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Low Carbon Networks Fund

Full Submission Pro-forma
Section 1: Project Summary
1.1 Project title
FALCON (Flexible Approaches for Low Carbon Optimised Networks)

1.2 The Lead DNO

Western Power Distribution (East Midlands)
1.3 Project Summary
The cost and limited flexibility of traditional approaches to 11kV network reinforcement threaten to constrain
the uptake of low carbon technologies. FALCON will address this through trialling of a Method that comprises
a Scenario Investment Model (SIM) linked to a network trials area. It will trial four technical and two
commercial alternatives to traditional reinforcement. The trials area will prove the practically of these
techniques. The SIM will identify network constraints under multiple future network load scenarios and
determine the most cost-effective and timely combination of techniques to resolve them. The trial area will
comprise six primary substations located on a mix of rural and urban networks representative of 90% of the
national 11kV network. The objectives of FALCON are closely aligned with those of the UK Low Carbon
Transition Plan and ED1. In addition to enabling the uptake of low carbon technologies, FALCON will deliver
faster and cheaper 11kV connections and reduced DUoS charge increases for all. It will generate learning
applicable to all DNOs, shared through established LCNF dissemination channels. In addition to a net
financial benefit of £1.2m from the four year project, we estimate that a national rollout of FALCON will
realise a £660m financial benefit over 20 years and will save over 680 ktonnes of CO2 by 2050 (accounting
for an additional £36m of benefits). FALCON has senior management support in WPD and our key partners.
The project is compliant with default IPR arrangements and requires no derogations. MoUs are in place with
partners to enable a seamless transition into project delivery ensuring timely benefits realisation.

1.4 Funding

Second Tier Funding request (£k) 12,399

DNO extra contribution (k) 0 External Funding (£k) 2,064

1.5 List of Project Partners, External Funders and Project Supporters

Project Partners: Logica, Alstom, Cisco, University of Bath, Cranfield University (Boeing IVHM Centre),
Aston University
Project Suppliers: GE, ElectraLink, JRC, University of Birmingham, the Open University, Katalysis, Westica
Project Supporters: Milton Keynes Council, ELEXON

1.6 Timescale

Project Start Date 28th November 2011 Project End Date 30th September 2015

1.7 Project Manager contact details

Contact name & Job title Contact Address
Roger Hey, Energy Projects Manager Pegasus Business Park,
Herald Way,
Telephone Number Castle Donington,
Derbyshire,
02476 185 927 DE74 2TU

Email Address
roger.hey@central-networks.co.uk
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Section 2: Project Description

Changes since Initial Screening Process (ISP)

Some terminology has changed to clarify the Method, although the approach has not changed. The reque
for funding has been reduced from £12.8 million at ISP, to £12.4 million. Partner contributions ha
increased from £0.82million to £2.064 million.

2.1 Aims and 0bjectives

The transition to a low carbon economy will present significant challenges to the existing distributi
networks. Demand in general, and peak demand in particular, is set to increase dramatically through t
uptake of low carbon technologies such as electric vehicles and heat pumps whilst uptake of distribut
generation raises the prospect of two-way power flows and power quality issues. At the same tim
fluctuations in the economy, regulatory changes and the unpredictability of customer behaviour
contribute to a high degree of uncertainty in the rate of demand growth and its location on the network.
This is particularly true of the 11kV network, the “backbone” of the distribution grid. This significa
element of the distribution network has traditionally been designed with little or no specific monitoring.
a result, DNOs have little access to real time network data, and rely instead on secondary indicators, to
demand and long standing engineering guidelines to determine when and where to apply reinforceme
One of the key objectives of this project is to gain an understanding of the dynamic nature of the utilisati
and demands placed on this part of the network and to assess a number of alternative solutions to t
existing reinforcement methodology currently used. Alternative intervention methods or a combination
methods may provide a more cost effective solution to either connection or operational constraint
benefiting customers with reduced connection costs and improved cost effective supply alternatives.

The Problem this project addresses is to remove constraints on the 11kV network thereby removi
barriers that may hinder the uptake of low carbon technologies and therefore the transition to a low carb
future. Without the means of selecting more innovative solutions from a broader toolkit of interventi
techniques and the ability to evaluate these techniques and combination of techniques against each oth
and against traditional reinforcement, a DNO will be unable to deliver the most cost effective and time
remedy and, therefore, deliver best value-for-money to the customer.

The Method being trialled to address the Problem can be described in two parts. It will provide DNOs w
a visual image of the current and future state of the 11kV network including areas of constraint. Secondly,
will provide the ability to evaluate a broad range of intervention techniques designed to address the
constraints. This evaluation, modelled against a range of future demand scenarios, will determine the mo
appropriate technique or combination of techniques to apply including use of traditional reinforceme
where most cost effective. To deliver this capability, FALCON will conduct a number of Trials.

It will develop and trial a Scenario Investment Model (SIM), a next generation network planning tool th
combines network modelling, advanced engineering design software and a simulation harness, design
and built to:
- model the 11kV network;
- identify areas of existing constraint by making innovative use of existing network data;
- model the impact of six technical and commercial techniques for addressing these constraints;
- determine the most cost-effective and timely solution, depending on the nature of the network and
constraint, and repeat this exercise against a broad range of future demand scenarios, allowing stre
testing and sensitivity analysis of potential 11kV investment strategies.
To support this, FALCON will trial a set of six technical and commercial intervention techniques f
addressing 11kV constraints in order to:
- increase our knowledge of the effectiveness, benefits and risks associated with each technique;
- better understand where and when these techniques are best applied;
- capture this new learning and improve the “model” of each technique within the SIM, thus enhancing t
SIM's ability to select the most appropriate technique or combination of techniques depending on t
nature of the constraint;
- apply this knowledge by using the SIM to plan 11kV investment strategy against multiple future dema
scenarios, shaping this in line with market/regulatory events.

Figure 1 at the end of this section shows the Method components

The Solution delivered by FALCON will enable DNOs to significantly reduce the chance of 11kV netwo
reinforcement hindering the UK's journey to a low carbon future, by ensuring that 11kV netwo
reinforcement does not create any financial or time barriers to the uptake of low carbon technologies.
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2: Project Description cont.

Specifically, the objectives of FALCON are to contribute to ensuring that:
− the impact on customers' bills is minimised through use of the most cost effective solutions to 11kV
constraints;
− connections, particularly on to the 11kV network, are quicker and cheaper;
− 11kV network reinforcement is smarter, reducing wasted investment and stranded assets;
− changes supported within DNOs required for a transition to a low carbon future through the use of SIM;
− change is fostered within a key customer segment through participation and awareness of the benefits of
the commercial trials.

Learning Objective
By selecting and refining trial areas that are reflective of the national 11kV network and ensuring effective
knowledge dissemination the SIM will provide guidance and design rules, based on the intervention
techniques, for inclusion in design and planning manuals. A key objective of the project is to ensure that
this learning is made available nationally and used to the benefit of all UK DNOs. FALCON will build on the
work of a number of existing LCNF and IFI projects, (e.g. LV Network Templates and, Customer-Led
Revolution) by, for example, utilising available substation metering data to validate our innovative use of
settlement data and extending the SIM's portfolio of modelled techniques by embedding knowledge gained
through previous trials of smart interventions within the SIM's network model.

2.2 Technical description of the project

As described in section 2.1, the Method being trialled by Project FALCON can be described in two parts:
a. a next generation SIM for identifying, predicting and proposing solutions to constraints on the 11kV
network;
b. a set of six technical and commercial intervention techniques that the SIM can call on (in addition to
traditional reinforcement) to derive the most cost-effective and timely constraint remedies.

Figure 1, at the end of this section, shows a schematic representation of the key components of the Project.

a) SCENARIO INVESTMENT MODEL (SIM)

The SIM is the core of Project FALCON and will provide the agility and flexibility needed by DNOs to cope
with increasing uncertainty in future demand. The SIM comprises two major components:
− a network modelling tool within which sections of network can be represented, various network
reinforcement techniques modelled and power flows/voltages across the network calculated,
highlighting areas of constraint;

− a simulation harness for presenting the future load scenarios, invoking multiple solutions comprising
different combinations of reinforcement techniques and evaluating and comparing the results of each
to determine the optimal solution.

The power of the SIM is its ability to rapidly model different network configurations under different load
conditions, enabling multiple possible constraint solutions to be evaluated against a range of future load
scenarios representing different economic, regulatory and customer behavioural outcomes. Initially, we will
use load scenarios based on current customer behaviour, however, FALCON will also deliver the building
blocks for generating sets of load profiles projected over future investment planning horizons based on
different localised uptakes of low carbon technology and different economic environments. These will
include profiles built on externally recognised scenarios such as those contained in DECC's UK Low Carbon
Transition Plan and the Smart Grids Forum (SGF)/redpoint “central scenario” being developed for use by all
DNOs in ED1.

Network modelling tool

At the heart of the SIM is a network model that holds a virtual representation of the network in a selected
area and is also able to represent various possible future network states resulting from the application of
various intervention techniques. Through advanced engineering design software, it has the capability to
calculate power flows and voltages across the network under different load scenarios. The resulting power
flows, overlaid on the network model, will provide a “hotspot” map of constraints, together with other
network key performance indicators such as voltages, voltage step changes and load indices.

