The FLOWERS project will analyse the potential capacity on South West Water’s network to embed flexibility capacity within the time difference (latency) between when Drinking Water and Waste Water is pumped and stored, and when it used by the system. It will explore methods of delivering latency flexibility and analyse the feasibility of implementing it on SWW’s system. It will define the regulatory compliance and commercial viability requirements for creation of a latency flexibility product which can be embedded within electricity network control rooms. If appropriate, a recommendations document will be produced identifying next steps for the development of latency flexibility capacity in ED2. The project will be delivered in partnership with South West Water and Smart Grid Consultancy.
Benefits
Project FLOWERS will aim to identify a new method of unlocking flexibility from water networks, and facilitate the participation of Water Utilities in flexibility. Water utilities are one of the largest consumers of electrical power, about 1TWh of demand across WPD’s four licence areas and will be similar for other DNOS. Removing commercial and regulatory barriers to flexibility in water networks therefore presents a significant opportunity for unlocking of flexibility capacity across all 14 licence areas. It will deliver financial value for customers, and develop understanding of the commercial and regulatory barriers and solutions for collaboration between regulated industries on innovation projects. It will increase knowledge sharing between electricity and water networks and facilitate insight into further opportunities to solve Whole System challenges in RIIO-2.
Learnings
Outcomes
Reported outcomes of the project are as follows:
- The project has generated a set of reports documenting learning on the potential for embedding flexibility in the operations of water networks, including technical, operational and commercial considerations.
- A set of drinking water and wastewater system processes has been identified which could have flexible operation embedded within them. The development process included significant water operative expertise to validate the assumptions as genuine and feasible.
- Reasoned assumptions have been generated for the impact of these opportunities on NGED’s network, in a manner which is replicable for other DNO/DSOs and water companies.
- The value of the potential embedded flexibility has been calculated for SWW’s sites, both in terms of power and customer financial benefits. The quantitative data for this valuation is presented in the Capacity Evaluation and Case Study reports. The calculation method is applicable to all DNOs, based on their own per MWh valuation of flexibility. This is typically the same as NGED’s, as the majority of DNOs share the Flexible Power platform.
- Five potential methodologies for embedding flexibility in operations have been developed by the project, differentiated by the timescales over planning, dispatch and implementation. The main technical and operational challenges for each method have been documented.
- The project has highlighted the commercial incentives and company priorities which would drive greater water utility engagement with flexibility, particularly surrounding the achievement of water company net zero objectives.
- A commercial proposal for implementing embedded flexibility has been delivered to address the regulatory and commercial challenges. It focuses on an alternative process for connecting renewable generation at water network sites, with appropriate restrictions to prevent distortions to the commercial flexibility and generation markets.
- Learning from project FLOWERS has been informally shared with additional water companies. Consequently, most water companies across NGED’s licence areas are partners to funding applications.
- The project has increased knowledge sharing and engagement between electricity and water industries and begun to break the silos between them, including identifying separate potential areas of enquiry.
- The project has highlighted additional learning on the energy efficiency and maintenance of water networks that could produce additional benefits to electricity and water network customers.
Lessons Learnt
The learning from the FLOWERS project has been captured and shared in a variety of ways:
1) The final summary report documenting key learning from the entirety of the project
2) A report on the feasible initiatives for embedding flexibility in water networks
3) A report on quantifying the potential flexibility capacity unlocked from implementing these initiatives
4) A case study report examining the impact of feasible initiatives on a variety of water network site types
5) A report on the potential operational methodologies for embedding flexibility, the capabilities which require development and the operational and technical barriers to implementation
6) Two documents identifying the main commercial and regulatory challenges for embedding flexibility and proposing the commercial and regulatory arrangements to meet these challenges
7) Dissemination materials produced for FLOWERS.
A summary of the main conclusions from the project is presented below:
- The majority of accessible opportunities involve the planning and control of water pumping.
- Additional opportunities lie in the aeration and UV irradiation processes of wastewater treatment.
- Drinking and wastewater treatment sites are the largest energy consumers, and so initiatives including these sites are likely to provide the greatest return in terms of flexed capacity.
- Even with conservative estimations, the value of the unlocked flexibility in a single water utility could amount to thousands of pounds an hour across a licence area.
- The first key challenge for long-term flexibility is developing the necessary forecasting capability which integrates predicted water network operational electrical demand (including weather and seasonal population factors) and electricity network headroom and congestion.
- The second key challenge for long-term flexibility is ensuring firm electricity supply in order to guarantee the availability of flex weeks or months in advance.
- The key challenges for short-term flexibility are obtaining sub-metering data and automating command and control capability of water networks for dispatch and validation.
- Incentives for embedding operative flexibility could be built into connection agreements for renewable generation at water utility sites. These incentives would be aimed at achieving whole system net zero, and would include restrictions to prevent flexibility or connection market distortion.
- The proposed mechanisms for embedding operative flexibility crosses distinctions between flexibility services and flexible connections and subsequent work should engage stakeholders on both sides on how best to resolve this crossover.
FLOWERS is a feasibility project intended to identify potential embedded flexibility initiatives that could be developed and trialled in a follow-on project. However, the assumptions of replicability across the UK need to be tested and there was no real-life demonstration. Doing so carries significant risk due to the technical challenges to be overcome, such as coordinating between up and downstream water sites or accurately forecasting generation intensity and risk of curtailment. These innovations are significantly different from typical DNO flexibility procurement, and the development of this capability is not within the capacity of these business as usual (BAU) activities.
Consequently, planned implementation is directed towards further development to BAU readiness via follow on innovation projects.
A follow-on project would ideally look to develop the proposed solutions from concept to trial on multiple networks and in the following steps:
- Assess the applicability of the FLOWERS solutions for each water network partner
- Identify any additional requirements and challenges to overcome
- Identify potential trial sites across a variety of networks and geographical areas
- Produce a roadmap for design, trial and BAU
- Develop a full system specification and design
- Validate the design in electricity and water network models
- Design and plan trials
- Prepare trial sites as per the specification
- Run the trial on a single site and evaluate the outcomes
- Adapt and run the next trial on multiple sites, evaluating against success criteria
- Finalise the BAU roadmap