Memorandum by the Energy Networks Association
INTRODUCTION
1. The Energy Networks Association is the
energy industry body funded by UK gas and electricity transmission
and distribution licence holders and operators.
2. ENA supports the promotion of renewable
power, in order to tackle climate change and enhance security
of energy supply, and we welcome this opportunity to provide some
context and background on the EU and UK renewable energy targets,
as seen from the networks' viewpoint.
3. Networks companies, both transmission
and distribution, have been very active in facilitating the connection
of renewables to the electricity grid. Nevertheless, the EU has
set an ambitious target of 20% of energy from renewable sources
by 2020. Meeting the UK's own share of this target, 15% of our
final energy demand to be met by renewable energy, could mean
that up to 40% of electricity consumed would need to be generated
from wind power and other renewable energies by 2020. This huge
increase in renewable generation represents a significant planning
and techno-economic challenge for the networks.
ROLE OF
ELECTRICITY NETWORKS
4. Transmission networks play a fundamental
role in meeting the UK's energy policy goals, especially in terms
of accommodating renewables and potential new nuclear build. All
UK Transmission Owners and the GB System Operator have been actively
and directly engaged in assessing the capacity and utilisation
of existing transmission system infrastructure, considering innovative
approaches to network management and operation, and upgrading
the existing electricity transmission system in order to connect
additional generation.
5. Distribution Network Operators (DNOs)
have similarly been very active in accommodating renewable distributed
generation, (DG), connected directly to the distribution network.
6. In doing so, all the network owners and
operators have reviewed the technical rules and standards and
commercial arrangements for access and connection, whilst continuing
to ensure the efficient and economic design and operation of the
networks.
PLANNING ISSUES
7. Lengthy planning procedures for renewable
generation projects, transmission lines and distribution networks
present a major obstacle to the development of renewable sources
of energy. Reform of the planning system is needed if we are to
connect up new, remote renewables generation in time to meet the
2020 targets. The requirement to transport new and diverse energy
from remote areas and between communities calls for a new approach
to planning. The sources of much of the renewable energy needed
to meet the EU targets are remote and currently unconnected to
the electricity network. The Yorkshire transmission line took
over 10 years to complete thanks to the planning process and the
Beauly to Denny transmission line, essential to transporting new
wind energy generation, has already been delayed by a number of
years.
8. We believe the Infrastructure Planning
Commission proposed by the Government's Planning Bill will have
a vital role to play in delivering these objectives, provided
it is sufficiently and expertly resourced. We welcome the proposal
for pre-agreed timescales, and are urging the Government to set
time-limits for each stage of the planning process in order to
provide maximum certainty for developers and affected communities.
9. We also believe that the legitimate needs
and concerns of local communities must be a central consideration.
The effectiveness and transparency of decision making are fundamental
to underpinning community engagement and ensuring that developments
move forward effectively and in a responsive way. As a result,
local communities must have a full opportunity to express their
views and be heard. Central to this will be enhanced duties placed
on developers to ensure that local communities are effectively
consulted before an application is made. The energy sector continues
to strive for the very best practice in this area and has already
had discussions with groups such as the Campaign to Protect Rural
England to ensure standards are continually improving.
SHORT TERM
TECHNICAL CHALLENGES
FOR THE
NETWORKS
10. In operating transmission and distribution
networks most emphasis to date has been placed on increasing the
use of the existing electricity networks, and identifying opportunities
to connect additional generation capacity within the existing
regulatory and commercial frameworks.
11. Network owners and operators have actively
been seeking more innovative engineering approaches to network
management and operation, including the deployment of new network
technologies to manage the volume of network constraints and allow
network access. However, the scope for further improvements is
relatively limited and often site specific. Consequently increasing
attention is being given to the development of new analytical
and operational methods to deal with the present and future technical
challenges presented by renewable generation, including offshore
transmission infrastructure.
