Close down event 12 July 2018 - NEA | NEA · Improve asset lifecycle management Optimise network...

Close down event 12 July 2018

Agenda Timings Presentation Speaker

09:30 Registration and refreshments

10:00 Welcome and introduction Peter Smith, NEA

10:05 Opening address Matt Rudling, UK Power Networks

10:20 Innovation at UKPN Giulia Privitera, UK Power Networks

10:40 energywise project overview Angeliki Koulouri, UK Power Networks

11:10 Refreshment break

11:30 Recruitment and engagement of participants

Emma Jones, CAG, Chris Coyle & Rashal Ali, Bromley-by-Bow Centre

12:00 Electricity saving and shifting: the customer perspective

Jenny Love, UCL Energy Institute

12:30 Electricity saving and shifting: the network perspective

Mark Hughes, Element Energy

13:00 Lunch break

13:45 SAVE project Charlie Edwards, SSE

14:05 Panel discussion: Supporting vulnerable customers

Moderator: Peter Smith, NEAPanellists: Steve Crabb, British GasRuth Roberts, Bromley by Bow CentreRob Cheesewright, Smart Energy GBLynne McDonald, UK Power Networks

14.45 Moving forward David Shipworth, UCL Energy Institute, & Mark Hughes, Element Energy

15.05 Closing remarks Ian Cameron, UK Power Networks

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Welcome

Matt Rudling

Director of Customer Services

We own and maintain

electricity cables and lines

across London, the South East

and East of England making

sure your lights stay on

Who we are

We deliver electricity to

around 20 million people

How energy is changing

• Safest DNO

• ‘Best’ Company List /

improving score

• Investors in People

Gold award

• High public reputation

• Trusted relationship with

Ofgem

• Best service provider

(BMoCS)

• Most reliable network

(CIs/CMLs)

• Best stakeholder

engagement

• Maintain compliance

• Most innovative DNO

• Socially Responsible

• Underspend against

allowances – Lowest

cost

• Deliver RIIO-ED1

outputs and

commitments

• Delivering profitable

growth for the

unregulated business

Our vision

Our social role

Our purpose

Roles arising from

being a DNO

Roles arising from being

a responsible,

sustainable business

10

To understand the needs of, and where appropriate support (especially in the

event of a power cut), our customers who are more likely to suffer detriment,

or substantially increased levels of detriment, than a typical customer.

Helping customers in vulnerable

circumstances

The future of energy and vulnerability

12

2016

Funding: £5.49m (£3.32m from Ofgem’s Low Carbon

Network Fund)

Duration: January 2014 – September 2018

in Tower Hamlets

Thank you

Dr Giulia Privitera, Low Carbon Technologies Delivery Manager

12 July 2018

Innovation at UK Power Networks

15

Purpose

The changing energy system

Why we innovate

How we innovate

Understanding customer needs through innovation

2015. UK Power Networks. All rights reserved

The safest

The best employerThe most reliable

The best service

The most innovative

The most socially and

environmentally responsible

The lowest cost

…and consistently best performing DNO 2015 – 2018/9

17

• Distributed Generation• Energy Storage• Local Energy

• Smart Meters & connected home

• Micro generation / storage

• Electrification of heat and transport

Transition to a low

carbon economy

Technology

revolutionSocietal changes Changing

regulatory

environment

What is driving the change?

18

Growth in

Electric Vehicles

• Over 300 electric buses in

London by 2020

• 149,000 Plug-in vehicles sold in

the UK, 31% on our networks

• Over 16,000 public chargepoints

Storage

Market

• Over 1GW of accepted

storage offers

• 1000 (18GW) formal enquiries

since July 2015

• Two 50MW Batteries

connected, own a 6MW site

Growth in DG

• 9.06GW of DG connected,

doubled in the last 5 years

• First Solar / Storage schemes

with no subsidy support

• Over 200,000 distribution

connected generators

Pace and scale of change continues to increase

We are adapting to meet the changing market needs

19

Our Innovation Strategy

Consistently credited as an active facilitator of, and not

an obstacle to, the low carbon transition

Low Carbon Ready

Delivering business value today through innovation and the benchmark for best

practice

Efficient And

Effective

A future-ready Distribution System Operator providing

new services, to meet the needs of tomorrow’s customers

Future Ready

[email protected]

UK Power Networks

Innovation Strategy

20

(NIA)

Network Innovation

Allowance

(NIC)

Network Innovation

Competition

Other

IUK/ TFL

Innovation Funding Streams

• annual allowance 0.5% of

revenues (£7.3 - £8m)

• smaller technical,

commercial, or operational

projects directly related to

the network

• potential financial benefits to

UKPN and its customers and

direct impact on network or

DNO operations

• annual competition

(£70m/year)

