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1 Low Carbon London A Learning Journey Powering The Future Liam G O’Sullivan Programme Director - Low Carbon London UK Power Networks

Analyst briefing session 3 low carbon london

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Page 1: Analyst briefing session 3   low carbon london

1

Low Carbon London A Learning Journey

Powering The Future

Liam G O’Sullivan

Programme Director - Low Carbon London

UK Power Networks

Page 3: Analyst briefing session 3   low carbon london

3

GENERATION TRANSMISSION DISTRIBUTION SUPPLY

INDUSTRIAL

COMMERCIAL

RESIDENTIAL

UK Power Networks

Page 4: Analyst briefing session 3   low carbon london

4

UK Power Networks End Customers

Millions

Service Area km²

Underground Network km

Overhead Network km

Energy Distributed TWh

Peak Demand MW

New Connections

8.0

29,165

134,767

47,391

89.4

16,229

130,768

28%

12%

29%

15%

28%

N/A

35%

Total % of

Industry

Page 5: Analyst briefing session 3   low carbon london

5

Low Carbon London - A learning journey Learning how to create a smart low carbon city

A pioneering demonstration project, trialling new technologies, commercial innovation and design, operation and network management strategies… Smart Meters Wind Twinning Demand Side Management, I&C, Smart Appliances, Demand Flexibility Distributed Generation Electric Vehicles Heat Pumps New Tools, Operational and Investment Practices Learning Lab Conclusions/Video

Page 6: Analyst briefing session 3   low carbon london

6

Low Carbon London Programme Sponsor

Ben Wilson

Programme Director Liam O’Sullivan

Programme Manager Brian Kelly

Finance manager Sujit Wijayatilleke

Programme Office Rob Maddocks

Solution Design Authority

Mike Bray SPM

Brian Kelly (Interim) SPM

Andrew Moring SPM

Alan Higginson

TA Adrian Putley

Trial Design Georgia Davies

WS11 – IFS Dennis

Moynihan

WS01 - WT Andrew Alabraba

WS02 - DG Paul Pretlove

WS12 - CT Nicolette Walshe

WS09 – ODS Nigel Murkitt

WS08 – New Ops Peter Lang

WS 07- LL Mark Bilton

WS05 – DRM Andrew Alabraba

WS06 – New Tools James Gooding

Vision Design Authority Dave Openshaw, Sara Bell,

Cristiano Marantes

Communication, Stakeholder & Customer Engagement

Polly Whyte

WS04 – SM & British Gas Loic Hares

WS10 – IE Kyra Quinn

WS03 – EV, PV & HP

Abs Manneh

WS15 – L&D Dorril Polley

(PT)

BA Suzi Newman

Vidia Pallaram (FT)

Steve Hesketh Peter Rints

TBC

BA Tony Mason

Babalola O (FT)

Holly Bolton (FT)

Antonio Gomes

James Schofield

LCL Organisation Structure

TBC

Sree Mennon

LCL Leadership team

LCL Work stream Additional resource

BA Don McPhail (FT) – Full Time

(PT) – Part Time

BA David Boyer

Carina Correia (PT)

Programme Admin Joy Davidian

Engineering Working Group Asset Management Design Standards

Networks operations

TBC

LCL Privacy Group Duncan Page, Sacha

Hollis, Brian Kelly, James Gooding

Duncan Page

Additional Programme

Controls

Neil Johnson Programme Planner

Page 7: Analyst briefing session 3   low carbon london

7

Progress: some key highlights

• A comprehensive project plan, solution design, trial hypothesis, test cases and a fully mobilised delivery team – deliver the learning AND the programme outcomes & objectives.

• A common demand response contract between three external aggregators and UK Power Networks to enable sign up of customers to reduce load at peak times on selected substations. 13.8MW’s signed up and further 5MW in pipeline this month.

• DG/ANM trials: c. 30 sites currently identified, 2 formally signed up; further 8 in advanced stages, mass acquisition commences next month.

• First customers identified for EV trial: 30 res, 70 commercial, 675 CP’sImperial College London and Transport for London, trial activation commenced.

• Smart meter ‘pilot’ in Lewisham (Low Carbon Zone) and Canning Town (Green Enterprise District) to test customer engagement and roll out strategy – complete and c.4500 +700 customers signed up; further 2000 by end of Sept plus ToU rollout by November.

