smarter network storage low carbon network fund

Smarter Network Storage Low Carbon Network Fund Progress Report June 2014

Smarter Network Storage Progress Report June 2014

UK Power Networks (Operations) Limited. Registered in England and Wales. Registered No. 3870728. Registered Office: Newington House, 237 Southwark Bridge Road, London, SE1 6NP of 53

Contents

1 Executive Summary ......................................................................................................... 3 1.1 Project Background ............................................................................................... 3 1.2 Summary of Progress ........................................................................................... 3 1.3 Risks and Issues Summary .................................................................................. 4 1.4 Learning and Dissemination Summary ................................................................. 5

2 Project Manager’s Report ................................................................................................ 7 2.1 Progress in the reporting period ............................................................................ 7 2.2 Project outlook into the next reporting period ..................................................... 21

3 Business Case Update ................................................................................................... 22 4 Progress against budget ................................................................................................ 24 5 Bank Account ................................................................................................................. 24 6 Successful Delivery Reward Criteria (SDRC) ................................................................ 25 7 Learning outcomes ......................................................................................................... 30

7.1 Main Learning Outcomes from the Reporting Period ......................................... 30 7.2 Learning, Communications and Dissemination Activities in this Period ............. 33 7.3 Learning and dissemination activities over the next reporting period ................. 36

8 Intellectual Property Rights (IPR) ................................................................................... 38 9 Risk Management .......................................................................................................... 39 10 Consistency with Full Submission .................................................................................. 41 11 Accuracy Assurance Statement ..................................................................................... 42 List of Appendices ................................................................................................................... 43

Appendix A: Progress against budget (CONFIDENTIAL) .............................................. 43 Appendix B: Bank account (CONFIDENTIAL) ............................................................... 43 Appendix C: Bid Risks Update ....................................................................................... 44 Appendix D: List of trials to be conducted within the SNS Project ................................. 52

Table of Figures

Figure 1: Leighton Buzzard site ....................................................................................................................................... 3 Figure 2: Smarter Network Storage organisation chart ................................................................................................... 7 Figure 3: Overview of SNS 2014 activities and deliverables ........................................................................................... 9 Figure 4: Photo montage of images from the site construction works at Leighton Buzzard. ........................................ 10 Figure 5: Photos showing the erection of the steel frame and the process of cladding the building ............................ 11 Figure 6: Photos showing the completion of the building cladding and work to construct the internal walls ................ 12 Figure 7: Photos showing the excavation for the duct route .......................................................................................... 12 Figure 8: Photo montage showing elements of the battery systems ............................................................................. 14 Figure 9: High Level Deliverables of WS 3 during the Project Lifecycle ....................................................................... 17 Figure 10: NPV Breakdown of Reinforcement Route incorporating SNS ...................................................................... 22 Figure 11: Dissection of Installed Cost of Storage from SNS ........................................................................................ 31 Figure 12: SNS Learning Event Feedback .................................................................................................................... 35 Figure 13: Information board on the hoarding at the trial site ........................................................................................ 36



1 Executive Summary

1.1 Project Background

Energy storage is a key source of flexibility that can help address some of the challenges associated with the transition to a low-carbon electricity sector. Storage, as identified by the Smart Grid Forum, is one of the key smart interventions likely to be required in the future smart grid. However, challenges in leveraging the full potential of storage on distribution networks to benefit other industry segments, and a lack of scale demonstrations are currently hampering the efficient and economic uptake of storage by the electricity sector. The Smarter Network Storage (SNS) project is carrying out a range of technical and commercial innovation to tackle these challenges and facilitate more efficient and economic adoption of storage. It is differentiated from other LCNF storage projects through the demonstration of storage applications across multiple parts of the electricity system, including the distribution network but also outside the boundaries of the distribution network. By demonstrating this multi-purpose application of 6MW/10MWh of energy storage at Leighton Buzzard primary substation, the project is exploring the capabilities and value in alternative revenue streams for storage, whilst deferring traditional network reinforcement. The project aims to provide the industry with a greater understanding and a detailed assessment of the business case with the full economics of energy storage, helping to accommodate increasing levels of intermittent and inflexible low carbon generation. The project was awarded funding of £13.2 million by Ofgem, under the Low Carbon Network Fund (LCNF) scheme in December 2012 and will last four years, from January 2013 to December 2016.

1.2 Summary of Progress In this reporting period the project has made significant progress in preparing the Leighton Buzzard trial site and constructing the building that will house the storage technology and initiated the development of the Smart Optimisation and Control System that will schedule services for the storage.

Figure 1: The site in November 2013 (left) and 6 months later in May 2014 (right)

Across workstream 1 (WS 1), which is delivering the technical storage solution, the construction of the SNS facility has continued to be delivered according to schedule by Morrison Utility Services, managed by UK Power Networks ’ Capital Programme team. Within this reporting period, the building to house the battery has been completed and focus has moved on to the installation of the core storage technology inside the facility. Factory-acceptance tests have been completed satisfactorily for the inverter units from S&C Electric, and the lithium ion cells from Samsung SDI which has meant the equipment can be shipped to site, ready for installation and commissioning throughout the next reporting period by S&C Electric. Workstream 2 (WS 2), which is delivering the Smart Optimisation & Control IT System (SOCS), has been focussed on producing a number of functional specifications to allow the design to be successfully implemented. Development of various modules within the solution is underway by AMT-SYBEX in Belfast and by Younicos in Berlin. Newcastle University is also continuing to refine the parameters of the forecasting algorithm for final implementation. In the next reporting period, the first ‘drop’ of the full software solution is expected, which will mark the beginning of the testing phase.



Workstream 3 (WS 3) is continuing preparation for the trial phase once the storage is operational, when the bulk of activities and learning will fall under this workstream. The range of individual trials to demonstrate the storage capabilities and various value streams has been identified, and the drafting of a comprehensive suite of detailed Trial Design documents is now underway for each trial which describes the hypotheses, technical requirements, processes, risks and expected outcomes. The initial trials to be carried out will be network-related, which are being designed by Imperial College London, and support the work assessing the contribution to security-of-supply of shared-use storage. Workstream 4 (WS 4), which is responsible for the regulatory and commercial aspects, has been developing the smart commercial arrangements with operational partners National Grid, KiwiPower and SmartestEnergy according to the designed services approach in readiness for SDRC 9.3 – Commercial Arrangements for Integrated Use of Flexibility. These contracts underpin the range of additional, non-network, services that the storage will carry out and are on track to be completed by October 2014. In addition, Poyry Management Consulting has produced deliverable SNS4.13, an Interim Report on Regulatory and Legal Frameworks for storage, ahead of time to help inform the work of Ofgem’s Smart Grid Forum.

1.3 Risks and Issues Summary

Procurement Risks and Issues

During this reporting period, procurement of a number of IT and communications aspects has been initiated by UK

Power Networks IT in readiness for site acceptance and testing. This includes:

The setup of a dedicated ‘Future Networks’ Virtual Routing and Forwarding communications network;

Superfast Broadband connection and Switch to Leighton Buzzard;

10Mb Ethernet Connection and Switch;

Remote Terminal Unit (RTU); and

Forecasting, Optimisation & Scheduling System (FOSS) Application and Database Servers x 2.

Although currently on track, these items are critical for the end-to-end testing required in the next reporting period, and therefore there is a risk that delays to these aspects could impact the integration and commissioning of the technical solution.

Installation and Other Risks and Issues The main risks to the project during this reporting period were issues that could have arisen during the construction, such as very poor weather, significant resident complaints or unexpected site issues. Fortunately, the weather has been favourable and combined with our ongoing stakeholder engagement has allowed construction to progress without material issue, which has significantly reduced the risks in this area. There have however been some minor issues which have arisen due to some elements of the civil and electrical designs which have not been anticipated during the initial design phase. This has led to the need for some additional equipment cost, for example an upgrade to the Automatic Voltage Control system. Some modifications to the air-conditioning requirements by S&C Electric has also resulted in some additional civil costs but all of this spend is currently within budget and offset by underspend against other budgeted aspects. Into the next reporting period, there is a significant amount of complex installation and commissioning work to be done by S&C Electric, so there is an elevated risk that unexpected issues arise that could cause delays to the programme. This has been mitigated as far as possible by ensuring close collaboration between S&C Electric and Morrison Utility Services, and through robust design. There has been a delay in the delivery of the Power Conversion System (PCS) units from S&C Electric, which are having to be re-tested to ensure that modifications to the product meet Electromagnetic Compatibility (EMC) requirements. A revised installation programme has been developed which, with the reordering of some tasks and additional engineering labour, maintains the existing commissioning dates.



Related to the IT system, a risk was raised that it may not be possible to meet some of the original solution requirements with the originally planned implementation approach to optimising, or choosing between, different services which the battery can provide. This led to a review and revision of the implementation approach for the optimisation module, and a change to a two stage approach to the delivery of the SOCS solution by AMT-SYBEX. This mitigates the impact of delays to the commissioning and trials and has no financial or SDRC delivery impact. While negotiating the smart commercial arrangements with SmartestEnergy, an issue arose relating to the expectation for standing monthly fees for access to the wholesale trading desk which were not previously highlighted to the project team. These were considered to be incompatible with the trial nature of the SNS facility, which may have significant periods of non-commercial operation or down-time that could make a standing monthly fee quickly uneconomical. The issue was mitigated by agreeing an alternative pricing structure linked to energy exchange, and a decision made to forego access to the spot market trading desk. This does not impact the range of value streams or scale of benefits available to SNS. During this reporting period, the area around the Leighton Buzzard substation has seen considerable connections interest, primarily from solar (photovoltaic) generators. At the time of the original bid, UK Power Networks contributed the funds from the conventional reinforcement scheme and committed to offer the storage device as firm capacity on the network. Although solar generation in the immediate locale does not support security of supply, as the project proceeds, there is a risk that it becomes necessary to offer the capacity to a new connection, with appropriate measures to cover any technical risk.

1.4 Learning and Dissemination Summary The SNS project continues to generate and capture key learning, with much of the outcomes during this period

relating to the construction of large-scale energy storage and related regulatory and legal frameworks.

The key learning outcomes from this period are summarised below:

Peak shaving requirements could potentially constrain opportunities for operators to provide some

additional ancillary services due to their structure, meaning reduced synergies between network

services and these commercial services;

Energy arbitrage revenues are the component of a business case that is affected most by the

efficiency of a storage system. A 10% reduction in efficiency could reduce arbitrage revenue opportunities

by over 40%;

Capital costs of grid scale storage can account for only around 70% of the total installed lifetime

cost. Analysis shows that civil costs account for around a third of the total design and construction costs and

the operational costs of the storage facility are estimated around 9%;

A Generation licence exemption route does allow distribution connected storage projects of

appropriate size in a manner consistent with unbundling requirements. A class exemption for ‘small

generators’ allows storage projects with either output below 10MW or output below 50MW and the declared

net capacity of the power station is less than 100MW to be exempted from the need to hold a generation

licence;

De minimis business restrictions for DNOs place a limit on deployment of storage, but it is unlikely to

be a constraining factor in the short to medium term;

Certain applications and operation of storage assets is affected by the need to ensure that

competition in generation and supply is not distorted. DNO operation of a storage asset could have an

impact on the traded market which could be considered to distort the market, and necessitates the

involvement of an additional player in the business case for DNO owned storage;

Metering of storage assets on the distribution networks challenges traditional assumptions about the

boundary of distribution network and customer equipment. Traditionally, electrically connected

equipment ‘behind’ a settlement meter is considered to not be part of the distribution network;

Calibration of SoC of battery cells can involve a relatively frequent full cycle of charge in all racks,

which impacts on the availability for network and commercial services. However it may be possible and

beneficial to undertake calibration coincidentally while delivering specific services, such as peak shaving;



Consideration needs to be given to account for the differing international standards such as ANSI (American National

Standards Institute) and IEC (International Electrotechnical Commission), and additional time planned for mapping of

equivalent standards.

To ensure that the project is continually capturing learning resulting from the project, regular workshops involving the

project team have been scheduled, outside of other governance and project meetings, which provides a forum for

specifically discussing and capturing learning. In addition, the quarterly partner forum, which has been held on 27

March, provided an opportunity to discuss and capture any additional learning with external project partners.

As part of WS 5, which is dedicated to learning capture, dissemination and stakeholder engagement, a

comprehensive Knowledge Dissemination Roadmap has been developed in order to outline the strategy for learning

capture and dissemination and is available on request.

