Electricity distribution subsidiaries of SSE (Scottish and Southern Energy plc) have bid for £48m from the first phase of Ofgem’s Low Carbon Networks Fund (LCNF) to revolutionise the way electricity networks operate in the Northern Isles and Thames Valley.
The Ofgem fund, part of the electricity distribution price control arrangements implemented from 1 April 2010, will eventually allow a total of up to £500m of support for large-scale projects sponsored by the distribution network operators (DNOs) to pilot new technology, operating and commercial arrangements. The objective of the projects is to help all DNOs understand what they need to do to accommodate the developments likely to take place as Great Britain (GB) moves to a low carbon economy.
Shetland
The bid for the Shetland project, ‘Northern Isles New Energy Solutions’ (NINES), was made by Scottish Hydro Electric Power Distribution. The project, which involves funding from the European Regional Development Fund, the Department for Energy and Climate Change and SSE as well as the LCNF will seek to increase and optimise the amount of renewable energy flowing on Shetland’s network by involving a wide range of proven technologies applied in a novel way.
Key aspects of the project include:
•replacing old inefficient storage and water heaters in 1,000 homes with the modern versions which also help balance the electricity system
•launching new mechanisms which will reward owners of the new heating systems for the network services their heating provides
•introducing new commercial arrangements which will help small generators connect to the electricity system more quickly
•developing new systems to manage the network more effectively to allow low carbon energy to flow through the system to homes and businesses
Bracknell
The bid for the Bracknell Project, ‘Thames Valley Vision’ (TVV) was made by Southern Electric Power Distribution. The project involves funding from GE, Thames Valley Consumer Consortium, Bracknell Forest Council, Bracknell Forest Homes, University of Reading and energy suppliers. It will use a ‘Monitor, Model and Manage’ methodology to provide a corporate and electricity industry alternative to traditional network reinforcement, to determine the most efficient and effective ways to reliably meet the needs of customers over the coming years.
Key aspects of the project include:
•creating a modelling solution to determine the nature, locality and impact of low carbon technologies on the network;
•enabling new techniques to be rigorously evaluated; and
•facilitating active community engagement and knowledge-sharing with multiple stakeholders
Stewart Reid, SSE’s Future Networks and Policy Manager, said: “No part of this country’s energy industry will be left untouched by the move towards a lower carbon economy and electricity networks have a crucial part to play in facilitating what will be fundamental changes.
“Our company’s primary responsibility is to provide the energy people need in a reliable and sustainable way. It is hard to think of a better way to describe the aims of the Low Carbon Networks Fund. We are clearly on the same wavelength.”
An expert panel appointed by Ofgem will consider bids from all Distribution Network Operators in Great Britain before announcing their decision in December.
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