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.
Learnings
Outcomes
The findings of Phase 1 highlighted that a Computation Fluid Dynamics (CFD) modelling approach will be the most effective technique to use for tracking CV across GB’s gas networks. Our research indicates that a distributed approach in which all Gas Distribution Networks (GDN’s) can utilise in house skills and embedded knowledge to model our own networks will prove most successful for a CV modelling solution.
We determined that CVs will need to be modelled hourly and aggregated into a daily value for billing purposes – this will ensure intraday variations and any disruptions on the network will be captured by the model. The method of such segmentation of the network will be further analysed as part of the RTSM pilot in Phase 3 and will be defined according to the network topology during the set-up stage by the GNOs. There will also be a consideration of the question surrounding additional CV metering devices on the network. The key consideration regarding consumer protection is that under the current FWACV regime , there is likely to be a risk of under or over-estimating the overall supplied energy, resulting in economic unbalance.
WP1 identified software solutions that could be suitable to the requirements of the GB network, which were then assessed against their capabilities in WP2 and were narrowed down to a shortlist. These software solutions underwent an offline practical evaluation, which provided further insights into their modelling accuracy and overall performance.
One of the key conclusions from this exercise was that the time and cost investment necessary to perform the pilot test and build the CV simulation tool is going to be significant. This means that the next stage of work needs to be centred around developing a strategy for software selection and definition of the pilot roll-out.
WP 4 resulted in a high-level analysis of the approach to the pilot, including deployment options, gas compositions based on CV variability, complexity of solutions, regulatory changes to enable the pilot, engagement activities and potential locations on the SGN network that could be viable for a pilot.
We will continue to work with market participants and assess these software’s and key considerations for the RTSM solution in the upcoming phases of the programme. Preliminary analysis to identify possible network areas to test the proposed solution was also carried out in this first phase and will be used to inform future decision making. Additional information and supporting evidence can be found on the SGN project webpage at:
https://www.sgn.co.uk/about-us/future-of-gas/rtsm-programme
Lessons Learnt
A key consideration for future projects would be the timely development of stakeholder engagement strategy.
This project has overseen the evolvement of the stakeholder group into a full suite of key industry stakeholders, which, through proactive engagement, has grown to include anyone who may be impacted by a potential change in methodology to how gas is billed.
The project has leveraged attendance at existing industry working groups to ensure the appropriate audience is reached and to maximise the time of key stakeholders’ cross industry. This wide-ranging approach has ensured that feedback and key considerations have been taken into account during the development of associated analysis, ensuring an inclusive solution. Going forward, and based on stakeholders’ feedback, the project will be pursuing the set-up of a dedicated RTSM workgroup to ensure targeted information dissemination and dynamic conversation.
