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Close down event 12 July 2018
Agenda Timings Presentation Speaker
09:30 Registration and refreshments
10:00 Welcome and introduction Peter Smith, NEA
10:05 Opening address Matt Rudling, UK Power Networks
10:20 Innovation at UKPN Giulia Privitera, UK Power Networks
10:40 energywise project overview Angeliki Koulouri, UK Power Networks
11:10 Refreshment break
11:30 Recruitment and engagement of participants
Emma Jones, CAG, Chris Coyle & Rashal Ali, Bromley-by-Bow Centre
12:00 Electricity saving and shifting: the customer perspective
Jenny Love, UCL Energy Institute
12:30 Electricity saving and shifting: the network perspective
Mark Hughes, Element Energy
13:00 Lunch break
13:45 SAVE project Charlie Edwards, SSE
14:05 Panel discussion: Supporting vulnerable customers
Moderator: Peter Smith, NEAPanellists: Steve Crabb, British GasRuth Roberts, Bromley by Bow CentreRob Cheesewright, Smart Energy GBLynne McDonald, UK Power Networks
14.45 Moving forward David Shipworth, UCL Energy Institute, & Mark Hughes, Element Energy
15.05 Closing remarks Ian Cameron, UK Power Networks
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Welcome
Matt Rudling
Director of Customer Services
We own and maintain
electricity cables and lines
across London, the South East
and East of England making
sure your lights stay on
Who we are
We deliver electricity to
around 20 million people
How energy is changing
• Safest DNO
• ‘Best’ Company List /
improving score
• Investors in People
Gold award
• High public reputation
• Trusted relationship with
Ofgem
• Best service provider
(BMoCS)
• Most reliable network
(CIs/CMLs)
• Best stakeholder
engagement
• Maintain compliance
• Most innovative DNO
• Socially Responsible
• Underspend against
allowances – Lowest
cost
• Deliver RIIO-ED1
outputs and
commitments
• Delivering profitable
growth for the
unregulated business
Our vision
Our social role
Our purpose
Roles arising from
being a DNO
Roles arising from being
a responsible,
sustainable business
10
To understand the needs of, and where appropriate support (especially in the
event of a power cut), our customers who are more likely to suffer detriment,
or substantially increased levels of detriment, than a typical customer.
Helping customers in vulnerable
circumstances
The future of energy and vulnerability
12
2016
Funding: £5.49m (£3.32m from Ofgem’s Low Carbon
Network Fund)
Duration: January 2014 – September 2018
in Tower Hamlets
Thank you
Dr Giulia Privitera, Low Carbon Technologies Delivery Manager
12 July 2018
Innovation at UK Power Networks
15
Purpose
The changing energy system
Why we innovate
How we innovate
Understanding customer needs through innovation
2015. UK Power Networks. All rights reserved
The safest
The best employerThe most reliable
The best service
The most innovative
The most socially and
environmentally responsible
The lowest cost
…and consistently best performing DNO 2015 – 2018/9
17
• Distributed Generation• Energy Storage• Local Energy
• Smart Meters & connected home
• Micro generation / storage
• Electrification of heat and transport
Transition to a low
carbon economy
Technology
revolutionSocietal changes Changing
regulatory
environment
What is driving the change?
18
Growth in
Electric Vehicles
• Over 300 electric buses in
London by 2020
• 149,000 Plug-in vehicles sold in
the UK, 31% on our networks
• Over 16,000 public chargepoints
Storage
Market
• Over 1GW of accepted
storage offers
• 1000 (18GW) formal enquiries
since July 2015
• Two 50MW Batteries
connected, own a 6MW site
Growth in DG
• 9.06GW of DG connected,
doubled in the last 5 years
• First Solar / Storage schemes
with no subsidy support
• Over 200,000 distribution
connected generators
Pace and scale of change continues to increase
We are adapting to meet the changing market needs
19
Our Innovation Strategy
Consistently credited as an active facilitator of, and not
an obstacle to, the low carbon transition
Low Carbon Ready
Delivering business value today through innovation and the benchmark for best
practice
Efficient And
Effective
A future-ready Distribution System Operator providing
new services, to meet the needs of tomorrow’s customers
Future Ready
UK Power Networks
Innovation Strategy
20
(NIA)
Network Innovation
Allowance
(NIC)
Network Innovation
Competition
Other
IUK/ TFL
Innovation Funding Streams
• annual allowance 0.5% of
revenues (£7.3 - £8m)
• smaller technical,
commercial, or operational
projects directly related to
the network
• potential financial benefits to
UKPN and its customers and
direct impact on network or
DNO operations
• annual competition
(£70m/year)
• Development and
demonstration of new
technologies, operations and
commercial arrangements
• potential environmental
benefits, cost reductions
and security of supply
• Innovate UK launching ~3
funding rounds/year
• Actively supporting these in
readiness to a potential zero
stimulus in ED2
• From EV projects to Industrial
Strategy Challenge Fund
The Innovation Portfolio
Air quality Electrification
of transportElectrification of heatConnecting more
renewable energy
Low cost/value for
money for customersSafety
Improve asset lifecycle
management
Optimise
network capacity
4 NIC, 30+ NIA and 3 non-Ofgem funded live projects for an overall budget of ~£60m
Our Innovation Demonstrator Roadmap (NIC)
Technical Commercial Services
2011 2012 2013 2014 2015 2016 2017
Low Carbon
London
Flexible Plug
and Play
Smarter
Network StorageKent Active
System Management
FUN LV /
Energywise
Transmission Distribution
Interface 2.0 / Powerful - CB
Understanding
smart grids
Power
electronics
Flexible DG
Connections
Grid scale
Storage
Interface with
National Grid
(TSO)
DNO
TSO
Fuel Poverty
Proactive predictive network
configuration for EVs
-V2G
Power
Potential
Powerful-CB
ANM
Active Response
2018
Bids
TBA
Customers are central to everything we do
23
Angeliki Koulourienergywise Project Lead, UK Power
Networks
26
Agenda
4.5m
• The challenge
• How is energywise helping?
