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The Electricity Grid Networks Overview

Energy Technology Partnership Conference Dundee, April 2014

Presented by Kevin Smith, Scottish Power - Future Networks Lead Engineer Where did SP Energy Networks originate from?

14 x Electricity ‘Boards’ Who provided a full range of electricity services:- • Distribution Networks • Electricity connections • Electricity sales • Metering • Shops for appliances and payments • Wiring and domestic appliance repair • Income from ‘electricity bill’ The Distribution Network Operators scene today

7 x Network Operators • 180+ ICP’s • 18+ Energy Suppliers* • 23+ Meter Operators* • 00’s appliance retailers • 000’s Meter card outlets • 0000’s Electrical contractors • Who repairs appliances these days? • Income from DUoS

Innovation Distribution Allowances Licenses

Incentives Customer Mechanisms Standards

Price Controls * Some are separate divisions within DNO parent company Group What do SP Energy Networks do?

• Look after the distribution network for South of , and North • 3.5million customers (2m in SPD and 1.5m in SPM) • Network value >£10billion • 40,000km of overhead lines • 70,000km of underground cables • 30,000 electricity substations • 4,000km of Transmission OHL and 320kM of cable connecting 129 Grid or SuperGrid Substations What are the present challenges for SPEN?

Changing Extreme Bi- Aging Integration Ageing Assets Energy Weather Directional Workforce/ of New Markets Events Networks Skills Gap Technology

Increased Economic Embedded Growth Generation

Smart Metering/ Fuel Poverty/ Demand Control Affordability

Energy Efficiency Competition

Intermittent Political Generation Uncertainty

Community Energy Owned Energy Equity Systems Sustainability Accessibility

Transparency Balance of Risk Reliability Present challenges for SPEN

Changing Extreme Bi- Aging Integration Ageing Assets Energy Weather Directional Workforce/ of New Markets Events Networks Skills Gap Technology

Increased Economic Embedded Growth Generation

Smart Metering/ Fuel Poverty/ Demand Control Affordability

Energy Efficiency Competition

Intermittent Political Generation Uncertainty

Community Energy Owned Energy Equity Systems Sustainability Accessibility

Transparency Balance of Risk Reliability Ageing Assets

Over the period 2015-2023 we are allocating £2.62bn to managing our ageing network, such as:  180,000 network faults.  Inspecting and maintaining 30,000 substations, 70,000km cables and 40,000km of overhead lines  3.5million asset inspections.  Clearing trees away from 5000km of overhead lines (storm resilience).  Maintaining around 900,000 items of network equipment.  Replacing 30 Grid substations  Replacing 84 Primary substations  Extending the life of 84 Primary substations  Replacing more than 2,500 Secondary substations  Replacing more than 250,000 services inside customers homes & buildings.  Making 25% of our HV network and 32% of our LV network resilient to storms

SPD Equipment SPM Equipment

Number Customers supplied by % Older % Older Number Customers supplied by % Older % Older / Length each than 40 than 50 / Length each than 40 than 50 years years years years Grid Substations 83 Around 23,000 35 15 110 Between 16,000 - 160,000 54 21 Primary Substations 500 Between 2,000 and 50 20 700 Between 2,000 - 11,000 33 6 11,000 Secondary Substations 17,500 Between 50 and 300 19 5 12,800 Between 50 and 300 61 18 In addition to these assets, we have approx. 20,000km of overhead lines, components of which 50% are older than 40 years. Present challenges for SPEN

Changing Extreme Bi- Aging Integration Ageing Assets Energy Weather Directional Workforce/ of New Markets Events Networks Skills Gap Technology

Increased Economic Embedded Growth Generation

Smart Metering/ Fuel Poverty/ Demand Control Affordability

Energy Efficiency Competition

Intermittent Political Generation Uncertainty

Community Energy Owned Energy Equity Systems Sustainability Accessibility

Transparency Balance of Risk Reliability Extreme weather events

• When the “once in every 100 years event” occurs just a few years after the last one! • Automated protection and supply restoration systems Daily Post North Wales weather: 45,000 • Remote control of network switching and reconfiguration homes without power after • Reducing numbers of customers affected for a fault storm force winds batter • Managing trees near overhead lines region • Substation flood risk analysis and mitigation • Emergency plans in place Present challenges for SPEN

Changing Extreme Bi- Aging Integration Ageing Assets Energy Weather Directional Workforce/ of New Markets Events Networks Skills Gap Technology

Increased Economic Embedded Growth Generation

Smart Metering/ Fuel Poverty/ Demand Control Affordability

Energy Efficiency Competition

Intermittent Political Generation Uncertainty

Community Energy Owned Energy Equity Systems Sustainability Accessibility

Transparency Balance of Risk Reliability Increased Embedded Generation

• The distribution network was designed for power flowing from the to the customer • Substantial rise in renewables take up • Embedded generation can cause local voltage rises • Embedded generation is often intermittent/unreliable • Distribution network has to cope with power flows in the ‘reverse’ direction = protection, asset capability and fault situation issues

(DECC 2013) Present challenges for SPEN

Changing Extreme Bi- Aging Integration Ageing Assets Energy Weather Directional Workforce/ of New Markets Events Networks Skills Gap Technology

Increased Economic Embedded Growth Generation

Smart Metering/ Fuel Poverty/ Demand Control Affordability

Energy Efficiency Competition

Intermittent Political Generation Uncertainty

Community Energy Owned Energy Equity Systems Sustainability Accessibility

Transparency Balance of Risk Reliability Competition

• Two main areas where competition has been introduced;  Connections and Distribution Network ownership • 180+ Independent Connection Providers (ICP’s) – providing customer connections • 6 licensed Independent Distribution Network Operators (IDNO’s) – owning and operating embedded networks • Obligation on DNO’s of Guaranteed Service standards

What about the future network challenges?

• Increasing demand on electricity networks through;  Consumer thirst for gadgets and appliances  Up take of electric vehicles  Up take of low carbon heating, e.g. heat pumps  More renewable generation power to transfer • Increasing expectation of electricity availability • More complex networks (Smart grids) and integration of technology with high volumes of network data • Cost pressures against rising energy prices (on DUoS) • Smart-Metering

(DECC 2013) Reliable grids – alternative designs

Industry SP Manweb Typical Typical 33/11kV 33/11kV 12/24MVA 7.5MVA

33/11kV 33/11kV 7.5MVA 7.5MVA

Open Point

GB Industry average 65 interruptions per 100 customers p.a. SPM Urban network 13 interruptions per 100 customers p.a. Network Innovation

• Major boost from Low Carbon Network Funding (LCNF) • Maximising the utilisation of existing network assets • Using technology developments to manage the network better • Some areas of SPEN innovation development;  Real Time Thermal Rating of apparatus (OHL’s and Transformers)  Intelligent Network Automation  Active Load and Voltage Network Management  Voltage optimisation  LV automatic fault restoration End of the presentation

But the start of a new era?