIO 1 RIIO-2 and beyond
The energy transition and network company regulation
Our regulatory stances ndash What will underpin Ofgemrsquos approach
bull Promoting effective competition to deliver for consumers bull Driving value in monopoly activities through competition and
incentive regulation bull Supporting innovation in technologies systems and business models bull Managing risk for efficient and sustainable energybull Protecting the interests of consumers in vulnerable situations
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
21
The challenge
The energy landscape is changing but how it is changing is uncertain
2004
2016
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
22
The challenge
There are many perspectives on how to achieve this from evolution to revolution
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
23
What the challenge means for us
1 Change is necessary
2 The nature and speed of that change is highly uncertain so reforms must be resilient
3 Policy and regulatory changes (radical or otherwise) require a comprehensive evidence basea) Stakeholder expertise is critical b) Building on sound analysis is neededc) A wide range of perspectives adds value
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
24
ENA Future Worlds consultation
Responses to the consultation and the impact assessment will form part of our evidence base for possible regulatory changes
We want the outputs to be as useful as possible therefore engagement with the process is essentialbull Ensure the analysis provided meaningfulbull Fully consider impacts on a broad range of stakeholders bull Ensure wider perspectives on roles and delivering functions are taken into account
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
25
Ofgem perspective
bull The energy system is changing and the right institutions and interfaces are needed (with the right regulatory framework) to maximise consumer value
bull There are currently hugely divergent perspectives on what the right arrangements look like
bull This consultation is part of the evidence base we will use to inform our regulatory design and thus we urge stakeholders to engage
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Consultation Overview amp
How to get InvolvedAndy Wainwright
National Grid ESO
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
28
Future Worlds Introduction
lsquoFuture Worldsrsquo is the output of a
substantial stakeholder engagement
process to map and describe a number of
potential future electricity networks
(ldquoFuture Worldsrdquo) capable of supporting
the smart decentralised energy industry
that the UK is transitioning towards
At this stage we do not seek to
recommend any particular Future World
but instead to understand them creating
a common view of how each works
allowing informed debate and decisions
to follow
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
29
Overall aims
bull The Future Worlds consultation builds on the
2017 Commercial Principles paper but
considers all the functions of DSO rather than
simply market models
bull In brings together many of the key products for
workstream 3 in 2018 such that the overall aims
of the consultation are
bull Obtain feedback on the lsquofuture worldsrsquo
developed and their associated SGAM
models including whether we have
reflected stakeholder interactions
appropriately
bull Review draft criteria and proposed
structure for the Impact Assessment
bull Obtain feedback on both key enablers and
market agnostic DSO elements to inform
these products
Product 5 Future Worlds
Consultation
Products 1amp2 SGAM modelling
Product 3 Market
agnostic DSO elements
Product 4 Assessment
of Future Worlds
Product 6 Key enablers
for Future Worlds
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
30
Consultation approach
The Future Worlds consultation document
bull High level document summarising the worlds from a stakeholder perspective
bull Intended audience Stakeholders who want a high level view of our work
bull Feedback via consultation responses
The EATL modelling summary
bull Detailed document produced by EA Technology giving further detail of the worlds developed and their outputs
bull Intended audience Stakeholders who want to understand the future worlds in detail
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
31
Consultation areas
bull A description of the five Future WorldsThe Future Worlds
bull A high level summary of the methodology employed to build the Smart Grid Architecture Models
The Smart Grid Architecture Model
bull An overview of why the principle of neutral market facilitation is importantThe principle of neutral market
facilitation
bull Key stakeholder insights for each of the 23 actors described in the modelsStakeholder insights
bull Our intended approach to impact assessment modelling of the worlds inviting your viewsAssessing the Worlds
bull A description of the key enablers needed to deliver the future worldsKey enablers for the Future
bull A summary of our proposed next steps including our work on least regrets analysisProposed next steps
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
32
How to get involved
We using a variety of means to reach out to stakeholders during the consultation period which will run between 31st July 2018 and 25th September 2018 inclusive
Stakeholder Events
Webinar 1 - 21st August 2018
Edinburgh - 29th August 2018
Webinar 2 - 13th September 2018
London - 3rd September 2018
Please visit the ENA Open Networks Future Worlds page for further information You can respond to the consultation via email opennetworksenergynetworksorg
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Introduction to SGAM Modelling The 5 Future Worlds
Actors in the Future Worlds
Tim Manandhar
UKPN
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
34
Introduction to SGAM Modelling
The Smart Grid Architecture Model (SGAM) methodology is a way to represent a complex
electricity system and break it down into is individual parts It is three dimensional which allows