The following internal dissemination activities, project–related events, communications and engagement have

been carried out during this period:

Construction site meetings at the working level and management level;

Meetings with local operational cluster staff, and a separate tour of the site facility;

Dissemination Event for the ESOF’s Storage Good Practice Guide;

Partners Forum – to update and discuss progress with our senior partner stakeholders;

A first SNS Learning Event, covering learning from SDRC 9.1 and SDRC 9.2, was successfully held for both

external and internal stakeholders at the Royal Academy of Engineering in London on 26 March;

Electricity Storage Network: Open Symposium – the project was presented at the annual event of the

Electricity Storage Network, alongside other storage activities across the UK (29 January);

Interview for the Centre for Low Carbon Futures – the project took part in research being undertaken by the

Centre for Low Carbon Futures to identify opportunities for UK-South Korea collaboration in energy storage

research and business (19 February);

Engagement with Ofgem and Smart Grid Forum WS6;

Energy Storage World Forum – the project, and its key learning from the design and planning stages was

presented at the Energy Storage World Forum (3 April);

PRASEG Parliamentary Reception – a presentation of the SNS project at an All-Party Parliamentary

Renewable and Sustainable Energy Group reception in association with the Electricity Storage Network (13

May);

Utility Energy Storage Europe – the project was presented at the Utility Energy Storage Europe conference in

London, and covered the key learning from the design, planning and construction phases of the project (18

June);

S&C Electric Joint Opinion Press Piece – a joint article by UK Power Networks and S&C Electric has been

produced that is due to be released to press later during this reporting period.

The following local communications and engagement activities have been carried out during this period:

Christmas Cards to Local Residents – residents in the immediate local area were sent handwritten Christmas Cards, in support of local charity Willen Hospice, to thank them for their patience and understanding throughout the construction phase (December 2013);

Engagement with the Local Schools – UK Power Networks’ Educational Advisor provided safety talks, about the dangers of substations and an introduction to the project, to both Clipstone Brook and Brooklands Middle School in Leighton Buzzard (14 January);

Leighton Buzzard residents communications – ongoing joint communications with Morrison Utility Services,

in the form of residents’ letters;

Key Messages on site hoarding are now displayed;

Engagement with Local Businesses – the project was presented, on request, to two local businesses operating in the renewables industry (Arnold White Estates & LHW Partnership) (21 February).



2 Project Manager’s Report

This section describes the progress made on the SNS project in the reporting period January 2014 through to June 2014, including the key milestones and deliverables met, any issues encountered, and provides an outlook into the next reporting period through to December 2014.

2.1 Progress in the reporting period

2.1.1 Project resourcing and governance

2.1.1.1 Project Resourcing The project team remains unchanged since the last reporting period, with the exception of the workstream 5 (WS 5) Lead. Support for this WS is now being provided by a more centralised team implemented and led from within the Future Networks department of UK Power Networks. This team draws on contractor resource as well as our existing public affairs and engagement teams across the business allowing for a more standardised approach to learning and dissemination, and synergies to be more easily realised. As described in the previous reporting period’s progress report, the responsibility for the design and construction aspects of the project remain with our Capital Programme directorate in order to leverage expertise in the delivery of civil and electrical construction projects through our contractor Morrison Utility Services. In addition to close collaboration at the working level through WS 1, the team remain engaged through monthly site meetings as well as monthly meetings at the senior management level to review progress and any arising risks and issues from the delivery of the work by Morrison Utility Services and S&C Electric. The following organisation chart, in Figure 2, shows all the allocated resources within the SNS project structure as of June 2014.

Figure 2: Smarter Network Storage organisation chart

Technical LeadIan Cooper

Design Authority

SME’s: UKPN Capital Programme, Asset Management, Network Ops, HSS & IT

Project DirectorNick Heyward

Senior Responsible UserPaul Habbin, Area Manager,

EPN

Project SponsorMartin Wilcox

Programme Management Office

Project Steering Group

Senior Responsible Owner

Ben Wilson

Reg & Legal SupportAndrew Chester &

Paul Measday

Financial SupportShahbaz Hussain

Procurement SupportCaroline Pallister /

Helen Wain

Project Office ManagerJordi Ros

Comms Manager[FN central team]

UKPN Internal

UKPN Contractor

Supplier & Contractor

Operational Partner

FN Project AdminSefera Sidhu

Swanbarton Ltd.

WS4 LeadJohn Hayling

WS5 LeadPolly Whyte’s Team

WS2 LeadParesh Mehta

WS3 LeadPanos Papadopoulos

Newcastle University& AMTSybex

Imperial College London

Pöyry Management Consulting

Newcastle University

WS 1 LeadIan Cooper

KiWi Power, National Grid, Smartest EnergyMorrisons Utility

Services &S&C Electric

Commercial LeadAnthony Price,

Swanbarton



Engagement continues with the core project partners both through ongoing work, and at a more senior level through the Partner Forums. The last Partner Forum meeting was held in Imperial College London on 27 March and provided a recap of the project progress against objectives, a look ahead to upcoming activities, and the upcoming commercial deliverable, SDRC 9.3 was discussed. An opportunity was also provided for partners to feedback any learning and feedback from the SNS learning event on the 26 March, share their own storage-related updates, and a discussion held to generate ideas for learning and dissemination.

2.1.1.2 Project Governance The governance model, as described in the previous six month progress report, is unchanged and continues to be operated by the Programme Management Office. The model identifies two distinct streams: Solution Governance and Project Governance and helps to ensure a focus on developing effective technical and commercial solutions to meet learning outcomes, as well as an effective structure for ensuring the overall solution is delivered on time, to budget and to the appropriate quality. Further information on this governance model, including supporting project control and reporting mechanisms, is documented in the SNS Project Handbook (SNS5.4). Key Issues Encountered No significant issues have been encountered in this area during the reporting period. Key Deliverables No new deliverables have been developed in this area during the reporting period.

2.1.2 Project Planning A strategic planning session was held with the project team on the 28 January 2014. This provided an opportunity to look again at the detailed plans and review the planned activities and milestones, identify any additional dependencies and risks and re-baseline an effective delivery plan for the year. The planning session highlighted the criticality of the periods during June-July and September-October where a large number of activities are taking place and concluding before the project moves into trial phase. Figure 3 below, shows the high-level deliverable view agreed during the planning session.



Figure 3: Overview of the high level SNS activities and deliverables identified for 2014

Key Issues Encountered No significant issues have been encountered in this area. Key Deliverables

SNS Master Project Plan – The detailed project plan detailing all key activities and milestone dates for the SNS project which has been re-baselined following a strategic planning meeting on 28 January 2014.

2.1.3 Workstream 1 – Energy Storage Hardware

WS 1 covers the design and development of the storage system; hence many of the activities in the current stage of

the project are encapsulated within this WS. The focus within this reporting period has been the construction of the

building to house the storage system at Leighton Buzzard and the manufacture and testing of some of the equipment

to be installed. Detailed preparation went in to planning the construction work and ensuring that all the contractors

working on site are co-ordinated so as to work efficiently and safely.

Issue Drawings 28/02

SS Test Approach 01/03

FAT Test PCS 04/04

Steel work / cladding 21/05

Local Transformers 24/06

Primary to SNS Conn. 02/07

Delivery Accept. Storage

01/08

Compound Roadway 04/08

Installation Approval Complete 06/08

SNS1.10 – 05/09

Completion works 25/09

Testing Completion 10/10

Training Done 03/10

S&C Starts on site 15/05Commission.

Acceptance 10/10

Revised procedures

approved 31/10

Facility Tour

05/12

SOCS Test Strategy 28/02

SOCS Test Plan 22/03 IT Env. Validation 31/07

SOCS Test Environments 13/06

FOSS + ESS +

ENMAC Develop. 09/06

FOSS + Ess +

ENMAC Acceptance 27/06

RTU test (End June)

UAT testing 01/09

SIT Testing 15/09

Cutover Process 30/10

SOCS Training 26/09

Interim Rep. On Reg. & Legal

Framework 31/03

Legal Rev. Buss Mod. 25/02

NFR + OAT Testing 13/10

SDRC 9.3Energy Suppl. & Tolling Agreement 30/06

Contract Skeleton Template 31/08

Aggregator Services 30/06

Trial List 22/03 Service Trial Detail Approach 15/07

Storage Optimised Service Des. Agreement 31/12

DNO Service Demonst. Trial 15/07

Trial Start 10/10

Stakeholder Review of Service Plans 19/08

SNS 3.6 DNO Service Trial Report start

3. 2014 Key Deliverables by WS

WS1

WS4

WS3

WS2



Figure 4: Photo montage of images from the site construction works at Leighton Buzzard.

2.1.3.1 Design and planning

It has taken more time than originally intended to finalise the detailed design for the complete storage system,

particularly when relating to the ancillary and support systems, however these are critical to the safe and efficient

operation of the system.

With multiple suppliers and subcontractors involved, bringing together all the connections and ensuring that multicore

number coding matched and that there were no clashes in 3D space between cable and pipe systems was

underestimated. As the build phase progressed these were resolved, but it has resulted in a delay to finalised

detailed design drawings in some cases.

It was also identified during this detailed design phase that the Automatic Voltage Control (AVC) scheme on the

existing 33/11kV transformers would need to be replaced. Although the system at Leighton Buzzard is fairly new, it is

unlikely to function correctly with the significant amounts of reactive power that the SNS facility will export. To replace

this existing scheme with a new SuperTapp N+ scheme which can support this will cost (approximately) an additional

£50k. This covers materials purchase, design and installation works required, and as above, is possible to cover from

underspend in other WS 1 areas.

Although completed at the end of the previous reporting period it is worth noting that all of the pre-commencement

planning conditions imposed as part of the planning approval for the building have been completed and approved.

This includes the request to change the number and position of louvers from the original approved design. Further



engagement with Central Bedfordshire Council has been sought on some aspects relating to the site completion.

This has specifically related to the design and appearance of some fencing proposed within the land being leased to

the council for the use of the local residents.

2.1.3.2 Construction

Following the mobilisation to site late in the last reporting period and the completion of the preparatory works, the

foundation piles were installed before the Christmas break. Work recommenced 6 January 2014 to excavate between

the piles to lay the ground beams that would form the rest of the foundation structure. This was cast in three sections,

with the shuttering timbers being re-used each time, with the last pour being carried out on 30 January.

As the foundations were complete the steel superstructure of the building was brought to site and erected. From this

time until the exterior of the building was complete there was a lot of visible progress on the building as its full size is

apparent for the first time. As sections of the frame were complete the pre-cast, pre-tensioned reinforced concrete

slabs were lifted into place that form a key part of the load bearing floor. This was completed on 20 February.

Figure 5: Photos showing the erection of the steel frame (13 February 2014) and the process of cladding the building (7 March 2014)

The frame was clad with Kingspan insulated panels with similar panels being used for the roof and the walls. These

are insulated metal clad panels that have established their place in the UK construction industry. With an A+ energy

rating they enable energy efficient buildings to be built quickly and efficiently, reducing construction costs1. These

panels were then painted to form the colour patterns required as part of the approved planning documents.

Once the building was watertight the internal floor slab was constructed. The reinforcement was set out and tied into

the building structure and the concrete was cast in a single pour on 31 March 2014. This enabled a smooth finish to

be obtained throughout the whole building. Any small holes through the floor for cables, earth tape or similar were

then drilled. These will be sealed and a bund lip constructed around the edge of the floor slab to ensure that in the

unlikely event of any spillage of fluid or leakage from the transformers within the building this does not escape into

the ground or the adjacent watercourse Clipstone Brook.

1 Green Guide A+ rating as per the BRE Global "Green Guide to Specification", Green Guide 2008 ratings

http://www.kingspanpanels.co.uk/panels/products/insulated-wall-panels/architectural-wall-panels/micro-rib/

http://www.kingspanpanels.co.uk/panels/products/insulated-wall-panels/architectural-wall-panels/micro-rib/



Figure 6: Photos showing the completion of the building cladding (9 April 2014) and work to construct the internal

walls (16 April 2014)

The internal walls were erected and small power wiring, heating and lighting were installed to enable the building to

be handed over to S&C Electric and their sub-contractors for the installation of the ventilation and fire suppression

systems. This took place on 15 May 2014. In parallel S&C Electric will manage the delivery and installation of the

batteries and power conversion systems. This continues into the next reporting period.

In parallel with the work on the building to house the storage system some construction work is required in the

existing substation at Leighton Buzzard. In order to supply a secure 415V supply to the storage system to power the

ancillary systems, two new distribution substations are required. Construction on the foundations for these is in

progress at time of writing and continues into the start of the next reporting period. Positioning these was a

complicated task, avoiding 11kV cables, a main sewer and the possibility of undermining the street outside the

substation, so trial holes were dug to confirm the cable records prior to construction.

Figure 7: Photos showing the excavation for the duct route taken on 16 April 2014

A ducted cable route was established between the existing substation and the SNS building during May to provide for

the 11kV, 415V, communications and protection cables. These will be installed during the next reporting period.



Drainage to the SNS building has also been constructed including attenuation tanks to delay the flow of water from the roof of the building into Clipstone Brook. This was a requirement from the Environment Agency as a means of reducing the risk of flooding of the brook.

2.1.3.3 Health & safety considerations

As the time neared for S&C Electric’s arrival on site regular co-ordination meetings were held between them and

Morrison Utility Services (MUS), the Principal Contractor for the site works. As has been identified by the UK Health

& Safety Executive, the thorough design, planning and management of construction work is key to ensuring that it is

carried out without harm to anyone involved.

It was identified that there would be some overlap in works between teams during May 2014 and as such the SNS

building fit-out (internal walls, small wiring, heat, light and LV power installations) was brought forward to be

completed before the agreed date for S&C Electric to begin works. This was carried out successfully to allow for S&C

Electric to start work as planned. MUS could then focus work in other areas of the site to ensure progress is made

while minimising any risks arising from site congestion.

