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Gas Network Innovation Strategy 2018

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Gas Network Innovation Strategy 2018 Gas Network Innovation Strategy March 2018 2 Gas Network Innovation Strategy Development of the Gas Network Innovation Strategy “The views of the We (Cadent, National Grid, Northern Gas Networks, SGN, Wales & West Utilities) have worked together wider industry have as part of the Energy Networks Association (ENA) been carefully Gas Innovation and Governance Group (GIGG) to considered and develop this Gas Network Innovation Strategy. This document will be revised and reissued every two have helped shape years, next due in 2020. the final strategy.” We published a draft version of The stakeholder consultation on the strategy in November 2017 for the draft strategy was crucial to its stakeholder comments. A formal development, giving all interested parties consultation on the draft ran from an opportunity to review the draft strategy 1 November to 22 December 20171. and provide valuable feedback. The During this period we engaged views of the wider industry have been stakeholders across a number of carefully considered and have helped forums, including presentations and shape the final strategy. a joint interactive session with the Gas In total we received 25 responses to and Electricity networks at the LCNI the stakeholder consultation. A full conference 6-7 December. Feedback summary of the responses received from this session was directly fed into from stakeholders during the the strategy, alongside responses via consultation period is available at: the survey questionnaire and several http://www.energynetworks.org/gas/ response letters. futures/gas-innovation.html The ENA Gas Innovation & Governance Group consists of representatives Gas Innovation from the innovation teams in the following companies: & Governance Group 1 The Stakeholder Consultation Document was available online at http://www.energynetworks.org/gas/ futures/gas-innovation.html from 1 November to 22 December 2017. 3 Gas Network Innovation Strategy Foreword “Projects have the potential to develop a truly world-leading, Whole Systems Approach that brings the way our gas and electricity networks work The publication of the gas and electricity Network more closely Innovation Strategies is the latest chapter in Great together.” Britain’s energy network innovation success story. Since funding was first introduced in 2007, Great Britain’s energy networks have developed a world leading reputation for innovation. A variety of transformational projects has enabled network companies to deliver greater efficiency, improved performance and respond to the challenges and opportunities presented by the decarbonisation of our energy market. Innovation projects allow network This progress is part of a wider, operators to better understand how fundamental change to the way our to integrate new technologies into our network infrastructure operates that is energy networks, help them identify new now taking place which is driven by opportunities for their use and speed up new technology. Across the country, their wider adoption. They also reflect our innovation will help network companies commitment to build an efficient, smarter, to enable new markets and provide new cleaner energy system fit for Britain’s opportunities for consumers to have homes and businesses. greater control over their energy bills. Projects have the potential to develop The current RIIO price control a truly world-leading, Whole Systems mechanism, which includes the Network Approach that brings the way our gas Innovation Allowance and the Network and electricity networks work more Innovation Competition, has been key closely together. This will be crucial to driving success forward. Continued as we find new ways to meet the UK’s support for innovation has been vital to carbon budgets, because if our power, embedding a culture of innovation within heat, transport and waste sectors are all our energy networks so that innovation interdependent, then so must the solutions is a permanent fixture in the network to their decarbonisation. Our role is to landscape. Smart network solutions deliver the integrated energy infrastructure connected through the Low Carbon that Britain needs to underpin those Network Fund alone have already essential pillars of our economy. enabled close to £1bn of cost savings for customers within the electricity sector. 4 Gas Network Innovation Strategy Foreword These Strategies set out the areas of As the pace of network innovation “These opportunities focus where network companies are continues to accelerate, then so will the looking to provide value to customers importance of this work. The publication extend to communities from the innovation projects they are of the first joint Network Innovation and businesses undertaking and how they will share the Strategies is an important milestone lessons learnt from those projects with and we look forward to working with across the country, other organisations. This transparency is our innovation partners to ensure our key to ensuring that network companies network infrastructure, our wider energy ensuring that the continue to focus on areas for innovation system and our customers benefit from investment which can deliver most new technology and approaches. economic as well benefit to the wider energy system as practical benefits in the most effective way possible. are spread far Network companies cannot deliver this innovation alone. We want network and wide.” infrastructure to act as a platform for new energy technologies and services that will put Great Britain at the forefront Huw Sullivan of the global low carbon transformation. Cadent Whether they are end-users, technology Chair, ENA Gas Innovation developers or service providers, network & Governance Group companies want to work with these innovators who have the best and the brightest ideas of how we can harness the potential of energy technology. These opportunities extend to communities and Phil Swift businesses across the country, ensuring Western Power Distribution that the economic as well as practical Chair, ENA Electricity Networks benefits are spread far and wide. and Futures Group Common themes Electricity themes Gas themes Future Safety of gas and health Low carbon and Emergency environment response Reliability, New replacement, technologies maintenance and commercial and repair Innovating evolution to benefit Network customers improvements and system Security operability 5 Gas Network Innovation Strategy Contents “The strategy 1. Development of the Strategy 02 identifies the 2. Foreword 03 challenges and opportunities the 3. Introduction 06 gas transmission 4. Innovation Themes 11 and distribution a. Future of gas 11 networks face, as the UK aims to b. Safety and emergency 18 decarbonise its c. Reliability and maintenance 23 energy system to meet climate d. Repair 28 change targets.” e. Distribution mains replacement 33 f. Environment and low carbon 38 g. Security 43 5. Next Steps 47 6. Help us to deliver the Gas Network Innovation Strategy 48 Since 7. Exemplar projects 49 2013 £193m 402 13 invested in NIA projects NIC projects gas innovation 6 Gas Network Innovation Strategy Introduction The Gas Network Innovation Strategy has been produced by Energy Networks Association (ENA). ENA represents the ‘wires and pipes’ transmission and distribution network operators for gas and electricity in the UK and Ireland. This Strategy is for the gas network licence holders in Great Britain (Cadent, National Grid, Northern Gas Networks, SGN, Wales & West Utilities). Gas Network Licence Holders This is the first version of the Gas We are publishing this document to give Purpose of the Network Innovation Strategy. The the public, industry and other interested strategy identifies the challenges and parties an opportunity to help us to drive Gas Network opportunities the gas transmission and innovation that could potentially benefit distribution networks face, as the UK consumers. We also want to coordinate Innovation aims to decarbonise its energy system to our activities as networks, share our meet climate change targets. learning and avoid duplication. Strategy It sets out the role that our existing gas infrastructure can play in meeting demand for power, heat and transport in a low-carbon economy. The strategy also seeks views from technology providers on the part they would like to see gas network companies play to deliver greater energy innovation in future. 7 Gas Network Innovation Strategy The Gas Network Innovation Strategy • Future of gas Structure of is structured around seven innovation • Safety and emergency themes. These were developed by the • Reliability and maintenance the document gas networks in setting out Innovation Problem Statements, the last edition of • Repair which was published by ENA in March • Distribution mains replacement 2017. It was developed by ENA’s Gas • Environment and low carbon Innovation and Governance Group, with feedback from wider industry • Security stakeholders. The Statements sought to Under each theme we explain the context, set out problems that innovation projects innovation requirements and the areas could help to address, with a view to needing further development. The aim encouraging third parties to approach is to help our stakeholders understand the networks with innovative ideas. This our current needs, without restricting the approach will now be integrated into the ideas and technologies they propose. Gas Network Innovation Strategy. Examples of current projects are given in The themes as set out in the Problem an appendix at the
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