complex aspects of the electrical network to be considered from a variety of perspectives
Commercial Principles Paper (2017)
Consulted industry on commercial principles to promote flexibility markets and potential market models
Smart Grid Architecture Modelling
Further development of industry preferred market models through a series of industry workshops with consideration of additional functions and processes required for DSO
Future Worlds Consultation
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
35
Developing the Worlds
The Future Worlds
Commercial Principles
paper
DSO Functions
Principle of neutral market
facilitation
Stakeholder feedback
The Future Worlds have been developed from other Open Networks products
bull The market models described in the 2017 Commercial Principles paper
bull The DSO functions and activities
bull The principle of neutral market facilitation
We have also used stakeholder feedback from
bull The Commercial Principles paper
bull The 2018 Open Networks work programme
bull A series of industry workshops
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
36
Five Future Worlds
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
37
The Future Worlds - Consultation
Questions
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
38
Stakeholder Insights
bull Following stakeholder feedback a significant part of this consultation is devoted to
describing the impact of each of the future worlds on each identified stakeholder group
We are interested in your thoughts on the material presented and the approach we have
taken
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
39
Stakeholder Insights - Consultation
Questions
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Principles of Neutral Market Facilitation
Steve Atkins
Scottish amp Southern Electricity Networks
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
41
The Principle of Neutral Market
Facilitation
bull The Future Worlds consider a range of parties who may
facilitate flexibility markets in the future
ndash Distribution System Operators (DSOs)
ndash National Grid in its role as Electricity System Operator (ESO)
ndash Third party organisations taking on the role of lsquoFlexibility Co-
ordinators
bull We believe that all parties facilitating flexibility markets
will need to adopt the principle of neutral market
facilitation
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
42
Principles of Neutral market Facilitation-
Consultation Questions
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Stakeholder InsightsHelen Stack | Centrica
Charles Wood | Energy UK
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Energy UK ndash An Introduction
Energy UK ndash Stakeholder Insights on Future Worlds
44
Energy UK is the trade association for
the GB energy industry with a
membership of over 100 suppliers
generators and other stakeholders with
a business interest in the production and
supply of energy for domestic and
business consumers
Our membership covers over 90 of
both UK power generation and the
energy supply market for UK homes We
also represent the diverse nature of the
UKrsquos energy industry ndash from established
FTSE 100 companies right through to
new growing suppliers generators and
others which now make up over half of
our membership
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Engagement in the Future Worlds Project
Energy UK ndash Stakeholder Insights on Future Worlds
45
Advisory Group
bull Two Seats for Energy UK
bull Two Seats for Energy UK members
SGAM Workshops
bull Energy UK and members attended and fed into the initial
discussions on the models and pushed for the inclusion of Models
D and E
Friendsrsquo Review
bull Energy UK fed into discussions on the format of the consultation
examining how to make a three-tiered consultation accessible
bull Energy UK was given a look at the consultation document shortly
ahead of publication for drafting comments
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Energy UK Position on Future Worlds
Energy UK ndash Stakeholder Insights on Future Worlds
46
The Consultation
This is a complex area of the energy system transition and as such is a consultation
with a lot of levels of detail to it These events are important to ensuring that a wide
audience is able to input and arenrsquot put off by the scale of the challenge
Neutral Market Facilitation
ESO TO DSO and DNO need to continue to hold a role as neutral market
facilitators maintaining a system which prioritises the development of market
solutions
To ensure competition continues regulated monopolies should be able to access
markets but should not play into them
No-Loss Actions
Whilst Energy UK sees these models as useful none of them are exactly matched to
our ideal model There are however certain actions that sit across the models and
should be taken forwards
Increased Information gathering and sharing capabilities particularly on distribution-
level networks is a crucial element to move forwards with regardless of the future
shape of the energy system
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Energy UK ndash Additional Thoughts
Energy UK ndash Stakeholder Insights on Future Worlds
47
ESO Coordinates
The ESO should retain overall responsibility for System Balancing with an obligation
on DNOrsquos and DSOrsquos to declare their regional position in the same manner that
Generators are required to for their plant
The ESO should also continue to hold the ability to call upon DNO and TO assets to
address a national balancing issue The surrounding communications capabilities will
need to be further developed to ensure that ESO and DSO actions are not in conflict
Elements of World B World D and World E will be needed in future and this
consultation process is important in exploring those worlds in greater detail
DNO DSO Division
There is still uncertainty over the form of a DSO and how to appropriately separate
that from the functions of the DNO
Recent changes to increase the independence of the ESO from the TO should be
