Introducing Project FALCON - Western Power

Introducing Project FALCON

Paul Jewell

WPD Policy manager

Project FALCON

DSR Trials

Season 1 Results / Learning

Welcome

Why you are here?

• Results of the most advanced DNO commercial trials

• FALCON gives an insight to how new technologies will apply within a changing energy landscape

• DSR is a very hot topic and following on from previous DNO technical trials, WPD are keen to establish its likely role in BaU

• Commencing the journey from trial to BaU

Agenda

• Who are WPD ?

• Future Networks Team -

• Project FALCON intro

• DNO DSR • DSR use cases

• Trials overview

• EP Acquisition

• UK DRA

• Break

Agenda

• DSR Participants • Anglian Water Authority

• Thameswey Central Milton Keynes

• The Trials and Results • Identification & Recruitment

• Operations

• Results +/-

• Barriers

• DSR Market / Shared Services

• Changes

• Lunch

• 2015 Briefing (aggregators & participants only)

Who are WPD ?

• 6,000+ staff

• 7.8 million customers

• 55,300 KM² service area

• 220,000 KM Overhead lines

• 185,000 transformers

• Focussed on traditional DNO values

Key Performance Indicators

WPD South West (CI)

Ofgem target 73.6 CI

IIS performance 60.66 CI

WPD performance

17.6% better than target

WPD South Wales (CI)



WPD performance


WPD East Midlands (CI)



WPD performance


WPD West Midlands (CI)



WPD performance


Security of supply 2012/13




Availability of supply 2012/2013

WPD South West (CML)

Ofgem target 51.0 CML

IIS performance 46.31 CML

WPD performance


WPD South Wales (CML)



WPD performance


WPD East Midlands (CML)



WPD performance


Key Performance Indicators Restoration of supply 2012/2013

Target 60 In addition to the performance reported to Ofgem, WPD has its own initiative called Target 60. Target 60 is designed to ensure that as many customers as possible have their electricity supply restored within one hour of a fault. For 2012/13 our performance against this initiative was: •WPD South West and South Wales = 85.7% of customers restored within one hour; •WPD Midlands = 87.1% of customers restored within one hour.


Customer service performance 2012/2013

Customer Satisfaction

Rank

(out of 14 companies)

Average overall satisfaction

(out of 10)

South Wales 1st (joint) 8.59

South West 1st (joint) 8.59

East Midlands 3rd 8.46

West Midlands 5th 8.31

Industry average - 8.00

Customer satisfaction

As part of Ofgem’s Broad Measure of Customer Satisfaction, a research agency undertakes satisfaction surveys every month with around 350 customers for each of the 14 electricity network companies. Surveys take place with customers who have had an interruption to their electricity supply (planned or unplanned), applied for a new connection or contacted the company with a general enquiry. In 2012/13, WPD ranked as follows:

Invest £6.3 billion in core distribution business activities

Deliver 75 outputs including voluntary commitments in every category

Maintain our number 1 position with respect to customer service and network

reliability, whilst improving service even further

Provides value for money by delivering £119m per annum savings as a result of

acquiring the Midlands networks

Continue to be at the frontier of efficiency by delivering a further £260m saving over

8 years

Reduce customer bills - WPD’s charges will reduce by an average of 11% (before

inflation)

Continue Innovation Programme rolling developments into business as usual

Innovation for Measurable Benefits

We don’t do innovation just for the sake of it –

Innovations still have to be held to account for their operational benefits and value to customers

Project FALCON is developing a definite software solution to assess the value of innovations against

traditional reinforcement methods to ensure that the correct technology is used across the network.

But more about that a little later.

WPD Future Networks Team

Roger Hey Head of Future Networks

Future Networks Team – Project Activity

INNOVATION PROGRAMME

WHAT SOLUTIONS ARE WE DEVELOPING?

V

THERMAL

– Dynamic rating of assets – Alternative running arrangements

VOLTAGE

– Active voltage control with remote monitoring – Power Electronics (FACTS)

