This project is focused on the continuing development of innovative tools and resources for power system modelling and analysis. Following TOTEM and TOTEM Extension there is a model that can mimic large-volume power electronics and enable the formulation of mitigation measures to future-proof the GB network associated with the energy transition. TOTEM 2 will incorporate additional capabilities.

Benefits

The CBA is based on the following assumptions:

• TOTEM 2 is expected to mitigate network black out, localised disruption and small wobbles. Due to the difference in scale of events, associated cost and probability, the system risks are split to be assessed.
• The risk value of localised blackout is estimated based on historical events which happened in England in 2019 and Edinburgh in 2021, the associated probability was assigning based on risk matrix, and adjusted to 5% to reflect the potential benefit associated with TOTEM 2 only.
• The risk value of black start event in Scotland is considered and associated risk probability is also adjusted to reflect the benefit linked with TOTEM 2 only.
• For small wobbles, the risk value is estimated based on wind curtailment and the associated cost to pay for generators. Assuming the wind curtailment is 200GWh per year.
• The value of risk reduction is estimated based on the depreciation of a transformer, assuming the asset life is 45 years, and using this tool might require replacing the transformers 5 years in advance.

Summary of Benefits:

• The benefit of this project is estimated based on systematic risk reduction and working hours reduction as a result of using this tool. As a result of using this tool, there is a minor probability that assets might need to be replaced in advance which has been accounted into the risk value. 
• The risk-benefit analysis result in the estimated benefit of this project is £1m in 2018 real price. However, due to the risk associated with this project, a risk factor of 30% has been applied which results in the low-level benefits of £694,952.
• The project has net benefit cost ratio of £14.93 which means for £1 spending, it returns £14.93. Annualised ROI: 6.19%.