• Trial design + the journey
• What we have achieved
• How is innovative?
• Learnings
27
Energy and fuel poverty
The challenge
• 4.5m households in the UK in fuel
poverty
• Little research to date about the
impact of smart technologies and Time
of Use tariffs on the fuel poor
• Marginal role traditionally played by
DNOs in delivering
energy measures
to these customers
4.5m
28
Smart energy and fuel poverty
To benefit those who need them the most, the delivery of smart energy measures must be
INCLUSIVE TO ALL, including vulnerable and hard-to-reach
29
Funding: £5.49m (£3.32m LCNF)Duration: 4 years & 9 months (2014 - 2018)
2016
30
energywise video
2017. UK Power Networks. All rights reserved
Key questions
Customer engagement
Energy saving
Demand Side Response
What energy savings
can people in fuel
poverty achieve?
What is the best way to
engage with this customer
base?
How can they respond and
benefit from DSR
opportunities?
32
The journey
33
at a glance
34
Key achievements
Identification
of trial
participants
Engagement
with
customers
Delivery of
energy
interventions
Time of Use
tariffs
offerings
35
Identification of eligible participants
Trial 1 sign-up rate: 538 signed up out of 1,352
approached (40%)
Eligibility criteria (proxies for fuel
poverty)
• Social housing tenants
• Living in a less efficient property
EPC band C-G
• British Gas customers
• Additional criteria
1,352 customers identified
Target 1 in 3
36
Engagement with customers
Tailored engagement strategy
Trusted community partners
Knowledge of local culture and languages
‘’The field officer was
brilliant, we were talking
and laughing; he was
lovely, understandable,
understood my
concerns, took on
board my issues.’’
energywise participant
‘’The [energywise officers]
were absolutely great; they
came and knocked on the
door, showed their IDs,
they asked if I had time,
they were very polite; they
listened to what I said, I
was really happy with them’’
energywise participant
37
Delivering energy interventions
Offering suitable ToU tariffs
NON- PUNITIVEPUNITIVE
OPT-INOPT-OUT
HomeEnergy FreeTime
tariff:
offers free electricity 9am to
5pm on Saturday or Sunday
Credit customers
Critical Peak Rebate
(Bonus Time):
dynamic non-punitive ToU
tariff with SMS notifications
Prepay customers
66 Bonus Time events
Evening, AM, noon, and
weekend events
39
Trial 2 material
Time Shifting Advice tailored to
each offer
40
Working with key stakeholders
Keep informed• Other DNOs
• Local authorities
• Media
• Energy industry
Key players• Ofgem
• BEIS
• Project partners
• Third parties/ suppliers to project
• Consumer groups
Build awareness
• Wider population
Keep satisfied
• Trial participants
41
What’s new?
