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AN INDEPENDENT <strong>EVALUATION</strong> OF THE LCNF<br />

Relevance and timing<br />

Effective project methodology, and<br />

effectiveness of implementation<br />

-<br />

-<br />

Assessment:<br />

Project incomplete not marked<br />

However DNOs have already or are intending to adopting ANM techniques shortly and whilst the project<br />

in its entirety is not ready to roll out into BAU it has a high likelihood of being replicated by other DNOs.<br />

Evidence:<br />

Requirement for connection of renewable generation is highest in Scotland and is GB wide. Many<br />

different constraints exist on many different networks causing reasonably priced, timely connection<br />

challenges.<br />

The project team have been actively engaged with the ENA in the creation of an ANM ‘best practice<br />

guide’. Through the project, a number of challenges have been identified around the interface between<br />

the DNO’s/SO and TO’s, prompting activity around exploring the requirements for greater local system<br />

control and balancing in the form of a Distribution System Operator (DSO) which are being further<br />

investigated in the NIA Evolution project. The adoption of Active Network Management as well as new<br />

commercial arrangements with our customers is identified as a key enabler in the formation of our Future<br />

Smart Grid Strategy and has created the formation of two live steering groups;<br />

• SPEN DSO Steering Group – Strategic development of technical and commercial roadmap to<br />

DSO.<br />

• SPEN Smart Grid Steering Group – Development and roll-out of strategic technology enablers to<br />

prepare the distribution network for further growth in LCT, DG and new local balancing markets<br />

under a DSO<br />

Through ED1 and into ED2 new commercial arrangements will be implemented to allow DG and<br />

Distributed Energy Resource (DER) customers to connect to the distribution system without the need for<br />

network reinforcements; arrangements such as ‘managed’ connections against local system constraint,<br />

‘managed’ connections against wider transmission constraint in the form of enhanced Statement of Works<br />

process and the facilitation of local community energy schemes being able to couple demand and<br />

generation in the form of ‘Virtual Private Wire’ or ‘Sleeving’ arrangements. However, SPEN believe that<br />

uncertainty around an evolving energy market must be considered when implementing a BaU roll-out<br />

strategy in order to avoid future conflict between ‘managed’ connections and future actions taken by the<br />

system operator (SO) or local system operators in the form of a (DSO).<br />

References:<br />

Active Network Management Guide; Presentation 1 – ARC workshop 17_03_2016; Questionnaire<br />

Assessment:<br />

Project incomplete not marked<br />

PÖYRY MANAGEMENT CONSULTING<br />

October 2016<br />

713_Poyry_Report_Evaluation_of_the_LCNF_FINAL_Oct_2016_v700.docx<br />

200

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