EVALUATION

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AN INDEPENDENT <strong>EVALUATION</strong> OF THE LCNF Assessment: Project incomplete not marked, However the industry has recognised the value of storage to provide flexibility and support system security and hence the SNS trial is providing valuable learning with respect to the demonstration of the benefits of large scale storage. Relevance and timing - Evidence: The National Infrastructure Commission has highlighted the importance of storage in delivering a more flexible, efficient and cost-effective electricity system , while the DECC/Ofgem chaired Smart Grid Forum confirms the status of storage as one of the key smart interventions likely to be required in the future smart grid. UKPN have stated that the energy storage device at Leighton Buzzard is their key tool for managing demand at the Leighton Buzzard substation, with conventional reinforcement continuing to be deferred due to the success of the device. Meanwhile, the device is successfully delivering support to National Grid under three different contractual mechanisms and through business as usual contracts. It has supported the TRIAD demand reduction initiative through a business as usual contract with Smartest Energy for large energy consumers. It has supported the National Grid Short Term Operating Reserve (STOR) programme through the aggregator KiWi Power. It has supported National Grid’s frequency response requirements through a bilateral agreement in which KiWi Power has acted as agent. Effective project methodology, and effectiveness of implementation - References: SDRC 9.7 Successful Demonstrations of Storage Value Streams Assessment: Project incomplete not marked, however the project has achieved all its successful delivery reward criteria (SDRC) to date. Evidence: The latest 6 monthly progress report shows the completed SDRCs have been delivered on time and the project is on track for the remaining deliverables. Financial information and progress against budget is not publically available. References: Smarter Network Storage, Progress Report, Dec 2015. PÖYRY MANAGEMENT CONSULTING October 2016 713_Poyry_Report_Evaluation_of_the_LCNF_FINAL_Oct_2016_v700.docx 238
AN INDEPENDENT <strong>EVALUATION</strong> OF THE LCNF D.9 Network Configuration Low Energy Automated Networks (LEAN) Project Title Low Energy Automated Networks (LEAN) Tier 2 DNO Southern Electric Power Distribution plc. (SEPD) Status New LCNF project funding £2,670k Project objectives LEAN seeks to demonstrate new methods that can be applied to existing assets to reduce losses in the shorter term. The principal method for the LEAN project involves the use of a Transformer Auto Stop Start mechanism. SEPD will deploy a second method, Alternative Network Topology, where appropriate. LEAN builds on learning captured from SEPD’s previous LCNF Tier 1 and IFI projects. Assessment Criteria Accelerates the development of a low carbon energy sector Has the potential to deliver net financial benefits to future and/or existing customers Score (1-5) 4 - Overview of assessment, sources of evidence and comments Assessment: The project clearly facilitates a reduction in losses. The carbon benefits are credible and quantified. Evidence: LEAN will directly reduce electrical losses and associated carbon emissions. If the LEAN solution is proven, it will help DNOs to manage the effects that distributed generation connection and other low carbon technologies will have on the network. Early analysis extrapolated across GB indicates that the methods will deliver a reduction in annual network losses of up to 31,838MWh, which is equivalent to 6,421 tonnes of CO 2 . References: • LEAN full submission pro-forma. Assessment: The project could deliver a modest financial benefit at primary substation sites. Evidence: The financial benefit will be based on the saving associated with the cost of losses. References: • LEAN full submission pro-forma. PÖYRY MANAGEMENT CONSULTING October 2016 713_Poyry_Report_Evaluation_of_the_LCNF_FINAL_Oct_2016_v700.docx 239
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EVALUATION

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