Network Innovation Allowance Annual Summary 2017-18 Making lives easier… more clever stuff INNOVATION REPORT 2018 We’re Northern Gas Networks Through pioneering technology (NGN), the gas distributer for and close collaboration with other the North of England. energy companies, we are focused on delivering a safe, reliable supply We keep 2.7 million homes and of gas while exploring a low carbon, businesses cooking on gas in the low cost energy future for the UK. North East, Northern Cumbria and much of Yorkshire through a network of underground pipes. northerngasnetworks.co.uk We’re committed to meeting our customers’ energy needs @NGNgas today while innovating to meet [email protected] the challenges of tomorrow. 2 | INTRODUCTION [email protected] | northerngasnetworks.co.ukINNOVATION REPORT | | 33 INNOVATION REPORT 2018 Mark Horsley Chief Executive Officer Meet the Northern Gas Networks Innovation team As the UK looks towards a low carbon energy When it comes to future challenges, one of the biggest future, the importance of network innovation remains the 2050 Climate Change Act, and how we and collaboration cannot be underestimated. meet its low carbon requirements while continuing to provide a secure, affordable energy supply. The challenges we face in the North are experienced throughout the UK gas industry and tapping the vast Our Energy Futures projects are tackling this head- 1 3 pool of knowledge, insight and expertise out there is on, exploring the role of hydrogen and whole energy 2 4 the smartest and quickest way to meet them. systems in order to deliver bigger and better benefits for the energy customer of tomorrow. Whether it’s using hydrogen to reduce carbon emissions, locating gas in underground utility ducts, or A hydrogen gas network conversion has been forecast better understanding the effects our operations have to save around £300billion compared to full scale on our most vulnerable customers, working together electrification, but the wider benefits are much means networks can action change faster, solve broader. The potential for job creation and carbon systemic problems, avoid duplication of effort and reduction has put hydrogen on the government pass on more benefits to all our customers. agenda, the green gas named as one of three plausible pathways to 2050 decarbonisation in October’s Clean And it’s not just network collaboration, our close Growth Plan. relationships with the Energy Innovation Centre and local innovators continue to deliver great results and In the meantime, we’re continuing to make sure brilliant new technology. innovation learning and technology are delivering 1 Richard Hynes-Cooper benefits, and becoming business as usual today. Head of Innovation At the midpoint point of the RIIO GD1 price control, [email protected] it’s been time to take stock of our processes and Embedding innovation into our culture has been a key review what we’ve achieved. What is clear is just how focus point this year, as we worked to listen more to 2 Adam Madgett essential the Ofgem Network Innovation Allowance our people and learn about their biggest challenges. Innovation Portfolio Manager (NIA) stimulus has been to delivering this. [email protected] Innovation has evolved into an essential part of the It’s allowed so many great ideas to move from theory day job and will only become more important in years 3 Jarred Knott into practice, increasing efficiency, improving safety, to come, so it’s also greatly rewarding to see new Innovation and Regulation Support reducing disruption and minimising environmental project managers take the lead in trialling and rolling [email protected] impact. out new technology already making life easier for colleagues and customers. 4 Wayne Smith All of which ensures we’re continuing to provide the Innovation Implementation Manager best value for money service we can for customers as I hope you enjoy this look-back on our 2017-18 projects, and if you’d like to work with us or learn [email protected] the UK’s future energy mix takes shape. But there is still work to do. more, please do get in touch. 4 | MEET THE INNOVATION TEAM [email protected] | northerngasnetworks.co.uk | 5 01 INNOVATION REPORT 2018 Our STRATEGY AN SE Projects in our NIA portfolio reflect Asset and network management Safety and Environment four areas in which we’re continually aiming to drive improvement Effectively and efficiently managing our Harnessing pioneering technology to infrastructure with clever solutions to keep our colleagues and customers safe, ensure the gas flows along 37,000km with minimal impact on Innovation plays a major role in Whether it’s helping us rise to challenges, Our NIA funding is aligned to our of pipes our surroundings consistently improving what we solve problems or make life easier for strategy, with five key objectives do, driving efficiency today colleagues and customers, innovation designed to deliver improvement presents opportunities to do things through innovation. and into the future. better. CS F Our portfolio can be divided into two categories: solutions that can action Collaborate with Customer Service Future Role of Gas change right now, and those helping to innovative partners deliver the energy system of tomorrow. 