The network planning tool will be based on established network modelling tools, namely: GROND, a tool
used extensively within the UK, and a European modelling tool called DPLAN which is at the heart of the
InovGrid smart grid implementation in Portugal.
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Simulation Harness
The simulation harness is an interface that presents scenario data to the advanced engineering design
software and marshals the outputs from the analysis. The simulation harness will manage the process of
running multiple power flow calculations for:

− a series of time slices along a future network load profile to assess how constraints are likely to develop
over time;

− a number of revised network models to compare the effectiveness of combinations of intervention

techniques.

In addition, the simulation harness will analyse the outputs from these discrete network analyses to
generate a league table of preferred solutions to resolve identified constraints. The simulation harness, a
key component of what makes the SIM unique, will be developed by Cranfield University during the course
of the Project.

How will the SIM be used?

The SIM provides a single framework within which a variety of different technical and commercial
techniques, including the traditional reinforcement “base case”, can be modelled and evaluated against a
common set of criteria including:

− whole life cost of ownership;

− duration of implementation (longer durations increasing the risk of volatility in future demand and
potentially causing delay to new connections);
− post implementation operational network performance (measured in terms of Customer Minutes Lost
(CML), Customer Interruptions (CI) and losses);
− the customer impact during implementation of the technique (measured in terms of CML and CI);
− load index (i.e. the “degree of headroom” on the network) that the solution provides;
− safety considerations emerging from the trial.

A key feature of the SIM is its ability to not only identify current and future network constraints, but also
model techniques for addressing these constraints. In FALCON, we will model the six technical and
commercial techniques that will be trialled in the second part of our Method. The results of these physical
trials will be compared with those predicted by the SIM in order to tune and calibrate the model.
The ability to automate the running of multiple calculations for a variety of inputs and to marshal and
compare the results from these calculations will provide DNOs with a powerful investment modelling tool.
Specifically, it will enable DNOs to:

− assess network performance over time against a variety of possible future load profiles including various
rates of uptake of low carbon technology;
− assess the relative effectiveness of different intervention solutions against a common future load profile;
− perform sensitivity analysis on a candidate network solution using a variety of possible future load
profiles.

It will be possible to use the SIM to analyse any section of 11kV network, simulate interventions and
calculate the associated benefits. We anticipate, over time, to formulate a set of guidelines for selecting the
most appropriate solution for a given network problem.

Predicting network load

In order to calculate current network power flows and the impact of techniques, the SIM will require half-
hourly load profiles. These half-hourly load profiles will be obtained by installing monitoring within the 200
substations, as has been done in WPD's LV Network Templates 2010 LCNF Tier 2 project.

So that the SIM can be developed and provide valuable learning in advance of the deployment of monitoring
infrastructure it will initially use estimated half-hourly load calculated by aggregating currently available
settlement data associated with individual premises to secondary substation obtained by ELEXON. To assess
the impact of future load growth on the network and the effectiveness of techniques to respond to them
estimated half-hourly load calculated from new customer profiles that will be developed by ElectraLink as
part of this Project to better reflect customer behaviour in the low carbon economy (e.g. use of heat pumps
or ownership of EVs). This data will then be superimposed on current data within the SIM.
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Taking the SIM forward
We see huge potential in the SIM, not only as an agile and effective network planning and investment tool,
but also as a repository of learning, by capturing the results of trialling physical techniques for managing
constraints. Our vision for future development of the SIM includes:
- extending the SIM's scope in terms of areas of network and voltage levels modelled;
- extending the SIM's portfolio of techniques for managing 11kV constraints by taking knowledge gained
from existing and future LCNF and IFI projects;
- facilitating ease of adoption by other DNOs within the UK and beyond;
- developing the SIM as a benchmarking tool with the potential for use in setting regulatory incentives.

b) TECHNIQUES FOR ADDRESSING 11kV NETWORK PROBLEMS

Network problems occur when the distribution of supply and demand across the network results in power
flows that either exceed the expected network capacity and/or cause power quality issues (e.g.
unacceptably high or low voltages). This occurs at peak load or supply periods. The problem can be
addressed by either reducing the peak or accommodation of the peak.
There are only a finite number of ways to address these problems:

a. upgrading or supplementing the existing infrastructure without adding additional intelligence to the
network (traditional reinforcement) - this accommodates the peak;
b. maximising network capacity usage by monitoring assets temperature and load, then using this to
calculate real-time asset capacity, this can be higher for limited period than the static rating thus
accommodating peak load - (dynamic asset rating);
c. changing the configuration of the network to improve the flow of power via re-routing of load through
areas of spare capacity to accommodate peaks (automated load transfer/meshed networks);
d. using power stored on the network to alleviate the problem (battery storage) this will reduce the peak
load requirements at points in the network;
e. changing the power leaving the network (demand side management) to reduce the peak load;
f. changing the power entering the network (distributed generation) to reduce the peak load.

Whilst there are different approaches to implementing each of these options, the six techniques chosen for
trialling in FALCON and inclusion in the SIM cover all of the above categories of intervention. The intention
is to expand the SIM in the future to include other innovative techniques as they emerge, thus ensuring that
the investment strategies produced by the SIM continue to represent best practice. We provide a brief high-
level description of each of the new techniques below. For each technique, we give a description, explain
the practicalities of how it is implemented, suggest the characteristics of the network to which it is best
suited, explain what we intend to trial within Project FALCON, identify which partners will be involved in the
trial and list previous trials which we will look to build on. This section has intentionally been kept high
level. More detailed technical descriptions can be found in Appendix C.

DYNAMIC ASSET RATING

What is it?
When more electricity flows through a cable, transformer or overhead line than it is designed to carry it
causes excessive heat that may result in damage. It takes a finite time for this heating to produce damage.
As traditionally these assets are not monitored, a prediction of the safe capacity of the assets is used in the
network design to limit their capacity. This safe unmonitored rating is the static rating for certain periods.
If an asset is monitored then a dynamic rating can be used. This can be higher than the static rating to
reflect the time required to heat the asset as long as the asset is allowed periods of cooling after being run
at these high temperatures.

This approach of using dynamic rating is a way of accommodating peak electricity supply as it uses the
cyclical nature of load to provide cooling. The use of cyclic rating creates a trade-off between asset life and
its peak handling capacity. By carefully controlling the use of cyclic rating, the impact on the asset's lifespan
can be minimised whilst delivering significant additional capacity to the network. This technique has been
trialled on overhead lines by WPD on an LCNF project and on transformers by ScottishPower under IFI
funding.
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How is it implemented?
Dynamic asset rating first requires the asset to be monitored to determine its normal operating level.
Additional monitoring is then required so that we know exactly what the ratings are at any given time,
based on factors such as temperature and recent loads on the asset. Implementing dynamic asset rating
involves installing remote monitoring equipment around the asset in question and changing operational
procedures to include monitoring of the assets.
Where can it be used?
Dynamic asset rating can be applied to transformers and linear assets (cables and lines). Whilst it can be
applied to both overhead lines and underground cables, it is most effective for overhead lines as these are
easier to monitor (in the case of WPD Midlands, this accounts for some 50% of cables by length).
What are we planning to trial in FALCON?
FALCON will install monitoring equipment enabling dynamic asset rating to be applied to the transformers
and cables (both overhead and underground) associated with a single primary substation and six 11kV
feeders within the FALCON trial area. Additional interventions (e.g. fans, pumps) may also be deployed if
appropriate.
What partners are involved?
Alstom and Aston University will be our partners in developing, modelling and implementing the monitoring
equipment and controls to support the use of dynamic asset ratings.
Previous trials that we will build on
Dynamic cable ratings have already been trialled on overhead lines at higher voltages. IFI projects to
investigate transformer dynamic load have also been delivered.

AUTOMATED LOAD TRANSFER

What is it?
In parts of an 11kV distribution networks there are open rings, in which there are two or more supply
routes from a primary substation to a ring of secondary substations. It is called an open ring because the
ring is divided into two sections connected by an open switch. Each substation is normally connected to only
one supply route. However each secondary substation has two potential sources of supply as closing the
switch provides two routes back to the primary substation.
Automated load transfer uses this feature to dynamically alter the number of secondary substations that are
fed from each supply route by closing the open switch and then remotely operating switches introduced
between substations. This allows load to be transferred from one supply route to another automatically. If
one half of the ring has exceptionally high load whilst the other has spare capacity, load can be shifted
between the two by reducing the number of substations on the overloaded side at the expense of the side
which has spare capacity. For more complex ring arrangements, consideration needs to be given to the
balancing of load across the number of feeders involved.
How is it implemented?
Automated load transfer requires remotely operable automated switch gear to be installed between
secondary substations. This involves installing or upgrading switch gear as required depending on what is
already in place. In recent years some 11 kV automation has been installed to improve restorations after
faults and thus reduce CMLs. Where installed this automated switchgear shall be utilised as part of the
automated load Transfer trial. Deciding when to switch requires visibility of the load at different points on
the ring which may require installation of remote monitoring equipment (although it is also integral to some
automated switch gear). In some cases there may be a requirement to alter protection settings remotely.
Finally, operational procedures need to be changed to make use of this facility.
Where can it be used?
Automated load transfer is suitable for implementation on open ring 11kV circuits. In the case of WPD, this
accounts for some 90% of the 11kV network.
What are we planning to trial in FALCON?
FALCON will trial three automated load transfer schemes using six existing 11kV feeders within the FALCON
trial area, comprising both overhead and underground circuits. For overhead circuits, existing pole mounted
automated re-closers and sectionalising devices will be used where possible with new equipment being
installed as appropriate. In the case of underground circuits, automated equipment will be installed where
it doesn't already exist.
What partners are involved?
Alstom and Aston University will be our partners in designing, modelling and implementing automated load
transfer schemes based their Distribution Management System and Network Optimisers.
Previous trials that we will build on
The LCNF project, EDFT2001 Low Carbon London, is implementing Automated Network Management based
on the control of demand and distributed generation. The learning from this project will be used to influence
the design of the network monitoring and decision control to manage the automated switching that is
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required for this trial. To date, network automation has focussed on improving fault response rather than
improving power flow.