FAULT CURRENT – Fault current measurement and limiting technology

Alternative Connections

COMMERCIAL ARRANGEMENTS

TIMED

• Generation curtailed within specific times

• Sub 1MVA

• Modelled seasonal capacity variations

• Localised control only

• No comms

• Non-optimised

SOFT-INTERTRIP

• Releases pre-fault capacity with trip facility

• 11kV and 33kV

• Real-time monitored values

• Small clusters of generation or simple pinch points

• Existing monitoring with localised control

ACTIVE NETWORK MANAGEMENT

• Fully optimises capacity based on all constraints

• Management of generation using LIFO principles

• Real-time granular control of output

• Requires new Active Network Management control and monitoring systems

Costs, Complexity & Network Optimisation

101010110100

ALTERNATIVE CONNECTIONS - TRANSITION TO BUSINESS AS USUAL

Policies and processes developed to handle applications

Tools developed to give curtailment assessments

Localised Control technical solution trialled

Internal Training

Alternative Connections BAU across all voltages and license areas

Nov ‘13 • 132kV DLR Offers Sent • <1MW Timed Offers Sent

Feb ‘14 • 33kV ANM Offers Sent • Costs finalised

Apr ‘14 • 11kV Soft-Intertrip Offers Sent

May ‘14 • Standard Techniques

Issued • Training Completed

Autumn ‘14 • Business Change

Complete

Project FALCON


Sanna Atherton

Programme Manager

LOW CARBON

TECHNOLOGIES

LOW CARBON GENERATION

VOLTAGE RISE/DROP VOLTAGE STABILITY HARMONIC IMPACT THERMAL CAPACITY

BI-DIRECTIONAL ENERGY FLOW EQUIPMENT SUITABILITY POWER FACTOR FAULT LEVEL

PROJECT FALCON

Traditional Network Topology

LOW CARBON

TECHNOLOGIES




PROJECT FALCON


LOW CARBON

TECHNOLOGIES




PROJECT FALCON


Influence Impact Electrification of transportation ↑ Electrification of heating ↑ Energy Efficiency measures ↓ ToU Tariffs ↔ Businesses moves premises ↓ Businesses growth / expansion ↑ Embedded generation ↓ Government policy / incentives ↕ Domestic Smart Meters ↓ General growth in domestic consumer electrical goods ↑

KEY Increase demand ↑ Decrease demand ↓ Shift demand ↔ Conflicting impacts ↕

Flexible Approaches for Low Carbon Optimised Networks

PROJECT FALCON

Scenario Investment Model

PROJECT FALCON

The SIM

T1

T6

T5

T4

T2

T3

Constraint

COMMERCIAL TECHNIQUES

Technique 5 - Load Reduction Customers on the network with flexibility in their demand to either avoid completely or shift demand when instructed to a later time.

Technique 6 - Distributed Generation Customers with controllable generation that can be started or turned up on command to support local load or export power back onto the distribution network

PROJECT FALCON The Demand Side Response Challenge DNO DSR

Delta Impact

PROJECT FALCON The Demand Side Response Challenge DNO Use Case

Delta Impact at Constrained Substation

PROJECT FALCON The Demand Side Response Challenge DNO Use Case

PROJECT FALCON The Demand Side Response Challenge Commercial Techniques

Trial Service Parameters

Total MWs in Trial 10 MW

Number of Sites 10 – 15

Minimum Generation capacity Minimum Load Reduction

100 KW - (total target 9MW) 20KW – (total target 1MW)

Season Winter (Nov – Feb)

Contract Duration 2 years

Availability Time 16:00 – 20:00

Dispatch Notice 30 mins

Min Event Duration 1 hr

Max Event Duration 2 hrs

Maximum Total Hours (per annum) 40

Payment (utilisation only)

£300 per MWh


• Customer participation levels with DNO incentive levels

• Interaction with other DSR programmes • Interaction with triad avoidance strategies • Reliability of generation & load reduction • Market Barriers to DNO DSR

• Assess aggregators’ interest in working with DNOs to develop DSR propositions

• Aggregator vs Direct market engagement • Measurement of network impact of DSR • GAP analysis on DNO developing BaU

propositions within existing business














£300 per MWh


STATISTIC VALUE Approximate area 150 KM² Primary Substations 7 Secondary Substations 188 Overhead cables Approximately 75 km Underground cables Approximately 750 km Customer connections Approximately 20,000


• 14 listed organisations approached • 7 aggregators expressed an interest in trial participation • 6 signed up to the contract • 3 recruited capacity to trial • Participant acquisition objectives

• Load Reduction vs Generation • Gas vs Diesel • Stand by vs CHP • Location, location, location.

DR Method Large Medium Small Generation > 1 MW 0.4 – 1 MW < 400 KW

Load Reduction >100 KW 25 – 100 KW < 25 KW

Project FALCON

UK Demand Response

Association

DRA and DNO:

“Together better”

UK Demand Response Association

Established 2012

Represents the Demand Response industry in the UK

Manages hundreds of megawatts of demand side response capability

Load management / generation by industrial and commercial customers

UK Demand Response Association

Make recommendations for policies, strategies and initiatives

relating to the encouragement and advancement of demand

response in the UK

Members

What is Demand Response?

