Scenarios for the development of smart grids in the UK: literature review

Smart grids are expected to play a central role in any transition to a low-carbon energy future, and much research is currently underway on practically every area of smart grids. However, it is evident that even basic aspects such as theoretical and operational definitions, are yet to be agreed upon and be clearly defined. Some aspects (efficient management of supply, including intermittent supply, two-way communication between the producer and user of electricity, use of IT technology to respond to and manage demand, and ensuring safe and secure electricity distribution) are more commonly accepted than others (such as smart meters) in defining what comprises a smart grid. It is clear that smart grid developments enjoy political and financial support both at UK and EU levels, and from the majority of related industries. The reasons for this vary and include the hope that smart grids will facilitate the achievement of carbon reduction targets, create new employment opportunities, and reduce costs relevant to energy generation (fewer power stations) and distribution (fewer losses and better stability). However, smart grid development depends on additional factors, beyond the energy industry. These relate to issues of public acceptability of relevant technologies and associated risks (e.g. data safety, privacy, cyber security), pricing, competition, and regulation; implying the involvement of a wide range of players such as the industry, regulators and consumers. The above constitute a complex set of variables and actors, and interactions between them. In order to best explore ways of possible deployment of smart grids, the use of scenarios is most adequate, as they can incorporate several parameters and variables into a coherent storyline. Scenarios have been previously used in the context of smart grids, but have traditionally focused on factors such as economic growth or policy evolution. Important additional socio-technical aspects of smart grids emerge from the literature review in this report and therefore need to be incorporated in our scenarios. These can be grouped into four (interlinked) main categories: supply side aspects, demand side aspects, policy and regulation, and technical aspects.

The smart grid as commons: exploring alternatives to infrastructure financialisation

This paper explores a tension between financialisation of electricity infrastructures and efforts to bring critical urban systems into common ownership. Focusing on the emerging landscape of electricity regulation and e-mobility in the United Kingdom (UK), it examines how electricity grid ownership has become financialised, and why the economic assumptions that enabled this financialisation are being called into question. New technologies, such as smart electricity meters and electric vehicles, provide cities with new tools to tackle poor air quality and greenhouse gas emissions. Electricity grids are key enabling infrastructures but the companies that run them do not get rewarded for improving air quality or tackling climate change. UK government regulation of electricity grids both enables financialisation and forecloses opportunities to manage the infrastructure for wider environmental and public benefit. Nonetheless, the addition of smart devices to this network - the ‘smart grid’ – opens up an opportunity for common ownership of the infrastructure. Transforming the smart grid into commons necessitates deep structural reform to the entire architecture of infrastructure regulation in the UK

Policy additionality for UK emissions trading projects: a report for the Department of Trade & Industry

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Investigation into the potential impacts, threats and opportunities posed by emerging technologies on Orion's network and business

A project was undertaken for Orion New Zealand Limited (Orion) to fulfil a partial requirement of the degree Master in Engineering Management at the University of Canterbury. The project explored "The potential impacts, threats and opportunities posed by emerging technologies on Orion's network and business". The emerging technologies and trends analysed include; distributed generation (solar, hydro, wind, diesel), battery storage, electric vehicles, smart homes, energy efficiency and future technologies. Each emerging technology and trend's impact has been considered in terms of Orion's customers, network and business. From this future scenarios have been identified based on different technology uptake rates and regulatory regimes. Finally recommendations have been suggested along with potential action plans Orion can follow to capitalise on these technologies as they become more established