• Development and

demonstration of new

technologies, operations and

commercial arrangements

• potential environmental

benefits, cost reductions

and security of supply

• Innovate UK launching ~3

funding rounds/year

• Actively supporting these in

readiness to a potential zero

stimulus in ED2

• From EV projects to Industrial

Strategy Challenge Fund

The Innovation Portfolio

Air quality Electrification

of transportElectrification of heatConnecting more

renewable energy

Low cost/value for

money for customersSafety

Improve asset lifecycle

management

Optimise

network capacity

4 NIC, 30+ NIA and 3 non-Ofgem funded live projects for an overall budget of ~£60m

Our Innovation Demonstrator Roadmap (NIC)

Technical Commercial Services

2011 2012 2013 2014 2015 2016 2017

Low Carbon

London

Flexible Plug

and Play

Smarter

Network StorageKent Active

System Management

FUN LV /

Energywise

Transmission Distribution

Interface 2.0 / Powerful - CB

Understanding

smart grids

Power

electronics

Flexible DG

Connections

Grid scale

Storage

Interface with

National Grid

(TSO)

DNO

TSO

Fuel Poverty

Proactive predictive network

configuration for EVs

-V2G

Power

Potential

Powerful-CB

ANM

Active Response

2018

Bids

TBA

Customers are central to everything we do

23

Angeliki Koulourienergywise Project Lead, UK Power

Networks

26

Agenda

4.5m

• The challenge

• How is energywise helping?

• Trial design + the journey

• What we have achieved

• How is innovative?

• Learnings

27

Energy and fuel poverty

The challenge

• 4.5m households in the UK in fuel

poverty

• Little research to date about the

impact of smart technologies and Time

of Use tariffs on the fuel poor

• Marginal role traditionally played by

DNOs in delivering

energy measures

to these customers

4.5m

28

Smart energy and fuel poverty

To benefit those who need them the most, the delivery of smart energy measures must be

INCLUSIVE TO ALL, including vulnerable and hard-to-reach

29

Funding: £5.49m (£3.32m LCNF)Duration: 4 years & 9 months (2014 - 2018)

2016

30

energywise video


Key questions

Customer engagement

Energy saving

Demand Side Response

What energy savings

can people in fuel

poverty achieve?

What is the best way to

engage with this customer

base?

How can they respond and

benefit from DSR

opportunities?

32

The journey

33

at a glance

34

Key achievements

Identification

of trial

participants

Engagement

with

customers

Delivery of

energy

interventions

Time of Use

tariffs

offerings

35

Identification of eligible participants

Trial 1 sign-up rate: 538 signed up out of 1,352

approached (40%)

Eligibility criteria (proxies for fuel

poverty)

• Social housing tenants

• Living in a less efficient property

EPC band C-G

• British Gas customers

• Additional criteria

1,352 customers identified

Target 1 in 3

36

Engagement with customers

Tailored engagement strategy

Trusted community partners

Knowledge of local culture and languages

‘’The field officer was

brilliant, we were talking

and laughing; he was

lovely, understandable,

understood my

concerns, took on

board my issues.’’

energywise participant

‘’The [energywise officers]

were absolutely great; they

came and knocked on the

door, showed their IDs,

they asked if I had time,

they were very polite; they

listened to what I said, I

was really happy with them’’

energywise participant

37

Delivering energy interventions

Offering suitable ToU tariffs

NON- PUNITIVEPUNITIVE

OPT-INOPT-OUT

HomeEnergy FreeTime

tariff:

offers free electricity 9am to

5pm on Saturday or Sunday

Credit customers

Critical Peak Rebate

(Bonus Time):

dynamic non-punitive ToU

tariff with SMS notifications

Prepay customers

66 Bonus Time events

Evening, AM, noon, and

weekend events

39

Trial 2 material

Time Shifting Advice tailored to

each offer

40

Working with key stakeholders

Keep informed• Other DNOs

• Local authorities

• Media

• Energy industry

Key players• Ofgem

• BEIS

• Project partners

• Third parties/ suppliers to project

• Consumer groups

Build awareness

• Wider population

Keep satisfied

• Trial participants

41

What’s new?

Tested an innovative, collaborative approach between distribution

network operators, energy suppliers and community members in

engaging households on energy saving and shifting times when energy

is used

Trialled smart meter solutions including prepayment smart meters and

new energy tariffs in a local community

Demonstrated smart meter infrastructures for high rise buildings with

difficult meter arrangements

Explored how much households can benefit from these solutions and

how a change in demand may benefit the electricity network

42

energywise- project learnings

Next sessions will cover learnings from:

- Recruitment and engagement of

participants (CAG Consultants &

Bromley by Bow Centre)

- Electricity saving and shifting: the

customer perspective (UCL)

- Electricity saving and shifting: the

network perspective (Element

Energy)

- Overall project learnings (UCL and

Element Energy)

Administration and set up

Trial 1 recruitment

and installation

Trial 2 recruitment

and installation

Decommissioning and close

down

Research

Ongoing participant engagement

Thank you!