MESHED NETWORKS
What is it?
As with automated load transfer, meshed networks utilise the fact that each secondary substation on an
open ring circuit has two potential sources of supply. However, rather than shifting load operationally
between routes using switches, the meshed network is a passive solution in which a permanent closed ring
is created. To do this, a set of “protection zones” need to be designed and implemented to ensure that the
network can operate safely. The number of “protection zones” is a balance of practicality, cost, and
improvements against customer impact in minimising the number of customers off-supply in the event of
any given fault on the ring. In this solution, the power flow is improved as the mesh allows the current to
choose the path of least resistance.
How is it implemented?
Protection zones that minimise loss of supply in the event of a series of fault scenarios must be designed
and implemented by installing circuit breakers in strategic points around the ring circuit.
Where can it be used?
As with automated load transfer, meshed circuits are suitable for implementation on open ring 11kV
circuits. In the case of WPD, this accounts for some 90% of the 11kV network.
What are we planning to trial in FALCON?
To date, meshed network implementations have been largely limited to high density load areas such as city
centres. In FALCON, we intend to explore the benefits of meshed networks applied to suburban and rural
areas. We will trial three meshed networks comprising six existing 11kV feeders within the trial area.
What partners are involved?
Alstom and Aston University will be our partners in designing, modelling and implementing meshed
networks appropriate to the type of network.
Previous trials that we will build on
Meshed networks have been used this has been primarily in city centres. We will explore the benefits of
meshed networks applied to suburban and rural areas.

STORAGE
What is it?
Storage involves installing one or more batteries onto the network, charging these at times of low demand
and discharging them at times of high demand. The effect is to reduce demand on network at peak times
thus accommodating additional power flows within the same available network capacity. It can be highly
effective in addressing periods of high demand which may be very limited in duration.
How is it implemented?
Batteries are installed within ground mounted secondary substations on the LV side of the transformer. The
charging/discharging regime is controlled by a set of algorithms that respond to network demand. The
secondary substations require monitoring to be installed to drive the charge/discharge algorithms. Power
conditioning units (PCUs) are typically installed with the battery arrays to optimise the performance and
provide communications.
Where can it be used?
Storage can be installed virtually anywhere on the 11kV network, where space and support requirements
can be met. It can be highly effective in addressing constraints that only appear for short periods of the
day (e.g. one or two hours at times of peak consumption). Given that the battery solution which is being
trialled can be relatively quick to deploy/redeploy, storage can also be used as a short term solution, either
where there is uncertainty in future demand or as a stop gap whilst a more permanent technique is
implemented.
What are we planning to trial in FALCON?
We will deploy a total of 30 sodium metal halide batteries across five secondary substations in the trial area.
The sodium metal halide batteries that will be used on the project have a number of highly innovative
features, including small footprints to enable them to be sited in the limited space within a secondary
substation, flexible sizing to match the ratings of the secondary transformers and a long life (20 years which
is typically double the life of existing technologies) Each battery array will have a capacity of 10-20% of the
transformer capacity over an 1-2 hour period. Battery installations will include a PCU, communications and
substation metering.
What partners are involved?
The batteries and associated communication and control equipment will be provided by GE.
Previous trials that we will build on
Other LCNF projects, EDFT1001, SSET1001, CET2001, are also trialling battery storage for different types of
operation. Learning around installation and control will be leveraged from these projects to optimise the
control and management of charge/discharge cycle.
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DISTRIBUTED GENERATION
What is it?
A number of industrial and commercial customers have their own, on-site generation and this number is
likely to increase with the transition to a low carbon economy. In some cases, this may be uncontrollable
renewable generation (wind or solar) but the majority is in the form of either standby generators or
controllable plants such as biomass, refuse incinerators or combined heat and power (CHP) plants. If
customers with controllable distributed generation can be incentivised to accept instruction from a DNO to
increase or decrease generation, this can be used to reduce or increase site demand and/or provide/remove
supply from the grid as a means of rectifying network problems.
How is it implemented?
This technique involves putting in place commercial agreements between the DNO and the customer that
allows the DNO to call upon flexibility in the customer's generation to either increase or decrease output as
required in order to remove constraints from the network or rectify voltage problems.
At present, DNOs have the ability to control generation on/off as part of the distribution code and
connection agreement under fault conditions. This technique will look to use the generator agreements to
reduce or defer reinforcement in a proactive, pre-fault rather than reactive, post-fault manner.
Where can it be used?
This technique can only be applied on areas of the network which include customers with flexible distributed
generation who are willing to offer flexibility to the DNO, generally found on urban and suburban networks.
What are we planning to trial in FALCON?
We will look to develop commercial agreements with a range of distributed generators to enable a spectrum
of issues to be considered when drawing up the agreements. The trial will investigate the financial rewards
and engagement models required to incentivise distributed generators to provide DNO services including the
balance between availability and utilisation payments and possible scope for interaction with National Grid's
Short Term Operating Reserve (STOR) market. The trial will also determine the practical operational issues
such as how parties are to be notified and the amount of advance notice that must be given. To predict
when generator assistance is required, the SIM will model a future time-frame, such as a week ahead,
based on the expected network configuration (e.g. including any planned outages).
We are aware of three customers in the trial area that have controllable distributed generation including
Thameswey, a customer with a 3MW CHP generator who has been contacted and has expressed an interest
in participating in the project.
Previous trials that we will build on
Other LCNF projects, CET2001, EDFT2001, are also trialling DNO control of distributed generation. Learning
from these projects will be leveraged to understand the issues with the commercial arrangements and the
control mechanism used to request network support.

DEMAND SIDE MANAGEMENT

What is it?
Similar to distributed generation, demand side management (DSM) involves putting in place commercial
agreements between the DNO and industrial and commercial customers who have the ability to control
appreciable amounts of load in relatively short periods of time.
How is it implemented?
Initially a stakeholder engagement exercise will be used to determine the form of commercial agreements,
level and structure of remuneration (e.g. availability versus utilisation payments). The practical issues will
also be addressed in a similar way to those for distributed generation, in that some predictive analysis will
be required to give advance notice of likely requirements and where there is more than one potential DSM
customer, to determine the lowest cost option. The trial will also identify the best way to communicate
requests and confirm response and investigate issues affecting customers' ability to comply with DSM
requests. The trial may also include aggregators.
Where can it be used?
This technique can be applied on areas of the network which include customers with flexible demand who
are willing to offer this flexibility to the DNO. Ideally, there will sufficient willing participants to create a
competitive market for demand side management services. However, the lack of customer awareness and
experience combined with the need for localised response means that we will initially look to put in place
bilateral contracts.
What are we planning to trial in FALCON?
We will develop commercial agreements with a range of customers capable of offering demand side
management. For simplicity to both the customer and WPD, we will look to replicate the same approach
across the two commercial techniques as far as possible, using similar customer engagement strategies,
bilateral contract templates, financial incentives and payment structures. As with the distributed generation
technique, the trial will determine practical operational issues such as how parties are to be notified, the
amount of advance notice that is required and the reliability of response.
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DSM requirements will be modelled by SIM using short term load scenarios and expected network
configuration (e.g. including planned outages). Over the last year we have engaged with 10 customers
based in the trial area that have a suitable controllable demand profile. We are in advanced discussions with
three of these customers Thameswey, Dominos and Santander who have expressed an interest in
participating in the project.
Previous trials that we will build on
The LCNF project, EDFT2001 Low Carbon London, is also scheduled to trial DSM with some options including
bi-lateral contracts. Learning from this project will be leveraged to understand the issues with the
commercial arrangements and the control mechanism used to request network support.

COMMUNICATIONS
The techniques require measurement, control and protection which, in turn, require a communications
infrastructure linking the 200 substations within the FALCON trial area. The communication infrastructure
will consist of an inter-substation physical layer of WI-Max technology provided by Westica, with planning
support from the JRC. Over this layer will run an IP protocol providing interconnects between Cisco
ruggedized routers. At the substation level connections from devices will be provided into the Cisco units
directly as digital signals or via an analogue convertor. As cyber-security of this architecture is seen as
critical to the future of the smart grid, the whole communications infrastructure will be independently tested
and the results shared as part of the project learning.

Selection of Techniques
As described in section 2.1, the key objective of the project is to provide DNOs with a tool (the SIM) for
identifying constraints on the 11kV network and determining the best technique or combination of
techniques to address these constraints. To do this, the SIM needs to be able to model the impact of a
comprehensive set of techniques for managing constraints and these models need to be tuned based on real
life experience from network trials. The set of techniques we have chosen to include within the scope of the
project have been selected to reflect best practice based on current knowledge and to provide coverage
across a wide range of the possible solutions.