Page 8: Analyst briefing session 3   low carbon london

8

Progress: some key highlights

• Customer Working Group: established with focus groups with key stakeholders and customers to inform customer engagement for trials.

• Learning sharing: ENA demand response seminar, ANM learning events; responsive demand workshop (October 2011); DR Learning Events, smart metering rollout and ToU tariffs February 2012; Distribution Generation CHPa event March 2012 and others planned throughout programme.

• Learning dissemination: Internal and International seminars and teams hosted last year and this.

• Learning leveraging: support for FP7, TSB and other technology, innovation trials and system design, operation and management techniques

• Learning Laboratory: opened 5th October 2011.

• Trial participant acquisition: activation commenced – DR, DG, EV, HP and PV.

• Programme website launched: www.lowcarbonlondon.info

Page 9: Analyst briefing session 3   low carbon london

We will learn and demonstrate how

to… …maximise opportunities for low carbon,

distributed and micro-generated electricity

…respond to new demands on the electricity

network from a low carbon economy

…work with communities and businesses

to help them manage demand

UKERC Smart Meters for Smart Grids

UK Perspective - 25 Mar 2010

…match local energy demand with national low

carbon energy demand

Page 11: Analyst briefing session 3   low carbon london

11 11 Capital Programme Roadshows Autumn 2010

© Autumn 2010 EDF Energy plc. All rights Reserved

Low Carbon London – trial areas

Page 13: Analyst briefing session 3   low carbon london

13

Low Carbon London

Smart power for a sustainable future

A project for London… learning for all Great Britain

Create a 2020 scenario today to investigate

and address the challenges and opportunities that DNOs will face in

powering cities in a low carbon future.

Page 14: Analyst briefing session 3   low carbon london

14

But also:

• characterises every major town and city in Great Britain

• anticipates the new challenges for all future urban networks:

• electric vehicles and decentralised energy

• distributed and micro-generation

• highly utilised network

London has the highest carbon footprint of all GB cities… … is critical to the nation’s economy (21% of GVA)

Total CO2/km2 (kt CO2/km2) 0.0 - 10.0

10.0 - 50.0

50.0 - 100.0

100.0 - 150.0

150.0 - 550.0

London - The ideal case study…

… to demonstrate how to transform the electricity network to deliver a low carbon economy

47.5 million tonnes CO2

emissions p.a.

Target – 60% reduction on

1990 levels by 2025

Page 15: Analyst briefing session 3   low carbon london

15

Challenge:

Smart meter rollout to all UK homes and most SMEs by 2019

Smart Meters

Our response: Install circa 5,000 smart meters in homes across London’s 10 Low Carbon Zones and the Green Enterprise District to understand how smart meters can impact customers’ energy demand

Use smart meter data to inform smarter network operating techniques and improve LV network visibility

How smart meters can be used to increase LV network visibility and to enable smart grids activities (e.g. demand response)

Green Enterprise District

Page 16: Analyst briefing session 3   low carbon london

16

Challenge:

UK Renewable Energy Strategy: 34GW of wind generation by 2020

Matching electricity demand to intermittent generation

Wind Twinning

Our response: Trial ‘wind twinning’ tariffs to find out:

- if they can influence customers to adapt their electricity demand to follow local and national wind energy production

- how they impact the electricity network

Twin demand to wind generation

How future electricity networks can facilitate widespread wind twinning

0

10

20

30

40

50

Win

d G

en

era

tio

n (

GW

)

Wind Generation

0

50

100

150

200

250

300

350

400

450

500

01-F

eb

03-F

eb

05-F

eb

07-F

eb

09-F

eb

11-F

eb

13-F

eb

15-F

eb

17-F

eb

19-F

eb

21-F

eb

23-F

eb

25-F

eb

27-F

eb

Wh

ole

sa

le P

rice

/MW

h)

Page 17: Analyst briefing session 3   low carbon london

17

Challenge:

UK Low Carbon Transport: A Greener Future – 14% carbon reductions from transport by 2020 and ‘substantial decarbonisation’ by 2050

Mayor’s Electric Vehicle Delivery Plan – 1,300 public charging points by 2013 and 100,000 electric vehicles in London UK Low Carbon Transition Plan calls for widespread electric heating and to eliminate gas consumption for domestic heating by 2050