Site management, working hours and the thorough and appropriate review of contractor health and safety documents

were among the topics regularly discussed. This ensured that it was clear who would need to review any risk

assessments and method statements submitted in advance as part of the safe system of work employed at the site

and what standards would be acceptable.

One issue discussed and resolved was the question of how to bring the batteries and racks into the SNS building in a

safe and efficient manner. There are logistical and working-at-height issues around moving material from the back of

a lorry to the higher loading bay, possibly via the ground. There were many safe options discussed including forklift

accessible scaffold platforms with swing gates but the final solution selected for use was a working platform at the

level of the lorry with a lift mechanism to raise materials to the loading bay.

2.1.3.4 Equipment Testing

During this period detailed plans have been developed for the testing of the new equipment to be installed as part of

the SNS project. Some of the testing has been carried out and more is in progress at time of writing.

On 31 March 2014 the Factory Assessment Testing (FAT) for the S&C Electric power conversion system took place

in Franklin, Wisconsin. Ian Cooper (WS 1 Lead) and Ian Marshall (UK Power Networks Asset Management) attended

in conjunction with several S&C Electric staff. The FAT included a visual inspection of the PCS and review of safety,

operability and labelling which went well. The performance tests were successful with the PCS meeting UK Power

Networks’ requirements.

There was a similar FAT on 14 and 15 May for the batteries at Samsung SDI’s Ulsan Plant in South Korea which was

attended by Chris Bevan from S&C Electric on behalf of UK Power Networks. This was completed successfully with

no issues identified. UK Power Networks had already visually inspected and commented on Samsung’s design of the

battery trays and racks at a technical visit with Younicos during the previous reporting period.



Figure 8: Photos of S&C Electric’s PCS during Factory Assessment Testing (1 April 2014) and Samsung’s battery

rack installed at Younicos’ facility in Berlin reviewed during a technical visit (10 December 2013)

Key Issues Encountered The early part of 2014 was notable across the UK for its weather, with quite exceptional wind and rain. According to MET Office data both January and February had around 200% of the average rainfall

2. Oxford University, 32 miles

away, recorded January as the wettest for 250 years3. Despite this, the site at Leighton Buzzard fortunately did not

flood and, while wet, the weather was also unusually warm with minimum and mean temperatures above average. Although working conditions were often difficult the warmer weather was beneficial for concreting work with no delays caused due to sub-zero temperatures. During the planning for the detailed works around the battery installation S&C Electric requested the extending of the site working hours for the duration of their works. This allows them and their subcontractors to work more efficiently as they are staying locally during the work. This has been agreed, but results in some additional site management and supervision costs which will be split between S&C Electric and UK Power Networks. The UK Power Networks costs are not expected to exceed £9k, which can be covered within budget due to savings made in other areas of WS 1. There has been a delay in the delivery of the Power Conversion System (PCS) units from S&C Electric, which are having to be re-tested to ensure that modifications to the product meet Electromagnetic Compatibility (EMC) requirements. A revised installation programme has been developed which, with the reordering of some tasks and additional engineering labour, maintains the existing commissioning dates. Key Deliverables

SNS 1.3 – Storage System Testing Approach – This deliverable, which details the full set of testing stages for the SNS system, has been produced, and continues to be updated with detailed plans for the commissioning and site testing phases.

SNS 1.4 – Factory Acceptance Test Report

2.1.4 WS 2 – Smart Optimisation & Control Systems (SOCS) WS 2 is responsible for managing the design, development, testing, integration and deployment of the end to end IT solution; Smart Optimisation and Control System (SOCS). This platform will manage the shared-use of the storage across multiple applications, whilst ensuring network security is maintained. The SOCS solution comprises two distinct sub-systems, the software hosted within UK Power ’Networks’ corporate IT environment, called the

2 http://www.metoffice.gov.uk/climate/uk/summaries/2014

3 http://www.ox.ac.uk/media/news_stories/2014/140203.html

http://www.metoffice.gov.uk/climate/uk/summaries/2014

http://www.ox.ac.uk/media/news_stories/2014/140203.html



Forecasting, Optimisation and Scheduling System (FOSS), delivered by AMT-SYBEX and the control software co-located with the storage at site, called the Energy Storage System (ESS), delivered by Younicos on behalf of S&C Electric. During this reporting period, the WS has transitioned from the design stage into the development phase, which is on track to deliver a first version of the software platform during the next reporting period. SNS 2.15 – Logical Architecture Design Document and suite of technical appendices to meet SDRC 9.2 ‘SNS 2.4 – Confirmation of the Smart Optimisation and Control System design’ were published on the project website at the end of the last reporting period in December 2013

4. This covered the design of the SOCS platform, covering the

architecture, communications and messaging to be used. The focus during this reporting period has been the finalisation of a suite of functional specifications that align to the published design, to enable development teams to begin to build the SOCS product. The range of specifications developed cover the detailed implementations of the following aspects:

Demand Forecasting – the module of the FOSS system which generates load demand forecasts;

Service Management – the module of the FOSS system which defines how services are configured and set up for use in the optimisation routine;

Optimisation – the module within FOSS that carries out the optimisation and selects optimal combinations of services to undertake;

FOSS to ESS Interface;

IBM Messaging – the messaging structure, methods and communications between FOSS, ESS and the ancillary service provider control system (KOMP);

BESSM Interface – the interface with the controller of the ESS system, and how messages and modes are

interpreted;

BESSM to SCADA Interface – the implementation of the interface between the ESS and the SCADA network, via the Remote Terminal Unit (RTU);

Monitoring, and Remote Terminal Unit (RTU) I/O Requirements – defining the analogue and digital data points to be exchanged between the sub-systems.

During regular reviews of the detailed Optimisation specification, it became clear that there was a risk it would not be possible to meet some of the original solution requirements with the planned implementation approach. This has led to a review and revision of the implementation approach for the Optimisation module. To ensure this does not impact on delivery timescales, a revised approach to release has also been agreed by AMT-SYBEX and UK Power Networks which means the software product will be released in two stages. This is described further below in the Key Issues section. Despite the challenge above, development of FOSS has been able to commence on schedule by AMT-SYBEX in Belfast, with an initial focus on the forecasting and service management aspects. Additional development resource is also planned to be deployed during the next reporting period to reduce the risk of delivery delays. Development of ESS also has commenced by Younicos in Berlin, and factory-acceptance tests for both ESS and FOSS are due to be carried out within the next reporting period. Also during this reporting period, the necessary IT Server and Communication Infrastructure has been ordered, to ensure it is in place ready for the software to be installed for site integration and user testing. This includes:

The setup of a dedicated ‘Future Networks’ Virtual Routing and Forwarding communications network;

Superfast Broadband connection and Switch to Leighton Buzzard;

10Mb Ethernet Connection and Switch;

4http://innovation.ukpowernetworks.co.uk/innovation/en/Projects/tier-2-projects/Smarter-Network-Storage-(SNS)/Project-

Documents/SNS2.15-Logical-Architecture-Design-Dec+2013.pdf

http://innovation.ukpowernetworks.co.uk/innovation/en/Projects/tier-2-projects/Smarter-Network-Storage-(SNS)/Project-Documents/SNS2.15-Logical-Architecture-Design-Dec+2013.pdf

http://innovation.ukpowernetworks.co.uk/innovation/en/Projects/tier-2-projects/Smarter-Network-Storage-(SNS)/Project-Documents/SNS2.15-Logical-Architecture-Design-Dec+2013.pdf



Remote Terminal Unit (RTU);

FOSS Application and Database Servers x 2. Work has also been initiated by Newcastle University to develop suitable models for the long term electricity demand forecast models at the trial site, which will ultimately be configured within the SOCS platform. A data driven approach has been used to create Multiple Linear Regression (MLR) models of the seasonal trends within electricity demand. The models rely on explanatory variables such as time of day, day of week and month of year, to predict the electricity demand in a given half hour period months, or even years, in advance. Model parameters were derived through analysis of historical demand data at Leighton Buzzard, with different combinations of explanatory variables being trailed. This work will be published by Newcastle University once completed as it covers a relatively unique analysis of load forecasting at the distribution-level, including comparing the three best performing models using error statistics: a standard MLR model, an MLR model which forecasts only peak demand on each day, and a new approach using vectors of indexed terms. Key Issues Encountered As highlighted in the December 2013 progress report, it has been challenging to implement a trade-off between the complexity and flexibility of Optimisation considering the structure of many of today’s ancillary services. During regular reviews of the detailed Optimisation functional specification, it became clear that there was a risk it would not be possible to meet some of the original solution requirements with the planned implementation approach to optimisation. This has led to a review and revision of the implementation approach for the Optimisation module which has now been agreed amongst the WS 2 partners. The revised implementation approach promotes more of a parameter driven (business rules to define each service) solution enabling services to be added, removed and amended easily within the given set of battery modes. In particular, this has improved how services with recurring availability windows are carried out and the addition of manual services into a schedule, which ultimately allows for a more flexible solution. To ensure this does not impact on delivery timescales, a revised approach to releases has also been agreed which means the software product will now be released in two stages. This has been possible whilst not impacting planned timescales because the initial trial stages have been planned to focus on network-related services, so do not require full optimisation functionality. The first stage will therefore contain the bulk of the core functionality to ensure the first set of trials can be carried out as originally planned. The second stage release will then pick up any additional development required to meet future trials which use the optimisation functionality. This has the advantage of ensuring initial feedback or required changes from initial user testing and trial phases can be incorporated into a second iteration of the solution by AMT-SYBEX, which is relatively likely for ‘first-of-a-kind’ IT solutions such as SOCS. The learning realised here is that it is not always appropriate to plan the design, development and delivery of novel IT solutions in a linear and sequential way, and assume that the first version will exactly meet requirements. Key Deliverables

SNS 2.15 – Logical Architecture Design Document – This technical deliverable was published on the project

website at the end of the last reporting period (after the time of writing of the December 2013 progress report),

and forms part of SDRC 9.2 – Confirmation of the Smart Optimisation & Control System design4;

SNS 2.12 – Long Term Electricity Demand Forecast for Energy Storage Scheduling – Expected to be finalised during the next reporting period, this paper by Newcastle University describes the modelling and error statistics resulting from the analysis of long term demand forecast models.

2.1.5 WS 3 – Storage Value Streams, Services and Modelling

WS 3 predominantly covers the activities relating to the operational phase of the project, including the design and

execution of the range of trials to demonstrate the storage capability across a range of distribution network, ancillary



and wholesale services. The bulk of activity and learning from this WS is therefore not expected until later in the

project, once the storage system is commissioned and available to trial the various applications.

In this reporting period, the detailed trial designs have been initiated as illustrated in Figure 9.

Figure 9: High Level Deliverables of WS 3 during the Project Lifecycle

SNS3.5 – Service Trial Detail Approach, which is due for completion during the next reporting period, will be a

compilation of individual trial designs, each corresponding to a single trial or service. In this reporting period, the

focus has been on:

Finalising the list of trials that the SNS project aims to conduct. A number of additional trials have been

added to further evaluate the operation of storage and provide valuable learning to other DNOs and the wider

industry. More precisely, the trials have been broken down to pre-trial testing, core trials and long-term trials.

a) Pre-trial tests – these trials will be conducted to validate that the SNS software and hardware solution

is able and ready to deliver the core and long-term trials. It should be noted that numerous tests will

have been conducted previously under WS 1 and WS 2 testing processes; however these WS 3 pre-trial

tests will be part of the whole SNS System Integration Testing, firstly because they require a number of

SOCS subsystems and ESS hardware to be integrated and secondly, because they aim to verify that

the anticipated functions of the end to end SNS solution comply with the requirements to deliver the core

trials.

b) Core trials – these trials are the core SNS trials as outlined in the original bid submission and the

previous reporting period. However this list has been expanded to include post-fault response, fast

reserve and Triad service trials.

c) Long-term trials – these trials are those conducted over a longer period to gather long-term operational

data.

A list of these trials is provided in Appendix D.

Identifying the technical requirements for all trials and ensuring that these will be met prior to the trial period.

These include monitoring and metering requirements, and pre-qualification requirements for each ancillary

service;

Defining a trial design template to be used for each trial design. In particular, the template has been designed

to present each trial’s context, hypothesis, key participants and their specific roles. The template will record

the proposed timings and equipment required to capture the specified data needed to conduct analysis and

examine the hypothesis. The key benefits, beneficiaries, impacts, trial deliverables and trial success criteria

will be explicitly captured for each trial to be conducted within SNS; and

Configuring the services that will be initially implemented within the Optimisation routine of the SOCS

platform. For example, specific delivery windows and parameters for frequency response (incl. static high,

static low, static high and low FFR, dynamic FFR.