Reducing demand on instruction for financial reward

Utilised by TSO

Services aligned to requirement

Industry & Commerce contributing 1.1GW1

Energy-savvy businesses

1 POSTnote 452, Electricity Demand-Side Response

Exploring Potential

LCNF projects

“R&D”, “innovation”, “trials”

To what extent can demand response:

Increase network flexibility

Assist management of network constraints

Support unpredictable growth in load

Minimise capital spend

A Customer View

UKDRA Members

Can help with customer relationships

Have knowledge of process

Customer side

DNO side

Are invested in understanding / supporting both

Would bridge the “control room” ownership

FALCON experience

Classify / Identify / Categorise

Educate / Teach / Inform / Sell

Listen / Hear

Understand / Comprehend / Appreciate

Incentivise / Reward / Profit

Feedback / Communicate

Enhance / Improve / Refine

FALCON experience

Classify / Identify / Categorise

Educate / Teach / Inform / Sell

Listen / Hear

Understand / Comprehend / Appreciate

Incentivise / Reward / Profit

Feedback / Communicate

Enhance / Improve / Refine

FALCON experience

Same challenges as all DNOs

Recruitment slow

Customer focus elsewhere

Turn-down scarce

Load-shift is a long game

Incentive required

DSR to DNO

Demand Side Response

Assist in business case for DNOs exploring alternatives

Appropriate answer to specific network challenges

DNO vs. TSO: conflict or co-operation

Recruitment

Customer understanding & engagement

Full support of the UKDRA

Agenda

• DSR Participants • Anglian Water Authority

• Thameswey Central Milton Keynes

• The Trials and Results • Identification & Recruitment

• Results +/-

• Barriers


• Changes

• Lunch

• 2015 Briefing (aggregators & participants only)

Anglian Water & Project Falcon Matt Pluke – Energy Manager

Energy Strategy

HOW ?.... 1. Buy

2. Generate

3. Reduce

4. Demand Response

WHAT ?...

Demand Response

STOR

• 30MW contract

• 80 remote-start diesel generators

TRIAD

• 100 remote-start diesel generators

• Limited use of other diesel generators (500 sites) & CHPs (9 sites)

• Design & operation includes load-shedding

• £800k of TRIAD charges avoided

• £400k of reverse TRIAD income

Peak-lopping

• Primarily by load-shedding

• £400k saved vs doing nothing

Frequency Response

• In development

Project FALCON

Drivers

• Love Every Drop – Transformation through innovation & collaboration

• Energy & Carbon Strategy – Demand Response (no overlap with STOR & can be operated with TRIAD)

Site – Woburn Sands, 700kW diesel generator

Implementation

• Simple contract & good relationship avoided it falling down the priority list (i.e. small-scale & trial)

• Simple job to install the meter, but - on this occasion - made difficult by Anglian Water

Operation

• Call comes into a central operational control centre (OMC) to remotely start the generator

• Processes, relationships and contract managed by Supply Demand Specialist in the central Energy Team

• 22nd Jan – 28th Feb. 7 calls, 13hrs of running, £2.7k income

Learning

• OMC assigned a “champion” for Project Falcon - which will be extended to other areas of DR

• Keep it simple (stakeholders might benefit from a ‘map’ of the complex DR territory)

http://www.westernpower.co.uk/

http://www.westernpowerinnovation.co.uk/home.aspx

Project FALCON Demand Response

Central Milton Keynes Energy Station

Sean Rendall Operations Manager

• Background to Thameswey Energy

• Demand Response as a business opportunity

• Project FALCON experience to date

Outline

• Set up by Woking Borough Council 1999

• EESCo - Energy and Environmental Services Company

• Special Purpose Vehicle – PPPs, JVs, acquisitions

• WBC sole shareholder

• Assets £72m (2010)

• Operates across whole UK, centres of business in Woking and Milton Keynes

Thameswey Group - background

Thameswey Central Milton Keynes Ltd.

• Set up in 2005 • Partnership with English Partnerships (HCA) • Construct and operate CHP DH and private wire networks for phased

development of central MK • Delivered through turnkey contract with JV partner • Connections secured through Project Development Agreement,

planning requirements and commercial offer

Scope of Thameswey ESCos

Generating Distributing Supplying

Energy centre completed 2008

Energy Centre 6 MW CHP 10 MW boiler

The Hub connected 2008

The Hub (CBX3) 11,000m2 office, retail and A3 uses 400 apartments

‘Vizion’ connected 2008

‘Vizion’ (C4.1) 14,000m2 retail and other commercial uses 450 apartments

The Pinnacle connected 2009

The Pinnacle 18,000m2 high spec office 995m2 retail

Network Rail connected 2011

Network Rail HQ 37,000m2 office space

B4.4 Planned 2014

Assets

• 2 x 3MWe Jenbacher gas engines • 11 kV private wire network serving 1000 domestic and

commercial customers in central MK • 6 MVA grid connection • 26,000 MWh power produced for Thameswey private wire

customers • £20m assets

Revenues for ESCos

Generator

Distributor

Supplier

Sales of energy to ESCo and grid spill

ROCs, RHI, FIT

STOR, triad , Capacity Market ?