Electric vehicles and heat pumps

Our response: Through integration with Source London e-mobility scheme, monitor electric vehicle charging behaviour and its impact on the electricity network; investigate how time-of-use tariffs can influence customer charging behaviour to avoid overloading the network

Explore how heat pumps perform and impact the electricity network

How to ensure that future electricity networks can accommodate

widespread use of electric vehicles and heat pumps

Page 18: Analyst briefing session 3   low carbon london

18

Challenge:

UK Low Carbon Transition Plan: 30% of UK electricity from renewable sources by 2020

Mayor of London’s renewable strategy target: 25% of electricity and heating from local generation by 2025

Enabling Distributed Generation

Our response: Investigate the impact and enable the connection of distributed and local generation to the distribution network and trial Active Network Management (ANM) techniques to asses how they improve security of supply and reduce network investment costs

The best and most cost-effective way to adapt the electricity network to accommodate large amounts of distributed generation

“CONSTRAINING OFF” - Monitor and facilitate DG connections to the LV and HV distribution networks.

“CONSTRAINING ON” - Active management of DG to ensure security of supply and postpone network reinforcement.

Page 19: Analyst briefing session 3   low carbon london

19

Challenge:

Our low carbon electricity future is dependent on matching electricity demand to available, intermittent supply

Demand Side Management (DSM)

Our response: Monitor how energy efficiency schemes and time-of-use tariffs affect residential & SME (Small and Medium Enterprises) customer electricity demand

Assess the impact of these initiatives on the electricity network

Work with commercial aggregators to establish new demand response (DR) contracts with industrial & commercial customers

Can demand response postpone/defer network reinforcement?

(When/How/Who/What/Where)

To what extent different demand side management initiatives can influence customers’ electricity consumption

Page 20: Analyst briefing session 3   low carbon london

20

Low Carbon London – Solution diagram

Page 21: Analyst briefing session 3   low carbon london

21

• Real and virtual learning showcase

• First-class research facilities

• Analyse results and determine impact of a nationwide rollout of new technologies and commercial solutions

• Share invaluable learning and recommendations for future network design

• Opened in October 2011

Workshops on

consumer

participation

in smart

energy

Periodic reports

for Ofgem

and industry

Workshop

programme with

London

partners

Website portal

Knowledge

sharing

between

DNOs

Case studies

on major

programme

activities

Conferences

& academic

publications

Regular

workshops

for

industry

Share

learning

Low Carbon London Learning Laboratory Centre

Page 22: Analyst briefing session 3   low carbon london

22

Working with real London communities and local government stakeholders to help them achieving THEIR low carbon ambitions.

Implementing customer and community engagement and encouraging energy usage behaviour change (e.g. energy efficiency and time-of-use tariffs). Enabling new low carbon technologies such as electric vehicles and decentralised generation to help deliver London’s CO2 targets.

Build bridges with communities and local government

Page 23: Analyst briefing session 3   low carbon london

Customers will enjoy real benefits…

Explore Time of Use tariffs

…the future today

Smart meters ahead of national roll-out

Reduced impact on energy

bills of low carbon transition

Feedback on their carbon savings

Rewards for helping to improve

network efficiency and understand

opportunities of demand response

Residential & SME

customers

Industrial &

Commercial

customers

Rewards for helping National Grid to

balance national transmission system

Page 24: Analyst briefing session 3   low carbon london

24

Low Carbon London Smart power for a sustainable future

Proven new network

planning and operation tools for a future

low carbon economy

UK Power Networks embraces new ways of

designing and operating a smarter electricity network

Trial new low carbon technologies and commercial tariffs to see how they impact consumers’ energy demand behaviour

Wind Twinning Distributed Generation

Electric Vehicles and Heat Pumps

Smart Meters Demand Side Management

National and international blueprint for a smarter future electricity network to enable

a low carbon economy

Low Carbon London Learning Centre

shares learning with energy industry throughout programme

Page 25: Analyst briefing session 3   low carbon london

25

So….

• LCL is an emulation of the future challenges that will impact urban

electricity networks focussed on London and the LCZ’s.

• Aligned with stakeholders’ objectives to reduce C02 emissions through

energy efficiency, electric heat and transport, and distributed generation.

• Partnering with National Grid, energy suppliers and commercial

aggregators to explore commercial innovation.