Tested an innovative, collaborative approach between distribution
network operators, energy suppliers and community members in
engaging households on energy saving and shifting times when energy
is used
Trialled smart meter solutions including prepayment smart meters and
new energy tariffs in a local community
Demonstrated smart meter infrastructures for high rise buildings with
difficult meter arrangements
Explored how much households can benefit from these solutions and
how a change in demand may benefit the electricity network
42
energywise- project learnings
Next sessions will cover learnings from:
- Recruitment and engagement of
participants (CAG Consultants &
Bromley by Bow Centre)
- Electricity saving and shifting: the
customer perspective (UCL)
- Electricity saving and shifting: the
network perspective (Element
Energy)
- Overall project learnings (UCL and
Element Energy)
Administration and set up
Trial 1 recruitment
and installation
Trial 2 recruitment
and installation
Decommissioning and close
down
Research
Ongoing participant engagement
2017. UK Power Networks. All rights reserved
www.cagconsultants.co.uk
energywise
Recruitment and engagement of participants
www.cagconsultants.co.uk
Overview of this session
Description of the approach to recruiting participants onto the energywise trial and maintaining their ongoing engagement
Responsible for formulating the project
communications plan and overseeing
the recruitment and engagement
activities
Local community centre based on
the heart of the trial area, where the
project’s team of customer field
officers has been based
www.cagconsultants.co.uk
The customer field officer team
www.cagconsultants.co.uk
www.cagconsultants.co.uk
Piloting the recruitment approach
Finalisation of key
messages
The recruitment approach
Recruitment key learnings - staffing
Locally based field officers with
knowledge of local culture and languages
Have recruiters work in pairs with diverse
team
Project badges and uniforms increase
recognition and trust
Specialist recruiter organisations can be
effective in getting people to sign up
Maintain a small, well trained team of
recruiters
Door knocking is effective but time
consuming
Recruitment partner should have
excellent data management and
analytical skills
Appropriately skilled field officer manager should be in post for
duration of recruitment phase
Recruitment key learnings – message and materials
Low income customers likely to
be motivated primary by prospect
of saving money
Professional well designed, highly
visual materials are essential
Clear indication about energy
supplier’s involvement to limit
misconceptions
Test messages and materials through a focus group before
finalising
Recruitment – key learnings
Ongoing engagement
Participant panels
Regular newsletters
Action to mitigate
identified risks
Vouchers
Shifting advice
Text messages
End of project party
‘Thank you’ events for
participants held in April
The events included:
• Competitions and prizes
for participants
• Childrens’ entertainment
• Giveaways and goody
bags
• Opportunity to capture
participant feedback
www.cagconsultants.co.uk
Key achievements-Trial 1
www.cagconsultants.co.uk
Key achievements-Trial 2
www.cagconsultants.co.uk
Participant interviews-video
www.cagconsultants.co.uk
In summary
Test materials and messages with target audience before finalising
Trusted local intermediaries can play critical role in engaging with hard
to reach groups
Customer field officers are key to explaining smart meter benefits to
customers
Keep communication
simple and highly visual
Participant panels and newsletters are
key to ongoing engagement
www.cagconsultants.co.uk
Further information:
www.cagconsultants.co.uk
Thank you for your input!
Energywise insights: Customer perspective
Jenny Love
Simon Elam
Charlotte Johnson
David Shipworth
Our Vision: A globally sustainable energy system
Strategic Focus: Energy systems and demand
Aim: understand the world and help to change it.
Activities: research, teaching, dissemination
Methods: Multi-disciplinary, observation, data collection, analysis, energy epidemiology, model
development and scenarios. Our laboratory is the “real world”.
About UCL Energy Institute
• What are the aspects of the ‘customer perspective’ covered here?
• What data was used?
• We will cover Trial 1 (energy saving) and Trial 2 (energy shifting)
The customer perspective
kWh / £ savings made by customer Customer perceptions
Data type Smart meter data Interview and focus group data
• 3.3% saving from package of interventions (around
£14/yr)
• In line with other trials and expectations in smart
metering business plan
• Unclear how the energy saving is attributed to
technologies (ie LED light bulbs) and occupant
change in behaviour as a result of in-home displays.
-8
-7
-6
-5
-4
-3
-2
-1
0
% e
lectr
icity
save
d
Trial 1: energy saving
• LEDs and in home displays popular, eco-kettle and
information leaflet not so popular.
• Participants were generally positive about the role of
feedback from the in-home display in helping them
save energy
• However evidence from panels showed that some
participants remained confused about how to
manage electricity in the home
Smart meter data Interview and focus group data
Control Intervention
3.3%
Two illustrations from Trial 1
• Energy-concerned household, motivated to save
• Bill payer has seen a drop in bills and in consumption
• Household actively engages with the SED to
improve understanding of electricity use at home
• Household seeks out additional opportunities offered
by project to increase knowledge about electricity use
(e.g. going to focus group)
• Household has increased confidence in how to
manage electricity use in the home
• High consuming household, No motivation to save
• Bill payer has seen a drop in bills and in consumption
• Family has not made any changes to appliances,
household or use
• Household is unclear why the fall has happened.
Trial 2: energy shifting
What actions lead to households saving money?
Note that the Bonus Time and HEFT metrics used to describe the customer perspective are different
from those describing the network perspective (Element Energy will present this later).
Home Energy Free Time: kWh
shifted from paid to free time
Bonus time: kWh reduction during
5-11 p.m.
Watt
sW
att
s
Bonus Time
Smart meter data Interview and focus group data
Our metric involved energy use
averaged over the entire bonus
time event
The average per-household
response was not significantly
different from zero.
Participants with electric
cookers and tumble dryers
showed more shifting, as did
presence of an adult aged over
65.
Only one of the 11 PPM
interviewees was actively trying
to shift.