Selection of Trial area

The area selected for the project is the South East Midlands (see appendix B). We believe this area provides
a representative mix of customers and assets, allowing the results of the trials to be scaled to address the
whole 11kV element of the national network. In determining the scale of deployment, we have attempted to
strike the optimum balance between maximising the statistical validity of the trials and minimising the cost
and risk of delivery in order to provide best value-for-money to the customer. Given this consideration, our
trial area will comprise six primary substation transformers. These substations supply 52 HV feeders,
totalling 345 km of linear assets (both overhead and underground). The six primary substations serve 200
secondary substations which, in turn, serve both industrial and commercial and residential customers.
This set of primary substations has been selected to provide a representative set of distribution assets that:

− includes a mix of urban, suburban and rural networks;

− includes both overhead and underground linear assets;
− is reasonably geographically contained to minimise travel;
− avoids areas designated for DCPR5 investment;
− is appropriate for the technique(s) being trialled (e.g. includes open ring circuits, for automated load
transfer/mesh networks techniques, has sufficient HV customers for the DSM technique etc.);
− has a high probability of becoming constrained in the future.

When trialling the use of settlement data to identify constraints on the 11kV network, we will initially trial
within WPD's South Wales network in order to utilise existing substation metered data obtained from WPD's
LV Network Templates 2010 Tier 2 Project. We will subsequently validate the results from the South Wales
trial using metered data from substations within WPD's East Midlands network once substation metering has
been installed to support FALCON.
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2: Project Description Images, Charts and tables.

Project Description
Project Description images
images
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Section 3: Project Business Case

Background
This project is aimed at reducing the cost of reinforcing the 11kV network to practically deliver the benefits
indicated in the Imperial College/ENA study `Benefits of Advanced Smart Metering Demand Response Based
Control of Distribution Networks' thus enabling the Government's climate change targets to be met. Ofgem
has estimated a need for £32 billion of network investment in the next ten years, a doubling of the rate of
investment over the last 20 years. Investment needs to be smarter, drawing on a range of new, innovative
intervention techniques as an alternative to, or to supplement conventional network reinforcement.
These techniques need to be planned to align with the ED1 timetable. We have therefore focused the
project on generating early learning that can be developed into policy and delivery mechanisms. We will
generate improved load forecasting information to inform load-related reinforcement analysis, especially on
the hitherto unmonitored but essential 11kV network. From the outset iterations of the Scenario
Investment model (SIM) will enable alternative techniques to be actively considered during the early stages
on ED1.
This project is designed to align with ED1 incentives. It will:
• provide a better understanding of the applicability and costs associated with alternatives to conventional
reinforcement;
• enable tuning of the common set of evaluation criteria used by the SIM in evaluating network
investment solutions to align with ED1 incentives;
• enable the addition of new criteria (e.g. % network utilisation) as required to allow the SIM to evolve
with RIIO and ED1 incentives;
• provide better asset information, enabling a greater focus on minimising total lifetime costs;
• support investment decisions made within longer term investment timeframes;
• base network investment decisions on a broader range of criteria including managing uncertainty,
ensuring deliverability and minimising risk.

Project Deliverables
Our vision is to deliver the following outputs which will be made available to a wide range of stakeholders in
a timely manner:
• The SIM which includes:

− a Network Modelling Tool for quantifying and predicting available capacity on the 11kV network, which,
as well as utilising existing data, will identify constraints using industry recognised forecasts of
predicting low carbon technology uptake;
− a decision support too embedded within the Simulator Harness. This will enable DNOs to make planning
decisions and design their future network based on an accurate understanding of alternative costs and
benefits.

• Learning about the individual and combined applicability of six intervention techniques, which will be
deployed in constrained areas of the 11kV network.

• A set of design rules and an enhanced set of solutions that can be applied to 11kV network planning.

Project Description and Context

Traditional methods of designing and operating electricity distribution networks have so far served
customers well. The predicted mass adoption of low carbon technologies and the impact of two way load
flows will challenge this approach.
The project has been constructed to address these challenges by:
• identifying both current and future constraints on the network based on future demand scenarios;

• determining the optimal combination of smart techniques and conventional reinforcement to provide
the most timely, cost-effective and flexible solution to any given network constraint;

• testing this solution against future demand scenarios to determine which technique or combination of
techniques to minimise the risks associated with investment decisions.
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To date, the impending rollout of smart metering and the role that this could play in a smart grid has rightly
focused attention on the LV network. Work is underway to define LV network templates to prepare DNOs for
smart LV reinforcement. However, unlike the LV network, 11kV network constraints need to be modelled on
a case-by-case basis and we feel it is timely to turn attention to this essential, though largely unobserved,
part of the network.

The 11kV system has been designed as a passive system to accommodate predicted load growth for the life
of the asset. There has been an escalation in the rate of load growth due to the adoption of low carbon
technology. This rate of growth is predicted to increase therefore the key challenges are to deliver
increasing capacity by making these networks more flexible. We will identify which areas of the network
need additional capacity through the creation of a network scenario planning tool. This tool, housed within
the SIM, will be populated with existing network data, measured network data collected during the project
trials, modelling data for each of the intervention techniques and independently sourced future energy
scenarios.

The project will then trial, different technical and commercial intervention techniques, or combinations
thereof, in order to provide information which will enable informed, cost effective decisions to be made
when transforming the 11kV network into the flexible network required to enable the uptake of low carbon
technologies. This information will be provided by the investment tool module within the SIM.
Project Benefits
Customer benefits
FALCON offers the potential of delivering significant customer benefits across a number of customer
segments.
• All customers will benefit from lower than predicted DUoS charges as a result of the use of
alternatives to conventional reinforcement. Similarly, better visibility of the 11kV network will provide
the DNO with more insight into power quality across the network, enabling them to target areas of poor
quality of supply. Additionally, those customers served by meshed networks or networks to which
automated load transfer has been applied are likely to experience reduced customer interruptions (CI)
and customer minutes lost (CML).

• 11kV-connected customers with controllable load and/or generation: the project will explore
the best way of working with these customers to utilise their flexibility in load/generation to help support
the distribution grid. In return, participating customers will receive agreed availability and/or utilisation
payments - essentially opening a new revenue stream to customers.

• New customers wishing to connect to the 11kV network will also benefit from the project if their
connection would normally trigger reinforcement of the 11kV network which could be avoided by
employing one or more smart intervention techniques. For these customers, connection will be quicker
and/or cheaper. This also applies to new LV customers if their connection triggers 11kV reinforcement.

DNO Learning benefits

The Project will generate the following benefits for asset owners and network operators:
• Investment planning: the project will provide new insight into the current and future state of the
11kV network. It will allow DNOs to test the relative effectiveness of technical and commercial techniques
in solving the same network constraint and evaluate these solutions against a range of different future
load profiles reflecting varying economic, regulatory and customer behavioural outcomes.

• Commercial service procurement: the project will inform best practice in identifying and engaging
with customers offering flexible demand and/or generation.

• Operations: the project will generate practical experience relating to business-as-usual operation of
smart technical and commercial intervention techniques (e.g. automated load transfer, storage, dynamic
asset rating, engagement with customers offering flexible demand and/or generation etc.).

• Technical: the project will impart technical learning regarding the practicalities and effectiveness of
individual technical intervention techniques.

• Telecommunications: the project will evaluate the security of the infrastructure required for future
networks.
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• Data: We will trial the use of aggregated customer profiles based on existing settlement data,
aggregated customer profiles based on new customer profiles, use of smart metering data and metering
at secondary substation/LV feeder. These will be validated against real network data. We envisage this
learning directly impacting DNOs' substation metering deployment strategies.

• Asset management: We will provide more information on asset usage. Some will be used
operationally to provide additional capacity on the network (i.e. dynamic asset rating). However, the
additional power flow and voltage information generated by the SIM will provide a new insight into asset
usage on an area of the network which has traditionally suffered from a lack of information. This will
enable smarter asset management.

Environmental benefits
To obtain a conservative estimate of the carbon benefit of reduced reinforcement we performed a carbon
study of the potential CO2 emissions savings enabled by a national rollout of the FALCON Method based on
the Ofgem LENS `Big Transmission and Distribution' scenario. A number of assumptions were made. Firstly,
only overhead lines and underground cables were considered. Then, the SIM was considered applicable
across 90% of the network, and gross savings of 40% could be obtained. Other constraints (practicality,
operational etc.) are thought likely to reduce this by 10%. Thus overall savings of 32% of the carbon cost of
reinforcement on lines and cables have been estimated as the potential for a total CO2 saving of 680
ktonnes from a GB wide rollout of our method.
These savings do not include the carbon savings that will be lost as a result of delays in the uptake of low
carbon technologies attributable to 11kV constraints (i.e. customers unable to install heat pumps, charge
electric vehicles at home etc. until 11kV reinforcement is complete). Without visibility of the current state
of the 11kV network (an output from FALCON), it is difficult to quantify the associated carbon savings but
they are expected to be significantly higher than the direct project carbon savings.
Line losses on the 11kV network have been taken as 0.67% of total demand, in line with the figures from
“TDP/CN 16 2008: Loss Calculations for Central Networks, September 2008”. Savings from reduced line
losses arising from the implementation of meshed networks has been estimated to be 40% where this
technique can be used. We estimate that meshed networks will give this level of savings across 5% of the
network, giving an overall estimate for reduction in line losses of 2%.

