FutureSmart. A smart grid for all: Our transition to Distribution System Operator. at the Royal Society

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1 FutureSmart A smart grid for all: Our transition to Distribution System Operator at the Royal Society 8th September 2017

2 #FutureSmart How to respond to this consultation? On our microsite FutureSmart.ukpowernetworks.co.uk you will find a consultation response form that can be filled out digitally or printed out. We ask that you please send your feedback by the 15 th September to: our DSO futuresmart@ukpowernetworks.co.uk or by post to: UK Power Networks, Futuresmart response, Newington House, 237 Southwark Bridge Road, London, SE1 6NP

3 Welcome These are exciting times in the world of energy. The ways in which we produce, distribute and consume electricity are transforming in front of our eyes. In the coming years, more people will own electric and driverless cars, use smart appliances in their homes, and generate, store and sell their own electricity. As the UK s largest electricity distributor, serving over 8 million homes and businesses, we ve launched the Future Smart vision to create an electricity network that empowers and enables communities and consumers to benefit from the new technologies available and facilitate the development of those yet to come. This is set to the backdrop of UK Power Networks transition from a Distribution Network Operator (DNO) which simply manages the network, to a Distribution System Operator (DSO) which enables a smart, flexible system that responds to customers needs. Today, we invite you to contribute to our vision by joining the debate on the radical changes which are necessary to enable networks to facilitate consumer s choice and energy needs, and outline how people and new technologies will be at the heart of the new electricity system. Your participation today will directly influence the direction of UK Power Networks, and will provide useful learnings about the future of the network. We hope you enjoy the day and find it valuable to your organisation. Basil Scarsella UK Power Networks, Chief Executive Officer

4 Agenda 8.00 Guest arrival and registration 9.00 Welcome: Matt Rudling Director of Customer Services, UK Power Networks Opening speech: Basil Scarcella Chief Executive, UK Power Networks The Role of the DSO: Barry Hatton UK Power Networks Director of Asset Management outlines what is required from a Distributed Systems Operator Coffee Break The Transition to a DSO: Suleman Alli Our Director of Safety Strategy and Support Services team presents an overview of our plans to become an effective DSO, followed by facilitated breakout sessions covering three of the main areas of discussion flexibility, electric vehicles, and collaboration.

5 12.35 Lunch Break Industry Panel Discussion A panel of industry and policy experts discuss the ways in which policy, regulation and industry need to evolve to meet the challenges of the future Coffee Break Keynote Speech: Laura Sandys Former Member of the Energy and Climate Change Committee Close: Matt Rudling Director of Customer Services, UK Power Networks.

6 The Role of the DSO Presented by: Barry Hatton, Director of Asset Management What this session will cover We are transforming our business into a DSO so that we can respond to the needs of our customers, both now and in the future, and work with the wider industry to help deliver decarbonisation of the electricity system at the least cost. In this session we explore what we mean by the term DSO and what we think the objectives of the DSO are, and examine in more detail its roles and responsibilities. Themed breakout discussion Are there any other roles and responsibilities you expect a DSO to perform? What outcomes do you want from a DSO? You ll be able to ask questions at any time throughout the presentation via Slido. It s very simple. Hopefully you will have all connected to Wi-Fi by now. So take out your mobile phones and go to your browser and type in Enter the event code #FutureSmart and just type your question.

7 The Transition to a DSO Presented by: Suleman Alli, Director of Safety Strategy and Support Services What this session will cover Our Smart Grids team will set out the ways in which we are planning to make our DSO status a reality, and our key areas of focus as we transition towards the future. This session will also include facilitated workshops where delegates can feed in their views on one of three key areas of focus: Themed breakout discussion Flexibility Facilitating cleaner, greener, cheaper electricity How we generate, distribute and engage with energy is changing with an increasing focus on low carbon solutions. And it is not just renewable energy. Battery storage is featuring more and more as a means to bring flexibility to our systems. But what does flexibility mean to you and our end consumers? Find out about our flexibility programme and help us shape our plans to build alternative solutions to network upgrades, to reduce costs in customer energy bills and ensure that the lights stay on. Electric Vehicles Preparing and facilitating the electric car movement Electric vehicles have become headline news and it is undeniably an area of rapid growth with more and more people switching to electric cars and over 300 electric buses expected by We will delve into out how we are proactively engaged with bus operators, Local Authorities and fleet providers such as UPS to enable the transition to electric vehicles. We also want to understand what this shift means to you and what we can do to prepare and facilitate the uptake of Electric vehicles. Collaboration Working together to create a smart grid for all How can we work together better? At a time of unprecedented change in our industry it is more important than ever that we listen, collaborate and share but this can be a challenge in a competitive world. How can we overcome these barriers and find ways to work together towards a Smart Grid that benefits all? In this session we share with you how we are collaborating with industry peers and open the floor to discuss what ideas we can come up with to do it even better.

8 Industry Panel Discussion Chaired by: Janet Wood, Editor at New Power What this session will cover Networks do not operate in a vacuum. Our panel of policy and industry experts will discuss the ways in which policy, regulation and industry need to evolve in this brave new world. Over the course of the session, we will attempt to tease out the key areas of development that policy makers, the regulator and industry prioritise to encourage DSOs to enable the successful delivery of whole system benefits and facilitate low-cost decarbonisation. The focus will be on encouraging appropriate and effective regulation, collaboration and investment. Who our panellists are: Dr Jenifer Baxter IMechE, Head of Energy and Environment Duncan Sinclair Baringa Partners, Partner Simon Roberts OBE Centre for Sustainable Energy, Chief Executive Jenny Saunders OBE National Energy Action, Chief Executive Andrew Burgess Associate Partner, Ofgem

9 Keynote Speech Presented by: Laura Sandys, Former Member of the Energy and Climate Change Committee What this session will cover What have we learned today? How will we take it forward? And how can we all work together to make the most of our exciting energy future? Summary Presented by: Matt Rudling, Director of Customer Services, UK Power Networks What this session will cover UK Power Networks Director of Customer Services will wrap up the day, summarising the key findings and outlining the next steps in our transition to a DSO. You ll be able to ask questions at any time throughout the presentation via Slido. It s very simple. Hopefully you will have all connected to Wi-Fi by now. So take out your mobile phones and go to your browser and type in Enter the event code #FutureSmart and just type your question.

10 Notes

11 ADDITIONAL INFORMATION Thank you, from everybody at UK Power Networks, for being here today and contributing to the development of our plans for the future. There is still time to respond to our formal consultation on our transition to a Distributed Systems Operator. We would be very keen to hear your views. Please visit futuresmart.ukpowernetworks.co.uk/ and respond to our consultation questions by 15 September to help us shape a smart grid for all.

12 Our DSO Strategy FIVE KEY AREAS FOR Facilitate cheaper and quicker connections using proven innovation Continue rollout of Flexible DG that uses Active Network Management 2. Use customer flexibility as an alternative to network upgrades Run market tenders for flexibility services such as Demand Side Response 3. Develop enhanced System Operator capabilities Develop TSO DSO Commercial Framework, DER Dispatch capability and readiness for smart meters 4. Collaborate with industry to enable GB wide benefits Actively participate in industry forums to make this transition a reality 5. Prepare and facilitate the uptake of Electric Vehicles Enable connections using smart solutions and ensure business readiness This event is not organized or endorsed by the Royal Society.

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