Focus group participants were
more engaged but some stated
they were not able to act.
Cooking, laundry, switching off
lights and electronics,
hoovering, showering and hair
drying were all mentioned
Potential links
Home Energy Free Time
Home Energy Free Time
Our metric involved energy shifted
from paid to free times – ie not
comfort taking
The average was 0.92 kWh per
week
Households with tumble dryers
showed more shifting
Households with more occupants
showed more shifting up to a
point; households with an elderly
person showed less.
Households with children showed
a mixed response.
Smart meter data Interview dataPotential links
Some comfort taking activities
were described which may
explain the network findings in
the next section
Some participants thought
larger households would have
higher shiftable loads
Laundry, hoovering and
charging electronics were
mentioned
The role of children was
perceived to be ambivalent
Observations from HEFT and Bonus Time
• HEFT was an easier flexibility product for participants to understand and respond to.
• Panellists felt that households with children had larger and more flexible electricity loads (such as laundry) which
they may be able to shift, but also that one person households were able to completely control their consumption.
large
electrical
loads
control
over time
use
OR
large
electrical
loads
control
over time
use
• The role of gender in demand side response (see next slide) ...
Women and demand side response
• An interesting emergent theme
• Women are currently responsible for the bulk of domestic labour in the UK
related to flexible loads
• DSR therefore both depends on women and affects women
Opportunity:
For DSR to reach its full potential,
engage women
Challenge 1: bill-payer or trial consentee
not the same person as chore-doer
Challenge 2: DSR may currently place
greater demands on women changing
their schedules than men.
Energy Social Capital survey: highlights
• Energy saving:
73% of respondents reported being more aware of how to save energy by the end of the project
• General:
Participants primarily turned to family
for advice on energy
Energy social capital increased
throughout the project; by the end 90%
of respondents knew someone they
could ask about energy
However most still did not know about
the Priority Services Register 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
one or more resources ticked no ESC resources ticked
ESC1 ESC2 ESC3
Energy Social Capital Survey - highlights
• Energy Shifting
By the end of Trial 2 more participants than before knew someone who could give them advice on
changing the times they used energy. However this was 56% of respondents – perhaps still fairly low?
By the end of Trial 2 more participants than before knew a friend who could advise them about shifting
By the end of Trial 2 there had been an increase in conversations about changing the times of using
energy but these were still in a minority compared to other energy discussion topics
Conclusions
• Small financial savings for customers - obtained from energy saving trial through
package of interventions
– Some households gained clarity on where energy was being used in their home, some did not
• Small financial savings for customers – obtained through shifting energy use to
weekends through the Home Energy Free Time offer
– Large shiftable loads and time flexibility to shift tasks perhaps not found in the same households
• Lack of overall energy savings during peak period as a whole from critical peak
rebate offer
– Reducing consumption over the whole of the evening peak (6 hours) was perceived as difficult
• Emerging theme of women as the household members who can make or break the
demand side response
Element Energy Ltd
energywise
Electricity saving and shifting:The network perspective
Dr Mark Hughes
Richard Deuchler
Silvian Baltac
12/07/2018
77
• Element Energy is a specialist energy consultancy, with an excellent reputation for rigorous and insightful analysis in the area of low carbon energy
• We consult on both technical and strategic issues – our technical and engineering understanding of the real-world challenges support our strategic work and vice versa
• Element Energy covers all major low carbon energy sectors:
Energy NetworksSmart Energy
Systems
CCUS and Industrial Decarbonisation
Hydrogen and Fuel Cells
Low Carbon Transport
Built Environment
Our understanding of energy networks comes from major assignments over the past 15 years with key stakeholders
Element Energy – a consultancy focused on the low carbon energy sector
78
The model incorporates:
• High geospatial resolution data on building stock and customer demographics
• Detailed domestic and non-domestic consumer archetype data
• Robust consumer choice modelling informed by the latest data on technology cost and performance, policy support, energy costs, consumer attitudes, etc.
• All relevant network, asset and connectivity data – models actual network structure
• Weather data (e.g. for temperature correction, climate change analysis, etc.)
Population and economic growth
Energy efficiency improvements
Changing building stock and demographics
Weather and climate change
Demand-side response interventions
New technologies (e.g. solar PV, wind, batteries, EVs, etc.)
