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TheDNOroleintheenergysystemandthePowerSaverPlusProject

TheGreatEnergyEscape

TomLaw,

6November2017

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ElectricityNorthWest- OurHeritage

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Privatisation:Norweb plc

NorthWestWater

takeoverofNorweb:UnitedUtilities

Norwebsupply

businesssold

SaleofUnitedUtilities

Electricitytoprivateinvestors

1948 1990 1995 2000 2007 2010

£

Electricitynational-isation:

NorthWestElectricityBoard

AcquisitionofUUElectricity

Services

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Electricity North West today

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4.9million

25TWh

2.4million

57000kmofnetwork l £12.3billionassets

19gridsupplypointsl 96bulksupplysubstations418primarysubstationsl 34700transformers

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UKenergychallenges

Uncertaintyinfuturedemandandgenerationl DifficulttopredictdemandlMorepressuretomeetcustomers’needsatminimumcost

202035%reductioninCO2

15%ofenergyfromrenewables

Generationmixisradicallyoverhauled

205080%CO2reduction

Significantincreaseinelectricitydemand

203060%reductioninCO2

Electricitydemandincreases,drivenbylowcarbontechnologies

+

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Electricvehicleuptake

NationalAirQualityPlan(2017)

“...allnewsalesofconventionalpetrolanddieselcarsandvanstoendby2040.”

20xTeslahotspotchargers

Equivalentto4xsuperstores’worthof

demand

ExploringInnovativeSolutionstomeetthis

challenge

Networkinnovationcompetition&second

tierprojects

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Significantdriversforchange

• BEIS’“CleanGrowthStrategy”– Oct2017

• BEIS’Callforevidence“Buildingamarketforenergyefficiency”– Oct2017

• DieterHelm– ‘CostofEnergyReview’

• ShouldDNOshavegreaterresponsibilityforenergyefficiencyandhelpingtheircustomersoutoffuelpoverty?

• Shouldtheexistingrolesandboundariesbetweengeneration,transmission,distributionandsupplybereviewed?

• Howcanwetakeamore‘wholesystem’view?

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Oursmartnetworkstrategy

Delivervaluefromexistingassets Customerchoice

Extrahighvoltagenetwork

Distributionsubstation

Highvoltagenetwork

Customers’LCTs

C2CHVnetworkmeshing

CLASSVoltageat

HVsubstations

RespondEHVandHVfaultlevel

SmartStreetConservation

VoltageReduction

CelsiusCoolingatdistributionsubstations

Customerbehaviour

Opportunityforsignificant

savings‘beyondthemeter’

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Ourbusinesscommitments

Increaseheadroomforlowcarbontechnologiesandreducecarbon

Innovationprojectstosupporttheseaims

Buildrelationshipsandenhanceservicetocustomers

Reduceoverallnetworkcostsforallcustomers

Reliability

Customerservice

AffordabilitySustainability

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Theproblem

Expensiveandcarbonintensivereinforcementnotaffordable

Highcustomerbills

Fuelpoverty

Changingcustomerneeds

LCTpenetrationdrivingdemand

Lowpenetrationofenergyefficiencymeasures

Randomlocations

excludenetworkbenefits

Inefficientfinancing-suppliers

recovercostsovertheshort

term.

Benefitsnotalignedwith

costs

ABC

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PowerSaverPlustrials

Traditionalelectricstorage

heatersindomestic

buildingswillbereplacedwithhighefficiencyheaters

1.DeploymentofLEDlightingincustomers’premises

2.DeploymentofLEDstreetlightingin

selectedareas

Abehaviouralchange

programmethroughmultiple

channelsofengagement,

onanindividualbasis

andbycustomergroup

Highefficiency‘whitegoods’suchasfridge

freezers,washingmachines,

tumbledriersand

dishwasherswillbe

deployedona‘scrappage

scheme’basis

1.FreeorsubsidisedPVinstallationson

municipalbuildings

2.DeploysmallscalePV

installationsatsecondarysubstations

Appliances

AAA

PVLightingHeating Behaviour

Multiplemeasures

deployedwithatrialgroup:acombinationoflighting,an

applianceandbehaviouralintervention

Combinedmeasures

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PowerSaverPlus

Varietyoflowcost,low

intrusiveenergyefficiencymeasurestrialledwith

broadrangeofcustomers

Buildsonpreviousprojectwhichprovesthatengagingwithcustomerscaninfluencethemtochangetheirbehaviour

PowerSaverTool

provideswholesystemviewandallowstargetedapproachto

energyefficiency

Benefits:Deferred

reinforcementReducedcarbonReduced

networkandenergycostsfor

customers

EnhancedCBAmodelwillestablishcostsandbenefitsof

‘Targeted’energyefficiency

vs smartnetwork

solutionsandquantifieswidersocietalbenefits

AAA

PowerSaverPlusunlockshugepotentialofenergyefficiency

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ElectricityNorthWesthasaproventrackrecordofsuccessfulcustomerengagement

WearedrawinguponlearningfrompreviousprojectsegPowerSaverChallengewhichdemonstratedthatengagementcansuccessfullychangecustomer

behaviour

Customerengagement

Establishedstrictapproachto

dataandethics

Multipleandvariedchannelsofengagement

toreachmaximumnumberofparticipants

Workwithindustryexpertstoensuremost

effectiveapproachtostakeholderengagement

Continuedengagement

throughoutandbeyondprojecttomaximiseparticipantretention

Partnershipswithcommunitytoaidtrustand

maximiseengagementopportunities

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&QUESTIONSANSWERS