2013 2014 2015 2016

- Services Approach

- Services Use Cases

- Conflicts, Synergies

and Commercial

Strategies for Storage

- Detailed Trial

Designs

- DNO Trials

- Wholesale Market Trials

- TSO Trials

- Optimised /Integrated

Trials

- Trial Data Analysis

- Storage contribution to

Security of Supply

- SDRC 9.6 Analysis of

Integrated Storage

Contribution to Security of

Supply

- SDRC 9.7: Successful

Demonstrations of Storage

Value Streams

- Value, Carbon Benefit and

Cost Targets of Storage and

SDRC 9.6 and 9.7 Reports



In addition to the above, WS 3 has been monitoring connections activity in the Leighton Buzzard area to ensure any

impacts from renewables or other developers are identified and assessed. During the reporting period we have

identified the following developments that have sought a connection to the immediate local network in the trial area:

23MW PV: Photovoltaic farm connection conditionally offered from UK Power Networks on 20 March 2014.

There are a number of outstanding items to be progressed, including payment of costs for equipment and its

housing, and feasibility assessments of the current proposed cable route and necessary outages.

6MW PV: Photovoltaic farm connection offered to developer, but planning has yet to be provided.

In each case, their point of connection is upstream from the constraint which the storage is seeking to relieve. As

such, analysis has suggested that these connections would not provide any contribution to the security of supply or

impact the constraints at site. They therefore do not impact the overall business case of the installation. It may

however be possible to explore additional trials and use cases with the storage, such as the management of reverse

power flow, if these renewables connected during the trial period.

Key Issues Encountered

During the development of the commercial arrangements in WS 4, it became apparent that the fee structure for accessing the real-time energy trading desk of the energy supplier of the project, Smartest Energy, was not going to be appropriate for the project’s trial period due to the static monthly fees involved independent of whether energy was exchanged. This is further described in Section 2.1.6.3.

The short-term market optimisation trial has therefore been re-evaluated, and will mean that the wholesale

optimisation and arbitrage trials are now achieved by leveraging the block wholesale pricing generally available from

SmartestEnergy. While this reduces the ability to take advantage of very short term energy arbitrage contracts, it

should be noted however that the impact on revenue potential is expected to be small, and the functionality of the IT

system and the processes required to deliver this service will still be in place and tested to future-proof the SNS

solution for other operators.

Key Deliverables

No key deliverables have been completed in this area during this reporting period, but work has commenced on the

deliverable SNS3.5 – Service Trial Detail Approach.

2.1.6 WS 4 – Commercial & Regulatory Frameworks

This work-stream is responsible for the commercial and regulatory aspects of the project, including assessment and

validation of specific business models for storage, and identification of key regulatory barriers.

2.1.6.1 Storage Business Model Structure Consultation Responses

At the start of this period the project published a summary report on the project website detailing the responses

received to the Business Model consultation that had been published earlier in 2013. The consultation described the

range of possible business models for storage, assessed their merits and disadvantages and discussed the

regulatory compatibility. The project continues to concentrate on gathering real construction, operational, and

financial data to inform two core business models amongst all of those consulted on: ‘DNO contracted’ and

‘Contracted Services’. In the first case, the DNO builds, owns and operates the asset; prior to construction, long term

contracts (e.g. 10 years) for the commercial control of the asset outside of specified windows are agreed. In the

second case, the DNO offers a long term contract (e.g. 10 years) for services at a specific location with commercial

control in certain periods and a third party builds, owns and operates the asset.



2.1.6.2 Regulatory and Legal Arrangements

One of the key aspects of the project and of this work-stream is to assess the relevant regulatory and legal

frameworks for the electricity sector, in order to identify barriers to the use of and wider introduction of storage

facilities on DNO networks. This includes assessing the use of storage as a provider of services to the distribution or

transmission systems. Then based on this assessment provide recommendations for options to mitigate the

regulatory constraints which might otherwise affect the future deployment and use of storage connected to a DNO

network.

This work was originally planned for completion in 2015 as part of SDRC 9.5, however in order to help inform work of

the Smart Grid Forum, following interest identified at a meeting held with Ofgem on 22 October 2013, the first part of

this work (to identify the barriers) has been brought forward to this period. SNS 4.13 – Interim Report on Regulatory

and Legal Frameworks which identifies the barriers to the introduction of storage connected to a DNO network has

now been published on the project website.

This report has been compiled by project partner, Poyry Management Consulting, in conjunction with input from

Swanbarton and other partners and provides a comprehensive assessment and analysis of the various issues which

it evaluates against the range of business models work published last year. The feasibility of these business models

is influenced by the regulatory framework. However, there are several issues within the legal and regulatory

framework which currently affect the deployment and utilisation of distribution connected electricity storage within the

GB market. These result from a combination of EU-wide and GB-specific rules.

The key learning points from this report are shared in Section 7.1 for clarity, however it is concluded that DNO-led

development of smaller scale storage projects is feasible within the regulatory framework, albeit with some additional

constraints compared to non-DNO led storage. It is important to be able to demonstrate that distribution licence

holders are not distorting competition in generation and supply. This creates the need for a contractual interface with

a third party (potentially an operationally separate entity under the same organisation umbrella as the DNO business)

to conduct market interactions.

Also under regulation, a Climate Change Levy is charged on energy consumed by industrial and commercial users

based upon the source of their energy purchases. Energy generated from renewable sources is exempt from CCL

and eligible generators may claim a Levy Exempt Certificate (LEC). As the default treatment of storage export could

in some cases be considered to be generation, it is currently unclear how CCL and LECs will apply to this project’s

storage device and future storage devices. Investigation of how the HMRC tax treatment of this should be applied is

underway.

2.1.6.3 Smart Commercial Arrangements

A further key focus of this work-stream during the period has been the identification and negotiation of the necessary

commercial arrangements required to enable trialling of the full range of services to take place, and which also meet

SDRC 9.3 – Commercial Arrangements for Integrated Use of Flexibility.

In order to access the ancillary services market provided by the Transmission Services Operator (TSO) a client

services agreement is under development with our project partner KiwiPower. This agreement will facilitate access to

a range of ancillary service opportunities, including STOR (Short Term Operating Reserve) and frequency control by

demand management (FCDM), by aggregating the output from the storage device with other suitable clients of the

aggregator using their existing contractual arrangements with the TSO. Access to other ancillary service

opportunities, including the static and dynamic Firm Frequency Response (FFR) services procured by the TSO will

also be provided for in this agreement and KiwiPower are developing suitable back-to-back arrangements with

National Grid in order to provide the pass through of these services. The agreement terms will provide complete

transparency of value obtained for each of these services in order to enable the project to fully evaluate each of these

income streams.



In order to be able to charge and discharge the storage device without distorting the wholesale market, reconciliation

of exchanged energy is required. Project Partner Smartest Energy will provide this facility through an energy supply

and tolling arrangement. This enables wholesale market energy to be traded by Smartest Energy for general

operation, in addition to an option for the storage to participate in a tolling service, which provides Smartest Energy

with the opportunity to minimise imbalance and optimise their internal portfolio. An additional aspect of this contract

will be benefits from triad avoidance, helping reduce Smartest Energy’s demand during a system peak period if the

device is exporting during any of the triad half hours.

All energy suppliers have entered into arrangements5 with the DNOs to collect use of system charges on their behalf

and to then pass back these fees collected. Whilst in the case of this storage device, the payments will be somewhat

circular, in order to fully evaluate these charges this arrangement will be fully explored and complied with as far as

possible. Key Issues Encountered During negotiation to put in place the energy supply and tolling agreement, Smartest Energy’s preference was to charge a monthly fixed fee to enable the storage device access to the real-time wholesale market trading facility. Such a charge, although appropriate for a typical larger generator that would normally enter into such arrangements, would have been less appropriate for SNS due to the size and trial nature of operations which may involve longer periods of time where it is not operating on a solely ‘commercial’ basis. In the SNS case it is likely that these charges would be in excess of the likely benefits available from the very short-term wholesale markets. As a consequence, a more direct proportional percentage fee of traded volume was agreed that is more suitable for SNS operation. This means four-hour block pricing will be available, but without access to the shorter-term spot market via Smartest Energy’s trading desk. This is not expected to have any impact on the trials or level of benefits available as it is unlikely that this facility would have provided significant additional benefit. Under existing practice, assets on the non-network side of a commercial metering point are currently considered to be beyond the distribution network. This raises the issue over whether such a device should be considered to be a network asset device or not. As such, if it is not, then the storage device would require a connection and a corresponding connection agreement, with the EPN distribution network. As the legal owner of the storage device will be EPN, the same DNO, this theoretically results in the need to enter into such an agreement with itself (the same legal entity). However, to overcome this, a technical document reflecting the same information as standard connection agreements will be produced to record details of the assets being connected and any restriction that may apply in its use. Key Deliverables

SNS4.12 – Business Model Consultation Responses – This document presents a summary of the responses

received following the Business Models Consultation and records UK Power Networks’ reply to these comments

and is available on the project website.

SNS4.13 – Interim Report on Regulatory and Legal Framework – A review of the relevant aspects of the

regulatory and legal arrangements for the electricity sector which identifies possible barriers to the wider

introduction of electricity storage facilities on DNO networks. This interim report is available on the project

website.

2.1.7 WS 5 – Learning & Dissemination & Stakeholder Engagement WS 5 was specifically created to ensure the effective identification, capture and dissemination of learning from the SNS project. Activities relating to the learning and dissemination carried out during this reporting period are provided in Section 7 of this report for clarity.

5 The Distribution Connection and Use of System Agreement (DCUSA)



Key Issues Encountered No significant issues have been encountered in this area.

2.2 Project outlook into the next reporting period

During this reporting period, the project has made significant progress in constructing the storage facility at the trial site and initiated development of the novel SOCS IT platform. The commercial arrangements with our operational partners are being developed, and are on track to be published as part of the SDRC in October 2014. The next reporting period is expected to be a critical time in the project, with a significant number of aspects coming together to provide a fully integrated storage system. This will include for example the testing and commissioning of the storage facility and first release of the SOCS platform. The focus of the next reporting period will therefore be across the following areas:

Completion of the main civil works at Leighton Buzzard;

Continued development and completion of the novel commercial arrangements with the operational partners to enable the shared operation of the storage across multiple services and markets. This will feed into the completion of SDRC 9.4 in October 2014;

Installation of the storage equipment and electrical works to make the connection to the 11kV network;

Testing and Commissioning of the storage equipment, and training of relevant UK Power Networks staff including development of the operational procedures and engineering documentation;

Completion of the development, Factory Testing and delivery of the SOCS platform, followed by integration and testing to allow the first phase of trials to be carried out; and

Further detailed planning of the set of trials being carried out to allow the project to begin service trials and generate learning within a short-period following commissioning.

Activities expected within the next reporting period relating to learning and dissemination are described in Section 7 of this report for clarity.



3 Business Case Update

One of the key purposes of the SNS project is to identify the general business case for the economic use of grid scale storage on the distribution network, when leveraged for additional benefit across the full electricity system. Work associated with developing this business case will come from the specific learning that is gained throughout the life of the SNS project. This generic business case will be dependent upon the form of business model which is chosen and the assumptions that are made regarding all of the current unknowns. This project is looking to identify and quantify many of these unknowns and apply them to the various different business model structures to help drive forward the adoption of storage for the benefit of customers and industry. These business model structures were consulted upon in 2013 (SNS4.1 – Storage Business Model Structures Consultation). For the particular project installation, we are tracking changes to the main drivers of the business case and it is the project’s intention to use this section to provide an ongoing update to economics of the installation as these drivers evolve and as further learning emerges. During this period, analysis of the revenues and system cost savings have been repeated, reflecting a number of changes in the markets and updates to the pricing expected in the project. A number of other improvements to the methodology have also been made, as below:

Current and forecast service pricing for commercial services amended to reflect the current pricing available from KiwiPower and moderated future forecasts, to reflect anticipated effects of EMR policies;

Mix of commercial services revised to include Fast Reserve, FCDM and STOR, reflecting those where accurate pricing is available (FFR pricing for the SNS trials is currently under development with National Grid, so has been excluded for this analysis);

System cost savings reassessed by Poyry Management Consulting using updated carbon floor price and impacts of EMR policies;

‘Ahead of need’ adjustment incorporated for storage solution – reflecting the difference in in prices (expressed as a Net Present Value) between doing the installation in 2014, versus carrying out the installation in BaU at the latest point in time when intervention would be needed; and

Discounted cash flows rebased to 2013, to reflect more accurate project duration and cost timings.

This revised discounted cash flow incorporating all of these changes is shown below. This was explained in full at the public event on 26 March 2014.

Figure 10: NPV Breakdown of Reinforcement Route incorporating SNS

5.14.0

16.8

2.5

2.0

3.0

5.3

11.5

0.0

4.0

8.0

12.0

16.0

ConventionalReinforcement

SNSProject

Cost

1st of a kindcosts

InstalledCost

TechCost

Reduction /Ahead of Need

FutureIncomeStreams

SystemCost

Savings

Future NetMethod Cost

£mConventional Once Proven Successful



The revenue estimates of £2.0 million, over the 10 year period, are slightly lower than previously estimated, due to the revised pricing estimates and more conservative apportionment of the mix of services; however this is believed to represent more of a lower bound than previous analyses. This is because it is assumed in this analysis that for the periods where network support is not required, Fast Reserve, STOR and FCDM services are provided across the remaining annual period in equal measure. This tends to reduce the revenue estimate as the split across three services reduces the time dedicated to the higher value services of Fast Reserve and, previously, FFR. In practice optimisation towards higher value services would increase the range of potential revenues from a storage installation. Nonetheless there remains an overall net benefit when compared to the conventional reinforcement option, and the project will continue to monitor the detailed economic analysis. A basic sensitivity analysis has been used to indicate an approximate upper bound of expected revenues, by assuming the storage provides just the highest value service, Fast Reserve, for the periods where network support is not required. The table below shows these results.

