Optimising regional clusters of smart local energy systems

Transformation of the national electricity network is being explored through a series of projects funded by the Low Carbon
Networks Fund (LCNF). Simultaneously Innovate-UK and others are investing in a variety of projects to develop distributed
energy assets (generation, storage and demand management) at community and individual building level. Development of
a new overall control system architecture is the missing link which will allow the full economic value of both of these sets of
investment to be realised.
This project will investigate the feasibility of a technology solution designed to optimise a number of smart community
electricity networks across a locality. The technology is a control solution (supported by storage) designed to fit within a
novel distributed control architecture for energy networks. It applies networked ICT solutions at substation level and uses
intelligent predictive algorithms adapted from those used in telecommunications network management. The solution builds on existing work to develop community control algorithms for individual 'smart grids' (for example covering individual
business parks or housing developments) and aims to provide a robust and secure 'middleware' integration layer between
these local 'bottom-up' control systems and the existing distribution network operators and national control system. This is
estimated to release benefits to individual households of up to £300 per year.
The fundamental proposition of this project is that a technical solution is feasible which will enable the shift to this new
overall architecture. This solution takes the form of an integrated package of control and communications technologies
installed on electricity distribution networks (with appropriate management algorithms and almost certainly supported by
access to local storage)- largely at substation level but working in a co-ordinated way across a locality (sub-region or city)
and analogous to the way telecommunications networks are managed. Such a solution will enable more flexible trading and
regulatory arrangements between local smart grids and hence support the realisation of the full economic value of demandside
innovations.
The solution will provide a distributed control capability that optimises and manages multiple local smart grids, without
imposing additional costs on system users that exceed the benefits generated. Analogous to the technical infrastructure
that supports the internet, the solution will provide a resilient control infrastructure able to accommodate many and varied
types of local smart grid.
The key distinction between our proposed solution and centralised control systems is that individual sub-systems (i.e., local
smart grids and substations) will communicate with each other and optimise outcomes locally before having to engage
upwards with the national system. Our solution will develop the algorithms and define the supporting package of control,
protection and storage technologies to make this possible in a way which satisfies the needs of both the DNOs and national
system operator (and potentially replaces existing SCADA control systems).
Similar (but centralised) solutions currently exist for the electricity networks at national level but are prohibitively expensive
(an initial estimate is that it would cost £40k per substation simply to mimic national management algorithms locally).
This project will explore the technical feasibility of developing a packaged solution at substation level that costs less than
£5000 per substation to deliver at least the same functionality, but with considerably increased flexibility and resilience. The
primary advantage of effective distributed control and management in this context is that it will make it significantly easier to
innovate on the demand side, enabling local optimisation and more varied smart grid approaches to develop locally.

This research meets key challenges around determining the feasibility of a technology solution designed to optimise a
number of smart community electricity networks across a locality. The technology is a control solution (supported by
storage) designed to fit within a novel distributed control architecture for energy networks. The solution builds on existing
work to develop community control algorithms for individual 'smart grids' (for example covering individual business parks or
housing developments) and aims to provide a robust and secure 'middleware' integration layer between these local
'bottom-up' control systems and the existing distribution network operators and national control system. . The project helps
tackle low carbon issues by enabling accelerated rollout of locally-optimised microgrids which reduce the carbon emissions
from communities by 10-20% and support better infrastructure for electric vehicles and other low carbon demand side
solutions.
The main impacts of this work as they relate to the different beneficiary groups are:
- Transmission and Distribution network operators: currently there exists a national system operation and centralized
distribution management layer which allows high level optimisation of networks typically at voltages above 33kV but with
some automation at 11kV. However, no facility yet exists to optimise at levels below this. The result of this is that taking full
advantage of the Network at levels below this is largely unavailable at present through lack of co-ordination between different key players. This project will help with security of supply by supporting more robust and resilient electricity
distribution networks, and enabling connection and safe and efficient management of more distributed generation within the
UK energy system it could also impact asset optimisation and grid.
- Distributed generation owners and operators and community energy service companies: The evolution of the system to
deal with a natural flow upwards allows for less commercial uncertainty and better planning statistics to be made available
to aid development and growth opportunities.
- Individuals: There are over 400,000 final distribution (11kV) substations in the UK, each typically covering a community of
200-300 homes or equivalent. Each substation costs around £15k to build, and is depreciated over 15-25 years. This
means that every domestic customer pays £3-4 a year through their electricity bill for this element of the network
infrastructure. If the project is able to demonstrate the feasibility of providing a robust distributed micro-grid control solution
at substation level for less than £5000 per substation and with an equipment service life of at least 15 years, this will add a
maximum of £1.5-£2 per year to each customer's electricity bill, while releasing benefits of local microgrids for the same
customers. Preliminary modelling by suggests these benefits may average £100-£300 per customer. In addition, there may
be avoided costs of national level grid management which is no longer necessary and can be removed from customer bills.
There would therefore be an exceptionally strong business case for the solution.
- Policy makers and advisors: Councils and Government policy makers will benefit because the ramifications of this work
will affect the way that the market and incentive schemes could change in the face of the research and could encourage
community schemes.
- SMEs: The project will support the development of manufacturing and supply chain capabilities in this sector.
This research offers the opportunity to revolutionise the market for over the next 10 to 50 years.