Project Summary
The Inform Alpha proposal is to develop a Proof Of Concept (POC) self-serve online connection tool for HV sites wishing to decarbonise their heating systems through electrification. It will include innovative optioneering functionality, considering how energy efficiency measures, flexible connections and on-site energy storage can be used to reduce necessary network reinforcement to facilitate a connection and therefore costs of connection. This will remove barriers to decarbonisation by suggesting ways to reduce connection costs and decrease connection times. At beta, it is intended to role out the functionality throughout Northern Powergrid's licence areas, and fully automate all processes.
Innovation Justification
This application is submitted under the challenge theme 'accelerating decarbonisation of major energy demands'. Heating is the most significant contribution of UK building emissions; heat electrification is anticipated to be widely deployed.
To support heat decarbonisation, large, complex sites (hospitals, local authority buildings, military estates, universities, etc.) will need upgraded connections to support increased demand and renewable generation. For each site an initial design, a feasibility study and business case is required prior to engaging with the DNO regarding connection possibilities. Lack of knowledge around the optimum point of connection can mean the customer's preferred option is unviable and selection of an alternative option earlier in the design phase would have been preferable; this is a central cause for project failure.
AutoDesign provides Northern Powergrid's customers with budget quotations for new connection requests for domestic properties or single sites up to 210 kVA. This proposal is to extend the tool's functionality which does not consider:
Existing connections
Larger, complex sites
High Voltage (HV) connected sites
Modern Energy Partners (2018-2021) was a DESNZ funded innovation programme. It assessed 42 large campus-style sites. Decarbonisation potential and emissions were considered at building and site level. Typical costs to decarbonise such a site was approximately £12.6m, likely requiring heat electrification. Connection upgrade costs were outside its remit.
The Charge Project (SP Energy Networks) modelled network utilisation to determine where existing capacity was available, focusing on EV charging. Replication for heat pumps, particularly in combination with other LCTs, has not been undertaken.
Stakeholder engagement was conducted to promote, challenge and refine the project through confirming requirements for the proposition and understanding of necessary functionality for accelerated heat electrification projects. Initial user journeys were created based on requested functionality and reverted to stakeholders at a second workshop who provided further feedback. Appendix 3 contains supportive quotes from DESNZ from this engagement.
Combining existing knowledge and large site energy demand data sets within an innovative toolset will improve understanding of the impact on electricity networks and the efficiency and transparency of the distribution networks connection process. Inform Alpha combines existing new connection estimation software, with the ability to consider revised customer requirements, accounting for potential options (e.g. flexibility, on site energy storage, energy efficiency), to minimise network impact. These capabilities could be applied across the GB DNOs to facilitate decarbonisation of complex sites.
Inform capability is currently TRL-2; we would expect it to reach TRL-3 at Alpha, and 8/9 at Beta. The development required to produce a POC tool (Alpha stage) is £449,341. This will demonstrate key methodology for tool implementation required for the Beta Phase. The project Beta Phase will include innovative optioneering to offer HV customers reduced connection costs through proposed energy efficiency measures, flexible connections and on-site energy storage to avoid network reinforcement.
SIF projects allow for sharing risk between the DNO, partners and customers, and to build on learning from previous innovation projects. Software development in this context is too risky and expensive for a SME, but has potential for significant customer savings. Since DNO, and hence customers, are the primary beneficiaries of a successful BAU implementation, SIF is the most appropriate funding source for this project. Development of the ConnectMore tool via NIC demonstrates this with great effect. Appendix 3 further explains why innovation funding is required to develop Inform, for which a clear need has been identified by NPg, stakeholders and the assessors.
The counterfactual solution to Inform is to "Do Nothing". The forecast increase in HV budget estimate volumes would require significant additional staffing in the absence of the development of an efficient self-serve connections software tool
Impacts and Benefits
Financial - future reductions in the cost of operating the network -- Through to 2050, DNOs anticipate increasing volumes of applications for new and upgraded connections to support achieving the UK's decarbonisation targets. Current processes require skilled expertise, the costs of which will commensurately increase without alternative approaches being developed. Inform will reduce the necessary DNO effort for estimates, through preventing nugatory effort, and allowing skilled resource to focus on more complex connections.
Financial -- reduction on network reinforcement requirements -- following Ofgem's access and charging reform (Apr 2023), network reinforcement costs are more socialised than previously; this reduces the customer incentive to minimise their capacity requirement, whilst supporting efforts to decarbonise. Supporting customers at an early stage of project scoping to determine their impact on the network, and how consideration of flexible connections, or peak demand reduction could allow accelerated deployment of their plans has potential to reduce overall network reinforcement. Improved understanding of customers' plans also supports DNO predictions of future constraint issues, enabling efficient management of their costs.
Benefits analysis has shown that avoided network reinforcement due to the Inform tool could save £6.3million annually by 2028 in the central scenario, with savings split between site developers and the network operator (hence all electricity billpayers through reduced distribution network charges). Sensitivity studies have shown that in a highly electrified, rapid heat decarbonisation scenario, total annual savings could total £13.5million by 2028.