Scenario Future Income Estimate

(10 yr NPV) Future Net Method Cost

(10 yr NPV)

Even mix of Fast Reserve, STOR, FCDM (as above)

£2.0m £4.0m

Fast Reserve Only £3.6m £2.5m

As shown in the table above, if just the higher value service of Fast Reserve is provided, revenues of circa £3.6m may be possible which would reduce the future net method cost to £2.5m, making the storage solution cost competitive with the conventional reinforcement (even without the system cost saving aspects included). This highlights the importance of optimisation in maximising the benefits for storage, and is due to be explored further within the project using the SOCS platform currently under development.



4 Progress against budget

This section will be provided in Appendix A

5 Bank Account

This section will be provided in Appendix B


6 Successful Delivery Reward Criteria (SDRC)

SDRC Criteria Evidence Progress Date

9.1 Design & Planning Considerations for large-

scale energy storage.

Successful early capture and dissemination of

learning related to the practical issues and

consideration in the design and planning of large-

scale distribution-connected storage by 1 October

2013.

Minutes and notes captured from meetings with local planning authorities and environment agency.

Planning approval granted at either Leighton Buzzard Primary or an alternative contingency site.

The final design of the storage facility will be signed off by UK Power Networks Design Review Board.

A summary report of the key learning and considerations in securing planning at the trial site, and how this impacted designs, will be produced and shared through the project website.

This SDRC has been completed on

schedule. The summary learning report is

available on UK Power Networks innovation

website.

1 October

2013

9.2 Confirmation of the Smart Optimisation &

Control System design.

Successful completion and sign off of the overall

design of the Smart Optimisation & Control System

by 30 December 2013. The functional design will be

developed with operational partners and Durham

University, and incorporate the description of

business processes to be implemented across

participants to facilitate the SNS Solution.

Regular meetings held between UK Power Networks, operational partners, Durham University and AMT-SYBEX to further develop the full requirements and design, with minutes and notes captured.

The final design will be signed off by UK Power Networks, including approval by UK Power networks IT Design Authority Board.

A report describing the final design, optimisation and forecasting algorithms and business processes required will be produced and shared through the project website.

This SDRC has been completed on

schedule. The technical report is available on

UK Power Networks innovation website.

30

December

2013




9.3 Commercial arrangements for integrated use of

flexibility.

The commercial arrangements for the independent

service trials and optimised period of operation will

be developed and translated into skeleton contract

templates by 31 October 2014. These will provide

the basis of commercial arrangements that could be

tailored for other forms of flexibility and leveraged

system wide by other DNOs.

Practical and ongoing experience of the

arrangements during the operational periods will be

captured and reflected in the project final report

(SDRC 9.8), with any recommended changes to

these arrangements.

Meetings will be held between UK Power Networks and the operational partners to discuss and design the necessary arrangements for the service trial demonstrations, with minutes and notes captured.

Completed commercial arrangements will be signed off by UK Power Networks legal counsel for the provision of reserve, response and wholesale market services using the storage.

Reviews of the commercial arrangements underpinning the service trials will be carried out by UK Power Networks and will be developed into contractual templates for reuse by DNOs and other industry participants and subsequently shared.

Good progress has been made in negotiating

a Storage Energy Supply and Tolling

Agreement with Smartest Energy, which

provides access to the wholesale market.

Progress has also been made in placing a

Client Services Agreement (Aggregator

Services) with KiwiPower to provide access

to the ancillary services products from

National Grid. Both agreements are expected

to be completed by July. The general terms

from these agreements will be converted to

skeleton agreements and published in a

report to deliver this SDRC. This work is

currently on track to complete on target by

the end of October.

31 October

2014

9.4 Energy Storage as an Asset.

Successfully commissioned energy storage device,

with knowledge developed, captured and

disseminated relating to the commissioning and

operation.

The knowledge generated through the early

operational experience and training materials will be

incorporated, along with methodologies for the

asset management and maintenance of storage. A

visit to the storage facility will be organised and

hosted for interested DNOs and other stakeholders

to provide an additional opportunity for

dissemination.

Sign off of documentation of the installation, commissioning and test of energy storage device.

Training will be undertaken with operational field staff relating to safety and operational procedures of the energy storage device and training materials will be shared.

Meetings will be held with asset management to establish and design appropriate asset management methodologies for storage. Minutes and notes will be captured and the methodologies and considerations for large-scale storage will be shared.

At least one visit to the storage facility for DNOs and other stakeholders will be organised and hosted by UK Power Networks.

Activities contributing towards this SDRC include:

Ongoing construction and final construction drawings and engineering documentation for the SNS facility

Test and Commissioning plans under development for the SNS solution

This SDRC remains on schedule to be delivered as planned.

29 May

2015




9.5 Evolution of Regulatory and Legal

Arrangements for energy storage.

This criterion relates to the assessment of

regulatory, market and legal considerations in the

wider deployment of distribution-connected storage

and development of recommendations to facilitate

the optimum use of storage and other forms of

flexibility. This assessment, incorporating learning

captured during the development and operation of

trials will be completed by 30 September 2015.

Regular meetings will be held with project partners and other stakeholders to discuss ongoing reviews and amendments to the regulatory frameworks and the impact on energy storage, incorporating EMR, Electricity Balancing SCR and other on-going developments. Minutes and notes will be captured and stored.

Interim reports and or briefing notes may be published to facilitate these meetings.

Assuming that the issues identified have not been solved in regulation in the interim period, issue a report detailing the market and regulatory issues affecting storage, the way future developments may impact storage flexibility and possible changes required to regulatory and commercial frameworks will be produced and shared through the project website.

At the request of Ofgem, work on the first part of this activity was pulled forward a year. An interim report on Regulatory and Legal frameworks identifying barriers to the introduction of storage has been published. Further activities contributing towards this SDRC include:

Ongoing monitoring and analysis of regulatory and market arrangements

A report detailing the market and regulatory issues affecting storage, the way future developments may impact storage flexibility and possible changes required to regulatory and commercial frameworks.

This remainder of this SDRC remains on schedule to be delivered as planned.

30

September

2015




9.6 Analysis of integrated energy storage

contribution to security of supply.

This criterion relates to the studies undertaken on

the contribution of energy storage to security of

supply over various time scales. An emphasis will

be placed on quantifying the risks to supply when

the network is supported by energy storage with a

limited amount of energy, taking also into account

that storage may be used to provide other services.

Scenario tests will be designed to demonstrate and assess the storage contribution to network security by Imperial University.

Operational data and performance relating to the trials will be captured and analysed.

Assuming that storage has not been incorporated into the security of supply standards within the Distribution Code in the interim period, a summary report will be produced by Imperial College London describing the methodology applied, key assumptions and results of the analysis of the benefits of energy storage to distribution networks and contribution to security of supply, including recommendations for amendments to network design standards.


The development of trial designs that will deliver the operational learning required to assess contribution to security of supply.

Bi-weekly meetings/conference calls are being held with Imperial College London to monitor and track progress.

Development of requirements for ancillary services testing and delivery with National Grid, KiwiPower, S&C Electric and Younicos.


29 January

2016

9.7 Successful demonstrations of storage value

streams.

The end to end learning from the planning to the

operational performance in performing a range of

services with the storage facility will be captured

and shared.

Both technical data, relating to the impact of the use

of the storage on the distribution network, and

commercial data, relating to the way in which the

service was provided and any economic return for

the service will be identified and shared.

The detailed trial plans for each storage service, including key requirements and processes required, will be captured through meetings with UK Power Networks and operational partners and shared through the project website.

The operational data relating to the impact on the distribution network will be collected and stored by Durham University. Any financial performance data will be captured and reported by UK Power Networks.

A report assessing the capabilities of the storage device in providing the range of services will be produced and shared, incorporating an assessment of the relative value of services provided.


The development of commercial arrangements underpinning these value streams and the development of invoicing and reconciliation processes between UK Power Networks and the energy Supplier and the Aggregator

Development of trial plans for value streams


30 March

2016




9.8 Full Evaluation of the SNS Solution.

A detailed final project report describing the project

findings, knowledge generated and

recommendations on the wider roll out of the SNS

Solution will be produced.

The report will be designed to provide sufficient

information to:

Validate and assess which future business models for storage are viable

Inform stakeholders on the commercial arrangements and software platforms necessary to enable these business models.

Inform the ways in which storage can be most economically incorporated into future DNO business plans.

Assessment of the impact on different future market scenarios on the business cases, including varying carbon prices, high versus low wind penetration and demand side response.

Compare the performance and value of storage flexibility to other forms of flexibility

Inform the design and structure of future product or services that storage may provide to DNOs and TSOs.

Lessons learned throughout the project have been captured and recorded and shared.

Analysis has been carried out on the business models for storage, and validated with commercial results from operational trials.

Comprehensive end of project report developed, incorporating the information above, and shared through the project website and other dissemination channels.

Activities contributing towards this SDRC

include:

Completion of the business models consultation and collation of responses

Ongoing construction for the SNS facility

Ongoing development of trial designs and plans

Ongoing assessment and capture of the lessons learned

30

December

2016



7 Learning outcomes

7.1 Main Learning Outcomes from the Reporting Period

During the second reporting period, SNS has continued to capture specialised learning relating to the design, construction and regulatory aspects of distribution-scale energy storage. The key learning outcomes from this reporting period are explained below: A number of key findings have been identified through the work from Imperial College London on Conflicts Synergies and Commercial strategies delivered towards the end of the previous reporting period and have been considered in the design of the SOCS and the configuration of the services within it. These include:

1. Peak shaving requirements could potentially constrain opportunities for operators to provide some

additional ancillary services due to their structure, meaning reduced synergies between network

services and these commercial services.

For some ancillary services, in particular where a commitment of available power must be made across a long

period of time, it may be challenging to maximise benefits to customers by providing a combination of these

ancillary services and other network services, such as peak shaving.

This is because plant may be unable to provide the full level of contracted service across the entire period, due

to a very small number of extreme network events. This would tend to lead to an inefficient use of flexible

capacity, without the possibility of more flexible provision of storage capacity availability by operators, on

shorter timescales, for example.

2. Energy arbitrage revenues are the component of a business case that is affected most by the efficiency

of a storage system. A 10% reduction in efficiency could reduce arbitrage revenue opportunities by

over 40%.

The overall efficiency of a storage system impacts upon the general business case through the general

operating costs, but also impacts upon revenues available on ancillary services.

It is however arbitrage opportunities that are most sensitive to storage system efficiencies, because of the

direct reliance on energy exchanged at the point of coupling. Other ancillary services, such as frequency

regulation, are less reliant on energy exchanged and are priced to reflect power response provided. Currently,

the magnitude of revenues associated with these services is also higher than those available from arbitrage

and so reductions in efficiency for these services have a smaller impact on overall value.

Consequently, higher commitments to balancing services may provide a hedge against uncertainty in energy

prices and corresponding revenues associated with energy arbitrage for storage operators. The ongoing construction of the SNS facility has provided important learning regarding the economics of storage developments:



3. Capital costs of grid scale storage can account for only around 70% of the total installed lifetime cost

Figure 11: Dissection of Installed Cost of Storage from SNS

Figure 11 reflects the breakdown of installed cost that has been captured and disseminated relating to the storage deployment at Leighton Buzzard. This information was presented at the recent SNS Learning event in March, and shows the apportionment of installed costs, including the breakdown of the design, civil and electrical works. The civil and electrical costs have been separated between those that are relatively specific to the Leighton Buzzard site (‘Civils Specific’ and ‘Electrical Specific’ – for example additional steelwork required to raise the building two metres off the ground for flood environmental and planning reasons), and those that can be reasonably expected to be incurred for other similar deployments (‘Civils Typical’ and ‘Electrical Typical’ – for example cost of foundations work). The analysis reveals that civil costs account for around a third of the total design and construction costs, and core storage technology costs account for just under 70% of the total installed lifetime cost. Ongoing operational costs of the storage facility are estimated to comprise around 9% of the total lifetime cost, and will be refined and validated during the trial phase of the project.

A number of key learning points have also been identified from the interim report on Regulatory and Legal Frameworks

by Poyry Management Consulting, which identifies the barriers to the ownership and operation of storage connected to

a DNO network:

4. A Generation licence exemption route does allow distribution connected storage projects of

appropriate size in a manner consistent with unbundling requirements

As part of the electricity market liberalisation process, ‘unbundling’ has become enshrined in the regulatory

frameworks at EU and GB levels. This seeks to separate network and non-network activities, restricting the

ability for operators of network assets to be active in generation or supply sectors. For DSOs, the requirement

is for legal, functional and accounting unbundling to ensure operational independence of the distribution

business from other activities within the vertically integrated business. Therefore, in GB, distribution licence

holders are prohibited from also holding generation or supply licences.

