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Project Summary Black Start from Distributed Energy Resources Bid document to Ofgem Project Code/Version Number: ESOEN01_V03 Contents Contents .............................................................................................................. 1 Section 1. Project Summary ................................................................................... 3 1.1. Project Title ................................................................................................. 3 1.2. Project Explanation ...................................................................................... 3 1.3. Funding licensee: ......................................................................................... 3 1.4. Project description: ...................................................................................... 3 1.5. Funding ...................................................................................................... 3 1.6. List of Project Partners, External Funders and Project Supporters (and value of contribution) ...................................................................................................... 4 1.7 Timescale .................................................................................................... 4 1.8. Project Manager Contact Details .................................................................... 4 1.9 Cross Sector Projects (only complete this section if your project is a Cross Sector Project, i.e. involves both the Gas and Electricity NICs). .......................................... 4 Section 2: Project Description ................................................................................. 5 2.1 Aims and objectives ...................................................................................... 5 2.2 Technical Description of Project .................................................................... 11 2.3 Description of design of trials ....................................................................... 13 2.4 Changes since Initial Screening Process (ISP) ................................................. 14 Section 3: Project Business Case ........................................................................... 15 Section 4: Benefits, timeliness, and partners .......................................................... 21 (a) Benefits ..................................................................................................... 21 (b) Value for money.......................................................................................... 23 (d) Innovation .................................................................................................. 24 (e) Partners and Funding ................................................................................... 27 (f) Relevance and timing ................................................................................... 28 Section 5: Knowledge dissemination ...................................................................... 31 5.1. Learning generated .................................................................................... 31 5.2. Learning dissemination ............................................................................... 32 5.2.1 Key stakeholders ................................................................................... 32 5.2.2 Methodology and Approach for Learning Dissemination .............................. 34 5.3. Intellectual Property Rights ......................................................................... 34 5.3.1 Conforming to Default IPR Arrangements ................................................. 34 Page 1 of 97 Section 6: Project Readiness................................................................................. 35 6.1 Readiness to start ....................................................................................... 35 6.2 Readiness of partners and suppliers .............................................................. 35 6.3 Readiness of project team ............................................................................ 35 6.4 Readiness of knowledge ............................................................................... 35 6.5 Readiness for case studies ........................................................................... 36 6.6 Readiness of market .................................................................................... 38 6.7 Senior management commitment ................................................................. 38 6.8 How costs and benefits have been estimated .................................................. 39 6.8.1 Project cost estimates ............................................................................ 39 6.9 Minimisation of cost overruns and shortfalls in direct benefits ........................... 39 6.10 Verification of accuracy of proposal ............................................................. 40 Section 7: Regulatory issues ................................................................................. 41 7.1 During the project ....................................................................................... 41 7.2 Following the conclusion of the project .......................................................... 41 Section 8: Customer Impact ................................................................................. 42 8.1 Direct impacts and interaction ...................................................................... 42 8.2 Interruptions and power quality .................................................................... 43 8.3 Alternatives to trials .................................................................................... 43 8.4 Protection from penalties ............................................................................. 44 8.5 Customer participation ................................................................................ 44 Section 9: Project Deliverables ............................................................................. 45 Section 10: List of Appendices .............................................................................. 49 Page 2 of 97 Section 1. Project Summary 1.1. Project Black Start from Distributed Energy Resources (DER) Title 1.2. Project Black Start is the process of restoring Explanation electricity to consumers following a blackout. If funded, this project will demonstrate a world first – coordinating a number of DER to provide a safe and effective Black Start service. This will increase competition in the market, and deliver cost and carbon emissions reductions. 1.3. Funding National Grid Electricity Transmission (Electricity System Operator) licensee: 1.4. Project 1.4.1. The Problem(s) it is exploring: Black Start is currently a description: transmission-led approach of starting large generators and energising a skeleton transmission network. The GB electricity system is undergoing a revolution driven by decarbonisation & decentralisation, and Black Start services need to evolve accordingly. The key problem to solve is how to pull the organisational coordination, the commercial and regulatory frameworks, and the power engineering solutions together to achieve Black Start from DER. 1.4.2. The Method(s) that it will use to solve the Problem(s): This project will develop and demonstrate groundbreaking new approaches to open the market to DER by designing and then testing technical, organisational, procurement and regulatory solutions. 1.4.3. The Solution(s) it is looking to reach by applying the Method(s): Enabling DER to provide Black Start services will open a new market for DER (key to a low-carbon, decentralised GB electricity system), will increase competition and diversity in the market, and contribute to adequate Black Start provision in the future. 1.4.4. The Benefit(s) of the project: Our analysis shows the project can deliver 0.81MT CO2 reduction (cumulative) by 2050. The NPV of the project is expected to be £115m by 2050 due to increased competition and reduced costs associated with large generator readiness. This would be passed on to GB consumers through reduced BSUoS. This groundbreaking approach would be the first of its kind in the world, creating the blueprint for international adoption. 1.5. Funding 1.5.1 NIC Funding £10,271.61k 1.5.2 Network Licensee £1,169.09k Request (£k) Compulsory Contribution (£k) 1.5.3 Network £0 1.5.4 External Funding – £122.40k Licensee Extra excluding from NICs (£k): Contribution (£k) 1.5.5. Total £11,690.88k Project Costs (£k) Page 3 of 97 Project Partners: 1.6. List of Project National Grid Electricity System Operator (Lead): Partners, External Funders £879.58k and Project Supporters SP Energy Networks (SP Transmission, SP Manweb (and value of contribution) and SP Distributions): £289.51k TNEI Services Limited: £122.40k External Funders: None Project Supporters: Electricity Networks Association Open Networks Project, Energy Systems Catapult, Cornwall Insight, Various DER and Aggregator Companies 1.7 Timescale 1.7.1. Project 1 Dec 2018 1.7.2. Project End Date 1 April 2022 Start Date 1.8. Project Manager Contact Details 1.8.1. Contact Mark Jones, 1.8.2. Email & Telephone Number Name & Job Black Start Title Engineer 1.8.3. Contact National Grid House, Warwick Technology Park, Gallows Hill, Address Warwickshire CV34 6DA 1.9 Cross Sector Projects (only complete this section if your project is a Cross Sector Project, i.e. involves both the Gas and Electricity NICs). 1.9.1. Funding requested from the [Gas/Electricity] NIC (£k, please state
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