Contact us:

[email protected]


www.cagconsultants.co.uk

energywise

Recruitment and engagement of participants


Overview of this session

Description of the approach to recruiting participants onto the energywise trial and maintaining their ongoing engagement

Responsible for formulating the project

communications plan and overseeing

the recruitment and engagement

activities

Local community centre based on

the heart of the trial area, where the

project’s team of customer field

officers has been based


The customer field officer team



Piloting the recruitment approach

Finalisation of key

messages

The recruitment approach

Recruitment key learnings - staffing

Locally based field officers with

knowledge of local culture and languages

Have recruiters work in pairs with diverse

team

Project badges and uniforms increase

recognition and trust

Specialist recruiter organisations can be

effective in getting people to sign up

Maintain a small, well trained team of

recruiters

Door knocking is effective but time

consuming

Recruitment partner should have

excellent data management and

analytical skills

Appropriately skilled field officer manager should be in post for

duration of recruitment phase

Recruitment key learnings – message and materials

Low income customers likely to

be motivated primary by prospect

of saving money

Professional well designed, highly

visual materials are essential

Clear indication about energy

supplier’s involvement to limit

misconceptions

Test messages and materials through a focus group before

finalising

Recruitment – key learnings

Ongoing engagement

Participant panels

Regular newsletters

Action to mitigate

identified risks

Vouchers

Shifting advice

Text messages

End of project party

‘Thank you’ events for

participants held in April

The events included:

• Competitions and prizes

for participants

• Childrens’ entertainment

• Giveaways and goody

bags

• Opportunity to capture

participant feedback


Key achievements-Trial 1


Key achievements-Trial 2


Participant interviews-video


In summary

Test materials and messages with target audience before finalising

Trusted local intermediaries can play critical role in engaging with hard

to reach groups

Customer field officers are key to explaining smart meter benefits to

customers

Keep communication

simple and highly visual

Participant panels and newsletters are

key to ongoing engagement


Further information:


Thank you for your input!

Energywise insights: Customer perspective

Jenny Love

Simon Elam

Charlotte Johnson

David Shipworth

Our Vision: A globally sustainable energy system

Strategic Focus: Energy systems and demand

Aim: understand the world and help to change it.

Activities: research, teaching, dissemination

Methods: Multi-disciplinary, observation, data collection, analysis, energy epidemiology, model

development and scenarios. Our laboratory is the “real world”.

About UCL Energy Institute

• What are the aspects of the ‘customer perspective’ covered here?

• What data was used?

• We will cover Trial 1 (energy saving) and Trial 2 (energy shifting)

The customer perspective

kWh / £ savings made by customer Customer perceptions

Data type Smart meter data Interview and focus group data

• 3.3% saving from package of interventions (around

£14/yr)

• In line with other trials and expectations in smart

metering business plan

• Unclear how the energy saving is attributed to

technologies (ie LED light bulbs) and occupant

change in behaviour as a result of in-home displays.

-8

-7

-6

-5

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-2

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% e

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save

d

Trial 1: energy saving

• LEDs and in home displays popular, eco-kettle and

information leaflet not so popular.

• Participants were generally positive about the role of

feedback from the in-home display in helping them

save energy

• However evidence from panels showed that some

participants remained confused about how to

manage electricity in the home

Smart meter data Interview and focus group data

Control Intervention

3.3%

Two illustrations from Trial 1

• Energy-concerned household, motivated to save

• Bill payer has seen a drop in bills and in consumption

• Household actively engages with the SED to

improve understanding of electricity use at home

• Household seeks out additional opportunities offered

by project to increase knowledge about electricity use

(e.g. going to focus group)

• Household has increased confidence in how to

manage electricity use in the home

• High consuming household, No motivation to save

• Bill payer has seen a drop in bills and in consumption

• Family has not made any changes to appliances,

household or use

• Household is unclear why the fall has happened.

Trial 2: energy shifting

What actions lead to households saving money?

Note that the Bonus Time and HEFT metrics used to describe the customer perspective are different

from those describing the network perspective (Element Energy will present this later).

Home Energy Free Time: kWh

shifted from paid to free time

Bonus time: kWh reduction during

5-11 p.m.

Watt

sW

att

s

Bonus Time

Smart meter data Interview and focus group data

Our metric involved energy use

averaged over the entire bonus

time event

The average per-household

response was not significantly

different from zero.

Participants with electric

cookers and tumble dryers

showed more shifting, as did

presence of an adult aged over

65.

Only one of the 11 PPM

interviewees was actively trying

to shift.

