Professional Documents
Culture Documents
Page 1 of 31
Report Title
Report Status
1.0
Project Ref
Date
16.12.2013
Document Control
Prepared by:
Name
Philip Bale
Date
16/12/2013
Reviewed by:
Roger Hey
16/12/2013
Approved (WPD):
Phil Swift
16/12/2013
Revision History
Date
28.09.2013
Issue Status
0.1
Draft
Author
Philip Bale
21.11.2013
0.3
Draft
Philip Bale
25.11.2013
0.4
Draft
Philip Bale
16.12.2013
1.0
Final
Philip Bale
Page 2 of 31
Contents
1
2.2
2.3
Commercial Arrangements.............................................................................................................. 8
10
Other.................................................................................................................................................. 28
11
12
Appendices .................................................................................................................................................... 29
Glossary ......................................................................................................................................................... 29
DISCLAIMER
Neither WPD, nor any person acting on its behalf, makes any warranty, express or implied, with respect to the use of any
information, method or process disclosed in this document or that such use may not infringe the rights of any third party or
assumes any liabilities with respect to the use of, or for damage resulting in any way from the use of, any information, apparatus,
method or process disclosed in the document.
Western Power Distribution 2013
No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means
electronic, mechanical, photocopying, recording or otherwise, without the written permission of the Future Networks Manager,
Western Power Distribution, Herald Way, Pegasus Business Park, Castle Donington. DE74 2TU. Telephone +44 (0) 1332 827446. Email WPDInnovation@westernpower.co.uk
Page 3 of 31
Executive Summary
The Lincolnshire Low Carbon Hub (LLCH) has seen significant progress over the last six month period as
the project transitioned from a design phase into a construction phase. The LLCH design stage was
finalised after DNV Kema completed their external project audit in June 2013. A resubmission pack
comprising of the independent audit, design justification report, substation designs and a re-forecasted
project delivery plan was sent to all DNOs for comment.
A formal resubmission was submitted to Ofgem with all supporting evidence in July; this was confirmed in
20th November through the issuing of the new project direction.
The detailed design activities at each substation for the ring network have been completed ready for
construction with all the significant construction activities undergoing a tendering exercise before
awarding the works to a preferred party. The construction activity started at Trusthorpe in July and is
nearing completion, Construction activities have started at Chapel St Leonards in December 2013.
The construction of 10.1km of new OHL has been completed; two network circuits now have 300mm Hard
Drawn Aluminium conductor installed under a specialised construction for long span lengths, 10km of
optical fibre sky wrap has been installed on both new and existing lines. Communication masts and
microwave links have been installed during this period.
WPD have undergone a detailed design phase of the dynamic AVC scheme with Fundamentals, the
addition of new network assets has been scheduled into the work programme during the next reporting
period.
The DStatcom (FACTs device) has passed through the design element; the build of both the DStatcom and
associate step up transformer has been completed. Both units have been installed on site at Trusthorpe
by S&C. The commissioning of these units will occur in January 2014 to coincide with the commissioning
of the new 33kV switchgear.
The design and delivery of the alternative commercial arrangements section of the project has been
completed during this reporting period. Engage Consulting have researched possible constrained
connection methodologies. Working with WPD, we have agreed a methodology, amending our existing
commercial arrangements allowing Distributed Generation customers to select constrained connections
under a LIFO (Last in, First off) scheme. These agreements have been sent out as part of a consultation
finishing on Thursday 14th November.
To support the alternative connection agreements we will be offering DG customers in East Lincolnshire,
we have developed two constrained connections tools in conjunction with TNEI and Smarter Grid
Solutions. The first, a web based tool, allows generation developers to understand the impact their
connection will have on the network and the expected level of constraints. The second, a spreadsheet
tool, allows WPDs primary planners to plan the network with generators operating with constrained
connections.
A greater emphasis has been placed on regular dissemination over the last six months. The project ran a
large dissemination in October, sharing our progress on the whole project and the lessons learnt since
been awarded funding. The event specialised on the creation of alternative commercial arrangements for
DG connections.