Industrial Benefits
This project will enable equipment suppliers to understand the DNO needs and business drivers of the low
carbon environment. They can incorporate this knowledge into their business cases and product
development plans.
Financial benefits
In constructing the business case we have considered the following:
• The business case for the Project has a range of benefits depending, on the degree of 11kV network
reinforcement that will be required under future demand scenarios.

• Current and historic 11kV reinforcements are unlikely to be representative of future 11kV investment
requirements. The recent joint ENA/ICL paper (“Benefits of Advanced Smart Metering for Demand #
Response based Control of Distribution Networks - Summary Report”, version 2.0, April 2010, ENA/ICL)
suggested future demand will result in a reversal of conventional reinforcement spend from the EHV to
the LV network.

• Current annual spend on reinforcing the 11kV network of £3.7m, (WPD's East Midlands general
reinforcement costs for year 1 of DPCR5), is unlikely to warrant the risk of adopting innovative new
intervention techniques. LCN funding is, therefore, essential for this work.

We estimate that the Project will deliver a net financial benefit of £1.2m (see Appendix A).

Assuming the estimated GB 11kV network reinforcement cost under business as usual operation is £3.7
billion (based on the 50% scenario of combined EV/heat pump penetration contained in the joint ENA/ICL
paper), we calculate the savings associated with a national rollout of the generated learning to be
approximately £659 million over a 20 year period (our workings can be found in Appendix F).
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In addition to direct financial benefits, the project has the potential to deliver indirect financial benefits. For
example, we will trial innovative use of existing settlement data and new customer profiles as an alternative
to installing metering at secondary substations/LV feeders. If this proves successful we anticipate savings
in avoided metering costs.
The spider diagram at the end of this section is a pictorial analysis of the percentage uptake, percentage
cost saving and percentage implementation time saving for each of the intervention techniques. These
savings are an assessment of the reductions when compared with the traditional reinforcement method
used currently by DNOs to address load issues. Detailed descriptions of how the percentages have been
derived are in Appendix F.
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3: Project Business Case contd.

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3: Project Business Case images, charts and tables.

Project Business Case images

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Section 4: Evaluation Criteria

a) Accelerates the development of a low carbon energy sector

The Solution generated by FALCON will make a significant contribution to achieving the UK Government's
strategy for reducing green house gas emissions, as set out in “The UK Low Carbon Transition Plan”
published by DECC on the 29th July 2009 (URN: 09D/716). Specifically, we have identified the following
areas where FALCON will have a meaningful impact:

• Transforming our power sector (chapter 3);

• Transforming our homes and communities (chapter 4);

• Developing a roadmap to 2050 (chapter 8).

Transforming our power sector

The UK Low Carbon Transition Plan (UK LCTP) identifies the need for “a smarter, more flexible grid that
will be able to manage electricity generated from new technologies and respond to changes in
energy demand”. FALCON aims to give DNOs the necessary agility to plan for increased network load in
an environment of volatile change, in terms of economic outlook, regulatory transformation and uncertainty
in customer behaviour. The need for such flexibility is highlighted in the Year 1 Progress Reports of the
2010 LCNF Tier 2 projects published in June this year. UKPN's Low Carbon London project (EDFT2001)
observed that the delay in the domestic Renewable Heat Incentive (RHI) has had a detrimental impact on
early access to heat pumps, an observation shared by CE's Customer-led Revolution (CET2001). This
highlights the effect of regulatory change on the low carbon transition. Equally, EDFT2001 has also blamed
prevailing economic conditions on the slow uptake of new generation electric vehicles, highlighting the
impact of economic uncertainty on network planning.

The ability to rapidly evaluate multiple network solutions, comprising different combinations of technical and
commercial techniques and to test these solutions against multiple future load scenarios will allow DNOs to
reduce the risk associated with investment decisions and deliver cost-effective, timely capacity where it is
required.

The UK LCTP sets out the need for “a smarter grid for the future” to enable increased active
management of fluctuations in supply and demand that will exceed those we experience today. To do this,
the plan identifies the need for DNOs to have “more real time information on energy use and supply and
network conditions and capability for more automated response to changes on the network” - all
capabilities that FALCON is looking to increase.
The plan also acknowledges that the “costs and benefits of a smart grid will ultimately depend on the
combinations of technologies that are brought together - some are well understood, some at an early stage
of development, others do not yet exist”. To date, many innovative alternatives to network reinforcement
have been trialled in isolation. FALCON, however, will provide a framework within which new interventions
can be evaluated against, and in combination with, existing techniques (including traditional reinforcement)
to determine the most timely and cost-effective solution.
By reducing the risk of 11kV network reinforcement hindering the uptake of low carbon technologies,
FALCON will also contribute to the UK LCTP's objective of “using electricity more efficiently”. Similarly,
the increased visibility of the 11kV network brought about by FALCON will contribute towards the
Government's objective of “keeping our electricity supplies safe and secure” by giving early warning of
constraints and thus minimising the risk of asset failure.
FALCON is both a product and an enabler of the Government's desire for increased innovation in
regulation. By providing a framework for modelling and evaluating new, innovative alternatives to
traditional reinforcement, FALCON will help “industrialise innovation”, allowing DNOs to model new ideas for
managing the network against, and in combination with, established techniques, prior to validating the
designs through trialling.
The much improved visibility of the 11kV network that FALCON will deliver will also support the
Government's objective of “quicker and fairer connection to the grid” since unnecessary reinforcement
will be avoided, connection costs and time will be reduced and cost of connections will be more reflective of
actual constraints on the network.
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4: Evaluation Criteria contd.

Transforming our homes and communities

By 2020, the impact of the measures contained within the LCTP are expected to, on average, add 6% to
household bills. Other announced climate policies may increase this figure to 8%. FALCON, through
enabling more timely and cost-effective solutions to increased demand on networks, will enable greater cost
transparency and targeting of investment. This will lead to reductions in both connection and DUoS charges
and will, therefore, directly benefit customers.
Developing a roadmap to 2050
The objective of FALCON is to create a long-term network modelling tool designed to help a DNO cope with
the shift from slow, predictable increases in electricity demand to the large, volatile demand profiles that
are anticipated during the transition to a low carbon economy. Although initially focused on the 11kV
network, the concept of an extendable network model coupled with powerful scenario testing, is equally
applicable to other voltage levels within the network and is a future goal for FALCON (see section 2.2).
Carbon savings
The UK LCTP target is to reduce CO2 emissions by 80% by 2050. Though modest in comparison, a national
rollout of the FALCON method would produce cumulative CO2 savings of 680 ktonnes compared with
business as usual (BAU) over the period 2016 to 2050. (BAU is taken as the Ofgem LENS Report `Big T&D'
scenario.) Approximately 90% of these savings come from reduced distribution losses, the remaining 10%
being attributable to reduced network reinforcement.
A national rollout would additionally reduce carbon emissions by enabling cheaper and quicker adoption of
low carbon technologies such as distributed generation, electric vehicles and heat pumps. This is because
the Project will provide the most timely and cost effective 11kV network infrastructure necessary to support
the implementation of these technologies. Although not realistic to quantify, the carbon savings enabled in
this way are expected to be far greater than the direct project benefits.
We have calculated the NPV of carbon benefits to 2050 attributable to a GB wide rollout of the Methods
to be £36.3 million due to the sources of CO2 saving summarised above.

b) Has the potential to deliver net financial benefits to existing and/or future customers
FALCON has the potential to deliver:

• lower connection costs, particularly for 11kV connections but also, potentially for LV connections that
trigger constraints on the 11kV network;

• lower DUoS for all customers through a reduced asset base;

• potential for a new revenue stream for distributed generators and customers able to offer demand side
management services.

FALCON will achieve this by:

• providing early visibility of the 11kV network, an area of the network which DNOs have traditionally
never monitored and, hence, have little or no visibility of capacity and quality of supply across the
network;

• using this visibility to target 11kV network investment where it is needed, avoiding stranded assets;

• enabling the selection of the optimum technique or combination of techniques for a given constraint
through a network investment tool that has been tested and tuned against the results from physical
trials;

• supporting stress testing of selected solutions against a wide scenarios of future demand profiles to
understand the sensitivities and trigger points for changing solutions.

Traditional reinforcement of the 11kV network in the first year of DPCR5 for WPD's East Midlands network
was £3.7m. Clearly, such low levels of network reinforcement do not incentivise innovative projects such as
FALCON.
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4: Evaluation Criteria contd.

However, a recent joint ENA/ICL paper (“Benefits of Advanced Smart Metering for Demand Response based
Control of Distribution Networks - Summary Report”, version 2.0, April 2010, ENA/ICL, Table 6.1) predicted
future national 11kV investment based on traditional reinforcement in the range of £0.7 bn to £4.5 bn. The
range in predicted investment reflects different scenarios of low carbon technology uptake ranging from
10% to 100%.

The investment costs used in the preparation of this submission are taken from this report as it has direct
relevance to the Project as both Central Networks and WPD contributed to the base data including network
details of parts of the Central Networks system and actual network capital investment costs. Therefore the
investment costs in the ENA/ICL paper are reflective of WPD's direct experience of the costs of network
reinforcement. LCNF recognises the need for preparation if we are to minimise this actual investment.