Changing appliance ownership patterns and consumer behaviour
Considers impacts on future loads from:
Ele
me
nt
Ene
rgy
Load
Gro
wth
Mo
de
l
Changing government policy landscape and energy costs
Bottom-up approach to modelling demand, technology adoption and behaviour change
Outputs:
Resolved all the way down to distribution substation level
Reverse power flow analysis
Impact analysis for DSR and customer flexibility strategies
Demand, consumption and customer number forecasts
Cost-benefit analysis for customer flexibility strategies
Comprehensive breakdowns by technology and sector
Extensive scenario and sensitivity options
Reinforcement timings, costs and load index analysis (with & without customer flexibility)
The Element Energy Load Growth (EELG) model – high-resolution network load forecasting
79
Comparison of energywise demand profiles to other trials
Demand profiles for energywise households
• Average consumption is considerably lower than that observed for the LCL and CLNR trials
• This is in keeping with the findings of the LCL trial analysis on the impacts of household income on consumption
– Reflects the demographic composition of the energywise participants
• Relatively lower morning demand (between about 6am and midday) and evening peak demand (between about 5pm and 9pm)
• Relatively higher early morning demand (between about midnight and 3am)
0
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man
d (
W)
Average demand profiles across different trials
Low Carbon London – 12 months (2013)
Customer-Led Network Revolution – 12 months (2012)
energywise – 12 months (Feb’16-Feb’17)
80
Energy saving (Trial 1): Peak demand reduction
Impact of energy saving devices
• Provided devices:
– 3 LED lightbulbs
– Eco-kettle
– Standby saver
– Smart meter (and IHD)
• 3.3% reduction in annual consumption for households provided with energy saving devices
• Average demand reduction of 23 W during the evening peak period1
• Equivalent to an average peak demand reduction of 5.2%
• Technical potential analysis and interview feedback indicate that smart meters (along with IHD) and LED lightbulbs appear to be most effective of the four device types provided in this trial for reducing electricity consumption and peak demand
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Demand profiles from energywise Trial 1
energywise – 12 months, control group, credit meters (Feb'16-Feb'17)
energywise – 12 months, intervention group, credit meters (Feb'16-Feb'17)
1 The evening peak period was taken to be 17:00 to 22:30 in this analysis.
81
Energy saving (Trial 1): Alignment with substation profiles
• Strong correlation between the energywise participant profile shapes and the average secondary substation load profiles to which they connect
• Energy savings generally align well with the timing of secondary substation peak loads
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bsta
tio
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oad
(kW
)
Cu
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dem
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W)
Comparison with secondary substation profiles
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Comparison with primary substation profiles
energywise – 12 months, control group, credit meters (Feb'16-Feb'17)
energywise – 12 months, intervention group, credit meters (Feb'16-Feb'17)
Trial 1 seconary substations (Feb'16-Feb'17)
Trial 1 primary substations (Feb'16-Feb'17)
Secondary Substations
Primary Substations
• The energywise participant profile shapes are less correlated with the average primary substation load profiles
• Reflects the more diversified nature of the primary substation loads and the higher proportion of industrial and commercial loads at this level
82
• 1.5% average reduction in peak demand across weekday evening events (5pm – 11pm)
• Reduction concentrated in the first half of the six hour event
• The timing of the events effectively targeted the period of peak demand
• Flexible nature of the Bonus Time approach means that it can be tailored to the specific peak time of each network asset
0
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stat
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orm
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r d
em
and
(W
)
Bonus Time – WeekdayAll Households
Energy shifting (Trial 2) – Bonus Time: Peak demand reduction
0
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)
Bonus Time - WeekdayHouseholds with Tumble Dryers
Bonus Time customers, event weekday (W)Bonus Time customers, non-event weekday (W)Trial 2 secondary substations, weekday (normalised)Trial 2 primary substations, weekday (normalised)
831 “BGE’s Smart Energy Pricing Pilot Summer 2008 Impact Evaluation”, Baltimore Gas & Electric Company, 20092 “Ontario Energy Board Smart Price Pilot Final Report”, IBM Global Business Services and eMeter Strategic Consulting, 2007
Demand reduction by level of engagement
• Average demand reduction during Bonus Time events varied considerably by household
• The best performing 10% of households achieved average demand reductions of 18.7%
• This high level of demand reduction is consistent with the levels observed in other international trials (where reductions as high as 21% were commonly observed)1,2
-20%
-18%
-16%
-14%
-12%
-10%
-8%
-6%
-4%
-2%
0%
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Responses for different levels of customer engagement. The first bar represents the response of those 10% of customers that were most engaged (i.e. had the biggest demand reduction during Bonus Time events). The bar
for 100% addresses all participants.
Average demand reduction during Bonus Time events by level of engagement
Energy shifting (Trial 2) – Bonus Time: Range in levels of household response
84
Energy shifting (Trial 2) – HomeEnergy FreeTime (HEFT): Mixed impacts on peak demand
Important implications for peak demand
• Average 2.2% reduction in the weekday evening peak demand
• However, there is also an average 22.2% increase in the peak demand for the weekend day containing the free period (9am – 5pm)
At high levels of uptake, this has important implications for substation peak loading
85
Secondary Substations
• The average 2.2% reduction in the weekday evening peak demand has the potential to slightly reduce the peak load for some of the substations
• However, the average 22.2% increase in the weekend peak demand has the potential to create new larger weekend peak loads for many of the secondary substations
Energy shifting (Trial 2) – HomeEnergy FreeTime (HEFT): Impacts on substation peak demand
Primary Substations
• Less of an issue at primary substation level
• High levels of industrial and commercial (I&C) loading at this level mean that the weekday peak load at these primary substations is typically considerably higher than that of the weekend peak load
The assumption of 100% domestic customer uptake of the HEFT tariff is used to illustrate the potential extent of network impacts. The mix of customers choosing Saturday or Sunday for their free period was taken from the mix observed in the energywise trial (65% Saturday versus 35% Sunday).
