Issue link: https://read.utilityweek.co.uk/i/808182
NETWORK / 20 / APRIL 2017 I t's official: the DSO model is coming. The Future Power System Architec- ture (FPSA) project is leading the way and, while the remainder of RIIO-ED1 is set to be a "test" period for new technologies and methods for meet- ing network and customer demands, RIIO- ED2 is likely to see the widespread adoption of the DSO model. Getting the policy and regulatory frame- work right will mean that networks will be able to offer customers more flexibility to connect to, and use, the network in a way that reflects their needs – as well as potentially creating new income streams for them because they would be able to provide services without significantly increasing the cost to other customers. Speaking at the Future Networks confer- ence, held by Network in Birmingham last month, Electricity North West's networks strategy and technical services director Paul Bircham said a DSO in essence meant "allowing customers the freedom to buy and sell their energy". The initial challenge will be to find the first tranche of customers that are flexible enough to adopt that connectivity, and key to improving how customers connect to net- works will be to moving to a service model that provides flexible capacity rather than traditional fixed assets. It is also vital that networks are given the freedom to deliver efficient capacity through new commercial solutions. Also speaking at the conference, Colin Taylor, director of engineering at SP Energy Networks, said: "An effective DSO model will optimise customer engagement, minimise costs, improve customer service, manage losses, and optimise investment at a local level." Speaking a–er the conference, Taylor added: "It is really important that DNOs make a fast and effective transition from being asset owners and operators to playing an active co-ordinating role between all market participants, facilitating the markets and services in a neutral and non- discriminatory manner." Simon Harrison, chairman of the FPSA Project Delivery Board, said in the future DNOs would need to provide, participate or operate the majority of the functions that a flexible power system requires. "We would expect that DNOs will share the FPSA vision for the importance of these functions and therefore that DNOs will want to help the FPSA functions shape their transition into DSOs," he said. The first part of the project concluded last July. It found that future DNOs would have to be flexible as changes to electricity generation, demand and new participants emerged. It also noted that price signals or other incentives could persuade custom- ers to become "active participants" in the electricity sector. The second phase of the project is due to report back shortly. Many networks are getting ahead of the game, with trial projects that start to get to grips with the challenges and opportunities of DSO activity. Here are five of the best – and the lessons networks can learn from them. Distribution system operators Project CLASS A roaring success story, Electricity North West's CLASS was a Tier 2 LCNF project that sought to understand whether minor fluc- tuations in voltage could be used to manage demand without affecting customers. The project covered 60 substations and about 17 per cent of ENW's customer base. ENW moved voltage up and down within the 50V statutory limit parameter. Being able to vary the voltage let the DNO reduce peak demand efficiently, accept greater amounts of renewable energy and add new and flex- ible services. One of CLASS's main features is the 'smart voltage control', which continually measures and predicts the amount of demand response (up or down) that is avail- able from a substation before sending the information to a DNO or NGET control centre. The automatic voltage controller continu- ally measures frequency and can act auto- matically to trigger certain services such as correcting changes in frequency. The voltage controller can also deliver many services simultaneously, allowing multiple problems to be solved with a single device. CLASS's ability to lower voltage at peak times means that network companies could defer reinforcement costs. This will lead to reduced costs for customers and reductions in CO2 emissions. 1 Lessons learnt ENW found that minor fluctuations in voltage have no impact on customer experience. Installing CLASS in its substations could save customers in northwest England about £100 million over the next 25 years – and £300 million across Great Britain. It is now rolling out the technology, initially paid for with inno- vation funding, as a self-funding proposition across its network.