The Base Case Cost and Method Cost for this Project are contained in the Full Submission Spreadsheet in
appendix A. These are based on the ENA/ICL predicted national 11kV network investment of £3.7 bn (based
on traditional reinforcement to cope with a 50% uptake of low carbon technologies). This equates to an
11kV traditional network reinforcement cost in our trial area of £7m.

Based on our estimates of cost savings for each technique and their expected usage, the Method Cost for
the project is calculated as £5.8m, giving a net financial benefit of £1.2m for our trial area. Our
assumptions and calculations for arriving at this figure are explained in more detail in Appendix F.

The estimated cost saving of each intervention technique has been estimated based on the initial
development of network design rules for the implementation of the technique. The project cost of £16.19m
includes testing, trialling, validation, scenario modelling and dissemination of learning for each intervention
technique, the SIM and the demand profiling. The majority of these are one-off costs which will not be
incurred once the technique has been proven and is verified for implementation. The learning from the SIM
will enable DNOs to select the optimum intervention technique for each constraint.

c) Level of impact on the operation of the Distribution System

Once it has been proved successful, the results of the Project will have a profound impact across all areas of
WPD's business (and, following dissemination, all DNOs' businesses)

• Investment strategy: through the SIM, the Project will enable investment strategy to be set and
tested against a set of internal and external load profile scenarios that reflect different economic,
regulatory and customer behavioural outcomes. Performing such sensitivity analysis will facilitate a
better understanding of investment trigger points which can then be used to revise strategies in the
light of changes in future demand.

• Investment planning: the SIM will provide network planners with better visibility of current and
future
11kV constraints and predict how these constraints may change under different load profile scenarios.
Through the SIM, the Project will allow network planners to model multiple techniques and
combinations
of techniques for alleviating these constraints, comparing each solution against a common set of
evaluation criteria in order to determine the optimal solution. As a follow on to this project, and subject
to further investment in the SIM, we envisage other DNOs adopting the new guidance and design rules
that are a key deliverable and success criteria for the Project, and we also envisage other DNOs
adopting SIM use for network planning.

• Network operations: of the intervention techniques trialled within the Project, two of these
techniques
will require active management. To reduce the impact on customers we have introduced a trials
network
manager which is separate from the existing operational network management platform. The
operational network management platform will take priority and can override the network management
platform at any point to ensure that supply to customers is not impacted during the trial phase of the
project.

• Payments and settlements: the two commercial techniques will require development of new
contracts and payment terms. Response to DG/DSM calls will need to verified and appropriate
payments made, depending on the contracts put in place.
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d) Generates knowledge that can be shared amongst all DNOs

The Project will deliver incremental learning in a number of areas:

• It will enable DNOs to compare the relative merits of a variety of different alternative techniques or
combination of techniques for solving network constraints by applying a common set of evaluation
criteria (previous trialling having concentrated primarily on evaluating the effectiveness of a single
technique).

• It will allow DNOs to test the relative effectiveness of technical and commercial techniques in solving
the
same network constraint.

• It will allow DNOs to stress test their 11kV investment strategies by comparing their effectiveness
under
a range of different future load profiles that reflect varying economic, regulatory and customer
behavioural outcomes.

• It will provide insight into current and future constraints on the 11kV network, an area of the grid which
has, to date, had little or no monitoring.

• It will evaluate the use of existing settlement data in modelling secondary substation and LV feeder load
as an input to power flow modelling. It will also evaluate the use of revised settlement profiles in
generating future load profiles based on varying degrees of uptake of low carbon technology, validating
these profiles against real metered profiles for areas with installed low carbon technology by leveraging
WPD's existing LV Network Templates 2010 LCNF Tier 2 bid (WPDT2001).

• It will deliver new learning from the six technique trials such as the use of mesh networks in suburban
and rural areas, the use of automated load transfer, DSM and DG in a proactive, pre-fault manner to
improve power flows rather than the more traditional reactive, post-fault rectification mode and the use
of a highly innovative new battery technology.

• It will inform deployments of secondary substation metering based on the results of the evaluation of
existing settlement data in power flow modelling. The Project will provide a quantitative assessment of
the accuracy of aggregated settlement data by comparing this with load data metered at secondary
substations. Depending on the accuracy of the load profiles derived from existing settlement data,
meter deployment can be targeted in areas of constraint, thus focusing investment where it is most
needed.

• Finally, the Project will generate learning that extends beyond the DNOs. The results of the comparison
between estimated and measured substation demand will enable assessment of the accuracy of
settlement profiles and feed into the work of the Profiling and Settlement Advisory Group that is
debating
the future of non-interval settlement in light of the mandated rollout of smart metering.

e) Involvement of other partners and external funding

Logica (Project Partner)

Role: Project support functions of overall project together with specialist roles such as Quality and Benefits
Management. Logica will also provide assistance obtaining and processing existing settlement data
provided to generate half-hourly load profiles at secondary substations and, potentially, LV feeders. Logica
is also an implementer of DPLAN, one of the network modelling tools being considered for the SIM.

Credentials: Logica currently programme manages UKPN's 2010 Tier 2 Low Carbon London project, having
previously helped UKPN in the design and bid for the project. Logica combines deep industry experience
(based on long involvement at the heart of the GB utilities market) with a proven track record for delivering
complex programmes and projects to time and budget (e.g. 1998 settlement systems, NETA, BETTA etc.).
Logica designed, developed and has operated for the past ten years, the ELEXON settlement systems which
will be required to calculate substation load profiles from existing settlement data. Logica has also
implemented DPLAN for EDP in Portugal as part of their EU-funded InovGrid project.
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Aston University (Project Partner)

Role: Construction of the simulation harness for the initial defined network incorporating six primary and
two hundred secondary substations which will be used to simulate the six specified technical and
commercial intervention techniques.

Credentials: Aston University has a strong track record of engagement with the power industry. It has
current CASE and KTP Projects with WPD (East), including an ongoing project investigating meshed
networks, and a further CASE Award with Alstom Grid.

Cranfield University (Project Partner)

Role: Cranfield University, through its IVHM Centre, will lead the design and build of the SIM, a computer
simulation of the 11kV system that will include visualisation.

Credentials: Cranfield University has extensive expertise in the construction of simulators. They have
provided the technical know-how to diverse projects such as Unmanned Combat Air Vehicles through to a
complex science investigation into the concepts of the Smart Grid using agent-based modelling to address
energy supply and usage issues.

University of Bath (Project Partner)

Role: The University of Bath will lead the knowledge capture, dissemination and customer engagement
within Project FALCON. The University of Bath will also be responsible for modelling the commercial
techniques within the SIM.

Credentials: The University has significant experience in engaging with DNOs and the power sector in a
variety of power and low carbon related projects. They have been involved in a significant number of
relevant large projects across the 132kV, 33kV, 11kV and LV distribution networks. They are currently
managing knowledge dissemination for WPD's LV Network Templates 2010 Tier 2 project (WPDT2001), are
proposed to perform this role on WPD's BRISTOL 2011 Tier 2 project (WPDT2003) and will bring this
experience to bear on FALCON. In its dissemination management role, Bath will also manage the Open
University who will provide dissemination services through their award winning public engagement internet
operations.

Cisco (Project Partner)

Role: Cisco will be responsible for the design and supply of the communications infrastructure required to
remotely monitor and control the substations involved in the FALCON technical intervention techniques.
They will also be responsible for cyber security testing of the communications infrastructure.

Credentials: Cisco has worked with several utilities to provide IEC 61850-compliant substation
communications architectures. They have experience of delivering standards-based, secure and scalable IP
architectures for substation SCADA including a project for Duke Energy, one of the largest electricity
companies in the United States.

ELEXON (Project Supporter)

Role: ELEXON will assist in obtaining the customer settlement data to be used to build substation load
profiles for modelling purposes. They will also provide access to the systems required to process and
aggregate this data to specific substations/HV feeders.

Credentials: ELEXON delivers the Balancing and Settlement Code (BSC) and the services that underpin the
successful operation of Great Britain's electricity trading arrangements.
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ElectraLink (Project Supplier)

Role: ElectraLink will be responsible for the development of enhanced customer load profiles based on
physical and demographic characteristics of residential and non-domestic properties, including uptake of low
carbon technologies such as electric vehicles, heat pumps and photovoltaic cells.

Credentials: ElectraLink has managed the Data Transfer Service, a network central to the GB electricity
retail market since 1998. ElectraLink's subcontractor (Katalysis) has an extensive background in the data
sources required for this modelling and have recently supported the Department of Energy and Climate
Change (DECC) in the development of its National Energy Efficiency Data Framework, a project set up to
develop DECC's understanding of energy use and the impact of energy efficiency measures. This framework
brings together energy consumption data at property level and matches this with property attribute data
and records of energy efficiency measures installed and will form the basis for the new profiles that
Katalysis will produce.

GE (Project Supplier)

Role: The design and supply of Energy Storage Systems (ESS) for distribution level electrical installations.

Credentials: GE has a proven track record of innovative installations and safely working in distribution
substations globally. Given the innovative nature of the technology, there are no case studies for ESS,
however GE's new batteries last up to 10 times longer than traditional backup storage systems, need little
maintenance, produce no toxic chemicals, are recyclable and have remote monitoring capabilities.