86
Energy savings and network peak reduction
• If the energywise savings were realised by all fuel poor customers across the UK Power Networks licence areas
• Total annual electricity consumption reduction:
– 86 GWh/year
– Saving customers about £11.2m/year
• Network peak reduction:
– 27 MW
– Deferred network reinforcement cost of £2.7m – £5.4m
Potential network impacts if rolled out across UK Power Networks
Licence areaNumber of fuel poor
customers1
Reduction in annual
consumption:
Intervention devices
Reduction in network
evening peak:
Intervention devices
Reduction in network
evening peak:
Bonus Time
Reduction in network
evening peak:
Total
GWh/year MW MW MW
Eastern Power Networks
413,619 39 9.5 2.7 12.2
London Power Networks
248,684 23 5.7 1.7 7.4
South Eastern Power Networks
258,113 24 5.9 1.7 7.6
Total 920,416 86 21.1 6.1 27.2
1 Department for Business, Energy & Industrial Strategy: “Sub-regional fuel poverty data 2017”, report available from: https://www.gov.uk/government/statistics/sub-regional-fuel-poverty-2017
87
Conclusions
Trial intervention Finding
• 3.3% reduction in annual consumption
• 5.2% reduction in average peak demand
• 1.5% reduction in peak demand when considering all households
• 18.7% reduction in average peak demand for best performing households
• 2.2% reduction in weekday peak demand
• 22.2% increase in the peak demand during the free period
Relevance
• Energy savings are concentrated in the peak period
– Beneficial from a network perspective
• Large variability in customer responses
– Availability of large flexible appliance loads is important
• Potential to create new weekend peak loads for secondary substations
– Caution required at high uptake
Dev
ices
Bo
nu
s Ti
me
Ho
meE
ner
gy F
reeT
ime
88
Thank you
Please get in touch if you have any questions or would like to discuss further:
Dr Mark Hughes
Director
+44 (0)1223 855 240
2017. UK Power Networks. All rights reserved
July 2018
SAVE Project
Beginning with the end in mind
91
Imagine a world where…
DNO’s can manage their networks through a selection of smart
techniques
Facilitating LCT’s
Avoiding disruptive reinforcement
Customers actively facilitate and benefit
from network management
Customers have a positive and active relationship with
networks
Fuel poor and priority service customer management is
optimal
Carbon Emissions are minimised and
renewables dominate generation
Greater security of supply
Health and environmental
benefits
Domestic Customer Engagement
92
93
Jan 2014 – Jun 2019
£10m total project cost
Based in Solent region
8000 domestic customers
Network Investment Tool
Key facts
94
Methodology
Interventions
Domestic Monitoring Feeder
Monitoring
1. LED lighting trials-Lighting is responsible for
19% of evening peak
demand
2. Data informed
engagement -other trials suggest
reductions of around 11%
3. Data informed
engagement + prices
signals-other trials suggest
reductions of around 11%
4. Community
Energy Coaching-Two communities, one
affluent one deprived
-Other benefits i.e. PSR
customers
95
Business As Usual-Network use case based on overall
population-Approach to be tailored, adapted
or account for vulnerable customers
-Modelling of impacts based on customer types
-Most cost-effective approaches-Best practice engagement
SAVE-Representative
population-Surveys
-Mutually Exclusive trials
-Energy Efficiency-Dynamic Pricing
-Customer/Communi
ty Engagement
energywise-Vulnerable customers
-Surveys-Iterative trials
-Energy Efficiency-Dynamic Pricing
-Customer/Community Engagement
Keeping the end in mind
The impact of energy efficiency
96
SAVE, EnergyWise and Power Saver Challenge
97
Our PromisesSAVE will look to understand whether impact of initiatives are higher or lower on vulnerable customersSAVE will provide a comparison of which engagement technique/technology provides greatest impact
Data informed and price signal engagement
98
99
Event days: Preliminary results
Figure5:Temporalprofilesofconsumptionaroundtheeventday(with95%CI)
ThesetofchartsbelowinFigure6showtheoverallmeanforthe16:00-20:00periodsofeachday
comparedtothe4hoursbefore/afterandasabove,the95%confidenceintervalsgiveanindication
ofthestatisticalsignificanceofanynumericaldifference.
Ben Anderson 5/7/2017 14:58
Deleted: 9
Ben Anderson 5/7/2017 14:58
Deleted: Figure10
Day before
Day of
Day after
Dynamic pricing
100
Setting a pre-defined level of
consumption for which
consumers are incentivised to
keep under at peak time.
