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Net Zero South Wales 2050 Net Zero South Wales 2050 A combined gas and electricity distribution network future energy scenarios (DFES) assessment for South Wales to 2050 Dataset companion report Output Areas in South Wales WPD South Wales licence area WWU South Wales network area Both WPD and WWU licence areas Western Power Distribution This report was produced for and Wales and West Utilities Issue date 17.06.2020 Version Final Poppy Maltby, senior project Written by: manager, Regen Ray Arrell, head of technical development, Regen Approved by: Johnny Gowdy, director, Regen Regen, Bradninch Court. Exeter, EX4 3PL T +44 (0)1392 494399 E [email protected] www.regen.co.uk Registered in England No: 04554636 Produced by Regen on behalf of Western Power Distribution and Wales and West Utilities Copyright © Regen. All rights reserved. No part of this document may be reproduced or published in any way (including online) without the prior permission of Regen. 2 Contents Glossary ................................................................................................................................................... 5 Section I: Executive summary and net zero insights ....................................................................... 6 1. Executive summary ......................................................................................................................... 7 1.1. Introduction to the net zero scenarios ................................................................................... 8 1.2. Summary of methodology ...................................................................................................... 8 1.3. Summary of results ............................................................................................................... 10 2. South Wales net zero insights ....................................................................................................... 13 Section II: Project overview and methodology ............................................................................ 29 3. Net Zero South Wales Project ....................................................................................................... 30 3.1. Introduction and background ........................................................................................... 30 3.2. Innovation objectives ............................................................................................................ 32 4. South Wales context ..................................................................................................................... 34 4.1. Energy use in South Wales ................................................................................................ 35 4.2. Welsh Government and regional energy strategy ............................................................ 36 4.3. Industrial usage ................................................................................................................. 37 4.4. Network investment and constraints ............................................................................... 38 4.5. New housing and commercial developments ................................................................... 40 5. Framing of scenario pathways ...................................................................................................... 42 5.1. Introduction to the scenarios ............................................................................................... 43 5.2. Infrastructure and system costs ........................................................................................ 45 6. Methodology ................................................................................................................................. 46 6.1. Framing the analysis outputs and inputs .......................................................................... 47 6.2. Geographic analysis - merging gas and electricity supply areas ....................................... 49 6.3. Process for developing net zero scenarios ....................................................................... 50 6.4. Technologies and sectors .................................................................................................. 52 6.5. Geographical distribution ................................................................................................. 54 6.6. Seasonal day methodology ............................................................................................... 56 Section III: Scenario results summary.......................................................................................... 63 7. Summary of results ....................................................................................................................... 64 7.1. Focus area: Hydrogen supply ............................................................................................ 66 7.2. Focus area: Biomethane, bioenergy and waste ................................................................ 69 7.3. Domestic and commercial heat ........................................................................................ 75 7.4. Currently-on-gas industrial processes .............................................................................. 76 7.5. Transport ........................................................................................................................... 77 3 7.6. Renewable electricity generation – wind, solar and hydro .............................................. 78 7.7. Fossil fuel and peaking generation ................................................................................... 79 7.8. Electricity storage .............................................................................................................. 80 8. Seasonal day results overview ...................................................................................................... 82 8.1. Simulated baseline seasonal days ..................................................................................... 82 8.2. High Electrification in 2050 ............................................................................................... 84 8.3. Heat demand in High Hydrogen 2050 ............................................................................... 85 4 Glossary Term/ Acronym Definition AD Anaerobic Digestion ACT Advanced Conversion Technology ASHP Air Source Heat Pump BEIS Department for Business Energy and Industrial Strategy CCC Committee on Climate Change CCGT Combined Cycle Gas Turbine CCUS Carbon Capture Utilisation and Storage CHP Combined Heat and Power DFES Distribution Future Energy Scenarios DSR Demand Side Response ESA Electricity Supply Area EPC Energy Performance Certificate EV Electric Vehicle FES 2019 National Grid Future Energy Scenarios published in 2019 GIS Geographic Information Systems GSA Gas Supply Area GSHP Ground Source Heat Pump HHP Hybrid Heat Pump kWh Kilowatt-hour Load Load on the network from either a demand or supply source Linepack zone Pressure management zone on gas distribution network LSOA Lower Super Output Area (ONS geographic area) MW Megawatt NIA Network Innovation Allowance OAC Output Area Classification (smallest defined geographical area from Census 2011) ONS Office for National Statistics PV Photovoltaics RHI Renewable Heat Incentive Scm Standard cubic metre For the purpose of this study the area of South Wales is bounded by the extent of South Wales the two licence areas for gas (WWU) and electricity (WPD) distribution. SMR Steam Methane Reformation (for production of hydrogen) WPD Western Power Distribution WWU Wales and West Utilities 5 Section I: Executive summary and net zero insights 6 1. Executive summary The Net Zero South Wales 2050 innovation project has been undertaken as a partnership between Regen, Western Power Distribution (WPD) and Wales and West Utilities (WWU) with funding from the Network Innovation Allowance (NIA) programme. This innovation project was about bringing two networks together, developing insights and value from an integrated approach to gas and electricity scenario planning. Bringing together the datasets and combined knowledge of the two networks meant the project was able to explore South Wales’s potential net zero future at an increased depth and scope. The main objective of the project was to create integrated distribution future energy scenarios (DFES) for the gas and electricity networks in South Wales and, as part of this, to develop a new methodology for conducting cross-vector scenario forecasting at a regional level. The project has also provided insights into how South Wales might transition to a net zero future under three net zero scenario pathways: High Electrification, Core Hydrogen and High Hydrogen along with a hybrid heat sensitivity. The main output of the project is a DFES projection dataset provided to inform network planning and investment in WPD and WWU. The dataset covers energy demand and supply technologies that might be expected to connect to the gas and electricity distribution networks under the three scenario pathways. The data is projected annually from 2020 to 2035, and then at five yearly intervals between 2035 and 2050. Projections are provided at geographic levels relevant to each respective network, defined by Electricity Supply Areas (ESAs) and Gas Supply Areas (GSAs). Outputs from this project will also feed into the Zero2050 South Wales project being led by National Grid, which will also consider in more detail the interaction between the distribution
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