RTSM - Phase 1 - Methodology Development

Status:

Live

Project Reference Number:

NIA2_SGN0046

STRATEGY THEME:

Net zero and the energy system transition

START DATE:

END DATE:

Sep 2024May 2025

Project summary

Funding Licensee(s):

NGN - North East
SGN - Southern England (inc South London)
WWU - Wales and South West England

Funding mechanism:

NIA_RIIO-2

Technology:

Active Network Management
Biomethane
Control Systems
Gas Distribution Networks
Gas Transmission Networks
Green Gas
Hydrogen
Measurement
Modelling
Stakeholder Engagement

Expenditure:

£414,000

Preceding Projects:

NGGDLGN04

Third Party Collaborators:

Correla
BIP UK (Chaucer Group)
Xoserve

This project aims to develop an integrated solution for the processes of characterising, settling, and billing gas in a multi-gas energy system ahead of the introduction of green gases such as hydrogen and unpropanated biomethane to help decarbonise the UK’s gas grid.

Beginning with market research, existing methodologies used in global networks with varying calorific values will be assessed. Using this information as a baseline, a tailored modelling solution will be created to meet UK industry requirements. Afterwards, a comprehensive feasibility study will identify the most optimal modelled solutions which will be consolidated into a new flexible settlement and billing approach. A roadmap will outline necessary implementation changes. Lastly, the requirements for a 12-month demonstration will be assessed to inform the programme's next phases.

Benefits

Under the current FWACV framework, the average CV of daily charging areas is applied to all customers within that charging area. This introduces the possibility of variance in customer bills as some customers will be under-billed if receiving gas with a higher CV than the FWACV and some customers will be overbilled because they receive gas with a lower CV than the FWACV. Additionally, GS(M)R and GCoTER cap the value of the daily charging CV and there can be no more than 1MJ/m3 variance above the Lowest Source CV charging zone. However, if this method continues to be applied across a gas grid with increased injection of hydrogen and unpropanated biomethane then vast amounts of unbilled energy will be generated. This unbilled energy ultimately gets charged back to the customers by gas Shippers and Suppliers and is reflected in higher energy bills. Furthermore, under the current framework, due to hydrogen and biomethane's lower relative CVs consumers who live close to an embedded hydrogen or biomethane injection point may be at risk of further increase in their energy bills. These consumers will have to use a greater volume of gas to meet their energy needs compared to a customer who is being supplied by majority natural gas. The implementation of a flexible settlement and billing solution which is able to accurately bill customers across a multi-gas system will help to minimise the risk of customers paying bills that do not accurately reflect the energy they consume.

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NIA Project Registration and PEA Document 2024-10-19 12_15 (95.0 KB) 2024-10-19

2024-10-19

pdf

PEA document - RTSM Phase 1 (rev 0).docx (923.5 KB) 2024-09-26

2024-09-26

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RTSM - Phase 1 - Methodology Development

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