reflected in the process of creating a DSO model It is important that we keep an
open mind in order to find the best solution for consumers
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Thank You
CharlesWoodEnergy-UKorguk
082018
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
49
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Lunch
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
The Smart Grid Architecture Model amp Demo (SGAM)
Manuel Castro amp Mark Sprawson
EA Technology
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
52
Why we used SGAM
methodology
The purpose of the SGAM modelling is
twofold firstly to compare and contrast
the five future worlds and secondly to act
as a base model for DNOs to build their
required architectures interfaces and
business processes around for the DSO
transition To enable detailed comparison
of the future worlds the interactions
between actors are captured and
categorised as part of the SGAM work
Not all the layers have been populated at this point There are more inputs required from trials
and as the modelling becomes more detailed it is more appropriate that each network
organisation models their particular system specifically to account for regional differences
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
53
How the SGAM Model was built
The model was built using a top down approach
through a series of industry workshops starting with
the main functions of a DSO as a neutral market
facilitator
DSO Functions
System Coordination
Network Operation
Investment Planning
Connections amp Connections Rights
System Defence and Restoration
Service Optimisation
Charging
ServiceMarket Facilitation
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
54
How the SGAM Models are
presented
bull Full models available
online as interactive
webpages
bull Can navigate by
function or by actor
bull Understand data flows
and interactions
between different
actors in different
worlds
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
55
Demonstration of Models
The Models
bull Links to the 5 SGAM Future Worlds to allow industry experts to explore the detail
bull Intended audience Stakeholders who value being able to explore and critique the SGAM models
bull World A World B World C World D World E
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
56
The Smart Grid Architecture Model-
Consultation Questions
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Least Regrets Elements
Steve Atkins
Scottish amp Southern Electricity Networks
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
58
Least Regrets Analysis
bull Assessment of the five
future worlds has identified
areas of common
functionality between the
worlds
bull These areas could present
opportunities to implement
aspects of smart grid now
bull We are interested in your
thoughts on this work to
inform our next steps
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
59
Areas of no regrets by function
0
20
40
60
80
100
System
Coordination
Network Operation Investment
Planning
Connections and
Connection Rights
System Defence
and Restoration
Services and
Market Facilitation
Service
Optimisation
Charging
Pro
po
rtio
no
b o
f least-reg
rets a
cro
ss 5
w
orld
s
Areas of no regrets tend to be aligned with achieving whole-system objectives
through long-term planning establishing regulatory frameworks
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
60
Areas of no regrets by function
60
Function Key areas of no regrets
System Coordination
bull Coordinated outage planning
bull Regulatory framework for flexibility service provision
bull Flexibility compliance to activationdispatch signals
Network Operation
bull Development of network stability mechanism
bull Outage requests
bull Real-time network monitoring for thermal and voltage excursions
bull Activation of flexibilities and smart grid solutions
Investment Planningbull Traditional investment planning
bull Quality of supply planning standards
Connections and Connection
Rights
bull Regulatory development of standard connection agreements for
flexibility
bull Recovery of unused connection capacity
System Defence and Restoration
bull Black Start
bull Islanding
bull Voltage reduction
Services and Market Facilitation
bull Assess requirements for flexibility services
bull Procure and activate flexibility
bull Conflict mitigation and resolution
Service Optimisation
bull Regulatory framework for market failure and last resort measures
bull Arrangements for activation of last resort measures
bull Development of smart grid solutions
Chargingbull Exchange of information to determine market charges
bull Access charges for flexibility resources
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
61
Least Regrets Analysis- Consultation
Questions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
62
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Coffee Break
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Assessing the Worlds
Ross Thompson
UK Power Networks
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
65
Assessing the worlds
Purpose
The purpose of the Impact Assessment is to provide an independent relative analysis of these Worlds to help understand the relative costs and benefits between the different Worlds to provide an evidence base for future market structures and corresponding policy regulatory thinking
Approach
Employing independent external resources to assist with assessing each world against the agreed criteria Where possible assessment will be quantified using robust data and where qualitative assessment is appropriate evidence for conclusions will be documented Engagement of all stakeholders will be an integral part of this process to ensure the analysis is informed by the broadest set of evidence possible
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
66
Assessing the worlds ndash draft
assessment criteria
1 Strategic case - How well does each model address the ldquocase for
changerdquoEnhanced Customer experience
Choice Fairness Affordability Confidence and Trust
Greater environmental sustainability