The £6.3million annual savings across NPg's licence areas by 2028 in the central scenario, is achieved through:
Mobilisation savings (£2.25million)
Flexible connections (£1.35million)
Energy Efficiency reducing required connection capacity (£1.35million)
On site energy storage (£1.35million)
Financial - cost savings per annum on energy bills for consumers -- providing insight of network reinforcement costs and timelines to consumers for the available options will encourage consideration of energy efficiency benefits, and building fabric improvement investments. This supports ongoing network management and operational efficiency.
Switching to heat pumps and installing energy efficiency measures is forecast to save site developers up to £22.5million annually by 2028 (if GSHPs are used) or up to £17million annually by 2028 (if ASHPs are used).
Financial - cost savings per annum for users of network services -- Applying for network upgrades is a time consuming exercise. Currently, high level indications of the need for an upgrade are available but a full review of capacity is often done later in a commissioned project. Reviewing capacity and budgetary estimates earlier in the project cycle and simplifying the process for the applicant saves on the consultancy fees, and application costs through only submitting applications likely to be progressed.
The Inform tool is intended to become a free to use software tool for budget estimate applications to NPg's distribution network. Avoided charges for obtaining HV budget estimates are anticipated to save site developers £1.1million annually by 2028.
Additional (non-quantified savings) will come from saved staff time -- not spent pursuing projects where connection costs prove to be prohibitively expensive.
Environmental - carbon reduction -- indirect CO2 savings per annum against a business-as-usual counterfactual -- Often, as part of decarbonisation efforts, sites install a heat pump without improving building fabric; whilst this saves CO2e through reducing fossil fuel usage, required electrical capacity is higher than necessary due to a high residual heating load. Improved energy efficiency can improve overall cost and timelines associated with decarbonisation plans. There are around 30 million buildings in the UK; these are responsible for 30% of our national emissions, with 75% of emissions due to heating buildings with fossil fuels. Supporting the ability to rapidly decarbonise buildings via this tool will provide significant benefit.
This application is submitted under the challenge theme 'accelerating decarbonisation of major energy demands'. Heating is the most significant contribution of UK building emissions; heat electrification is anticipated to be widely deployed.
To support heat decarbonisation, large, complex sites (hospitals, local authority buildings, military estates, universities, etc.) will need upgraded connections to support increased demand and renewable generation. For each site an initial design, a feasibility study and business case is required prior to engaging with the DNO regarding connection possibilities. Lack of knowledge around the optimum point of connection can mean the customer's preferred option is unviable and selection of an alternative option earlier in the design phase would have been preferable; this is a central cause for project failure.
AutoDesign provides Northern Powergrid's customers with budget quotations for new connection requests for domestic properties or single sites up to 210 kVA. This proposal is to extend the tool's functionality which does not consider:
Existing connections
Larger, complex sites
High Voltage (HV) connected sites
Modern Energy Partners (2018-2021) was a DESNZ funded innovation programme. It assessed 42 large campus-style sites. Decarbonisation potential and emissions were considered at building and site level. Typical costs to decarbonise such a site was approximately £12.6m, likely requiring heat electrification. Connection upgrade costs were outside its remit.
The Charge Project (SP Energy Networks) modelled network utilisation to determine where existing capacity was available, focusing on EV charging. Replication for heat pumps, particularly in combination with other LCTs, has not been undertaken.
Stakeholder engagement was conducted to promote, challenge and refine the project through confirming requirements for the proposition and understanding of necessary functionality for accelerated heat electrification projects. Initial user journeys were created based on requested functionality and reverted to stakeholders at a second workshop who provided further feedback. Appendix 3 contains supportive quotes from DESNZ from this engagement.
Combining existing knowledge and large site energy demand data sets within an innovative toolset will improve understanding of the impact on electricity networks and the efficiency and transparency of the distribution networks connection process. Inform Alpha combines existing new connection estimation software, with the ability to consider revised customer requirements, accounting for potential options (e.g. flexibility, on site energy storage, energy efficiency), to minimise network impact. These capabilities could be applied across the GB DNOs to facilitate decarbonisation of complex sites.
Inform capability is currently TRL-2; we would expect it to reach TRL-3 at Alpha, and 8/9 at Beta. The development required to produce a POC tool (Alpha stage) is £449,341. This will demonstrate key methodology for tool implementation required for the Beta Phase. The project Beta Phase will include innovative optioneering to offer HV customers reduced connection costs through proposed energy efficiency measures, flexible connections and on-site energy storage to avoid network reinforcement.
SIF projects allow for sharing risk between the DNO, partners and customers, and to build on learning from previous innovation projects. Software development in this context is too risky and expensive for a SME, but has potential for significant customer savings. Since DNO, and hence customers, are the primary beneficiaries of a successful BAU implementation, SIF is the most appropriate funding source for this project. Development of the ConnectMore tool via NIC demonstrates this with great effect. Appendix 3 further explains why innovation funding is required to develop Inform, for which a clear need has been identified by NPg, stakeholders and the assessors.
The counterfactual solution to Inform is to "Do Nothing". The forecast increase in HV budget estimate volumes would require significant additional staffing in the absence of the development of an efficient self-serve connections software tool.