Page 4 of 31
Risks
The project continues to record and manage risks through the project risk register. A summary
of the project risks in Recruitment, Procurement, and installation have been summarised
below.
Recruitment risks
There are no specific recruitment risks at this point; the project has people assigned to all roles
for the delivery of the Lincolnshire Low Carbon Hub.
Procurement risks
The on-going risk that long lead time items delays the delivery of the project has been reduced
by procuring all long lead time items early, reducing the overall risk of the project.
Installation risks
As the project is now in an installation phase, a greater emphasis has been placed on good
communication between all parties during installation, especially where installation activities
involve new companies working together.
Other risks
National Grid restrictions could prevent further generation from connecting. The addition of
NG constraints has been considered with the alternative connection agreements and can be
mitigated if occur.
Local opposition to new generation developments remains an on-going risk that cannot be
mitigated. The project will continue to engage with the local authority and generators to
explain the purpose of the project, including the development of the most suitable generation
in suitable locations.
Learning
During the last reporting period the project has disseminated the learning from the project
through reports and presentations.
The project is systematically capturing learning relating to the design, development and build
phases. Learning is being disseminated internally through monthly project meetings and a
project newsletter.
The project has recruited an additional resource to support the capturing and dissemination of
learning.
The learning generated through the design and installation phases of the project has been
disseminated to all UK DNOs. As the project continues to generate new learning, this will
disseminated through the project website and an event being planned for June 2014.
Page 5 of 31
Project
team
Business Case
The number of distributed generation connections continues to be high; an increasing number
of areas within the WPD licence areas are showing there is a limitation in the ability to cost
effectively to connect distributed generation passively without significant conventional
network reinforcement. Throughout ED1, DNOs will be incentivised to ensure reinforcement
costs are efficient. Innovation will play a large part in facilitating cost effective connections.
WPD are already planning their second demonstration of the Low Carbon Hub principles, likely
to be in the South West.
Dynamic Line
Rating
Network
Enhancements
Commercial
Agreements
Page 6 of 31
FACTs
Dynamic
Voltage
Control
33kV Active
Ring
Page 7 of 31
The commercial agreements being developed through the Low Carbon Hub will allow customers to
choose an alternative connection using the LCH innovative techniques. They will to have a much greater
participation in the active network management which could lead to quicker and cheaper connections to
the network.
Progress in the last reporting period
The alternative commercial arrangements section of the project has been conducted within this reporting
period in conjunction with Engage, TNEI and Smarter Grid Solutions.
Engage have built upon the UKPNs research through the LCNF Flexible Plug and Play project. The merits
of all constrained connection methodologies were considered and a review of the lessons already learnt
though distribution and transmission networks globally have been conducted. A workshop with
distributed generators concluded that a Last In, First Off LIFO constraints methodology was the most
appropriate and fairest solution for customers wanting to connect to the Lincolnshire Low Carbon Hub.
The charging methodology for the Lincolnshire Low Carbon Hub is based upon the customer only funding
the constraint scheme, not any upstream reinforcement. A limitation of this is that overall constraints on
the network remains unfunded, ultimately limiting the number of connection that can be made on the
distribution network before constraints become uneconomical.
Page 8 of 31
the Company shall be entitled to issue an Instruction to:(a) specify a level of import and export
capacity which shall not be less than the level of the Protected Import & Export Capacity and / or;
Specify a particular Power Factor, or a particular range of Power Factors, for any flow of electricity
from / to the Distribution System to the Customers Installation.
The Import / Export capacity the user is entitled to subject to National Terms of Connections
(NTCs) which will not be intentionally interrupted for Active Network Management (ANM)
purposes
to limit from time to time the maximum amount of electricity that may flow to / from the
Distribution System through the Connection Point; or
in respect of the flow of electricity to / from the Companys Distribution System to the Customers
Installation to require this to be at a particular Power Factor or to be within a particular range of
Power Factors.
Subsequent Owners
The Customer covenants that it shall not dispose of any interest in the Premises, the Customers
Installation or the Customers Generating Equipment unless the Customer has obtained from the
proposed transferee of such interest a deed of covenant in a form acceptable to the Company in
its sole discretion binding the proposed transferee to this Connection Agreement and provided
such deed to the Company.