This appears to block DNO involvement in storage ownership and operation. However, a class exemption

exists for ‘small generators’, meaning that storage projects with either output below 10MW or output below

50MW with declared net capacity below 100MW are exempted from the need to hold a generation licence. This

exemption is applied on a per site basis. Therefore, smaller-scale, distribution connected storage facilities

qualify for this exemption. The exemption route does, consequently, provide an avenue for potential

deployment of smaller scale energy storage assets by DNOs, with operational separation to a third party to

handle energy flows, in a manner that is consistent with unbundling requirements.

7%

34%

11%26%

6%

14%

3% Design

Civils Typical

Civils Specific

Electrical Typical

Electrical Specific

Overheads

Landscaping

22%

9%

69%

Design, Civils andElectricals

Storage Opex (10yr est.)

Storage Capex



This is the model being employed in the SNS demonstration, with interaction of the storage asset with the

balancing and wholesale markets being handled via third parties, independent from the DNO business.

5. De minimis business restrictions for DNOs place a limit on deployment of storage, but is unlikely to be

a constraining factor in the short to medium term

Non-distribution business activities for licensed network operators, such as purely commercial operation of

storage projects, are limited by de minimis restrictions specified in the distribution licence. These restrictions

mean that turnover from and investment in non-distribution activities must not exceed 2.5% of DNO business

revenue or licensee’s share capital respectively.

Analysis has shown however that for the typical size and nature of distribution-connected storage, this limit is

not likely to be a constraining factor, and allows a relatively generous amount of storage to be connected by

DNOs.

6. Certain applications and operation of storage assets is affected by the need to ensure that competition

in generation and supply is not distorted.

The distribution licence imposes restrictions upon activities of the distribution business in order to avoid

distortion of competition in generation or supply activities. Direct DNO operation of a storage asset in

commercial markets could have an impact on the traded market, which could be considered to distort the

market.

This could therefore be interpreted as a block on direct commercial operation of a storage asset by a DNO for

balancing or arbitrage purposes, which has implications for the ‘DNO Merchant’ business model identified in

SNS 4.1 Business Models Consultation6. However, the extent of unbundling requirements on distribution

licence holders means that a contractual interface with a third party to handle the energy flows is sufficient to

address the issue. This necessitates the involvement of an additional player in the business case for DNO

owned storage, and any associated increase in costs from additional marginal costs. Other learning points captured during this reporting period include:

7. Metering of storage assets on the distribution networks challenges traditional assumptions about the boundary of distribution network and customer equipment Traditionally, electrically connected equipment ‘behind’ a settlement meter is considered to not be part of the distribution network. This assumption is typically robust as more often than not, equipment downstream of the meter would be owned and operated by customers. However if a storage asset is installed for network purposes, to support security of supply or provide fault or constraint management, for example, then this is highly likely to be under the ownership and control of the distribution network operator – just as if this were a transformer, or other solution supporting the network. If the storage is metered, so that energy can be transparently reconciled in the market, rather than being undeclared and treated as losses, then part of the electrical infrastructure for the solution will be ‘behind’ a meter. However, the simple act of metering it does not change the underlying purpose or ownership of the asset; challenging this traditional assumption.

6 http://innovation.ukpowernetworks.co.uk/innovation/en/Projects/tier-2-projects/Smarter-Network-Storage-(SNS)/Project-Documents/Smarter-

Network-Storage-Business-model-consultation.pdf



8. Calibration of SoC of battery cells can involve a relatively frequent full cycle of charge in all racks, which impacts on the availability for network and commercial services. The manufacturer recommendations for calibrating SoC of battery cells are somewhat more onerous than originally considered. This requirement to maintain an accurate SoC measurement means that a reasonable proportion of time needs to be allocated for calibration; potentially reducing the time available for commercial and network services. However it may be possible and beneficial to undertake calibration coincidentally while delivering specific services, such as peak shaving. This will be explored further in the project trial phase.

9. Consideration needs to be given to account for the differing international standards, and additional

time planned for mapping of equivalent standards. As described in previous learning points, storage systems involve a large number of integrated components and sub-systems, often from different suppliers and organisations. This raises the likelihood of suppliers working to different international standards. Agreeing testing strategies and methodologies on the S&C Electric inverter components took longer than expected due to the differences between UK (IEC / BS-EN) and US (ANSI) standards. Additional time was necessary in order to map equivalent test standards and agree testing on this US-manufactured equipment.

7.2 Learning, Communications and Dissemination Activities in this Period

As described previously, a comprehensive Knowledge Dissemination Roadmap has been developed in order to capture all the key learning activities and events. This has continued to evolve and be updated with the project and is available on request. There are four core elements to the Knowledge and Dissemination Roadmap, covering the following areas:

Internal Communications;

External Communications;

Local Engagement; and

Knowledge Dissemination. The following provides an update on the progress on each of the above elements:

7.2.1 Update on Internal Communications

Outage Planning & Control Briefings – Meetings have been carried out with our control engineers and Outage Planning teams to ensure they are integrated into processes for operating the storage;

Local maintenance staff briefings – The local maintenance engineers and fitters were given a briefing on the project and a tour of the site while under construction as preparation for training sessions on the operation and maintenance of the system planned for the next reporting period (25 April);

WS 1 Workshop – A meeting with all the WS 1 stakeholders, including civil and electrical designers, was carried out to ensure the final design was reviewed and understood by all stakeholders and outstanding actions were concluded (6 February);

Construction Site Meetings and Tours – Monthly meetings have been held by Morrison Utility Services at the Leighton Buzzard construction site to review progress, discuss any risks and issues and engage with third parties involved in the programme, for example communications providers. Tours have also been arranged for local operational staff to ensure early engagement with the design and technology;

SCADA Design Workshop – A workshop and ongoing meetings have been held with the design team that will provide the Remote Terminal Unit (RTU) & interface to ENMAC which is critical to ensure the facility can be remotely visible and controllable by the control room;



WS 2 Workshops – In this period eight workshops have been carried out involving the WS 2 partners and design team to review progress in implementing the design and to address additional design decisions that arise throughout the development process;

Operational H&S Briefing – A meeting was held with the Operational Health & Safety representative to discuss the approach to documentation, training and implementation of safe systems of work for the storage facility. Further sessions are planned throughout the next reporting period (10 March);

A Good Practice Guide on Electrical Energy Storage: Dissemination Event – The ESOF held a dissemination event to launch the first version of the Good Practice Guide, which has been developed using the learning and experiences from the range of LCNF projects incorporating storage, including significant contributions from SNS. Several colleagues from the wider business were invited, with three attending from outside of the project team, covering Operational Standards, Asset Management and Control Room. This has helped to ensure that the wider business benefits from the knowledge and learning within the guide (20 March);

Capital Programme Management Meetings – Monthly meetings have been held with Capital Programme at the senior management level, to review progress and spend, and discuss any risks or issues during the construction;

SNS Learning Event – A dedicated SNS learning event was held for both internal and external stakeholders at the Royal Academy of Engineering in London. This is described in further detail below. (26 March).

7.2.2 Update on External Communications, Knowledge Dissemination and Local Engagement

Christmas Cards to Local Residents – At the end of the last reporting period (after publication of the progress report), residents in the immediate local area were sent handwritten Christmas Cards, in support of local charity Willen Hospice, to thank them for their patience and understanding throughout the construction phase (December 2013);

Engagement with the Local Schools – UK Power Networks’\ Educational Advisor provided safety talks, about the dangers of substations and an introduction to the project, to both Clipstone Brook and Brooklands Middle School in Leighton Buzzard (14 January);

Electricity Storage Network: Open Symposium – The project was presented at the annual event of the Electricity Storage Network, alongside other storage activities of UK Power Networks (29 January);

ESOF Meeting – The 6th meeting of the Energy Storage Operators Forum (ESOF) was held in Chester and

attended by members of the project team. The meeting included discussions of the Good Practice Guide for Energy Storage and the Dissemination Event on 20 March which SNS has heavily contributed towards. The Health & Safety Executive and University of Manchester also provided presentations regarding the work of and engagement with the HSE and Grid Scale Energy Storage R&D (5 February);

Interview for the Centre for Low Carbon Futures – The project took part in some research being undertaken by the Centre for Low Carbon Futures, funded by the Foreign and Commonwealth Office, to identify current opportunities and barriers relating to energy storage opportunities. The research is part of a program to identify opportunities for UK-Korea collaboration in energy storage research and business (19 February);

Engagement with Local Businesses – The project was presented, on request, to Arnold White Estates & LHW Partnership and covered detail about the project, how storage works and how it may be beneficial for renewables developments in the local area (21 February);

Engagement with Ofgem and Smart Grid Forum workstream 6 (WS 6) – A presentation of the current findings from the WS 4 package of work relating to the regulatory and legal barriers of storage was presented to Ofgem and part of the Smart Grid Forum WS 6 team (7 March);

SNS Learning Event – The first learning event for SNS was successfully held for both external and internal stakeholders at the Royal Academy of Engineering in London. DNOs, industry, local community stakeholders and colleagues from around the business were invited to attend including DECC, Ofgem, operational field staff, control engineers and infrastructure planning. This event was designed to provide an opportunity for key stakeholders, and UK Power Networks staff not directly involved in the day-to-day delivery of the project to



understand the aims and technical details of the project and the presentation materials are now available on the project website

7. (26 March).

Three ‘learning zone’ stand areas were set up which worked well in allowing delegates to seek further detailed or technical knowledge in specific areas across:

The storage hardware and construction, which included technical drawings, a sample of the storage cell technology and an interim time-lapse video of the construction;

IT platform and architecture, which included technical drawings of the architecture and design documents; and

Storage commercials and economics, which included breakdowns of the storage economics and business case.

Below is a chart of the summary of delegate feedback received from the event, and a follow up comment from one of the community stakeholders that attended the event:

Figure 12: SNS Learning Event Feedback, 26 March 2014

Partners Forum – in this reporting period we held a partner forum, on 27 March. The forums provide a useful update and facility to discuss progress for our partners who do not work day to day on the project (27 March);

S&C Electric Joint Opinion Press Piece – A joint article by UK Power Networks and S&C Electric has been produced that is due to be released to press later during this reporting period;

Energy Storage World Forum – The project, and its key learning from the design and planning stages was presented at the Energy Storage World Forum event in London by the project sponsor, Martin Wilcox (3 April);

PRASEG Parliamentary Reception – A presentation of the SNS project at an All-Party Parliamentary Renewable and Sustainable Energy Group reception in association with the Electricity Storage Network.

7 http://innovation.ukpowernetworks.co.uk/innovation/en/Projects/tier-2-projects/Smarter-Network-Storage-(SNS)/

0%

10%

20%

30%

40%

50%

Poor NeedsImprovement

Satisfactory Good Excellent

Technicalcontent

Industry insight

Innovative ideas

Networking

Overallexperience

Congratulations all round for yesterday's event & thanks to whoever was responsible in UK Power

Networks for initially inviting myself to attend &, in so doing, represent The Leighton Buzzard Society John F Sharp ACGI CEng MIMechE BSc(Eng), The Leighton Buzzard Society

http://innovation.ukpowernetworks.co.uk/innovation/en/Projects/tier-2-projects/Smarter-Network-Storage-(SNS)/



PRASEG is the cross party group for UK politicians and senior industry stakeholders that exists to promote sustainable energy issues in Parliament and the wider political community

8 (13 May);

Leighton Buzzard residents communications – In addition to the above, joint communications with Morrison

Utility Services, in the form of residents’ letters, continue to be sent to local residents on a monthly basis to

inform them of building progress at the Leighton Buzzard site;

Key Messages on Site Hoarding – Key messages of the project are now displayed at the site on the construction hoarding. An example of one of the hoarding information boards is shown below.

Figure 13: An information board on the hoarding at the trial site

Smart Grids & Clean Power 2014 – The project was presented at the Smart grids & CleanPower conference in Cambridge, alongside UK Power Network’s first Tier-2 LCNF project Low-Carbon London (4 June);

Utility Energy Storage Europe – The project was presented at the Utility Energy Storage Europe conference in London, and covered the key learning from the design, planning and construction phases of the project (18 June).

7.3 Learning and dissemination activities over the next reporting period

In the next period, the focus will be on ensuring the electrical works and integration and testing complete successfully so that the storage can begin to be used for trial purposes. Therefore, the dissemination activities will be more heavily targeted towards internal stakeholders and ensuring the correct documentation and procedures are in place to ensure that the system can be operated safely and effectively by well trained staff. Confirmed activities are summarised below:

Workshops and Training sessions for key business areas including Control and Network Operations;

Interim time-lapse of build – Further interim videos of the time-lapse construction video will be used as part of dissemination activities;

Images and videos from the installation process inside the building will be used to capture the process of installing and connection the storage equipment;

8 http://www.praseg.org.uk/praseg-reception-in-association-with-the-electricity-storage-network-electricity-storage-in-the-future-vision-for-a-lower-

cost-sustainable-electricity-system/

http://www.praseg.org.uk/praseg-reception-in-association-with-the-electricity-storage-network-electricity-storage-in-the-future-vision-for-a-lower-cost-sustainable-electricity-system/

http://www.praseg.org.uk/praseg-reception-in-association-with-the-electricity-storage-network-electricity-storage-in-the-future-vision-for-a-lower-cost-sustainable-electricity-system/



Continue to engage with local community – residents letters will continue to be circulated to keep local residents informed of the construction and any expected disruption;

Continued meetings with key stakeholders (internal and external) – for work streams 1, 2 and 3;

Presentation of the project at the IMechE’s 2014 Energy Storage Seminar in Birmingham, September 2014; and

Presentations at the Low Carbon Network Fund Conference in Aberdeen on 21 and 22 October 2014.



