Will the UKʼs largest smart grid project revolutionise energy policy?

Published: 26th November 2012




By Dr Liz Sidebotham Communications and Compliance Manager,
The Customer-Led Network Revolution Project

The Customer-Led Network Revolution is a pioneering smart grid project at the forefront of the move towards a low carbon economy. If, as is anticipated, the project speeds up the installation of low carbon technologies by just one year, there is the potential to save the UK around £8 billion in energy costs, plus around 43 million tonnes of CO2.

The project is spearheaded by Northern Powergrid, the electricity distribution network operator for the Northeast, Yorkshire and northern Lincolnshire, with expert project partner support from British Gas, EA Technology and Durham Energy Institute. The £54 million Customer-Led Network Revolution project is funded through Ofgem's Low Carbon Networks Fund and is working with over 10,000 electricity customers through its trial programme.

Innovation lies at the heart of the Customer-Led Network Revolution project. The forecasted increase in uptake of low-carbon technologies such as solar photovoltaic panels, heat pumps and electric vehicles will result in increased stresses on local electricity distribution networks. To take the example of electric vehicles, UK Government forecasts that 1.6 million electric vehicles will be on UK roads by 2020, a significant increase from the estimated 2,500 that are on the roads today. Even at lower end predictions, domestic charging of the vehicles will put a significant strain on the network. Recognising the immense financial and practical implications of such increased stresses, over a three-year period the project is trialling smart grid solutions on the powergrid. The results will support network planners, operators, suppliers and policy makers as they plan for a smart grid-enabled future. The first tranche of trial results are due in December 2012.

Dr Liz Sidebotham, Northern Powergrid's communications manager for the project, outlines the potential benefits it could bring to the future of the UK energy sector. "The Customer-Led Network Revolution project will help the industry to maximise customer and network operator benefit through implementation of new smart grid technologies and solutions. Customer benefit will be achieved through the creation of smart-enabled homes and businesses that give customers flexibility over the way they use and generate electricity. Ultimately, the scene will be set for long term cost savings through uptake of smart solutions in place of prohibitively expensive upgrade to cables and transformers."

The project is using state of the art technology to create two smart grid test beds, one of which is in rural Northumberland and the other in an urban setting in Darlington. Over 10,000 electricity customers have been engaged to take part in trials, most of whom have had smart meters installed by British Gas. Many of the customers taking part also have solar panels, heat pumps or electric vehicle charging points installed. Knowledge gained from the trial programme will be made available for the benefit of all the UK distribution network operators and wider industry. Crucially, the needs and motivations of the wide spectrum of trial participants will be measured by social scientists from Durham University and the fuel poverty campaigners, National Energy Action.

As well as exploring the impact on the electricity demand of customers using solar panels, heat pumps and electric vehicles, the Customer-Led Network Revolution project is assessing the use of new technology on the electricity network and commercial solutions, such as pricing structures. This will support the electricity industry to find the best way to keep down the cost of connecting customers to the powergrid and to minimise the cost of meeting their electricity needs.

Affordability, energy security, market reform, carbon emissions and the energy mix are all factors in the debate on energy policy, and at the moment the shape of future government policy is still unclear. One certainty is that energy policy will need to continue to evolve to meet the demands of a low carbon future, to ensure a secure and reliable electricity supply for all customers. This is a core business responsibility and driver for Northern Powergrid and all other distribution network operators. It also lies at the heart of the Customer-Led Network Revolution project. Whatever the outcome of this debate, smart gridenabled electricity networks will rise to the challenge of future energy demand, and be key to guaranteeing more affordable energy in times of economic constraint and rising fuel prices.

This article originally appeared in the New Statesman magazine and is reproduced by kind permission www.newstatesman.com