Facilitating greater energy efficiency decarbonisation of electricity generation and heattransport and more
electricity consumed closer to point of generation ie lower losses
2 Economic case - How efficiently does each model address the
ldquocase for changerdquoFinancial benefits
Cost of implementation vs benefits Cost of operation vs benefits and Expected benefits
Whole system optimisation
Supports whole system optimisation Optimises locally Brings more flexibility into the system Manages
conflicts Avoids duplication and Exploits synergies
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
67
Assessing the worlds ndash draft
assessment criteria
3 Commercial case - How deliverable is each model ndash are the markets
viable and regulation appropriateMarket viability and Appropriate regulation
4 Financial case - How viable are the funding arrangements for each
modelRegulatory funding and Market facilitation
5 Management case - How viableachievable is each model in terms
of complexity and alignment of responsibilitiesactions with rolesIndustry structure and organisation
Rules and regulation Facilitates neutral Complexity Implementation and Future proof
Technical performance
Safety risk Service reliability and availability Security Resilience and recoverability and Clear
dischargeable accountability for technical performance
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
68
Impact Assessment proposed
timeline
bull The Impact Assessment will be undertaken by independent consultants
bull Mindful of timescales we are already progressing the consultant selection
bull We have developed a timeline which will allow for responses to the Future Worlds consultation to be incorporated into the assessment approach
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
69
Assessing the Worlds - Consultation
Questions
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Key Enablers for the Future
Alan Collinson
SP Energy Networks
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
71
Key Enablers for the Future
bull We have identified a number
of key enablers required to
be developed to facilitate the
Future Worlds These
enablers are required
regardless of the world
developed
bull We are interested in your
views on this list and short
term priorities for ensuring
enablers are in place
bull Regulatory changes
bull Organisational changes
Changes to industry structure
bull Market engagement
bull Contract requirements
bull Funding
Developing a market-based approach
bull Communications infrastructure
bull IT systems
bull Network visibility and control
Facilitating information and data exchange
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
72
Changes to Industry Structure
bull Regulatory changes (guiding principles)
ndash Promotion of effective markets amp competition
bull Customer choice customer control
bull Cost-reflective realising value level playing field
ndash Smart Grids amp Flexibility
bull Smart technologies technical amp commercial innovation
ndash Secure affordable sustainable energy system
bull Organisational changes
ndash Closer internal interactions
ndash Closer DSO-ESO interactions
ndash Closer interactions with customers
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
73
Developing a Market-based
Approach
bull Market Engagementndash Raise awareness
ndash Increase participation
ndash Increase market liquidity
ndash Increase competition
bull Contract Requirementsndash Technical requirements amp specifications
ndash Open access for all potential providers
ndash Payment mechanisms
ndash Quantification of service delivery
ndash Settlement arrangements
bull Funding
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
74
Facilitating Information and Data
Exchange
bull Communications amp IT Systemsndash More data faster reliable quality
ndash Internal External Public
ndash Integrated solution (IT amp OT)
ndash Cyber security
ndash Data analytics forecasting
bull Network Visibility amp Controlndash Monitoring of the secondary (LV) network
ndash Smart meter data
ndash Network automation remote control
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
75
Key Enablers- Consultation
Questions
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Proposed Next StepsAndy Wainwright
National Grid ESO
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
77
Next Steps
bull DSO definition amp functions
bull DSO functions
bull Commercial Principles paper
2017 work programme
bull SGAM modelling
bull Key Enablers
bull Future Worlds consultation
Development phase bull Refining SGAM amp key
enablers
bull Impact assessment
bull Least regrets analysis
Review phase
bull Evidence pack for BEIS and Ofgem
bull Impact assessment consultation
Final conclusions
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
QampAwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
78
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Final Comments and Conclusions
Nigel Turvey
ENA Open Networks Project Chair
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
80
bull The opportunities and implications of these Future Worlds are significant societally commercially and technically and we recognise it is important that to get responses from a wide variety of interested parties to inform the further development of these Future Worlds
bull We welcome all feedback on our work In the main consultation document we ask a number of questions and would value your thoughts Responses to the consultation can be emailed to opennetworksenergynetworksorg All responses must be submitted to ENA by 1800 on 25th September 2018
We welcome feedback from all our stakeholders If you have any comments that you would like to share please feel free to submit them to opennetworksenergynetworksorg
Wrap Up
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Feedbackwwwslidocom
Event Code ENAFutureWorldsPasscode ENA (case sensitive)
81
Additional Slides
82
83
84
85
86
87
88
Additional Slides
82
83
84
85
86
87
88
83
84
85
86
87
88
84
85
86
87
88
85
86
87
88
86
87
88
87
88
88