WPDs Generation connection offer letter and Connection Arrangements have been amended to create
an alternative connection offer for constrained contracts. This will be offered to generation developers
in the Low Carbon Hub zone alongside WPDs standard connection offer. The alternative connection
documentation was disseminated as a mini consultation and will shortly being sent to DG developers
requesting constrained connections to the Skegness Grid substation at all voltage levels and other select
WPD areas. Customers have the ability to opt out of receiving a conventional connection agreement;
however the ENA G59 formal connection application must be submitted.
The methodology for offering constrained connections was published on the Low Carbon Hub website.
www.westernpowerinnovation.co.uk/Lincolnshire-Low-Carbon-Hub.aspx.
Page 9 of 31
Alternative connection enquiries have been received following the Lincolnshire Low Carbon Hub
methodology
Number
of
additional Number
of Alternative Connections Number of additional
Connection Enquiries received additional MW
accepted
MW
10
77.8
0
0
The designed and development of two Active Network Management connection tools has been created to
further support the connection of DG under constrained connections.
Online tool
The online tool allows generation developers to estimate the level of constraints across the Skegness
Network area for different generation types and size in different locations. This information is intended
to help developers to determine the impact of their development on the network and potential viability
of a scheme.
The online tool www.lincolnshirelowcarbonhub.co.uk allows developers to register their details and
estimate the level of constraints.
Page 10 of 31
WPD tool
The Spreadsheet provides enhanced features WPD primary planners can use to ensure connections
comply with WPDs policies, whilst also providing a more detailed level of constraints based on the
existing network operation, and network operation with the LCH smart grid innovations, with todays
demands and with a reduction in demand over a 25 year period.
A tender for Active Network Management was issued in September 2013, with 3 responses received.
Smarter Grid Solutions was selected to install their Active Network Management system for the Low
Carbon Hub; the planned installation date is 31st March 2014.
A second Active Network Management scheme will be procured, and developed in parallel with the
Lincolnshire Low Carbon Hub network. This will provide a dual source for ANM technologies.
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Page 12 of 31
A internal minor change has been approved for the re forecasting of the Dynamic AVC delivery
programme
Page 13 of 31
An internal minor change has been approved for the re forecasting of the delivery programme.
Page 14 of 31
The design, installation and operation of this technique will be documented and disseminated in the next
six monthly report.
1.3.7 Telecommunications
The detailed telecommunications design showing the interface to protection relays has been completed,
as shown in appendix 1. A significant number of the communications links has been constructed during
this reporting period.
Wireless Communications
The use of wood poles as an alternative to swan lattice towers has been investigated, the use of wood
poles have been discounted due to the unacceptable movement and the narrow microwave beam. It was
considered an unacceptable risk with traditional microwave communication links.
The microwave tower foundations were installed in Trusthorpe, the swan lattice tower to be installed in
December 2013
The microwave tower foundations installed in Ingoldmells, the swan lattice tower to be installed in
January 2014
The microwave tower foundations installed in Chapel St Leonards, the swan lattice tower to be installed
after the civil installation in April 2015.
The communications will provide the ability to support:
SCADA,
Current differential protection traffic,
AVC transducer communications,
FACTs communication traffic,
Active Network Management Traffic
Fibre Communications
Issues associated with additional midpoint sag have been solved. WPDs standard design tools have not
required the addition of weight to a pre tensioned line. Working with fibre subcontractors it has been
possible to better calculate the effects of adding fibre to a pre-existing line. This was actual increase in
sag has fallen within the design parameters.
Optical fibre wrap has been designed for both new and existing circuits. Design decisions for earthing,
splicing, applying of temporary earths and fibre at ABSDs have been occurred.
Optical fibres have been wrapped on the Alford - Trusthorpe circuits by AFL during October and
November 2013. The 600m underground ducts and fibre section between Skegness and the Skegness,
Alford and Chapel St Leonards has been installed.
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The installation of fibre to the Skegness Alford lines will be completed during 2014 after vertical and
horizontal clearances issues have been rectified. All telecoms links will be commissioned in line with the
electrical equipment commissioning at each site in 2014.