01 Ensuring the 2.7 million homes and Delivering a low cost, low carbon smart businesses across our network continue energy system for customers Be efficient, effective to receive a safe, reliable energy supply, and deliver value while putting vulnerable customers first 02 for money The strategy identifies the challenges Deliver a portfolio to Gas Network Innovation Strategy and opportunities the gas transmission make us reliable and (GNIS) and distribution networks face in safe 03 This March we launched the Gas improving efficiency and supporting Network Innovation Strategy alongside UK decarbonisation, examining how innovation can drive down costs for Optimise investment our fellow networks and the Energy customers and how lessons learned from to deliver benefit for Networks Association. innovation projects should be shared customers 04 with wider industry in order to roll out benefits more widely. Be socially and environmentally And as technology, policy and customer responsible demands change, it sets out the role 05 gas has to play in meeting demand for power, heat and transport today, and into tomorrow, through seven key innovation themes: • Future of Gas • Safety and Emergency • Reliability and Maintenance • Repair The Strategy will be reviewed in two • Distribution mains replacement years’ time. For the full document visit • Environment and low carbon • Security energynetworks.org 6 | OUR STRATEGY [email protected] | northerngasnetworks.co.uk | 7 INNOVATION REPORT 2018 COLLABORATION AND 02 SHARED LEARNING Working with our fellow gas networks joined Northumbrian Water, Northern Total number of collaborative The means we avoid duplication of effort and Powergrid and Yorkshire Water for a projects since 2013: that effective solutions to long-standing project to help us better understand BENEFITS problems can be rolled out faster while the social impact of utility works on our maximising benefits for customers. customers. By working through every step of our operational processes, we’ve £2.2 million As well as saving costs and Joining the other GDNs and National been able to create a procedure which driving efficiency, innovation Grid Transmission on the Composite highlights potential negative impact and 52 When all is said and done, innovation has £2 million projects have delivered Repairs project is helping us explore allows us to plan accordingly. one purpose: to ensure we’re delivering numerous wider benefits so repair technology set to benefit all We also reached out to Wales & West the safest, most reliable and best value far in 2018. £1.8 million in 2018 so far saved Benefits the networks, driving down costs and Utilities to share best practice and to service for customers while meeting increasing efficiency. identify which implemented innovation the energy challenges of the future. Cut vehicle journeys by projects from each network could be £1.6 million Meantime, our flagship Network adopted. This has resulted in numerous Last year we set ourselves the 110 Innovation Competition projects such initiatives and ideas being assessed by us ‘£2million challenge’ to capture return as H21 and HyDeploy involve close for their suitability within our business. £1.4 million on investment for customers through partnership with the other networks so implemented innovation projects. We We reduced the amount of spoil sent to we can plan for a cleaner, greener energy And the process works both ways. Our were just short of the finish line reaching £1.2 million future for customers at a reasonable back blade protector, which prevents £1.91 million of financial benefits. This landfill by cost, with minimal changes to their road scarring when attached to a mini hasn’t deterred us as we have set the bar homes. digger, is now being trialled by other £1 million 3 higher this year with a target of 1276m networks, while our gas detection dogs £2.2 million. And it’s not just the gas industry we are also attracting major interest. £800k Reduced days spent in can learn from. Earlier this year we We believe the increased internal engagement we’re undertaking will grow the highway by awareness of innovation in the business, £600k in the region of resulting in greater utilisation. 106 HOW WE SHARE The Energy Low Carbon Network £400k THE KNOWLEDGE… Innovation Centre Innovation Conference (LCNI) Ultimately, increased adoption of new £460K We dug technology means we can carry out The annual industry conference at our works more efficiently and deliver £200k 448 Utility companies often face the same The EIC acts as our dating agency for which utility companies showcase green, greater value for money. challenges and goals, so we share SMEs.