Focus group participants were

more engaged but some stated

they were not able to act.

Cooking, laundry, switching off

lights and electronics,

hoovering, showering and hair

drying were all mentioned

Potential links

Home Energy Free Time

Home Energy Free Time

Our metric involved energy shifted

from paid to free times – ie not

comfort taking

The average was 0.92 kWh per

week

Households with tumble dryers

showed more shifting

Households with more occupants

showed more shifting up to a

point; households with an elderly

person showed less.

Households with children showed

a mixed response.

Smart meter data Interview dataPotential links

Some comfort taking activities

were described which may

explain the network findings in

the next section

Some participants thought

larger households would have

higher shiftable loads

Laundry, hoovering and

charging electronics were

mentioned

The role of children was

perceived to be ambivalent

Observations from HEFT and Bonus Time

• HEFT was an easier flexibility product for participants to understand and respond to.

• Panellists felt that households with children had larger and more flexible electricity loads (such as laundry) which

they may be able to shift, but also that one person households were able to completely control their consumption.

large

electrical

loads

control

over time

use

OR

large

electrical

loads

control

over time

use

• The role of gender in demand side response (see next slide) ...

Women and demand side response

• An interesting emergent theme

• Women are currently responsible for the bulk of domestic labour in the UK

related to flexible loads

• DSR therefore both depends on women and affects women

Opportunity:

For DSR to reach its full potential,

engage women

Challenge 1: bill-payer or trial consentee

not the same person as chore-doer

Challenge 2: DSR may currently place

greater demands on women changing

their schedules than men.

Energy Social Capital survey: highlights

• Energy saving:

73% of respondents reported being more aware of how to save energy by the end of the project

• General:

Participants primarily turned to family

for advice on energy

Energy social capital increased

throughout the project; by the end 90%

of respondents knew someone they

could ask about energy

However most still did not know about

the Priority Services Register 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

one or more resources ticked no ESC resources ticked

ESC1 ESC2 ESC3

Energy Social Capital Survey - highlights

• Energy Shifting

By the end of Trial 2 more participants than before knew someone who could give them advice on

changing the times they used energy. However this was 56% of respondents – perhaps still fairly low?

By the end of Trial 2 more participants than before knew a friend who could advise them about shifting

By the end of Trial 2 there had been an increase in conversations about changing the times of using

energy but these were still in a minority compared to other energy discussion topics

Conclusions

• Small financial savings for customers - obtained from energy saving trial through

package of interventions

– Some households gained clarity on where energy was being used in their home, some did not

• Small financial savings for customers – obtained through shifting energy use to

weekends through the Home Energy Free Time offer

– Large shiftable loads and time flexibility to shift tasks perhaps not found in the same households

• Lack of overall energy savings during peak period as a whole from critical peak

rebate offer

– Reducing consumption over the whole of the evening peak (6 hours) was perceived as difficult

• Emerging theme of women as the household members who can make or break the

demand side response

Element Energy Ltd

energywise

Electricity saving and shifting:The network perspective

Dr Mark Hughes

Richard Deuchler

Silvian Baltac

12/07/2018

77

• Element Energy is a specialist energy consultancy, with an excellent reputation for rigorous and insightful analysis in the area of low carbon energy

• We consult on both technical and strategic issues – our technical and engineering understanding of the real-world challenges support our strategic work and vice versa

• Element Energy covers all major low carbon energy sectors:

Energy NetworksSmart Energy

Systems

CCUS and Industrial Decarbonisation

Hydrogen and Fuel Cells

Low Carbon Transport

Built Environment

Our understanding of energy networks comes from major assignments over the past 15 years with key stakeholders

Element Energy – a consultancy focused on the low carbon energy sector

78

The model incorporates:

• High geospatial resolution data on building stock and customer demographics

• Detailed domestic and non-domestic consumer archetype data

• Robust consumer choice modelling informed by the latest data on technology cost and performance, policy support, energy costs, consumer attitudes, etc.

• All relevant network, asset and connectivity data – models actual network structure

• Weather data (e.g. for temperature correction, climate change analysis, etc.)

Population and economic growth

Energy efficiency improvements

Changing building stock and demographics

Weather and climate change

Demand-side response interventions

New technologies (e.g. solar PV, wind, batteries, EVs, etc.)