Page 17 of 31
Dissemination events
Between June and December 2013 the Low Carbon Hub has increased its dissemination activity. Below is
a summary of the progress.
An alternative connections workshop was held. This was hosted by WPD with Engage Consulting on 13th
June 2013 at Pegasus Business Park. A selection of people from the DG community was invited. These
included key stakeholders from DG trade associations, DG developers with recent connections in the East
Midlands and DG developers that expressed an interest in alternative commercial connections at our
Business plan workshops. 10 people from eight companies attended.
We introduced the Low Carbon Hub, explained how DNOs planned networks with DG connections under
the fit and forget methodology and how if DNOs could offer alternative connections it could allow
developers to select an alternative connection over a traditional connection.
The options for alternative connections including offering reactive power support, constrained outputs
and trading constraints were discussed. The feedback supported the on-going development of the
alternative commercial arrangement we will offer as part of the LLCH. Alternative connections would
require a DG developer to accept a non-firm connection to the grid, the amount of interventions required
by a DG site will be dependent on where they connect to the network and the number and location of
other connections. The amount of information a DG developer would require when accepting
constrained connection instead of traditional network reinforcement.
The feedback from the event has helped to shape the commercial arrangements being developed for the
Low Carbon Hub. The key outputs and findings from the workshop were disseminated to the parties that
attended the workshop and be made available on the project website.
On 6th June 2013 the project was presented to over 90 local authority planners across the East Midlands
region at the request of the Head of the Central Lincolnshire Joint Planning Unit. The presentation
included details of the Lincolnshire Low Carbon hub as well as the challenges and opportunities that
Western Power experience.
A press release was released in September 2013 disseminating the updates on the progress for the
Lincolnshire LLCH to the wider industry. The intention was to target trade magazines to also encourage
further connections to the LLCH to further test the methods being demonstrated.
A dissemination event on Thursday 3rd October at the East Midlands Hilton provided a general overview of
the Low Carbon Hub techniques and the progress of each technique. The detailed aspects of alternative
commercial arrangements and constraints estimation have been disseminated to a wide ranging
audience. The event was attended by 70 people including DNOs, suppliers, manufacturers, trade bodies
and generation developers.
The Low Carbon Hub techniques were presented on at the Solar Trade Event on 8th October 2013 to over
150 developers. The aim of the event was to share how DNOs are trialling new ways to increase the
utilisation of the network.
The development of the LLCH was disseminated on at the LCNF conference in Brighton in November 2013
under the integration of DG into the network and the installation and operation of Active Network
Management schemes.
WPD Public affairs continue to ensure effective engagement of local MPs and elected officials of the
project with relevant members of parliament MPs.
Page 18 of 31
Page 19 of 31
TOTAL
480,000
480,000
Page 20 of 31
Total
Budget
k
Box 6 - Labour
WPD Project Management
Create a 33kV active network ring Skegness
Create a 33kV active network ring Alford
Create a 33kV active network ring Ingoldmells
Create a 33kV active network ring Chapel St Leonards
Create a 33kV active network ring Trusthorpe
Create a 33kV active network ring Bambers
Box 7 - Equipment
Dynamic Voltage Control - Development
+ Maintain of ENMAC and SCADA
systems, Voltage control algorithm
including Training and site AVC
modifications
Flexible Alternating Current
Transmission system (FACTs) procurement of Devices
Create a 33kV active network ring Skegness
includes: new CT's, Protection, 33kV
cable and small wiring
Create a 33kV active network ring Alford
includes: new CT's, protection, 1250A
busbar, voltage transformer, 36kV
Breaker, 33kV cable & small wiring
Create a 33kV active network ring Ingoldmells
includes: new CT's, protection, Voltage
Transformer, earth electrode, 36kV
Breaker, 1250a busbar, 3ph insulators,
33kV cable & small wiring
Expected
spend to
date Nov
2013 K
Actual
Spend
to date
k
Variance
k over
period
Variance
% over
period
235
154
144
10
-6%1
17
17
17
-100%1
36
29
29
-100%1
83
37
37
-100%1
91
-3
100%2
82
52
60
-8
15%2
0%
42
42
42
-100%3
575
575
114
461
-80%3
48
48
48
-100%3
102
82
82
-100%3
236
106
106
-100%3
Page 21 of 31
260
13
-13
100%2
233
147
206
59
40%2
14
0%
106
106
141
-35
33%4
80
32
32
-100%1
70
70
52
18
-25%3
21
21
21
-100%3
10
0%
10
0%
10
0%
50
50
126
-76
153%4
872
129
765
0
138
27
627
-27
-82%1
100%
Page 22 of 31
Bank account
The LCN Fund Governance Document requires DNOs to:
3.80. The DNOs auditors must review the systems and processes that the DNO is proposing to use to
conform to the requirements set out in this section and provide a signed statement to Ofgem that the
systems and processes are fit for purpose, before the Project is initiated and any funds are spent.