12. A further important consideration when
connecting renewable generation is the level of security required,
and the appropriate level of investment to maintain such system
security, whilst continuing to ensure the economic and efficient
operation of the system. In the case of offshore electricity transmission
in particular, this has meant an assessment of the relevance of
the existing technical rules governing onshore networks for offshore
networks, and the development of a range of feasible alternative
options for offshore security standards. Similarly, network operators
have been offering terms for a less firm connection than that
normally required. Even when these connections are attractive
to generators, the lowering of technical and security standards
should only be done following careful consideration of the likely
implications for overall system reliability and security.
LONGER TERM
CONSIDERATIONS
13. The EU's general 20% and the UK's national
15% renewable energy targets will have a profound impact on the
need for new network capacity and the associated network investment
needs. The consequences which increasing levels of renewable energy
with intermittent or variable output could have on the overall
stability and security of supply and system back-up and balancing
will also present technical challenges.
A. Capacity needs
14. Technical evaluations of the networks
adequacy against likely generation patterns in Scotland and Wales
have already been conducted and various development options investigated
eg the Transmission Investment for Renewable Generation (TIRG)
projects, the Renewable Energy Transmission Studies (RETS 2003
and RETS Revisited 2005), and Technical Advice Notes (TAN).
15. Ofgem is undertaking a review of credible
generation scenarios to meet the 2020 targets eg the Long Term
Electricity Network Scenarios (LENS) project, which could be used
to identify not only the expected generation patterns, but also
future infrastructure and technological needs.
B. System Balancing
16. Wind power, both on-shore and offshore,
is presently the principal commercially available and scaleable
renewable energy technology in the UK. Wave and tidal generation
technologies are at an earlier stage of development but are expected
to be developed for commercial use within the next decade, and
will also need to be accommodated into the networks.
17. When considering wind power, there is
a need to identify the nature of wind variations in national and
regional generation and demand groups, and then assess the implications
of such variations given the flexibility available from responsive
generation and load locally and, via interconnections, more remotely.
18. Increased levels of intermittent generation,
such as wind, will significantly increase the need for capacity
of other generation that would need to be kept in service to operate
on low wind days. A close monitoring of the margins is needed
to ensure that there is always sufficient flexible generation
or demand side response to meet demand cycles, plant breakdowns
and frequency control requirements.
C. Network Investment Costs
19. It is clear that substantial investment
in the networks will be essential, to pay for the renewal of infrastructure,
the connection of greater levels of renewable generation, and
to allow the networks the flexibility to respond to the needs
of network users and consumers.
20. ENA Member Companies are now beginning
a programme to replace more than two thirds of the existing network
as it nears the end of its design life, and to shape it for these
new and increasingly complex and diverse patterns of generation.
In building new infrastructure, the aim will be to maximise the
opportunities for integrating green energy/low carbon designs.
21. The Regulator also has a fundamental
role to play in setting the market and regulatory frameworks based
on a full and detailed analysis of the options to facilitate efficient
and timely investments in infrastructure. A forward looking and
supportive regulatory regime is required. A stable investment
target is needed to ensure that the required future investment
is put in place, and policymakers must then retain a strong commitment
to meeting these targets.
D. Pan European Research
22. In 2005 the SmartGrids European Technology
Platform for Electricity Networks of the Future was established.
Its aim is to formulate and promote a vision for the development
of European electricity networks looking towards 2020 and beyond.
23. The Platform includes representatives
from industry, transmission and distribution system operators,
research bodies and regulators. It has identified clear objectives
in the context of the drive for lower carbon generation technologies
and greatly improved efficiency on the demand side that will enable
customers to become much more interactive with the networks.
24. Network technologies are able to contribute
to the further improvement of network efficiencies in operation
and investment, but they can also facilitate the implementation
of a range of alternative future electricity developments, from
centralised to distributed generation.
E. Skills
25. The large scale network development
to accommodate renewable energy will require a substantial increase
in qualified and skilled workers to build and operate the new
infrastructure. There is a need for innovative and highly qualified
engineers to design new systems that push at the boundaries of
network technology.
26. As a responsible industry, our members
are actively involved through the Sector Skills Council (EU Skills)
in collectively looking at the skilled resource challenges for
the sector. We need to make the networks sector more "career
attractive" to young people and ensure that we have good,
and experienced, academic and sector specific trainers.
23 April 2008
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