Changing appliance ownership patterns and consumer behaviour

Considers impacts on future loads from:

Ele

me

nt

Ene

rgy

Load

Gro

wth

Mo

de

l

Changing government policy landscape and energy costs

Bottom-up approach to modelling demand, technology adoption and behaviour change

Outputs:

Resolved all the way down to distribution substation level

Reverse power flow analysis

Impact analysis for DSR and customer flexibility strategies

Demand, consumption and customer number forecasts

Cost-benefit analysis for customer flexibility strategies

Comprehensive breakdowns by technology and sector

Extensive scenario and sensitivity options

Reinforcement timings, costs and load index analysis (with & without customer flexibility)

The Element Energy Load Growth (EELG) model – high-resolution network load forecasting

79

Comparison of energywise demand profiles to other trials

Demand profiles for energywise households

• Average consumption is considerably lower than that observed for the LCL and CLNR trials

• This is in keeping with the findings of the LCL trial analysis on the impacts of household income on consumption

– Reflects the demographic composition of the energywise participants

• Relatively lower morning demand (between about 6am and midday) and evening peak demand (between about 5pm and 9pm)

• Relatively higher early morning demand (between about midnight and 3am)

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Average demand profiles across different trials

Low Carbon London – 12 months (2013)

Customer-Led Network Revolution – 12 months (2012)

energywise – 12 months (Feb’16-Feb’17)

80

Energy saving (Trial 1): Peak demand reduction

Impact of energy saving devices

• Provided devices:

– 3 LED lightbulbs

– Eco-kettle

– Standby saver

– Smart meter (and IHD)

• 3.3% reduction in annual consumption for households provided with energy saving devices

• Average demand reduction of 23 W during the evening peak period1

• Equivalent to an average peak demand reduction of 5.2%

• Technical potential analysis and interview feedback indicate that smart meters (along with IHD) and LED lightbulbs appear to be most effective of the four device types provided in this trial for reducing electricity consumption and peak demand

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Demand profiles from energywise Trial 1

energywise – 12 months, control group, credit meters (Feb'16-Feb'17)

energywise – 12 months, intervention group, credit meters (Feb'16-Feb'17)

1 The evening peak period was taken to be 17:00 to 22:30 in this analysis.

81

Energy saving (Trial 1): Alignment with substation profiles

• Strong correlation between the energywise participant profile shapes and the average secondary substation load profiles to which they connect

• Energy savings generally align well with the timing of secondary substation peak loads

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Comparison with secondary substation profiles

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Comparison with primary substation profiles

energywise – 12 months, control group, credit meters (Feb'16-Feb'17)

energywise – 12 months, intervention group, credit meters (Feb'16-Feb'17)

Trial 1 seconary substations (Feb'16-Feb'17)

Trial 1 primary substations (Feb'16-Feb'17)

Secondary Substations

Primary Substations

• The energywise participant profile shapes are less correlated with the average primary substation load profiles

• Reflects the more diversified nature of the primary substation loads and the higher proportion of industrial and commercial loads at this level

82

• 1.5% average reduction in peak demand across weekday evening events (5pm – 11pm)

• Reduction concentrated in the first half of the six hour event

• The timing of the events effectively targeted the period of peak demand

• Flexible nature of the Bonus Time approach means that it can be tailored to the specific peak time of each network asset

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Bonus Time – WeekdayAll Households

Energy shifting (Trial 2) – Bonus Time: Peak demand reduction

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Bonus Time - WeekdayHouseholds with Tumble Dryers

Bonus Time customers, event weekday (W)Bonus Time customers, non-event weekday (W)Trial 2 secondary substations, weekday (normalised)Trial 2 primary substations, weekday (normalised)

831 “BGE’s Smart Energy Pricing Pilot Summer 2008 Impact Evaluation”, Baltimore Gas & Electric Company, 20092 “Ontario Energy Board Smart Price Pilot Final Report”, IBM Global Business Services and eMeter Strategic Consulting, 2007

Demand reduction by level of engagement

• Average demand reduction during Bonus Time events varied considerably by household

• The best performing 10% of households achieved average demand reductions of 18.7%

• This high level of demand reduction is consistent with the levels observed in other international trials (where reductions as high as 21% were commonly observed)1,2

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-10%

-8%

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0%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Responses for different levels of customer engagement. The first bar represents the response of those 10% of customers that were most engaged (i.e. had the biggest demand reduction during Bonus Time events). The bar

for 100% addresses all participants.

Average demand reduction during Bonus Time events by level of engagement

Energy shifting (Trial 2) – Bonus Time: Range in levels of household response

84

Energy shifting (Trial 2) – HomeEnergy FreeTime (HEFT): Mixed impacts on peak demand

Important implications for peak demand

• Average 2.2% reduction in the weekday evening peak demand

• However, there is also an average 22.2% increase in the peak demand for the weekend day containing the free period (9am – 5pm)

At high levels of uptake, this has important implications for substation peak loading

85

Secondary Substations

• The average 2.2% reduction in the weekday evening peak demand has the potential to slightly reduce the peak load for some of the substations

• However, the average 22.2% increase in the weekend peak demand has the potential to create new larger weekend peak loads for many of the secondary substations

Energy shifting (Trial 2) – HomeEnergy FreeTime (HEFT): Impacts on substation peak demand

Primary Substations

• Less of an issue at primary substation level

• High levels of industrial and commercial (I&C) loading at this level mean that the weekday peak load at these primary substations is typically considerably higher than that of the weekend peak load

The assumption of 100% domestic customer uptake of the HEFT tariff is used to illustrate the potential extent of network impacts. The mix of customers choosing Saturday or Sunday for their free period was taken from the mix observed in the energywise trial (65% Saturday versus 35% Sunday).