Milton Keynes Council (Project Supporter)

Role: As a Project Sponsor, Milton Keynes Council will be stimulating targeted initiatives throughout the
borough where the effects of monitoring and interventions can be seen and measured. They will also help
facilitate discussions with prospective DG/DSM providers.

Credentials: It is our belief that by involving a major Borough within the WPD region demonstrates the
local commitment to FALCON and furthermore demonstrates the Council's commitment to their carbon
reduction programme. This is evidenced by their Low Carbon Living Programme and their ambition to be an
exemplar to their community.

Alstom (Project Partner)

Role: Alstom will be responsible for the development of the dynamic asset management, automated load
transfer and meshed network. They will undertake protection design, equipment and trials network platform
supply.

Credentials: Alstom is a global leader in power transmission design, development and equipment supply

JRC (Project Supplier)

Role: JRC will provide radio planning and frequency allocation for the telecommunications infrastructure.

Credentials: The JRC have for many years provided radio frequency management and planning to several
DNOs and National Grid.
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4: Evaluation Criteria contd.

f) Relevance and Timing

FALCON is focused on identifying and solving constraints on the 11kV network in the most cost-effective
and timely manner possible. Since the 11kV network is not currently monitored, the degree of headroom
within this area of the grid is not well understood. It is, therefore, difficult to be definitive regarding the
imperative for gaining visibility of the 11kV network. However, there is justification for doing this sooner
rather than later to inform the 11kV investment strategy. If there is found to be more capacity in the 11kV
network than previously thought, this will allow investment to be diverted to more constrained areas of the
network; if there is found to be less capacity in the 11kV network than previously thought, this will reduce
the risk that 11kV constraints hinder the uptake of low carbon technologies and potentially extending 11kV
asset life spans.

Assuming that the Project's use of existing settlement data proves to be a valuable tool in assessing the
state of the 11kV network, this offers the DNOs the prospect of obtaining an initial insight into the state of
their 11kV networks via an office-based exercise involving no field deployment of assets. This enables a
national 11kV “health check” to be rapidly performed and the results used in subsequent planning for the
low carbon technology transition.

One of the first deliverables will be visibility of the current and likely future state of the selected 11kV
network. This will enable investment in general reinforcement of the 11kV network (£3.7m and £2.7m,
respectively between WPD East and West networks) to be better targeted or, possibly, deferred if there is
found to be sufficient capacity within the existing infrastructure.

The imperative for evaluating and comparing multiple alternatives to traditional 11kV network
reinforcement is dependent on the current and predicted future state of the 11kV network, something that
will be understood once we have delivered our first network model. However, current experience of the
2010 LCNF Tier 2 projects has highlighted the sensitivity of low carbon technology uptake to economic,
regulatory and customer behavioural influences, reinforcing the need for testing network investment
strategies against a broad range of future demand profiles, an ability that we will deliver.

The project spans four years and we are planning dissemination of learning throughout the life of the
project, focusing specifically on influencing the ED1 submission. We have also started discussions with
Ofgem to explore the means by which the phased learning will be made generally available to influence ED1
submissions.
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4: Evaluation Criteria contd.

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4: Evaluation Criteria contd.

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4: Evaluation Criteria images, charts and tables.

Evaluation Criteria Images

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Section 5: Knowledge dissemination

Put a cross in the box if the DNO does not intend to conform to the default IPR requirements

Knowledge capture and dissemination

New knowledge will be delivered in the form of a SIM. This will determine the best combination of technical
and commercial techniques for managing a wide range of current and future network scenarios. Knowledge
capture and transfer are vital to this project because it must provide GB with evidence for the future
planning of investment in the electricity grid. In particular, DNOs and power companies not directly involved
in FALCON need to be able to learn from the project and effectively employ its models, methods and
insights in the planning and development of their own 11kV networks. The Project will also work best if it
can capture knowledge from network trials that are completed or currently underway.

Knowledge capture
To maximise the value of the knowledge generated by the Project it must be properly recorded, stored,
effectively shared with the right parties, resulting in appropriate learning and behavioural change. For
these reasons, it is vital that a robust plan exists, in advance, for capturing and sharing new knowledge with
key stakeholders and other interested organisations. Knowledge will begin to be generated very shortly
after the inception of the project; it is therefore vital that our plans allow early capture and dissemination.

In Appendix G, we have listed a number of methods, tools, and systems for capturing, analysing and storing
knowledge produced by the project, leading in turn to to a number of outputs (e.g., technical reports,
papers and manuals). Our approach is based on practical experience of applying these methods by the
University of Bath and the Open University (OU) in projects such as E.ON/EPSRC Transition Pathways to a
Low Carbon Economy, MK Electric Vehicle plugged in places programme, and Department for Transport
behaviour change work.

To ensure quality, outputs of the project will be audited. Our intention is to use a review panel of
independent experts to review outputs to ensure that they are accurate, understandable and fit for purpose
(we are in the process of approaching such people as Professor Raj Aggarwal (University of Bath), Phil
Bowley (ex-Manager of Electronic Controls & Instrument group at RWE NPower, now independent), John
Scott (Chiltern Power Ltd), David Tolley (ex-Commercial Director NPower, now independent)). The team
also need to capture inputs through feedback from stakeholders and from other LCNF Tier 2 funded projects
and other ongoing projects. We have identified four existing LCNF Tier 1 projects (EDFT1002, EDFT1001,
SSET1001, SSET1003) and three existing Tier 2 projects (CET2001, EDFT2001, WPDT2001) with which we
would benefit from sharing learning.

Key knowledge capture outputs

The new knowledge that will be generated about the 11kV network can be used to inform other LCNF
projects and RIIO ED1 framework. Some of the key outputs to be captured and disseminated are, in
chronological order:

− Settlement/metered data comparison: initial results from comparing substation/LV feeder

aggregations of existing settlement data with load profiles from substations metered as part of WPD's LV
Customer Network Templates 2010 LCNF Tier 2 project.
− Final trial design - captured in a set of Use Cases which define exactly what is to be trialled on the
network and modelled within the SIM. This will be published in a report containing proposed technical
solutions, associated benefits cases for each solution and initial outputs from modelling these solutions
(comprising both individual and combined techniques) using network data.
− Outputs of modelling intervention techniques within the SIM - including analysis of network data
and the superimposed load growth scenarios. This will be published as a technical report, supported by
the SIM itself and additional technical design manuals and user guidance.
− SIM investment plan - using the outputs of the developed model to simulate 11kV investment for a
range of demand scenarios. The results of running the model will be published.

Key audiences
The outputs need to be delivered to a number of audiences. The motivations, knowledge, needs and beliefs
of each of these audiences will be different. As a result the content of different outputs must be tailored to
audience needs. The dissemination team has identified four main audiences which must be reached:
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5: Knowledge dissemination contd.

1. DNOs, UK government, regulator and equipment manufacturers - this audience re
detailed interaction so that they are able to use the outputs of the project to inform
investment decisions for the network, inform their other ongoing projects, support future
development, and inform RIIO ED1 decisions. Dissemination will be primarily through spec
workshops, training sessions, and ENA LCNF conferences. Examples of where this approach has
undertaken successfully are in disseminating of outputs from the Long Run Incremental
methodology by the University of Bath and the Open University's provision of training mater
the Energy and Utilities sector.

2. Industrial and commercial customers and distributed generators - the benefits realise
experience gained from participation in the demand side and distributed generation trials need
disseminated to other parties who may be able to support similar commercial techniques
dissemination to this audience will draw in particular on learning from the Milton Keynes Low C
Living Programme.

3. Academia - this group will benefit from the approaches and models being developed and the
time network data available for the 11kV network. All the academic partners have long experie
partnership working and joint publication and well know how to communicate to this audience.

4. General public / schools - although the project is focussed on the 11kV rather than t
network, the general public would benefit from messages about energy use, energy efficiency,
network development and lower energy lifestyles that can be distilled from the outputs of FA
This will draw on planned dissemination in the BRISTOL project led by the University of Bath a
the Open University's expertise from their involvement in the Milton Keynes Low Carbon
programme, which showed public engagement through mass and web-based media an
engagement of users of low carbon domestic technologies.

Dissemination methodologies
A comprehensive list of the dissemination methodologies to be undertaken with the different audien
given in Appendix G. The project will use traditional media such as interactive workshops, conference
training sessions combined with newer and electronic media to communicate to the various audience
key dissemination events are illustrated in the figure at the end of this section and described in more
below:

• DE1: Month 0-3: Two-day workshop with all LCNF Tier 2 funded and related Tier 1 projects req
to attend. A similar workshop was undertaken by the CE Electric Customer Revolution P
funded under LCNF 2010, and represents an example of good practice that can be replicated
purpose of this workshop is threefold: 1) to outline the project, intended outputs, methodologie
data gathering to be undertaken; 2) to gather feedback on the detailed synergies with
projects, showing where information can be shared, additional validation undertaken and kno
transferred - thus avoiding any duplication of work; and 3) to provide an early opportunity
projects funded under LCNF 2011 to engage with each other. This could be jointly organise
Project BRISTOL and the LV Network Templates project. This workshop will form a key part
market research to inform the final version of the communications plan to different
stakeholders.