The following table summarises the memorandum account with all costs within this reporting period to
30th November 2013. To date, total project spend is 355843.50
MONTH
INCOME
EXPENDITURE
BALANCE
2,636,550.73
Jun-13
-601,369.82
2,035,180.91
Jul-13
-384,256.69
1,650,924.22
Aug-13
-222,472.62
1,428,451.60
Sep-13
-466,147.35
962,304.25
Oct-13
-222,414.54
739,889.71
Nov-13
-384,046.21
355,843.50
355,843.50
Assumptions
Purchase order costs will be paid at the end of the following month after goods receipt.
Salaries will be paid on 26th of the month.
Income will be transferred on the 28th of the month.
Time sheet costs will be allocated to the 26th.
Stores and material issues, date of issue is date of payment.
Interest rate of 0% applied to balance in line with existing business current account rate.
Page 23 of 31
Page 24 of 31
Progress
Learning outcomes
Knowledge capture and dissemination is a significant aspect of LCNF projects. With this in mind, an
additional project member has joined WPD to do systematic capture of knowledge being generated and
to increase the frequency of the information being disseminated to other DNO and interested parties.
The process of the ring network redesign has allowed us to methodically capture learning encountered
during the design phase of the project. A summary of the key issues discovered, options analysed and the
selection of the final design have been included in the Design Justification report. The project is now
performing in line with the revised project plan.
Network Enhancements - the project has concluded that:
Financial cost of adding additional functionality of fibre wrap additional 80 - 100mm sag on an existing
and new OHL whilst still complying with WPDs policies
Page 25 of 31
Risk Management
The project continues to record and mange risks through the project risk register. The table below details
an update on the project risks identified during the bid stage and noteworthy project risks detailed in the
project risk register.
Risks Identified at the bid stage and detailed in the Pro-forma.
1. THE PROJECT CANNOT BE DELIVERED FOR THE AMOUNT OF FUNDING
REQUESTED
The design of the project has been sufficiently detailed to ensure that the amount
requested is sufficient to deliver the Low Carbon Hub; contingency built in where
appropriate has created the confidence to request the default arrangements for cost
overrun protection.
November 2013 Update - This is still an active risk assigned to the Project manager, this
risk is currently lower than the risk identified during the bid as the LLCH has been
redesigned to a much higher detail, the costs for this design have been resubmitted. The
project is forecasted to be delivered within the project budget.
2. SIGNIFICANT ADDITIONAL NETWORK EXPENDITURE IS REQUIRED DUE
TO UNFORESEEN NETWORK SCENARIOS
The processes for obtaining wayleaves and gaining planning consent are naturally
uncertain in terms of duration and outcome. Both could result in increased expenditure if
the proposed design, routes or locations are not permitted. The overall project design of
the Low Carbon Hub is such that it could still demonstrate the majority of the project aims
if the required planning consents or wayleaves were not granted in the way anticipated.
This would however change the scale of the project; we are working closely with East
Lindsey District Council to mitigate this risk.
November 2013 Update This risk has been well documented in previous six monthly
reports as it became an issue as the project could not secure the necessary permissions to
build a new 5km interconnector. The project is in the delivery phase, this risk will continue
to be managed throughout the project.