86

Energy savings and network peak reduction

• If the energywise savings were realised by all fuel poor customers across the UK Power Networks licence areas

• Total annual electricity consumption reduction:

– 86 GWh/year

– Saving customers about £11.2m/year

• Network peak reduction:

– 27 MW

– Deferred network reinforcement cost of £2.7m – £5.4m

Potential network impacts if rolled out across UK Power Networks

Licence areaNumber of fuel poor

customers1

Reduction in annual

consumption:

Intervention devices

Reduction in network

evening peak:

Intervention devices


evening peak:

Bonus Time


evening peak:

Total

GWh/year MW MW MW

Eastern Power Networks

413,619 39 9.5 2.7 12.2

London Power Networks

248,684 23 5.7 1.7 7.4

South Eastern Power Networks

258,113 24 5.9 1.7 7.6

Total 920,416 86 21.1 6.1 27.2

1 Department for Business, Energy & Industrial Strategy: “Sub-regional fuel poverty data 2017”, report available from: https://www.gov.uk/government/statistics/sub-regional-fuel-poverty-2017

https://www.gov.uk/government/statistics/sub-regional-fuel-poverty-2017

87

Conclusions

Trial intervention Finding

• 3.3% reduction in annual consumption

• 5.2% reduction in average peak demand

• 1.5% reduction in peak demand when considering all households

• 18.7% reduction in average peak demand for best performing households

• 2.2% reduction in weekday peak demand

• 22.2% increase in the peak demand during the free period

Relevance

• Energy savings are concentrated in the peak period

– Beneficial from a network perspective

• Large variability in customer responses

– Availability of large flexible appliance loads is important

• Potential to create new weekend peak loads for secondary substations

– Caution required at high uptake

Dev

ices

Bo

nu

s Ti

me

Ho

meE

ner

gy F

reeT

ime

88

Thank you

Please get in touch if you have any questions or would like to discuss further:

Dr Mark Hughes

Director

+44 (0)1223 855 240

[email protected]

mailto:[email protected]


July 2018

SAVE Project

Beginning with the end in mind

91

Imagine a world where…

DNO’s can manage their networks through a selection of smart

techniques

Facilitating LCT’s

Avoiding disruptive reinforcement

Customers actively facilitate and benefit

from network management

Customers have a positive and active relationship with

networks

Fuel poor and priority service customer management is

optimal

Carbon Emissions are minimised and

renewables dominate generation

Greater security of supply

Health and environmental

benefits

Domestic Customer Engagement

92

93

Jan 2014 – Jun 2019

£10m total project cost

Based in Solent region

8000 domestic customers

Network Investment Tool

Key facts

94

Methodology

Interventions

Domestic Monitoring Feeder

Monitoring

1. LED lighting trials-Lighting is responsible for

19% of evening peak

demand

2. Data informed

engagement -other trials suggest

reductions of around 11%

3. Data informed

engagement + prices

signals-other trials suggest

reductions of around 11%

4. Community

Energy Coaching-Two communities, one

affluent one deprived

-Other benefits i.e. PSR

customers

95

Business As Usual-Network use case based on overall

population-Approach to be tailored, adapted

or account for vulnerable customers

-Modelling of impacts based on customer types

-Most cost-effective approaches-Best practice engagement

SAVE-Representative

population-Surveys

-Mutually Exclusive trials

-Energy Efficiency-Dynamic Pricing

-Customer/Communi

ty Engagement

energywise-Vulnerable customers

-Surveys-Iterative trials

-Energy Efficiency-Dynamic Pricing

-Customer/Community Engagement

Keeping the end in mind

The impact of energy efficiency

96

SAVE, EnergyWise and Power Saver Challenge

97

Our PromisesSAVE will look to understand whether impact of initiatives are higher or lower on vulnerable customersSAVE will provide a comparison of which engagement technique/technology provides greatest impact

Data informed and price signal engagement

98

99

Event days: Preliminary results

Figure5:Temporalprofilesofconsumptionaroundtheeventday(with95%CI)

ThesetofchartsbelowinFigure6showtheoverallmeanforthe16:00-20:00periodsofeachday

comparedtothe4hoursbefore/afterandasabove,the95%confidenceintervalsgiveanindication

ofthestatisticalsignificanceofanynumericaldifference.

