UK Power Networks operates three distribution networks in the UK and is adapting to changes in the energy landscape. The summary is: 1. The energy system is changing significantly with increases in distributed generation, storage, electric vehicles, and smart technologies. 2. UK Power Networks is using innovation to support these changes and connect more distributed energy resources through projects like flexible connections and the UK's largest multipurpose storage unit. 3. They are transitioning their role from a distribution network operator to a distribution system operator to help manage a more dynamic grid and facilitate markets and flexibility as a alternative to network upgrades.

1. UK Power Networks
Innovation and future energy systems
Dr Giulia Privitera
20 June 2017
1
8th C4IR Smart Grids Cleanpower 2017
Conference
19-20 June 2017, Cambridge, UK
www.cir-strategy.com/events
…join the follow up 9th SGCP18
26-27 June Cambridge, UK

2. Purpose
1. Overview of UK Power Networks
2. How the energy landscape is changing
3. The role of innovation
4. Transition to a Distribution System Operator
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3. © 2016. UK Power Networks. All rights reserved
• Three distribution networks:
• London
• East of England
• South East of England
About UK Power Networks
Measure Data % of industry
End customers 8.2m 28%
Population served c.20m -
New metered connections* 46,000 32%
Distributed generation connected 8.5GW 31%
ED1 totex allowance (2012/13 prices) £6,029m 25%
Energy distributed 84.8TWh 28%
Peak demand 16GW N/A
* Average per annum 2010/11-2014/15
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4. © 2016. UK Power Networks. All rights reserved
Key forces influencing the future of our industry
• Distributed Generation (DG)
• Grid-scale Storage
• Local Energy
• Smart Meters and the
connected home
• Micro generation / storage
• Electrification of heat and
transport
Delivering your
electricity
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5. © 2016. UK Power Networks. All rights reserved5 5
Innovation is pivotal to understand how to
address these changes
Connection of
renewables
Smart meters
Domestic and I&C
Demand Side
Response
Energy efficiency
Electric vehicles
Electrification of
heat / heat
pumps
Energy storage
Domestic customer
engagement

6. © 2016. UK Power Networks. All rights reserved6 6
Flexible Plug and Play
(FPP)
Flexible connec+ons of
renewables
Low Carbon London
Distributed genera+on,
smart meters, domes+c &
T&C DSR, EVs, heat pumps
Smarter Network Storage Large scale storage
energywise
Energy efficiency, smart
meters domes+c DSR with
fuel poor customers
Kent Ac>ve System
Management (KASM)
Con+ngency analysis tool
that facilitates connec+on of
renewables
Power Poten>al
DNO coordina+on of
distributed energy resources
to offer solu+ons to
transmission constraint
Domes>c Energy Storage
& Control
Residen+al energy storage
UK Power Networks’ Innovation Portfolio
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7. Growth in
Electric Vehicles
• Over 300 electric buses
in London by 2020
• 100k Plug-in vehicles
sold in the UK (56%YoY
growth)
• 12k charge points
Storage
Market Boom
• Over 800MW of
accepted storage offers
• 13GW of enquiries
Growth in DG
• 8.5GW of DG connected,
doubled in the last 5
years
• First Solar / Storage
schemes with no subsidy
support
Pace and scale of change is increasing
We are adapting to meet the changing market needs

8. © 2016. UK Power Networks. All rights reserved
Supporting the connection of DG
• For example, supporting the huge
growth in DG over the last five
years
• We expect the growth in
intermittent generation to continue
-
5,000
10,000
15,000
20,000
25,000
30,000
2011 2015
MW
Conventional thermal Hydro
Wind Bioenergy
Solar Other
92%
increase
1%
10%
25%
3%
3%
8%
7%
14%
28%
11%
10%
5%
30%
19%
37% 30%
21%
11% 14% 13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2015 2030
Solar Storage Wind Nuclear Coal Gas Other

9. © 2016. UK Power Networks. All rights reserved
We are using innovation to support the uptake
of DG at the lowest cost
• Enabling flexibility
– We have the now rolled out
our Flexible Distributed
Generation solution across
the east and South East
networks
• Facilitating the connection
of intermittent resources
– We built and operate the first
and largest multipurpose
storage unit in Leighton Buzzard
(6MW/10MWh)
99

10. © 2016. UK Power Networks. All rights reserved
The distributed energy world in 2030
• The Transmission System Operator (TSOs) will increasingly rely on
Distribution connected resources to manage the system
• Distribution networks acting as a facilitator for a wide range of energy
resources and market models
10
Order of magnitude
increase in risk,
complexity and
cost

11. © 2016. UK Power Networks. All rights reserved
Transitioning from DNO to DSO
DNO
DSO
LCTs
Community
energy
Flexibility
Interaction
Active DNOPassive DNO
Ensuring backup Managing a dynamic network
• Asset owners
• Incremental / targeted at issues
• How to explore capabilities
• Whole system consideration
ü Behaviour
change
ü Commercia
l change
ü Capabilitie
s
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12. © 2016. UK Power Networks. All rights reserved
The Distribution System Operator role
• Promote Competitive Service Provision
• Neutral Market Facilitation
• T&D Coordination
• New capabilities: Integrated system planning, market operations,
Active Network Operations, ICT, new customer strategies
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Keeping the
lights on
Fair and
cost
effective
grid access
Efficient and
economic
network
development
Support the
wider
system
Enabling
markets

13. © 2016. UK Power Networks. All rights reserved
Next steps
• UKPN’s DSO Priorities – 2017 – 2018:
– Facilitate cheaper and quicker connections using proven
innovation
– Use customer flexibility as an alternative to network upgrades
– Prepare and facilitate the uptake of electric vehicles
– Protect our position by developing System Operator capabilities
– Working closely with the industry to shape the future energy
sector
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14. © 2016. UK Power Networks. All rights reserved
Thank you