• Partnering with proven ICT and smart grid solution providers to ensure

complementary technological innovation.

• Integration of technological and commercial innovation at scale involving

direct interaction with real customers and communities.

• A dedicated learning laboratory to ensure robust analysis of results and

effective sharing and dissemination of learning – TO ALL

Page 26: Analyst briefing session 3   low carbon london

26

Context Radical shift in UK energy policy;

35% electricity from renewables by 2020.

Electricity generation decarbonised by 2030.

80% reduction in carbon emissions by 2050.

Potential impact on our network (if we do nothing);

Higher peak demands.

Thermal and voltage constraints.

Higher fault levels.

Less predictable load cycles.

Higher losses.

Potential of a doubling of demand by 2050 without ‘smart’ intervention.

Costly and disruptive capital investment.

Page 27: Analyst briefing session 3   low carbon london

SUMMARY - is it smart? The current established ways of managing networks will quickly become

unsustainable.

We have built a strong foundation for innovation – as good if not better than other DNO’s.

Any expertise developed through this process must be transferred and embedded into the rest of the business, partners and professionals, government, policy makers.

Commercial innovation, strategic partnerships and customer engagement is crucial.

Must have embedded this philosophy into our business by RIIO-ED1.

Enable us to shape our business and enable us to become a top performing company under the new regulatory framework (RIIO-ED1).

This is the beginning of a new era in the management of electricity networks and asset management, future is here future is now!!

27

Page 28: Analyst briefing session 3   low carbon london

In summary…

Low Carbon London will: • help London lower its transport and energy-related carbon emissions • help Londoners reduce their energy bills and build a low carbon future • provide an example for others in the energy industry to follow • establish sustainable communities where:

– people want to live and work

– companies want to do business

– other cities look to for inspiration

Low Carbon London tackles the UK city with the highest carbon

emissions and provides a ‘power’ learning showcase for other cities

Page 29: Analyst briefing session 3   low carbon london

29

Thank you

Liam O’Sullivan, Programme Director, Low Carbon London

liam.o’[email protected] 07875115615

Page 30: Analyst briefing session 3   low carbon london

30

Any questions?

Page 31: Analyst briefing session 3   low carbon london

Learning Lab infrastructure and analysis

Dr. Mark Bilton

06/07/2012

Page 32: Analyst briefing session 3   low carbon london

Two key goals

• To understand how the distribution network can facilitate the adoption of low carbon power generation, both locally and nationally;

• To understand the extent to which decentralised generation and demand side management can be utilised to provide cost effective alternatives to system re-enforcement.

Page 33: Analyst briefing session 3   low carbon london

LCL’s holistic approach

• Network

– Integration of HV and LV network data (first time for London)

– Considerable data cleansing

• New loads

– Heat pumps

– Electric vehicles

• DG

– CHP, PV

• DSM (Residential and I&C)

– Efficiency

– DR (Contractual, behavioural and automated)

• Implications for control and planning (Including increased wind generation)

Page 34: Analyst briefing session 3   low carbon london

Outputs: reports overview

Smart meter

DERs on profiles

Network

DERs Power quality

Efficiency on profiles

EVs on profiles Smart

appliances

State estimation

I&C DG and DR

Residential tariff response

Residential

tariff attitudes

Planning

Resilience

Control/wind-twinning

Commercial arrangements

Data availability

Load profiles and quality

Interventions Meta analysis

Page 35: Analyst briefing session 3   low carbon london

Research approach

• Measuring existing profiles and power flows

• Characterising future network power flows

• Characterising interventions

• Modelling combined interventions on network

• Investment costs modelling

• Supply side models for carbon emissions analysis

Page 36: Analyst briefing session 3   low carbon london

Instrumentation

• 5000+ meters around LPN.

• Sensors and RTUs to measure all LV ways in LCL Low Carbon Zones (Brixton, Queens Park, Merton).

• Eventually all HV ways.

• Technology specific monitoring with ‘3G’ meters or power quality analysers.

Page 37: Analyst briefing session 3   low carbon london

ODS

Trial zone l Trail zone k

Topology, measurements, status and control actions.

Time-domain network visualisation tool

UKPN

Scenario A

Scenario B

Linked so that real and modelled data can be displayed in the same time steps.