Particularly interesting with
EV’s.
SAVE, EnergyWise, LCL and CLNR
101
Our PromisesSAVE will to understand network impact of customers opting in/out of trialsSAVE will understand impact of different mechanismsSAVE will understand impact across different types of customer
102
Community Engagement Findings1. Earning the right to talk to the community- understand their agenda then link
messages to energy efficiency:
a) 10% response to DNO branded 50% response to community branded
2. Energy Literacy- general negative connotations- should focus on
a. Visual + Use of language
b. Cooking case study
3. Creating habit- bottom up and top down approach to engagement
a) Visibility of energy
4. Quantitative impacts
5. Social obligations
Modelling
103
Ultimately SAVE will inform:
• Value of energy efficiency, price signals
vs information alone and community
interaction
• By modelling this we can scale,
target and understand spatial
implications
• Impact on vulnerable customers
In the future we should
• Looks to layer these models with wider
data
• Not only allow us to better
understand benefits
• But also stack benefits with third
parties i.e. BEIS.
104
Any Questions
Moving forwardDavid Shipworth, UCL
Mark Hughes, Element Energy
© 2018. UK Power networks. Al rights reserved
Differences between savers and shifters
matter
Shifting requires identifying large discretionary loads and the human
resources to reschedule them.
Saving requires identifying unnecessary loads and the the human, or
human plus technical, resource to remove them.
Targeting savers and shifters is largely independent and requires
different information about customers’ homes and lifestyles
© 2018. UK Power networks. Al rights reserved
Messaging matters
Communicating ToU tariffs requires care - don’t assume all will
understand. Use multiple modes - not all consumers absorb written
information.
Don’t make assumptions. Use repeated consumer testing and refinement
of all aspects of communication to make sure messaging works for your
target audience.
© 2018. UK Power networks. Al rights reserved
Processes matter
Engagement, recruitment, equipment installation and retention of
customers took development of systems and close coordination between
the supplier and the Customer Field Officers.
Organisations have differing but complementary skills, cross-training and
systems development are needed for process harmonisation between
collaborating organisations.
Investing in system building and staff training across teams yields
results.
Streamline the customer journey. Where multiple partners are involved
ensure smooth customer handoff between project partners.
Participants responded positively to minimising the number of contact
points and times.
© 2018. UK Power networks. Al rights reserved
Trusted local intermediaries matter
Participants responded best to recruitment approaches by their energy supplier,
but locally based Customer Field Officers (CFOs) from a Trusted Local
Intermediary were key for initial recruitment (particularly face to face).
Engagement extends recruitment into a relationship, ideally a relationship with a
personally known local intermediary.
For Time of Use tariffs, most consumers needed CFO support before being
willing to sign up.
CFOs for were key for providing participant support and providing a trusted single
point of contact.
CFOs and use of the trusted local intermediary drove customer satisfaction.
Local links, even calls from local numbers, built trust and engagement.
© 2018. UK Power networks. Al rights reserved
Technology matters
Energy efficient technologies can lock in energy savings at peak times
Feedback from trial and technical potential analysis indicate that smart
meters (along with IHD) and LED lightbulbs appear to be most effective
of the four device types provided in this trial for reducing electricity
consumption and peak demand.
LED lights proved the most popular with participants, and their demand
correlation with the evening peak provide network benefits.
Targeting efficiency at components of peak periods delivers both carbon
and energy system benefits.
© 2018. UK Power networks. Al rights reserved
Non-punitive tariffs and rebates can engage customers and shift energy
While it is hard to draw direct comparison between trials, the peak
demand reductions observed for the non-punitive offerings in this
project were not as large as those of punitive ToU tariffs trialled in GB
(e.g. in LCL and CLNR)
International trials suggest that non-punitive CPR schemes have the
potential to achieve peak demand reductions equivalent to (and in
some cases larger than) comparable punitive approaches1,2,3
Non-punitive tariffs protect credit customers from loss, and prepayment
customers from cash-flow constraints and loss
The ‘you can’t be worse off’ message is enticing, but requires
overcoming scepticism
There is evidence of shifting, but network benefits require careful
shaping and targeting
HomeEnergy FreeTime
The future role of non-punitive energy shifting
1 “CL&P’s Plan-it Wise Program Summer Impact Evaluation”, Connecticut Light & Power Company, 2009. 2 “BGE’s Smart Energy Pricing Pilot Summer 2008 Impact Evaluation”,
Baltimore Gas & Electric Company, 2009. 3 “Ontario Energy Board Smart Price Pilot Final Report”, IBM Global Business Services and eMeter Strategic Consulting, 2007.