3. THERE ARE EXTENSIVE PLANNING DELAYS INVOLVED FOR EITHER LOW
CARBON HUB ACTIVITIES OR GENERATORS CONSTRUCTION
This risk has been mitigated, we have all required permissions and a number of
generation developers are making applications for planning permission.
4. EXPERIMENTAL ASPECTS OF THE TRIAL DO NOT FULLY REALISE THE
PLANNED BENEFITS
The experimental sections of the Low Carbon Hub have been demonstrated at a lower
Technology Readiness Level (TRL) and through the IFI mechanism. This has given Western
Power Distribution the confidence to develop the functions implementing them together
in the Low Carbon Hub. Western Power Distribution will be partnering with experts in
these sections to reduce the risk. The safe operation of the distribution network will not
Page 26 of 31
depend on any of the experimental features. November 2013 update - This is still an
active risk assigned to the Project manager, this risk is lower than the risk identified
during the bid as the LLCH.
5. GENERATORS CHOOSE NOT TO CONNECT TO THE NETWORK AS THEY
ARE TARGETING OTHER LOCATIONS
One of the reasons the location of the Low Carbon Hub will be in Lincolnshire is due to the
high number of connection enquiries and the high cost of connection preventing
generators connecting. Nine of the distributed generators that have made connection
enquiries have been contacted; all are interested in the project and would like to know
more about costs, areas and network constraint. The workshop for generator developers
will publicise the potential of the hub to a wider audience to increase the likelihood of
connection applications.
November 2013 Update This risk is lower than previously identified. The project has
continued to engage with DG customers and has 77.8MW of generation requesting
constrained connections in the LLCH area,
6. GENERATORS CHOOSE TO GENERATE IN NEW LOCATIONS WITHIN EAST LINCOLNSHIRE
AND REQUEST DIFFERENT POINTS OF CONNECTIONS.
This risk has been mitigated; we are registering a wide range of interest from a number of
different generators and different generation technologies.
SIGNIFICANT RISKS CURRENTLY BEING MANAGED
R012 - Delivery of goods and services do not meet the agreed timescales for the project.
This risk is reduced, as long lead time items have been procured and stored.
R020 - Project construction could be delayed due to constraints around the operational outage
plan.
A significant amount of work is being carried out over the next 12 months; late delivery at all sites
is still a risk to project delivery. Multiple departments are being coordinated to schedule work
accordingly.
R021 National Grid activity could constrain outage or generation opportunities.
National Grid restrictions could prevent further generation from connecting. The addition of NG
constraints has been considered with the alternative connection agreements.
R024 Delivery will be unachievable if key project delivery staffs are unavailable either through
long term absence / change or role.
The accelerated timescales means the project is reliant on several key members of staff. This is
being mitigated by on-going engagement with senior management.
R026 The project is currently being delivered is not in accordance with the full submission.
The project plan has been accepted, the project is now being delivered in line with the full
submission and project direction.
Page 27 of 31
Other
Western Power Distribution is exploring plans for an additional hub, based on the techniques
demonstrated in the Lincolnshire Low Carbon Hub, to be installed in an area of the South West with
significant DG connection enquiries. Western Power Distribution continues to work with GE to develop
an alternative form of Active Network Management for use with this project.
Page 28 of 31
Appendices
Appendix 1 - Detailed communications - LCH
Figures
Figure 1 Project Plan for Network Enhancements
Figure 2 WPD online Constraints tool
Figure 3 WPD Spread sheet tool Screen shot
Figure 4 Project Plan for innovative commercial arrangements
Figure 5 Project plan for Dynamic Voltage control scheme
Figure 6 Project Plan for Ring Network
Figure 7 DStatcom
Figure 8 Project Plan for FACTS delivery
Figure 9 Overhead line fibre wrap
Figure 10 Project Plan for telecoms delivery
Glossary
ABBREVIATION TERM
ACSR
AVC
DG
DPCR5
EHV
FACTs
HDA
HV
LCNF
LDC
LLCH
OHL
POWERON GEs
PV
SCADA
SGS
Statcom
Page 29 of 31
Page 30 of 31
SIX MONTHLY PR
REPORTING PER
Page 31 of 31