Proposed control actions.

Secure server

•ODS + Network -> PSS/E •ODS control interface

Smart meters

Real data

(SCADA, SM,

Aggregator etc.)

Learning Lab IT systems and data flows

Demo server Traditional versus smart network management scenarios.

High

performance

server

Imperial

network

analysis tools

Page 38: Analyst briefing session 3   low carbon london

Visualisation of networks

• With partners we have been investigating the use of existing tools for visualisation of BAU versus ‘smart’.

• Operational tools

– Power On Fusion with SimScada

• Planning tools

– PSS:SINCAL

– PowerFactory

– DPlan

• Bespoke tools

– Google/KML

– GIS mapping software and custom development

Page 39: Analyst briefing session 3   low carbon london

Summary

• New ground in terms of detail of network topology and measurement

• Consideration of whole system

• Continuously refining approach

• Grounded in real network economics (Sana)

• But including analysis of human behaviour, for example in our smart metering trials (Richard)

Page 40: Analyst briefing session 3   low carbon london

Low Carbon London

Learning Lab

Analysis of Distribution Network in Low Carbon

Zones (LPN)

Page 41: Analyst briefing session 3   low carbon london

Contents

• Key Objectives

• Methodology

• Case study – Queens Park LCZ

• Results – Amberly road 6.6kv

41

Page 42: Analyst briefing session 3   low carbon london

Key Objectives

• Build LV and HV distribution network models in selected areas of a LCL zones

• Network investment analysis and optimisation tools;

• Quantify the impact of load/generation growth scenarios on network investment

• Quantify the impact of smart technologies on network investment

• Calibrate each of the developed top-down network investment modelling approaches

and test robustness under different future development scenarios.

• Sensitivity analysis on smart technologies and load growth

• Determine the most appropriate roll-out methodology to establish network investment

modelling approaches for each LCL zones.

42

Page 43: Analyst briefing session 3   low carbon london

Valuing smart grid technologies

Domestic and C&I Heat pumps Electric vehicles

Dynamic Distribution Investment Model

Alternative reinforcement strategies

Thermal, voltage and fault level constraints

Outputs Network upgrade schedules, cost profile

Equipment Utilisation Value of flexible demand services

Low Carbon Zones Development Scenarios

National Scenarios

System operation paradigm

Uncontrolled demand Smart Grid

Generation

Page 44: Analyst briefing session 3   low carbon london

Analysis of Distribution Network in Low Carbon Zones (LPN)

Page 45: Analyst briefing session 3   low carbon london

Queens Park LCZ

• Queen’s Park, W10

• fed by Amberly Road 6.6kV

• 210 Secondary Substations

• 1000 Residential customers receiving advice and efficiency measures.

• ~500 Commercial customers.

• EV charging posts planned by the GLA.

• Community centre 2012 CHP installation.

Page 46: Analyst briefing session 3   low carbon london

Amberly Road 6.6kV

• HV length 67.51 km

• No of customers ~33k

• LV length ~183km

Page 47: Analyst briefing session 3   low carbon london

Amberly Road 6.6kV : Reinforcement Lengths

Page 48: Analyst briefing session 3   low carbon london

Amberly Road 6.6kV : Reinforcement Cost

Page 49: Analyst briefing session 3   low carbon london

Conclusion

• Low voltage networks model

• High voltage networks

• Developed Dynamic Distribution Mode

• Benefit assessment on smart technologies

Page 50: Analyst briefing session 3   low carbon london

Understanding the Consumer –

Residential ToU Trial

London 6th July 2012

Richard Carmichael

With thanks to: Mark Bilton, James Schofield

Page 51: Analyst briefing session 3   low carbon london

Imperial College Business School

• Innovation and Entrepreneurship Group

• Focus on Consumer engagement

• Project Deliverables:

• 6-1 Consumer attitudes to flexible tariff rates

• 6-2 Residential responsiveness to TOU rates

© Imperial College Business School

Page 52: Analyst briefing session 3   low carbon london

Overview

• UK Energy Context

• Dynamic Tariffs in UK

• ToU Trial Design

• Research Questions

• Research Methods

• Tariff Schedule

• Information / Feedback

• Sample & Recruitment

• Treatment groups

• Timeline

© Imperial College Business School

Page 53: Analyst briefing session 3   low carbon london

UK Energy Context

l© Imperial College Business School

• Need to reduce carbon emissions

• UK target: 35% of electricity from renewables by 2020

• Investment in generation and infrastructure must be cost-effective

• Wind energy costs to drop 30% by 2020 (OWCRTF 2012)