© 2018. UK Power networks. Al rights reserved
In the USA these schemes have achieved large demand reductions:
• Average peak demand reductions range between 7% and 21% across
various trials1,2,3,4
• Typically targeting large AC loads during summer peaks
The availability of large flexible appliance loads (e.g. tumble dryers and electric
cookers) was also an important factor for demand reductions in Bonus Time
Opportunity for direct engagement by DNOs and other stakeholders with no
need to change supplier tariff
Further testing of these non-punitive and tariff independent CPR schemes in
the UK appears warranted:
• With a broader customer demographic
• Targeting customers with large flexible appliance loads
• Uptake of EVs, HPs, AC and smart appliances in the UK offers new
opportunities
Further work to understand the effect of price elasticity and frequency of events
may also be relevant for future work
Next steps for CPR schemes such as Bonus Times
1 “CL&P’s Plan-it Wise Program Summer Impact Evaluation”, Connecticut Light & Power Company, 2009. 2 “BGE’s Smart Energy Pricing Pilot Summer 2008 Impact Evaluation”, Baltimore Gas &
Electric Company, 2009. 3 “Ontario Energy Board Smart Price Pilot Final Report”, IBM Global Business Services and eMeter Strategic Consulting, 2007. 4 “2014 Impact Evaluation of San Diego
Gas & Electric’s Residential Peak Time Rebate and Small Customer Technology Deployment Programs”, D. Hanna, C. Elliot and G. Jiang, 2015.
© 2018. UK Power networks. Al rights reserved
There are opportunities for customer benefit from these types of non-
punitive tariffs
However, caution needs to be applied with free periods and their
network impacts
• Particularly their potential to increase existing network peaks or
to create new peaks
While not observed in this trial, there is also the possibility for
increased annual consumption (and carbon emissions) via additional
“comfort taking” on free days
The more diversity that can be achieved in these types of offers the
better from a network perspective
• Customer options for other free periods away from critical
network timings
Dynamic free periods corresponding to times of high renewables
generation (and low wholesale market prices) could also offer
customer value while potentially minimising negative network impacts
Future considerations for free period tariffs such
as HomeEnergy FreeTime
0
100
200
300
400
500
600
700
800
0 10 20 30 40 50 60
Sub
stat
ion
Lo
ad (
kW)
Trial 2 secondary substations (ordered by size of current peak load)
Potential impact of 100% HEFT uptake by domestic customers on peak loads of secondary substations
Substation peak load
Substation peak load with 100% HEFT uptake
115
Closing Remarks
Ian Cameron
Head of Innovation, UK Power Networks
Key learnings from energywise
Bringing together
different
organisations with
the right expertise is
key to deliver
tailored-support
services
It is possible to
unlock flexibility
services from fuel
poor and hard-to-
reach customers
Understanding our
customers• Better
understanding of
type of
households,
demographics,
customer needs
and energy social
capital
Engagement with
disadvantaged
customer groups
can be resource
intensive• Requires tailored
strategy [no ‘one size-fits-all’]
• Working with a trusted local intermediary
• Costly
Prospects for flexibility services
• In future, the business case for ToU tariffs and energy efficiency packages might need to be revised
• Who is most suitable to deliver energy efficiency to customers?
a) energy supplier, b) the network, c) third party, d) combination of all [Please vote!]
• Who is most suitable to deliver Time of Use tariffs to customers?
a) energy supplier, b) the network, c) third party, d) combination of all [Please vote!]
• Continue to understand implications for customers, networks and suppliers
• Enable the market for energy efficiency and introduce interventions beneficial to customers
Moving forward- We will:
Continue building
on learnings from
energywise (2014-
18) and Low
Carbon London
(2011-14)
Conduct further
trials help networks
fill the knowledge
gaps• Energy efficiency for
customer benefit
project (new project
under scoping)
• Inform business
towards ED2
Continue to listen
and share with
stakeholders and
advance the energy
efficiency debate
Distribution System Operator Priorities- 2017-19
• Active Network Management rolling out as BAU across all networks
Facilitate cheaper and quicker connections using proven innovation
• Continue running faster and larger flexibility services tenders
Use customer flexibility as an alternative to network upgrades
• Deploy KASM Forecaster into BAU, develop and trial DERMS
Develop enhanced System Operator capabilities
• Actively participate in cross sector innovation which benefit whole system
Collaborate with Industry to enable whole system benefits
• Deliver EV readiness Strategy and EVolution Project
Prepare and facilitate the uptake of Electric Vehicles
1
2
3
4
5
119
First public tender for flexibility
services
Tender for 35.4MW of Demand Side
Response
Tender covered 10 sites across our
networks
Piclo Flex Online Marketplace
Distribution System Operator in Action
Partnership with Piclo Flex
• The world of energy is changing fast, and we recognise
that our role has to evolve
• Our transition to Distribution System Operator (DSO) has
already started to enable a smart, flexible system
• We are continuing to invest in innovation projects to
develop our DSO capabilities
• #energywise #communityhelp
Visit FutureSmart.ukpowernetworks.co.uk