8 Intellectual Property Rights (IPR)

During the current period, the following key IP has been generated:

WS ID PRODUCT OWNER

WS 1 SNS1.4 Factory Acceptance Test Report UK Power Networks

WS 4 SNS4.12 Business Model Consultation Responses UK Power Networks

WS 4 SNS4.13 Interim Report on Regulatory and Legal

Framework UK Power Networks

The following IP is expected to be generated during the next reporting period:

WS ID PRODUCT OWNER

WS 1 SNS1.3 Storage System Testing Approach UK Power Networks

WS 1 SNS1.9 Storage Training UK Power Networks

WS 1 SNS1.10 Inspection and Maintenance Procedures for

Storage UK Power Networks

WS 2 SNS2.5

SOCS Testing Approach – This was originally

scheduled to be delivered in this reporting

period, but has been rescheduled to align with

the revised delivery approach

UK Power Networks

WS 2 SNS2.9 SOCS Testing Report UK Power Networks

WS 2 SNS2.10 SOCS Training UK Power Networks

WS 2 SNS2.12 Long Term electricity demand forecast for

energy storage scheduling UK Power Networks

WS 3 SNS3.5 Service Trial Detailed Approach UK Power Networks

WS 4 SNS4.2 Client Services Agreement (Aggregator

Services) UK Power Networks

WS 4 SNS4.3 Storage Energy Supply & Tolling Agreement UK Power Networks

WS 4 SNS4.5 Contract Skeleton Templates UK Power Networks

WS 4 SNS4.6 SDRC 9.3 - Commercial Arrangements for

Integrated Use of Flexibility UK Power Networks



9 Risk Management

The SNS project has established a rigorous and proactive risk management process, as described in the SNS Project

Handbook. It allows for the communication and escalation of key risks and issues within the project, it also defines

where decisions will be made and how this will be communicated back to the WS level where the risk or issue has

arisen. Risks are reviewed weekly at WS level and fortnightly at project level by the Project Board. Key project risks are

then escalated to the Project Steering Committee for review and approval of the mitigation on a monthly basis.

9.1 Full Submission (BID Risks) – update

This section is provided in Appendix C.

9.2 Risks raised in the current reporting period

REF

NO. RAG Status

WS RISK & IMPACT DESCRIPTION MITIGATING ACTIONS

R0094 - WS 1

Meter supplier is not accepting current

terms and conditions.

Delay to metering commissioning and

delay to project.

Risk closed. Revised T&C and meter

operating contract agreed.

R0095 G WS 3

The main contact for SNS left

KiWiPower, and has not yet been

replaced.

The impact could be delay on WS 4

contracts, testing and trials.

07/04/14: meeting held with KiWiPower

Director (Yoav Zingher) to discuss way

forward. Need to continue to ensure

engagement is appropriate.

R0096 - WS 3

Carbon content of the electricity and

outdoor temperature data needs to be

captured for the whole trial period. The

data will be required for trial analysis.

However, there has not been a

confirmed solution yet.

Lack of data for analysis for SDRC.

Risk closed. Carbon content data will be

captured by UK Power Networks. Imperial

College London has been informed

regarding the lack of outdoor temperature

data and will pursue data capture internally

if required.

R0097 - WS 2

Changes to approach for SOCS

Design development required.

The impact could be delays to SOCS

development milestones.

Risk closed. The impact assessment of

CR006 resulted in no delays to the

programme plan.

R0098 - WS 3

Test dates for ancillary services do not

get booked well in advance

Impact would be delay to response

trials.

Risk closed. Dates with ancillary services

testing team provisionally booked on week

commencing 13 October 2014.

R0099 G WS 4

Income Management team have

advised that the storage device will

require a connection agreement and

site specific use of system charges.

Potential breach in our non-

discrimination obligations if we were to

treat our storage device differently

from such operated by a third party.

Work with Income Management to put a

connection agreement or technical

document containing the same information

in place.



REF

NO. RAG Status

WS RISK & IMPACT DESCRIPTION MITIGATING ACTIONS

R0100 A WS 2

Post go-live there will be a lack of a

SOCS UAT architecture for testing

new/updated functionality.

Some components of the new releases

will have to be “tested” on the

production service. This could

potentially compromise the production

service if “tests” are poorly managed.

1) Stand-up test environments to fully

mitigate the risk;

2) Accept the risk and recognise the fact

that the main production service may be

compromised when new releases are

tested on production.

R0101 A WS 3

Post go-live there will be a lack of a

SOCS UAT architecture for regression

and deployment testing for new

releases.

New releases are not correctly tested

before they are deployed into

production. This could result in lengthy

outages in the production service if

problems are found in releases post

deployment.

1) Stand-up test environments to fully

mitigate the risk;

2) Accept the risk and recognise the fact

that extended outages may occur after a

new software deployment. The risk can be

partially mitigated by adopting a

deployment strategy where a system can

easily be regressed to a previous version to

reduce the length of any potential outage.

This has been partially included in the

design of BESSM where the alternate

system can be switched from providing an

on-line standby role and can be upgraded

whilst the production service is carried out

on the other server. Whilst the two servers

remain at different software versions and

not linked, the service can always fall-back

to the previous version if required. The

current FOSS architecture does not support

the concept of an alternate environment

(regression to a previous version would be

via a system backup).

R0102 A WS 2

AMT-SYBEX has been acquired by

Capita plc.

Impact for the short term is limited, but

there is a longer term risk of more

limited support or strategic changes.

Arranged to meet Account Manager to

understand if any impact to SNS project.

R0103 A WS 2

Delays to the communications or IT

hardware could impact on the

completion of integration testing and

commissioning.

Regular monitoring of progress on IT and

communications hardware aspects with UK

Power Networks IT.



10 Consistency with Full Submission

The SNS project is on track to deliver the learning consistent with the full submission.

The following details are noted to have changed since full submission:

S&C Electric Europe replaced A123 Systems as the supplier of the storage system in early 2013;

Newcastle University is now carrying out the scope of work originally to be undertaken by Durham University,

representing a change of organisation as Project Partner, but no change to the cost, scope or quality of work to be

delivered. This change request was approved on 4 July 2013; and

The future expandability of the SNS facility is currently restricted to approximately 18MWh, based on currently

available storage cell technologies. This is down from 24MWh as originally envisaged as a result of a change in

battery-cell supplier which requires the use of a lower DC busbar voltage.



List of Appendices

Appendix A: Progress against budget (CONFIDENTIAL)

(See separate document)

Appendix B: Bank account (CONFIDENTIAL)

(See separate document)



Appendix C: Bid Risks Update

REF

NO. RAG Status

RISK & IMPACT DESCRIPTION MITIGATING ACTIONS UPDATE

R0001 G

The building is not delivered on time. Regular progress meetings/reports to track

progress and highlight/remove potential issues.

Use standard Networks design policies and

procedures, where possible.

The construction activities have commenced

on schedule and are nearing completion,

reducing the likelihood of this risk.

R0002 G

The building is not delivered to

specification resulting in rework and

cause delays.

Regular design meetings/reports to ensure strict

change control. Key stakeholder engagement to

ensure compliance with UK Power Networks

design policies and procedures. Rework to be

completed at the contractors expense.

Regular design meetings/reports to ensure

strict change control. Key stakeholder

engagement to ensure compliance with UK

Power Networks design policies and

procedures. Rework to be completed at the

contractors expense.

R0005 G

The installed storage technology fails and

needs to be disconnected from the

network whilst being repaired/replaced.

Close collaboration with the storage device

manufacture to ensure the design meets UK

Power Networks specification and standards

through robust testing (maintenance & training

delivered by the storage device manufacture).

Replacement parts are to be made easily

available. With a regular maintenance cycle.

Design approved at Design Review to attempt

to mitigate risk.

Detailed test specification to be developed

prior to commissioning.

R0006 G

Operational and Health and Safety

procedures are not approved for use of

the Storage device, so UK Power

Networks staff are unable to operate the

equipment.

Engage with UK Power Networks’ Health, Safety

Sustainability and Technical Training (HSS&TT)

team to design suitable and approved policies and

procedures.

HSS&TT management team briefing provided.

CDMC appointed and overseen design and

site works.

R0007 G

The installed storage technology has a

catastrophic failure, which adversely

affects customers’ supplies and needs to

be disconnected from the network

resulting in project delays.

Close collaboration with storage device

manufacture to ensure the design meets UK

Power Networks specification and standards

through robust testing (maintenance & training

delivered by storage device manufacture). Carry

out a full set of test to minimise the possibility

failure and affect upon customers.

SWIFT assessment carried out to highlight

areas needing particular focus during design

process.

Fire Testing completed and demonstrated

thermal runaway does not occur.





REF

NO. RAG Status


R0008 G

A storage battery fails with severe

consequences before the device has

been commissioned. Results in limited

confidence in the equipment and delays

whilst further testing takes place.

Monitor defects and issue reports supplied by the

storage device manufacture for existing installs.

Samsung SDI, who have been appointed as

the new battery cell supplier, have a record of

zero safety recalls in the last 10 years and

have provided information on their quality

management processes.

Fire Testing completed and demonstrated that

thermal runaway does not occur.

R0009 G

Storage device manufacture reliance on

single factory source, resulting in delays

in delivering of the storage device.

Through the tendering and contractual

negotiations, ensure storage device manufacture

is able to meet the project delivery timelines.

Include penalty clauses within their contact.

Samsung SDI has been selected as the

storage cell supplier to S&C Electric. Their

primary manufacturing facility is in South

Korea, however a second plant is under

construction in Germany, providing for some

contingency in the event of issues.

Liquidated damages have also been included

in contract with S&C Electric.

R0011 G

The storage device manufacture goes out

of business after payment has been made

for the storage device, but has it not been

delivered, leading to project delays and

lost expenditure.

Carry out full financial diligence checks in line with

approved standards of practice and the UK Power

Networks procurement procedure(s). Negotiate

the transfer title of the device.

Parent guarantees included in contract.

This risk has been reduced due to the

selection of alternative suppliers.

R0012 G

The storage device manufacture goes out

of business after the storage device has

been paid for and delivered; resulting in

lack of continuity and covers should the

unit fail.

Carry out full financial diligence checks in line with

approved standards of practice and the UK Power

Networks procurement procedure(s). Arrange a

software ESCROW and novation of liabilities to

OEMS.

Parent guarantees included in contract.

This risk has been reduced due to the

selection of alternative suppliers.

R0013 G

A storage battery fails with severe

consequences after the UK Power

Networks device has been commissioned,

resulting in limited confidence in the

device, so it is disconnected until all test

have been completed.

A full set of quality tests to be completed before

installation, with the design and operation meeting

the UK Power Networks requirements. Ensuring

full confidence in the equipment installed. Monitor

defects and issue reports supplied by storage

device manufacture for existing installs.

Performance bond and design indemnity

included in contract.


thermal runaway is not likely.



REF

NO. RAG Status


R0014 G

The installed storage technology causes

damages to UK Power Networks asset(s),

so needs to be disconnected from the

network whilst issues are resolved

causing delays to the project.

Carry out a full set of tests to minimise the

possibility of failure. Close collaboration with

storage device manufacture to ensure the design

meets UK Power Networks specification and

standards through robust testing (maintenance &

training delivered by storage device manufacture).

Replacement parts are to be made easily

available. With a regular maintenance cycle.

SWIFT assessment carried out to highlight

areas needing particular focus during design

process.




thermal runaway is not likely.

R0015 A

Equipment is stolen or vandalised whilst

on site, but not commissioned.

MUS providing temporary CCTV cameras to

monitor site; possibility for manned presence out

of hours if deemed necessary. To be re-assessed

nearer the time.

Security assessment carried out at trial site by

UK Power Networks security team. Hoarding

now erected with secure access implemented.

Morrisons Utility Services (MUS) have CCTV

installed during construction phase.

R0016 G

Equipment is stolen or vandalised after

commissioning, requires repairs, so

reduces the time to realise benefits.

Improve security at the site with a manned

presence.

Security assessment carried out at trial site by

UK Power Networks security team.

R0017 G

The storage device is not commissioned

on time causing project delays.

Regular progress meetings/reports to track

progress against the plan.



Construction is progressing well, according to

schedule.

R0018 G

The storage device does not perform to

specification, so not all benefits are

realised.

Regular design meetings/reports. Key stakeholder

engagement to ensure specification can comply

with UK Power Networks design policies and

procedures.

Performance KPIs included in contract.