Page 54: Analyst briefing session 3   low carbon london

UK Context (contd)

© Imperial College Business School

• Wind energy contribution limited by intermittence

• Demand-following will allow more intermittent renewables

• For intermittent and irregular renewables pricing signals

can’t be fixed – not static ToU

Page 55: Analyst briefing session 3   low carbon london

Dynamic Tariffs

© Imperial College Business School

Page 56: Analyst briefing session 3   low carbon london

Dynamic ToU

• Can offer demand response

• Consumers do respond (e.g., Sergici & Faruqui 2011)

• Persistence

• Knowledge gaps

• Controversy

• effectiveness

• fairness

• engagement

• …needs empirical approach

© Imperial College Business School

Brattle Group, 2011

Page 57: Analyst briefing session 3   low carbon london

Need Trial of Dynamic ToU in UK Context

UK network, policy, renewables

UK patterns of demand: weather, habits…

UK Attitudes and debates

© Imperial College Business School

Page 58: Analyst briefing session 3   low carbon london

LCL Residential ToU - Trial Objectives:

• To investigate residential consumers demand flexibility

in exchange for lower electricity prices

• To trial supply-following for more efficient utilisation of

wind energy and network

© Imperial College Business School

Page 59: Analyst briefing session 3   low carbon london

Research Questions - Understanding the Consumer

• What are the drivers and challenges to engagement with

displays and tariffs?

• What are the limits to flexibility in consumption?

• Which behaviours? When? Which direction?

• When does ToU lead to reduction?

• How can households be segmented?

• Who responds most/least? Who gains/loses most?

How do need/preferences differ?

© Imperial College Business School

Page 60: Analyst briefing session 3   low carbon london

Research Methods

Data:

• Customer data

• Electricity consumption

data

• Questionnaires

• Interviews (repeated)

Analysis:

• Statistical analysis

• Consumption patterns

• Behaviour change

• Segmentation of

households

• Qualitative analysis

• further insights and enrich

segmentation

Imperial College Business School ©

Page 61: Analyst briefing session 3   low carbon london

Will generate insights into…

• Maximising the impact of smart meters and tariffs on energy

consumption behaviours

• Impact on different types of households

• meter roll-out planning

• consumer communications

• device design/functionality

• grid management

• new business opportunities

• policy

© Imperial College Business School

Page 62: Analyst briefing session 3   low carbon london

Tariff Schedule

• Schedule designed to:

• reflect wind-activity and network events (e.g., faults)

• test flexibility of consumption across wide range of

times/days

• Three price points: low, medium, high (carrot and stick)

• Price events

• Varying duration: 2 hrs to whole day

• Varying combinations of L/M/H

• no more than 3 per week

© Imperial College Business School

Page 63: Analyst briefing session 3   low carbon london

Information / Feedback

• In-advance

• Price notifications sent via IHD + mobiles

• Sent day ahead - allows for shifting forward as well as

deferring

• In Real time

• Current price rate (£)

• Current consumption in kWh & traffic lights

• Historic Feedback

• Via bill

• Via IHD:

• kWh (day/week/month/year)

• £ (day/week/month)

© Imperial College Business School

Page 64: Analyst briefing session 3   low carbon london

Approach to sampling

• Sampling within LPN network area

• Using ACORN data to get sample representative of

Greater London:

• Income

• Occupancy

• Household make-up

• Building type

© Imperial College Business School

Page 65: Analyst briefing session 3   low carbon london

Treatment Groups

© Imperial College Business School

Page 66: Analyst briefing session 3   low carbon london

Data Collection Timeline

© Imperial College Business School

Page 67: Analyst briefing session 3   low carbon london

Summary

• Supply-following would allow growth in intermittent renewables

(wind)

• Dynamic ToU needed for irregular intermittent wind energy

• Dynamic ToU is about flexibility not reduction in

consumption

• Need to trial Dynamic ToU in UK context

• Qualitative and quantitative insights

• LCL is first residential Dynamic ToU trial in UK

© Imperial College Business School

Page 68: Analyst briefing session 3   low carbon london

www.imperial.ac.uk/business-school © Imperial College Business School

Thank you

[email protected]

