EVALUATION

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AN INDEPENDENT <strong>EVALUATION</strong> OF THE LCNF Trial of Orkney Energy Storage Park (Phase 2) Project Title Trial of Orkney Energy Storage Park (Phase 2) Tier 1 DNO SSE Status Complete LCNF project funding £1.51m Project objectives The scope of this project is to better understand what commercial markets can be entered into by ESPs operating their systems whilst connected to a distribution network. Objectives: 1 - Enter into a commercial contract with an ESP to provide constraint management services. 2 - Modify existing generator and energy storage ANM interface to allow import requests to be sent to the ESS. 3 - Facilitate the connection of an ESS to the distribution network in Kirkwall. 4 - Service the contract over a 3-year period. 5 - Summarise the different markets the ESP has managed to access during the project. Assessment Criteria Accelerates the development of a low carbon energy sector Score (1-5) 4 Overview of assessment, sources of evidence and comments Assessment: The project clearly facilitates the connection of low carbon generation or demand. Evidence: The project facilitated the connection of an ESS to the distribution network in Kirkwall. The project successfully deployed and managed a constraint management contract. The learning of the project should help to facilitate connection of new low carbon generation and demand. References: • Trial of Orkney Energy Storage Park; Close down report; June 2015. PÖYRY MANAGEMENT CONSULTING October 2016 713_Poyry_Report_Evaluation_of_the_LCNF_FINAL_Oct_2016_v700.docx 274
AN INDEPENDENT <strong>EVALUATION</strong> OF THE LCNF Has the potential to deliver net financial benefits to future and/or existing customers Has a Direct Impact on the operation of a DNO’s Distribution System - 4 Assessment: Evidence that the project is likely to deliver significant financial benefits in the long term (ED2 and beyond) to selected group of customers Evidence: The primary purpose of the ESS asset is to reduce the curtailment of distributed generation assets on Orkney. The closedown report states that curtailment avoidance is of benefit to the customers who operate the wind generation projects. References: • Trial of Orkney Energy Storage Park; Close down report; June 2015. Assessment: The project has been /is ready to roll out into BAU or outputs are utilised in later LNCF projects. The project has a high likelihood of being replicated by other DNOs. Evidence: The project has been a success as the business case behind the deployment of ESSs has been understood with the key sensitivities identified. The main conclusion from the project was that the business case for the battery would be positive, provided that a number of conditions were met. SSE has taken the sensitivities forward for further investigation, using Business as Usual (BaU) funding, to tender for constraint management services from third parties in their Southern Energy Power Distribution license area in order to keep the network within tolerance, whilst deferring larger scale network reinforcement. Without this, and the previous project the Constraint Managed Zone (CMZ) would have taken longer to start as the commercial learning would not have been developed and there would have been reduced knowledge to feed into the Energy Storage Operators Forum (ESOF) and subsequently the Good Practice Guide that ESOF produced The outputs of the project are also being used in the Northern Isles New Energy Solutions project. References: • Trial of Orkney Energy Storage Park; Close down report; June 2015. • Questionnaire response PÖYRY MANAGEMENT CONSULTING October 2016 713_Poyry_Report_Evaluation_of_the_LCNF_FINAL_Oct_2016_v700.docx 275
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EVALUATION

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