The project aims to investigate how all-electric heat networks could affect the power grid and how the Distribution Network Operator can manage them flexibly. The project will conduct a thorough analysis to determine if it's possible to free up capacity in the network by using a smarter design that's suitable for flexible connections. UK Power Networks will partner with a Heat Network developer/operator that has an operational heat network in the area to test and validate a design optimization methodology through a one-year trial.

Benefits

The total benefit of this project is estimated based on the following points:

The electrical peak load on a primary substation can be reduced up to 40% if the heat network uses the thermal storage flexibility compared to a counterfactual. We assumed a conservative scenario where UK Power Networks could offer profiled or timed connections to the highest demanding heat network customers, representing 25% of the total number of primary substations in LPN, EPN and SPN. This method will reduce the district heat (or heat network) pump winter peak load (Strategic Forecasting System data) by 10% (25% of 40%) in all UK Power Networks areas. Therefore, this method will avoid use of capacity in the network and avoid reinforcements.                                                                                                                                                                                                                                                                      

Based on the above assumptions, the project is estimated to reduce reinforcement costs by a range of £80k-£400k annually. 

Therefore, the overall anticipated benefits from this project following a BAU transition is forecasted to be  £0.77m by the end of RIIO-ED2 and an NPV £4.32m cumulative by end of RIIO-ED3.