Issue link: https://read.utilityweek.co.uk/i/665572
NETWORK / 11 / APRIL 2016 I n recent years, 8GW of generation has been connected to the distribution network, far exceeding levels that were previously anticipated.Solar PV connections alone have already surpassed the numbers forecast for 2030.This increase in distributed generation presents challenges for network operators and has implications for the role they play in our electricity system. No longer can they adopt a passive "‚ t and forget" approach. DNOs are becoming active network managers, using new technology and real-time data to make interventions on the network. This transition at the local level re‡ ects the more active way in which the high-voltage distribution network has operated for many years, and DNOs will take on system operator functions. As such, this is increasingly referred to as an evolution from Distribution Network Operator to Distribution System Operator (DSO). The driver for this change is the number of distributed generation connections, so the transition is already progressing in parts of the country with signi‚ cant amounts of renewable generation and resultant capacity constraints on the network. Network operators in the south east and in the north of Scotland are therefore demonstrating aspects of the DSO role today. Based on government projections for renewables, other DNOs will have to do the same in the next ‚ ve to ten years. Innovation funding through the Low Carbon Network Fund and the Network Innovation Competition and Allowance has allowed DNOs to trial elements of the DSO role and absorb them into business as usual in some areas. This should deliver about £900 million of bene‚ ts to customers under the current price control. T H E D S O T R A N S I T I O N : A N U R G E N T M AT T E R "The strong start the UK has made since the introduction of innovation funding mechanisms must be allowed to continue." GET TO Utility Week Live 2016, 17-18 May, Birmingham NEC Nick Winser, chair of the Energy Systems Catapult, will open the Utility Week Live Keynote conference with a presentation on the future of energy systems. Find out more www.utility- weeklive.co.uk Next month, see Network's overview of innovation themes across live NIA- funded projects, compiled with support from ENA. Various projects from di• erent DNOs have successfully demonstrated a number of key DSO elements including commercial arrangements with industrial and commercial customers, dynamic time-of- use tari• s, smart management of EV charging and real- time management of distributed generation customers. Active network management, or ‡ exible connections, are now being o• ered to generators as standard on constrained parts of the network. These make the most of existing capacity and accommodate DG connections faster and at lower cost. The wide array of innovation trials are providing the technical knowledge necessary for DNOs to be able to o• er new services, and the outcomes of these trials are being shared for the whole industry on the online Smarter Networks Portal (www.smarternetworks.org). The approach we have taken in Great Britain has put us at the forefront of global smart grid development, which will deliver signi‚ cant economic bene‚ ts through exports to countries that are tackling the same energy challenges we face. ENA's Low Carbon Network Innovation (LCNI) conference is now one of the most prominent smart grid events in Europe with more than a thousand delegates. It is a showcase for the GB manufacturing supply chain, developed in the GB on the back of innovation funding. The regulatory framework under RIIO-ED1 is suš ciently ‡ exible to enable and encourage networks to ‚ nd new ways to deliver outputs. The next step in the evolution to DSO is therefore to address the challenges of scaling up the work that is already under way. ENA is working with its member companies, Decc and Ofgem to address some of the challenges in this area. These include making sure the commercial frameworks are in place for data and information exchange between industry parties, and giving DNOs greater freedom to invest ahead of need in designated areas of the network. An ENA group is looking at the issues that arise at the transmission and distribution interface from increased load moving back up the system to the high- voltage network. The innovation support that has been built into the regulatory framework, and is already delivering for customers, must continue in the years ahead as network operators scale up and expand their operations. As networks adapt to accommodate electric heat and transport and as storage technology advances, the strong start that the UK has made since the introduction of innovation funding mechanisms must be allowed to continue. There will also be a crucial need for companies to up-skill their workforces to deliver DSO functions, with the need for IT and telecommunications specialists as well as new customer-facing responsibilities. ENA will continue to work with partners to overcome some of the challenges of the DSO transition as it progresses, and developments in the areas outlined above will be sure to feature prominently in the energy debate over the coming months and years. DAVID SMITH CHIEF EXECUTIVE, ENERGY NET WORKS ASSOCIATION