Use of system charges

Customer metered supplies

Maintenance charges

Connection fees

Project FALCON year 1

• Integration with existing STOR service • Maximise use of assets • Use of aggregator (Flexitricity) • Received 18 calls between 27/11/2013 and 28/02/2014 • Delivered on 16 calls – 94 MWh • Unavailable for 2 calls due to unplanned maintenance

DR as a Business Opportunity

• Maximise use of assets (3 MW engine in reserve for STOR since 2011) • Remote control of SCADA • Rapid response with very high availability • Added revenues/premium value • Flexibility (opt out) • Participation in smarter grids/positive profile for embedded generation Considerations: • Site operator capacity • Added complexity to operating strategies • Maintenance/O&M costs? • Slow information and cash flows

[email protected]


Sanna Atherton

Programme Manager

The Trials and Results

• Identification & Recruitment

• Operations

• Results +/-

• Barriers


• Changes

• DSR Report

• Q&A

PROJECT FALCON The Demand Side Response Challenge Trial Results -

• Aggregator and direct activity commenced in the summer • Variety of approaches adopted by different parties • Several sites identified as existing Energy Partners within the trials area • Others focussed their activity within the trial area with targeted campaign

• Call centre cold-calling • Existing customers profiled & contacted



• T6 trials – Distributed Generation met all the recruitment parameters • All T6 test parameters met by recruited sites

• T5 trials – failed to recruit any participants


• New site metering. • Elster A1700 • Increased granularity at 1 min intervals. • Measure generation output directly. • Network Metering. • Installed at Primary Substation. • Measure impact upstream at constraint point. • Outram Ranger P700















£300 per MWh


AVAILABILITY

• 181 potential availability windows • 61 declaration unavailable • 66.3% reliability factor


UTILISATION

Event Date Time Duration (h:mm)

1 27th November ‘13 17:50 1:25

2 28th November ‘13 16:30 2:00

CANCELLED 6th December ‘13 - -

3 9th December ‘13 16:10 1:40

4 12th December ‘13 16:00 1:54

5 16th December ‘13 17:20 1:46

6 20th December ‘13 17:00 1:47

7 9th January ‘14 17:05 2:00

8 10th January ‘14 17:45 1:46

9 14th January ‘14 16:45 1:53

10 15th January ‘14 16:20 1:32

11 17th January ‘14 17:25 1:42

12 22nd January ‘14 16:10 2:00

13 24th January ‘14 16:30 2:00

14 27th January ‘14 17:20 1:05

15 29th January ‘14 17:00 2:00

16 21st February ‘14 16:10 2:00

17 24th February ‘14 16:55 2:00

18 28th February ‘14 17:05 2:00


Back Office Systems and Contracts

PROJECT FALCON The Demand Side Response Challenge

Barriers

• Organisational structure and current functions • Supplier arrangement • Systems • Human Resources • Market Conflicts

PROJECT FALCON The Demand Side Response Challenge Market Barriers

Short Term Operating Reserve

• System balancing • Firmly contracted at least a week ahead • Dispatched at short notice • Pays availability to maintain exclusive readiness • Pays utilisation when dispatched • Customer payments above competitive threshold for DNO use case


DSR Service Sharing

By developing a sharing model based around the variations in requirements we are seeking to

• Address functional requirements of TSO and DNO in a cost effective manner; • Demonstrate increased value to consumers; • Improve conditions for DNO adoption of DSR; • Increase the range of opportunities for DSR participants and • Establish the principal of asset sharing.

Operational Requirement DNO TSO Geographic sensitivity Yes No Period of notice to dispatch Long Short Availability of alternative capacity Unlikely Yes

Market Barriers


DSR Service Sharing

National Grid

Acknowledge DNO geographical sensitivity Have additional DSR capacity available at low marginal cost difference

DNO

Identify sites for DSR dispatch week-ahead

Operational Requirement DNO TSO Geographic sensitivity Yes No Period of notice to dispatch Long Short Availability of alternative capacity Unlikely Yes

Market Barriers

PROJECT FALCON The Demand Side Response Challenge Changes to the Trial

Winter 2014/15 DSR Trial

• Shift to week ahead running schedule as opposed to 30 min dispatch notifications

• Test shared service principal • Potentially improve reliability of DSR participation • Allow participants to integrate triad operation

• Double T5 payment to £600 per MWh • Open recruitment up again to all aggregators

• Run new smart meter trial

• New billing model for week ahead operation

PROJECT FALCON The Demand Side Response Challenge Changes to the Trial

Lots to do ….all new • Metering • Algorithms • Contracts • Software • Payments • Customers

PROJECT FALCON The Demand Side Response Challenge DSR Report

PROJECT FALCON The Demand Side Response Challenge DSR Report

Closed Briefing Session

for

Trial participants and Aggregators


Questions Please !!

Documents

Introducing Project FALCON - Western Power