Ben Anderson 5/7/2017 14:58

Deleted: 9

Ben Anderson 5/7/2017 14:58

Deleted: Figure10

Day before

Day of

Day after

Dynamic pricing

100

Setting a pre-defined level of

consumption for which

consumers are incentivised to

keep under at peak time.

Particularly interesting with

EV’s.

SAVE, EnergyWise, LCL and CLNR

101

Our PromisesSAVE will to understand network impact of customers opting in/out of trialsSAVE will understand impact of different mechanismsSAVE will understand impact across different types of customer

102

Community Engagement Findings1. Earning the right to talk to the community- understand their agenda then link

messages to energy efficiency:

a) 10% response to DNO branded 50% response to community branded

2. Energy Literacy- general negative connotations- should focus on

a. Visual + Use of language

b. Cooking case study

3. Creating habit- bottom up and top down approach to engagement

a) Visibility of energy

4. Quantitative impacts

5. Social obligations

Modelling

103

Ultimately SAVE will inform:

• Value of energy efficiency, price signals

vs information alone and community

interaction

• By modelling this we can scale,

target and understand spatial

implications

• Impact on vulnerable customers

In the future we should

• Looks to layer these models with wider

data

• Not only allow us to better

understand benefits

• But also stack benefits with third

parties i.e. BEIS.

104

Any Questions

Moving forwardDavid Shipworth, UCL

Mark Hughes, Element Energy

© 2018. UK Power networks. Al rights reserved

Differences between savers and shifters

matter

Shifting requires identifying large discretionary loads and the human

resources to reschedule them.

Saving requires identifying unnecessary loads and the the human, or

human plus technical, resource to remove them.

Targeting savers and shifters is largely independent and requires

different information about customers’ homes and lifestyles


Messaging matters

Communicating ToU tariffs requires care - don’t assume all will

understand. Use multiple modes - not all consumers absorb written

information.

Don’t make assumptions. Use repeated consumer testing and refinement

of all aspects of communication to make sure messaging works for your

target audience.


Processes matter

Engagement, recruitment, equipment installation and retention of

customers took development of systems and close coordination between

the supplier and the Customer Field Officers.

Organisations have differing but complementary skills, cross-training and

systems development are needed for process harmonisation between

collaborating organisations.

Investing in system building and staff training across teams yields

results.

Streamline the customer journey. Where multiple partners are involved

ensure smooth customer handoff between project partners.

Participants responded positively to minimising the number of contact

points and times.


Trusted local intermediaries matter

Participants responded best to recruitment approaches by their energy supplier,

but locally based Customer Field Officers (CFOs) from a Trusted Local

Intermediary were key for initial recruitment (particularly face to face).

Engagement extends recruitment into a relationship, ideally a relationship with a

personally known local intermediary.

For Time of Use tariffs, most consumers needed CFO support before being

willing to sign up.

CFOs for were key for providing participant support and providing a trusted single

point of contact.

CFOs and use of the trusted local intermediary drove customer satisfaction.

Local links, even calls from local numbers, built trust and engagement.


Technology matters

Energy efficient technologies can lock in energy savings at peak times

Feedback from trial and technical potential analysis indicate that smart

meters (along with IHD) and LED lightbulbs appear to be most effective

of the four device types provided in this trial for reducing electricity

consumption and peak demand.

LED lights proved the most popular with participants, and their demand

correlation with the evening peak provide network benefits.

Targeting efficiency at components of peak periods delivers both carbon

and energy system benefits.


Non-punitive tariffs and rebates can engage customers and shift energy

While it is hard to draw direct comparison between trials, the peak

demand reductions observed for the non-punitive offerings in this

project were not as large as those of punitive ToU tariffs trialled in GB

(e.g. in LCL and CLNR)

International trials suggest that non-punitive CPR schemes have the

potential to achieve peak demand reductions equivalent to (and in

some cases larger than) comparable punitive approaches1,2,3

Non-punitive tariffs protect credit customers from loss, and prepayment

customers from cash-flow constraints and loss

The ‘you can’t be worse off’ message is enticing, but requires

overcoming scepticism

There is evidence of shifting, but network benefits require careful

shaping and targeting

HomeEnergy FreeTime

The future role of non-punitive energy shifting

1 “CL&P’s Plan-it Wise Program Summer Impact Evaluation”, Connecticut Light & Power Company, 2009. 2 “BGE’s Smart Energy Pricing Pilot Summer 2008 Impact Evaluation”,

Baltimore Gas & Electric Company, 2009. 3 “Ontario Energy Board Smart Price Pilot Final Report”, IBM Global Business Services and eMeter Strategic Consulting, 2007.