Page 69: Analyst briefing session 3   low carbon london

Calculating Carbon in Smart Grids Dr Tony Rooke

UK Sustainability Services Practice Lead

@carbon_rooket

Page 70: Analyst briefing session 3   low carbon london

No. 70 © Logica 2012. All rights reserved

We deliver sustainability services as a blend of skills and experience

Airwaves

Smart Utilities

Sustainable mobility

Sustainability consultancy

Carbon Management

Page 71: Analyst briefing session 3   low carbon london

© Logica 2012. All rights reserved

Terminology

Benefit

Impact

Achieved only if: Impacts (BAU) > Impacts (Trial)

Measured effect of a trial - Financial costs - Carbon saving

Page 72: Analyst briefing session 3   low carbon london

© Logica 2012. All rights reserved

Scope smart grid

Identify impacts

Estimate size

Prioritise & filter

Agree method for trial & BAU

Measure

Monitor & report

No. 72

Logica’s approach to carbon impacts for smart grids

Manage carbon impacts

Page 73: Analyst briefing session 3   low carbon london

© Logica 2012. All rights reserved No. 73

Scoping the grid programme

Smart grid trial funding request

Scale roll out Do you

have real field data?

Use estimates and trial literature to work out impacts

Use field measurements

No Yes

Page 74: Analyst briefing session 3   low carbon london

© Logica 2012. All rights reserved No. 74

Scoping Low Carbon London

Wind Twinning

Time of use tarriffs

Distributed generation

Electric vehicles

Heating

Smart meters

Demand side management

Industrial & Commercial

Residential & SME

Page 75: Analyst briefing session 3   low carbon london

© Logica 2012. All rights reserved No. 75

Identify impacts

Can it be measured, modelled, estimated?

How easy is it to collect relevant data? What modelling methodology?

What type of impact is it

Financial – cost savings, avoided / deferred build, OPEX, CAPEX, maintenance, stranded assets,

carbon costs, CLIs, financing, discounting

Environmental – energy savings, avoided grid build, recycling of equipment, avoided new

materials, maximising current assets

Identify the impact and its qualities relative to the

Quantifiable – it can be measured

Qualitative - e.g. Consumers feel more

secure about their energy supply

Direct – within the operational boundary of

the grid programme

Indirect – consumer based impact, enabler for take up of low carbon tech

Page 76: Analyst briefing session 3   low carbon london

© Logica 2012. All rights reserved No. 76

Pre-trial scoping: 0.6 billion tonnes of CO2e to 2050

Page 77: Analyst briefing session 3   low carbon london

© Logica 2012. All rights reserved No. 77

Carbon impact calculation for the trials

Page 78: Analyst briefing session 3   low carbon london

© Logica 2012. All rights reserved

To come

No. 78

Actuals from trials

Page 79: Analyst briefing session 3   low carbon london

Logica is a business and technology service company, employing 39,000 people. It provides business consulting, systems integration and outsourcing to clients around the world, including many of Europe's largest businesses. Logica creates value for clients by successfully integrating people, business and technology. It is committed to long term collaboration, applying insight to create innovative answers to clients’ business needs. Logica is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE: LOG; Euronext: LOG). More information is available at www.logica.com

Thank you

Logica Business Consulting 7th Floor Kings Place www.logica.com/consulting

Contact: Dr Tony Rooke, UK Sustainability Services Practice Lead T: +44 7894258005 E: [email protected]

Page 80: Analyst briefing session 3   low carbon london

Getting Smart! Smart Utilities: Logica’s Smart Data Service

Richard Hampshire | Smart Utilities

Page 81: Analyst briefing session 3   low carbon london

© Logica 2012. All rights reserved

Consumers

The Energy Challenge

Reliability of Supply

Exposure to Global Markets

Decarbonising Energy

Impact on disposable income

Energy Austerity?