Scenarios for the development of smart grids in the UK: synthesis report

‘Smart grid’ is a catch-all term for the smart options that could transform the ways society produces, delivers and consumes energy, and potentially the way we conceive of these services. Delivering energy more intelligently will be fundamental to decarbonising the UK electricity system at least possible cost, while maintaining security and reliability of supply. Smarter energy delivery is expected to allow the integration of more low carbon technologies and to be much more cost effective than traditional methods, as well as contributing to economic growth by opening up new business and innovation opportunities. Innovating new options for energy system management could lead to cost savings of up to £10bn, even if low carbon technologies do not emerge. This saving will be much higher if UK renewable energy targets are achieved. Building on extensive expert feedback and input, this report describes four smart grid scenarios which consider how the UK’s electricity system might develop to 2050. The scenarios outline how political decisions, as well as those made in regulation, finance, technology, consumer and social behaviour, market design or response, might affect the decisions of other actors and limit or allow the availability of future options. The project aims to explore the degree of uncertainty around the current direction of the electricity system and the complex interactions of a whole host of factors that may lead to any one of a wide range of outcomes. Our addition to this discussion will help decision makers to understand the implications of possible actions and better plan for the future, whilst recognising that it may take any one of a number of forms

Development of Electricity Networks: Essays on Incentive Regulation and the New Role of Consumers

The electricity sector is undergoing a remarkable change, supporting the overall transition required to meet policy objectives of lower carbon emissions as well as a safe and secure supply of electricity in a cost-effective manner for consumers. Electricity networks are part of the infrastructure vital to a functioning modern economy. This thesis considers specific elements of ongoing developments related to electricity networks, namely the changes in the economic regulation of networks and the new role for consumer. Achieving environmental and climate change policy targets is reliant on electricity networks adapting to changes and embracing an increased role in the electricity supply chain. The need for sensitivity to social justice and the preferences of electricity end-consumers is relatively new to network owners but is becoming increasingly important. Four main chapters, employing both theoretical and empirical economic methods, quantitative and qualitative, explore and advance aspects of incentive regulation and, particularly, the role of consumers

Characterization of 2nd life Li-Ion batteries for use within an EU context

Lithium-ion batteries have revolutionized the industry in terms of mobile power applications. Ranging from cell phones to electric vehicles, Li-ion batteries have been at the heart of the energy transition. In this document the consequences of the latest EU directive concerning batteries is reviewed, the potential for creating a business via the use of 2nd life li-ion batteries is discussed and the viability of characterizing a li-ion battery for use in its second life by measuring its internal resistance is investigated. It has been shown that it is indeed possible to create a business model around the latest EU directive by providing guaranteed energy storage for residents, and that a test bench using low cost materials and an Arduino Nano can be used. The calculated internal resistance of 42mΩ has an acceptable 5% error with the theory, and is likely due to hardware limitations such as no filtering being done within the circuit. Future work includes building upon this thesis to create a commercial product to provide SoH estimations for 2nd life batteries for use within an EU contex

Strategic Analysis for BC Hydro in Response to Plug-in Hybrid Electric Vehicles

This project addresses the question of how the adoption of Plug-in Hybrid Electric Vehicles (PHEVs) in British Columbia will impact the demand for electricity from BC Hydro. We develop three adoption scenarios along with an analysis of how each of these scenarios will affect BC Hydro’s key performance metrics. We utilize a balanced scorecard to look at the effect of four possible strategies on the impact of PHEVs on BC Hydro’s metrics. We find that the best of the four strategies analyzed is one in which BC Hydro adopts a dynamic rates system, which allows their customers to set a buy and a sell price for the electricity used to charge their PHEV battery. As well as adopting a dynamic rates system, the optimum strategy also utilizes reverse metering where the vehicle owner can sell their battery-stored power back to the grid or alternatively uses it to power their home

A Review of Four European Regulatory Systems and their Impact on the Deployment of Distributed Generation

This report performs a comparative review of the regulatory regimes for four EU Member States, Denmark, Germany, the Netherlands and the UK with specific regard for how regulation impacts on distributed generation in each of these countries. It addresses both the positive and negative aspects of policy and the impacts each factor has on the potential for increasing and decreasing barriers to the greater use of distributed generation in each Member State, and of how different policies might tie together to produce a regulatory design which can aid the achievement of energy systems which are more sustainable.European Commission under the 5th RTD Framework Programm