R0019 G

When shipping the storage device from

storage device manufacture to site the

device is damaged beyond causing

delays to the project.

Use proven safe methods of shipping the device

from America and consult with UK Power

Networks Insurance Manager to ensure

appropriate/adequate levels of insurance are in

place.

N/A



REF

NO. RAG Status


R0019.1 G

Import duty or handling issues cause

delays to delivery on site.

Ensure supplier is clear on responsibilities for all

shipping duties and customs clearance.

Clear responsibilities are included in the

agreement with S&C Electric.

R0020 A

Site load growth exceeds expectations,

pushing peak demands beyond the spare

capacity range of the battery.

Detailed load studies to understand maximum

demand and future increases.

Estimates of availability to be refreshed on a

regular basis. Ensure ongoing tracking of

demand.

Additional storage provision has been included

within the design to allow for capacity to be

increased to 18MWh. We are aware of 23MW

and 6MW solar farms exploring connections at

Leighton Buzzard. Initial studies suggest

impact only on future site expansion,

forecasting/control model and potential

additional benefit stream. No impact to

business case; but additional synergies to be

explored. Future connection requests are

being monitored.

R0022 -

The optimisation platform cannot be

delivered in time, causing delays.



Risk closed. Statement of requirements has

been completed.

SDRC9.2 completed, which finalises design

aspects of SOCS.

R0026 G

The lack of available technical,

commercial and project resources result

in delays in project delivery.

Resourcing plan completed during resources

within UK Power Networks/Future Networks.

Project team mobilised, including appointment

of two external contractors to ensure

deliverables remain on track.

Ongoing resourcing meetings being held to

ensure regular reviews and monitoring of

resource.

R0027 G

Connection offers in the area; decline of

load growth or extremely mild winters

mean network constraint limits are

affected, meaning full capabilities of the

storage are not utilised.

Monitor and track connections activity and

materialisation of load growth

Trials cover a range of demonstrations based on

artificial or future scenarios.

Generation connection activity likely to replace

any shortfall in demand connections.



REF

NO. RAG Status


R0028 -

The optimisation platform cannot be

developed to specification and cost,

causing delays to the optimised trials.

Continued dialogue with the IT partner and UK

Power Networks IT to ensure scope and

requirements are fully understood and achievable

in advance of project start.

Risk closed. Statement of requirements has

been completed. Additional interface identified

as necessary which could raise likelihood of

cost increase.

SDRC9.2 completed, which finalises design

aspects of SOCS.

R0029 G

Unfavourable changes in legislation or

market arrangements that restricts on the

usage and reduces the identified benefits.

The project has been scoped to look at multiple

ownership / operational structures, so should be

robust to legislative changes.

The project has been scoped to look at

multiple ownership / operational structures, so

should be robust to legislative changes.

Trial demonstrations still possible in

conjunction with National Grid on a

demonstration basis only.

R0030 G

Resource availability during the life cycle

of the project resulting in delays.

Early resourcing / recruitment

Provide adequate notice when planning meetings,

workshops and events. Resource pooling within

Future Networks.

Ongoing resourcing meetings being held to

ensure regular reviews and monitoring of

resource.

R0032 G

Local opposition to building the storage

facility causes both delivery timescales

being extended and reputational damage.

External stakeholder engagements to be

conducted prior and throughout the project to

ensure concerns are managed appropriately.

Continue to monitor LB Substation mailbox, and

respond with input from the Care team.

Public consultation exercise was carried out to

gauge concerns and reflected in changes to

the planning application where these were

possible.

Newsletters and communications have been

distributed as part of early construction

activities.

Continued monitoring of customer enquiries

regarding the site. Of the few to date, none

have required significant remedial action.

R0033 -

The site is not fit for purpose, requires

additional work i.e. higher stilts causing

project delivery delays.

Complete full suite of environmental surveys i.e.

flood risk, archaeological, contaminated land etc.

Risk Closed. A wide range of site surveys and

studies have been carried out which

significantly reduces the likelihood of this risk.



REF

NO. RAG Status


R0035 G

There is significant flooding at the site

whilst building works are taking place

causing damage and delays.

Put temporary protection place to stop significant

flooding of the site.

No flooding has yet been recorded, despite

wettest winter in 200 years.

R0038

G

During the project delivery stage the

appropriate UK Power Networks staff do

not engage adequately or in a timely

manner with the Project. Resulting in poor

engagement and delays.

Design and implement a robust internal and

external stakeholder road map to identify all the

key stakeholders.

Step up engagement with Control team and

Operational teams as we approach

commissioning.

Internal communications activities have

continued, as described in Section 7 of this

report.

Tour of site given to local operational team in

April 2014.

R0039 G

Commercial arrangements with Smartest,

National Grid and KiwiPower are not

acceptable to all parties resulting in

delays.

Strong engagement and collaborative working

with partners. Put in place strong commercial

agreements.

Ensure clear scopes of services and deliverables

from partners defined.

Initial heads of terms for the storage

commercial arrangements have been

developed and incorporated into the early

project agreements with partners.

The development of the novel commercial

arrangements is well underway.

R0041 A

Delay in delivery of hardware or software

from partners and contractors cause

delays.

Full continual engagement with partners, with

penalties clauses included for late delivery.

Contingency has been built into well designed

plans.

As a mitigating action additional resource can

be added and works re-programmed where

necessary to make up time.

R0042 G

Key Project partner(s) withdraw their

participation in the SNS project during the

project has started, leading to delays.

Tender process was carried out for several

projects aspects and provides alternatives

therefore reduces this risk.

Fourth partner forum held in March 2014.

R0043 G

Partner resources not available to

complete work, attend meeting etc.

Resulting in project delays and issue with

quality of work.

All partners are to provide multiple names as

contacts, with deputies of the same standing. Also

partners are to provide an escalation path should

any issues be identified.

All partners have provided multiple names as

contacts, with deputies of the same standing.

Also partners have provided an escalation path

should any issues be identified.

Acquisition of AMT-SYBEX by Capita and

change of resource at KiwiPower raised as

separate risks.



REF

NO. RAG Status


R0044 G

Lack of clear scope/requirements for

Partners result in scope creep and delays.

During scoping / design phase ensure all

elements of work are captured through

engagement & 'sign off' from key internal

stakeholders.

During scoping / design phase ensure all

elements of work are captured through

engagement & 'sign off' from key internal

stakeholders.

R0045 G

Partners do not have a clear delivery plan,

which will result in delivery delays and

missing milestones.

Partners are involved in producing a project plan

and monthly reports to track progress. Payment

for any works will be linked to its completion on

time to cost and quality.

Partners are involved in producing a project

plan and monthly reports to track progress.

Payment for any works will be linked to its

completion on time to cost and quality.

R0046 G

Building redesigns mean overspend on

WS 1.

Ensure close collaboration between storage

supplier and Capital Programme directorate to

ensure planning app reflects requirements.

Some additional equipment and rework has

been required but is expected to be covered

within budget.

R0051 G

Partner spend is higher than anticipated. Overspend on project studies or services. Partner open book accounting mandated;

robust change management employed within

the Project PMO

6-weekly financial reporting implemented.

R0053 G

Partners may have concerns about the

level of resource they need to dedicate to

the project. The risk is that partners

withdraw involvement, leading to delays

or additional costs to mitigate.

Make contingency available for additional partner

costs.

Provide update to partners in Forums on expected

upcoming resource needs.

Remain sensitive to time draw on partners

where there is no funding

Resource forecasts have been provided to

project partners for improved forward visibility.

R0055 -

Internal resource cannot be found for WS

3 to replace contractors – this may mean

higher rates need to continue to be paid

which will lead to overspend.

Ongoing resourcing meetings established to

monitor and review resourcing.

Maintain possible candidates on radar to replace

contractor resource throughout project.

Risk closed. Options discussed during the last

monthly resourcing meeting held with Future

Networks team Project Directors: a)

assumption that WS 3 contractor will remain

on the post. b) seek for internal candidate.

R0056 -

Planning Conditions are not fully

discharged leading to delays in starting

construction on site.

Ensure conditions are well understood and

specific plan and activities to cover conditions are

documented to allow effective management.

Weekly update meetings scheduled to monitor

WS 1 progress.

Risk closed. All pre-commencement

conditions now discharged.



REF

NO. RAG Status


R0057 G

Budget restrictions mean that the design

process is not as comprehensive or

exhaustive as it could be, leading to

issues or delays later in the lifecycle.

Ensure good engagement with subject-matter

experts, keep well documented design

discussions and conclusions, attempt best-

practice within the constraints of our budget.

Design Assurance sign off achieved 30

September 2013 as part of SDRC 9.1. Subject

matter experts will continue to assist through

commissioning.

R0059 G

There is a risk that political/civil disruption

in South Korea prevents manufacturing of

the battery cells by Samsung. This could

cause delays to the installation and

commissioning.

Samsung’s primary manufacturing facility is in

South Korea, however a second plant is under



Samsung’s primary manufacturing facility is in

South Korea, however a second plant is under





Appendix D: List of trials to be conducted within the SNS Project

Trial Title Trial High Level Aims

Pre-Trial Tests

Peak Shaving Control with Active Power Test Verify the local ESS ability to deliver peak shaving using active power

Peak Shaving Control with Reactive Power Verify the local ESS ability to deliver peak shaving using reactive power

Peak Shaving Control with both Active/ Reactive Power Verify the local ESS ability to deliver peak shaving using active/reactive power control

Static and Dynamic Frequency Response and FCDM Verify the local ESS ability to deliver frequency response

Reserve (STOR and Fast Reserve) Verify the end to end KiwiPower-SOCS-ESS ability or deliver reserve

Set-point Accuracy and Stability Tests Verify the accuracy of set points and their stability during various network conditions

Core Trials

Peak Shaving with Active Power Evaluate the ability of SNS to deliver peak shaving using active power control, when the need for network support is correctly forecasted

Peak Shaving with Reactive Power Evaluate the ability of SNS to deliver peak shaving using reactive power control, when the need for network support is correctly forecasted

Peak Shaving with both Active and Reactive Power Evaluate the ability of SNS to deliver peak shaving using active/reactive power control, when the need for network support is correctly forecasted

Reactive Power Support for Losses Minimisation Evaluate the ability of SNS to minimise electrical losses using reactive power control

Primary Voltage Control with Active Power Evaluate the ability of SNS to provide voltage control in the absence of tap changers

Primary Voltage Control with Reactive Power Evaluate the ability of SNS to provide voltage control in the absence of tap changers

Primary Voltage Control with Active and Reactive Power Evaluate the ability of SNS to provide voltage control in the absence of tap changers

Secondary Voltage Control with Active Power Evaluate the ability of SNS to keep voltage within stricter limits than the tap changers

Secondary Voltage Control with Reactive Power Evaluate the ability of SNS to keep voltage within stricter limits than the tap changers

Secondary Voltage Control with Active/ Reactive Power Evaluate the ability of SNS to keep voltage within stricter limits than the tap changers

Fault-Ride Through Capability and Post-Fault Response Evaluate the ability of SNS to assist in restoration after a network fault

Dynamic Frequency Response Evaluate the ability and benefits of SNS to deliver Dynamic Frequency Response

Static Frequency Response Evaluate the ability and benefits of SNS to deliver Static Frequency Response

Frequency Control by Demand Management Evaluate the ability and benefits of SNS to deliver FCDM

Fast Reserve Evaluate the ability and benefits of SNS to deliver Fast Reserve

Short Term Operating Reserve/Committed Evaluate the ability and benefits of SNS to deliver committed STOR

Short Term Operating Reserve/Flexible Evaluate the ability and benefits of SNS to deliver flexible STOR

Long Term Market Optimisation/Tolling Evaluate the ability and benefits of SNS to deliver tolling

Triad Evaluate the ability and benefits of SNS to respond to triad warnings

DFFR and Reactive Power Evaluate the ability and benefits of SNS to deliver both DFFR and reactive power

SFFR and Reactive Power Evaluate the ability and benefits of SNS to deliver both SFFR and reactive power

FCDM and Reactive Power Evaluate the ability and benefits of SNS to deliver both FCDM and reactive power

Fast Reserve and Reactive Power Evaluate the ability and benefits of SNS to deliver both Fast Reserve and reactive power

Long Term Market Optimisation and Reactive Power Evaluate the ability and benefits of SNS to deliver both tolling and reactive power



STOR and Reactive Power Evaluate the ability and benefits of SNS to deliver both STOR and reactive power

Triad and Reactive power Evaluate the ability and benefits of SNS to deliver reactive power while responding to triads warnings

Long-Term Trials

Noise Assess the noise from the operation of SNS during various operating conditions, weather

Battery Degradation Assess the degradation of the battery during various operating conditions

Power Quality/Harmonics Assess the effect on power quality from SNS

TSO Support Quantify the contribution of SNS to the TSO (ancillary services and loading as seen at GSP)

Total Carbon Emissions, Storage Utilisation, Energy Use Quantify the carbon savings, energy use and storage utilisation

Contribution to Security of Supply Assess the contribution of storage to security of supply

Distribution Network and Storage Efficiency Assess the effect of SNS use on distribution network efficiency and quantify SNS efficiency