Logica Smart Utilities | Context

Page 82: Analyst briefing session 3   low carbon london

© Logica 2012. All rights reserved

Realising the Benefits of

Investment in Smart

Aligning Investment with Return

Progressive Deployment

Technology Maturity & Innovation

Market Maturity & Consumer Attitudes

Market Structure, Policy and Regulation

Smart – The Multi-Dimensional Challenge

Logica Smart Utilities | Context

Page 83: Analyst briefing session 3   low carbon london

© Logica 2012. All rights reserved

Managed Service for Smart Data and Communications

Logica Smart Data

Service

Energy Retailer

Third Parties

Distribution System

Operator

Logica Smart Data Service | Service Benefits

• The Logica Smart Data Service provides our clients with:

• Managed service access to their advanced metering infrastructure

• Management of the high volumes of smart meter data

• Alignment of investment to ability to make a return

• Delivering the following benefits:

• No investment in systems during early stages of their AMI deployment

• Minimises disruption to their existing business model

• Ability to refine requirements based on practical experience

Page 84: Analyst briefing session 3   low carbon london

© Logica 2012. All rights reserved

Smart Data Services

WAN HAN

Responsibilities Across the Value Chain

Elec

Gas

IHD

Other devices

Comms Hub

DSP

DCC

CSP

Suppliers

Network Operators

Authorised Third Parties

DCC User Gateway

DSO MDMS

Supplier MDMS

Decision Analytics /

BPM

CS&B

Smart Grid Control

Smart Process

Management

Meter Manufacturers /

Customer Premises Equipment

Asset Funding

Meter Services

(Installation & Provision) (inc Comms

Asset Install)

Comms Networks

/ LAN/WAN

/ Data Carriage

Headend (Instant Energy)

MDMS

DSO / Smart Grid / Sm@rtering

Supplier / CS&B / Smart Office

Page 85: Analyst briefing session 3   low carbon london

© Logica 2012. All rights reserved

In House vs Managed Service Comparison

€ 0

€ 5

€ 10

€ 15

€ 20

€ 25

€ 30

-1 0 1 2 3 4 5 6 7

Cu

mu

lati

ve C

osts

(EU

R M

ilio

ns)

Year from Programme Start

Cumulative Cost of Insource vs Managed Service (to first technology refresh and based on cash only)

Insource (Best Case)

Managed Service (Best Case)

Our Propositions | Smart Data Service

Page 86: Analyst briefing session 3   low carbon london

© Logica 2012. All rights reserved

In House vs Managed Service Comparison

€ 0

€ 5

€ 10

€ 15

€ 20

€ 25

€ 30

-1 0 1 2 3 4 5 6 7

Cu

mu

lati

ve C

osts

(EU

R M

ilio

ns)

Year from Programme Start

Cumulative Cost of Insource vs Managed Service (to first technology refresh and based on cash only)

Managed Service (Slow rollout

profile)

Insource (Slow Deployment)

Our Propositions | Smart Data Service

Page 87: Analyst briefing session 3   low carbon london

© Logica 2012. All rights reserved

“We love Instant Energy.

It’s by far the most superior

of any head-end we've seen

and it’s really user friendly.”

Sean Davies, Smart Metering Trials

Senior Administrator, npower

“It’s great working

with Logica because

you know any problems

you encounter will be

little ones”

Dave Mountford, Smart

Metering Project Manager,

npower

“It's been a pleasure to work with

every single Logica person I have

come into contact with - Logica must

have a very good interview process”

Con O'Se,

Metering Programme Manager,

Bord Gáis Networks

"Logica understood the

challenges and British Gas´s

smart metering objectives.

Instant Energy allowed us to

test both we and our

customers could benefit from

the new technology.“

Director of Smart Metering

British Gas

Leave the Final Word to our Clients

Logica Smart Utilities | What our clients say about our Smart Data Service

Page 88: Analyst briefing session 3   low carbon london

© Logica 2012. All rights reserved

Maintaining the dialogue...

Logica is a business and technology service company, employing 39,000 people. It provides business consulting, systems integration and outsourcing to clients around the world, including many of Europe's largest businesses. Logica creates value for clients by successfully integrating people, business and technology. It is committed to long term collaboration, applying insight to create innovative answers to clients’ business needs. Logica is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE: LOG; Euronext: LOG). More information is available at www.logica.com. The company is a public company incorporated and domiciled in the UK. The address of its registered office is 250 Brook Drive, Green Park, Reading RG2 6UA, United Kingdom.

Rich Hampshire UK Lead | Smart Utilities M: +44 7711 035 899 E: [email protected] T: @RJHampshire