In the USA these schemes have achieved large demand reductions:

• Average peak demand reductions range between 7% and 21% across

various trials1,2,3,4

• Typically targeting large AC loads during summer peaks

The availability of large flexible appliance loads (e.g. tumble dryers and electric

cookers) was also an important factor for demand reductions in Bonus Time

Opportunity for direct engagement by DNOs and other stakeholders with no

need to change supplier tariff

Further testing of these non-punitive and tariff independent CPR schemes in

the UK appears warranted:

• With a broader customer demographic

• Targeting customers with large flexible appliance loads

• Uptake of EVs, HPs, AC and smart appliances in the UK offers new

opportunities

Further work to understand the effect of price elasticity and frequency of events

may also be relevant for future work

Next steps for CPR schemes such as Bonus Times

1 “CL&P’s Plan-it Wise Program Summer Impact Evaluation”, Connecticut Light & Power Company, 2009. 2 “BGE’s Smart Energy Pricing Pilot Summer 2008 Impact Evaluation”, Baltimore Gas &

Electric Company, 2009. 3 “Ontario Energy Board Smart Price Pilot Final Report”, IBM Global Business Services and eMeter Strategic Consulting, 2007. 4 “2014 Impact Evaluation of San Diego

Gas & Electric’s Residential Peak Time Rebate and Small Customer Technology Deployment Programs”, D. Hanna, C. Elliot and G. Jiang, 2015.


There are opportunities for customer benefit from these types of non-

punitive tariffs

However, caution needs to be applied with free periods and their

network impacts

• Particularly their potential to increase existing network peaks or

to create new peaks

While not observed in this trial, there is also the possibility for

increased annual consumption (and carbon emissions) via additional

“comfort taking” on free days

The more diversity that can be achieved in these types of offers the

better from a network perspective

• Customer options for other free periods away from critical

network timings

Dynamic free periods corresponding to times of high renewables

generation (and low wholesale market prices) could also offer

customer value while potentially minimising negative network impacts

Future considerations for free period tariffs such

as HomeEnergy FreeTime

0

100

200

300

400

500

600

700

800

0 10 20 30 40 50 60

Sub

stat

ion

Lo

ad (

kW)

Trial 2 secondary substations (ordered by size of current peak load)

Potential impact of 100% HEFT uptake by domestic customers on peak loads of secondary substations

Substation peak load

Substation peak load with 100% HEFT uptake

115

Closing Remarks

Ian Cameron

Head of Innovation, UK Power Networks

Key learnings from energywise

Bringing together

different

organisations with

the right expertise is

key to deliver

tailored-support

services

It is possible to

unlock flexibility

services from fuel

poor and hard-to-

reach customers

Understanding our

customers• Better

understanding of

type of

households,

demographics,

customer needs

and energy social

capital

Engagement with

disadvantaged

customer groups

can be resource

intensive• Requires tailored

strategy [no ‘one size-fits-all’]

• Working with a trusted local intermediary

• Costly

Prospects for flexibility services

• In future, the business case for ToU tariffs and energy efficiency packages might need to be revised

• Who is most suitable to deliver energy efficiency to customers?

a) energy supplier, b) the network, c) third party, d) combination of all [Please vote!]

• Who is most suitable to deliver Time of Use tariffs to customers?

a) energy supplier, b) the network, c) third party, d) combination of all [Please vote!]

• Continue to understand implications for customers, networks and suppliers

• Enable the market for energy efficiency and introduce interventions beneficial to customers

Moving forward- We will:

Continue building

on learnings from

energywise (2014-

18) and Low

Carbon London

(2011-14)

Conduct further

trials help networks

fill the knowledge

gaps• Energy efficiency for

customer benefit

project (new project

under scoping)

• Inform business

towards ED2

Continue to listen

and share with

stakeholders and

advance the energy

efficiency debate

Distribution System Operator Priorities- 2017-19

• Active Network Management rolling out as BAU across all networks

Facilitate cheaper and quicker connections using proven innovation

• Continue running faster and larger flexibility services tenders

Use customer flexibility as an alternative to network upgrades

• Deploy KASM Forecaster into BAU, develop and trial DERMS

Develop enhanced System Operator capabilities

• Actively participate in cross sector innovation which benefit whole system

Collaborate with Industry to enable whole system benefits

• Deliver EV readiness Strategy and EVolution Project

Prepare and facilitate the uptake of Electric Vehicles

1

2

3

4

5

119

First public tender for flexibility

services

Tender for 35.4MW of Demand Side

Response

Tender covered 10 sites across our

networks

Piclo Flex Online Marketplace

Distribution System Operator in Action

Partnership with Piclo Flex

• The world of energy is changing fast, and we recognise

that our role has to evolve

• Our transition to Distribution System Operator (DSO) has

already started to enable a smart, flexible system

• We are continuing to invest in innovation projects to

develop our DSO capabilities

• #energywise #communityhelp

Visit FutureSmart.ukpowernetworks.co.uk

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