• DE2: Month 6-9: workshop to share the outputs of the final trial design and identified 11kV ho
(from LV network template trial) with other DNOs / LCNF project partners, to highlight where w
developing learning that informs their work, and to receive feedback. This would be a fol
workshop to the above, allowing the FALCON team to feedback to the other DNOs and LCN
changes of scope resulting from the initial “show and tell” workshop.
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5: Knowledge dissemination contd.

• DE3: Month 15 - combined workshop with the LCNF LV Network Templates project to deliver
of the modelling validation, the outline customer templates, and associated methodologie
addition, DNOs begin to identify areas of their own networks on which data could be collecte
methodologies applied. Project partners from all LCNF Tier 2 projects funded in 2012 will be
to identify further synergies with other projects. The outputs from FALCON and from this wo
could be used by Fast and Non-Fast Track DNOs to inform submissions to RIIO ED1.

• DE4: Month 24 - workshop to present the analysis of the network data through the Sc
Investment Model and the outputs of the simulations of the intervention techniques to DNOs, O
UK Government and other LCNF project partners. The presented outputs of this workshop and
technical reports could be used to inform proposals of DNOs not selected as “fast track” into th
ED1 framework.

• DE5: Months 33-45: Workshops with DNOs and Government to explore how the SIM can
network investment and policy. Through these engagements the FALCON team will elicit fee
from stakeholders. Outputs from these meetings and workshops will be captured within the
outputs, technical papers, and a final report.

• DE6: Month 45-48: Final project symposium to share outputs from SIM with stakeholders
workshop will be used to disseminate all the findings and outputs of the project.

Track record
The knowledge capture and dissemination will be led by the University of Bath in conjunction with the OU.
Bath has a long-standing track record with WPD is currently leading the dissemination within the
LCNF Tier 2 LV Network Templates project. Bath is also the nominated dissemination partner for
2011 LCNF Tier 2 BRISTOL project. The University of Bath plans to co-ordinate dissemination across
three projects to provide a single channel for communication to stakeholders thus simplifying dissem
and maximising value-for-money to the customer.

Similarly, the FALCON project will benefit from the stakeholder database, secure server, workshop m
and the experience gained from the dissemination activities currently underway in the LV N
Templates project. FALCON can also benefit from the school engagement planned within the BR
project. Consequently, dissemination activities within FALCON can be developed more efficiently an
effectively than if starting from scratch. The dissemination activities will be co-ordinated by Dr Ian W
currently project mentor for a Department of Transport knowledge capture and dissemination projec
University of Bath is one of the UK's leading research institutions and has outstanding resources, ex
and experience in industry collaboration and knowledge gathering that will support this project. Of pa
note is the learning gained from Bath's many previous energy projects, not least Dr Furong Li's O
endorsed work.

The University of Bath will work in conjunction with the OU to utilise their innovative dissem
methods. The OU is an internationally renowned as a distance learning university and has conducted
standing research programmes on the influence of behavioural factors upon housing energy effi
Since 2009, the OU has been working on activities for the Milton Keynes Low Carbon Living progr
drawing upon their outstanding expertise in public engagement through mass and web-based media, a
their specific experience in engaging users of low-carbon domestic technologies. For example, the O
hosted user workshops in connection with the MK Electric Vehicle programme, produced an e-new
and supported the programme's website and data repository development. The architectures for e
these delivery elements are readily transferable to the dissemination of FALCON. The OU has experie
working with industry sectors, including the energy and utilities sector, to provide interactive t
materials, including the energy and utilities sector and award-winning public engagement in
operations, e.g., OpenLearn, OU's iTunesU pages, OUverte and its Elluminate platform for
conferencing.

IPR Status

We conform with the default IPR requirements.

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5: Knowledge dissemination images, charts and tables.

Knowledge dissemination images

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Section 6: Project readiness

Requested level of protection require against cost over-runs (%). 5%

Requested level of protection against Direct Benefits that they wish to apply for (%). 50%

How can we ensure a timely start to the project?

Senior management commitment

WPD board directors have been fully engaged in FALCON, from project inception and throughout the entire
bidding process. WPD board directors have obtained commitment from the directors of Pennsylvania Power
and Light, WPD's owners. This senior management engagement and commitment has been extended to our
partner organisations and we are confident that this level of internal and external commitment will continue
post bid submission and throughout the project lifecycle.

Our proposed governance model includes a Partner Forum comprising key stakeholders and decision makers
within WPD and our partner organisations. The Partner Forum will be responsible for ensuring that FALCON
achieves its stated Successful Delivery Reward Criteria (see section 9). Our chosen partners have all
committed to attending this forum, as evidenced by the letters of support contained in Appendix H.

WPD internal engagement

Pre-acquisition, WPD and Central Networks (CN) had individual visions of low carbon and sustainability.
Upon acquisition, it transpired that these were complementary. We now have a joint vision, reflected in a
single Future Networks Programme. The alignment of the vision, programme and teams mean the
Programme has more resource to develop and deliver innovative low carbon projects.

During the bid key internal stakeholders have been identified and actively engaged to ensure successful
project delivery. The key project roles have been defined in Appendix D figure 4.

WPD is currently delivering two of the four winning 2010 LCNF Tier 2 projects. The experience gained
through this will help to ensure that FALCON achieves a timely start and is delivered successfully.

Project readiness considerations

In planning this project, we have focused on what is required to achieve a timely start. In particular, we
have considered the following key areas:

• developing a robust project plan;

• seamless transition from bid to delivery;

• clear governance model;

• experienced and capable project team;

• partner engagement;

• customer engagement;

• project logistics;

• learning from 2010 projects.

Project Plan
With the support of our partners we have developed a high level milestone plan supported by a detailed
Project Plan. The high level plan and a snapshot of the detailed plan contained in Appendix D, figures 1 and
2. This establishes a strong foundation for detailed design activities to take place in a timely manner.
The full detailed plan can be provided upon request.
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6: Project readiness contd.

Key early activities include:

• finalising the detailed scope with our partners;

• initiating the banking arrangement process;

• confirming the formal appointment of the Project Manager, Project Team members and the Technical
Design Authority.

In parallel to a detailed plan we are actively managing the risks associated with the Project, a snapsh
the latest risk register is shown in Appendix D, figure 3.

Early engagement with partners, particularly in the planning stages, has been vital to gaining a com
understanding of the aims and objectives of FALCON and the roles and responsibilities of WPD and
partners for achieving these. This open approach has also led directly to the creation of the Partner F
and, from our experience of working on other LCNF projects, will be a key factor in the successful de
of the project.

Seamless transition from bid to delivery

In order to ensure a timely start to the project, key members of the bid team will move into the pr
delivery phase, thus ensuring continuity. This approach will mitigate the risk of knowledge gaps and
on the partner relationships that have been forged during the bid process. This approach will als
adopted by Logica, our project partner designated to provide project support, who intends to retain
project and technical expertise that has been deployed on the bid on into the delivery stage.

Governance model
WPD's strong internal senior management oversight and reporting regime will ensure the Proje
monitored and governed appropriately.

A Project forum will provide for external parties to provide peer group input and to be updated on
progress of the Project.

Experienced and capable project team

We have engaged Logica as our partner in the development of the bid with the intention of combining
extensive experience and capability in successfully delivering large, complex projects to deliver the Project.

As evidence of this capability, we have included below recent examples of successful projects which
been delivered by the WPD and by Logica:

WPD - GIS data capture and data upgrade

This was a complex data capture and data update project, which realigned over 17 million
records. Production commenced in Sept 2007 with 182 Rolta staff based in Mumbai. The project
over £7 million and at its peak used over 350 staff in India as well as support from of approxim
220 other staff. It was delivered to time and budget.

WPD Network Innovation projects

We have successfully delivered the first UK Registered Power Zone (RPZ), which has been w
acclaimed. This used the innovative method of “Dynamic Asset Rating” on the 132 kV circuits into
RPZ, allowing connection of new generation more quickly and at lower cost. The learning from
project will be used in developing the Dynamic Asset Rating technique for the 11kV system. We
also on track with delivering two out of the four winning 2010 LCNF Tier 2 projects, namely
templates and Low Carbon Hub.

Logica- Police National Database - This is an example of a large scale, complex project with
visibility to the general public. In April 2009, the National Policing Improvement Agency (N
awarded Logica a £75.6 million contract over seven years to design, build and operate the P
National Database (PND). This was recently successfully delivered with a number of partners incl
Northgate Information Solutions (NIS) and SunGard Public Sector (SPS).
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6: Project readiness contd.

Partner engagement
We have been working with our partners since March 2011. We selected our partners through a structured
Request for Information (RFI) process prior to the Initial Submission Process (ISP). The RFI process
included an evaluation which was finalised on 4th April. This process laid the foundation for a clearly defined
work share with clearly defined terms of reference for each partner.

During the period April to July, working under signed NDA agreements, we conducted a series of
clarification question and answer sessions to refine both project scope and work share. On completion of
these sessions, we held an all partner workshop confirm overall awareness of the project, the individual
trials and each of the partner's roles. Based on this common understanding, we put in place individual
Memorandum of Understandings (MoUs) with each of the partners during August, all of which have now
been agreed.
Throughout this process we have been cognisant of the need to ensure consistency, transparency and
openness in order to get all partners aligned.
The work share and individual scoping documents have been refined with all parties along the way and now
have full agreement. This ensures alignment with project objectives as well as a partnership approach to
planning.

Customer engagement
Over the last year, we have engaged with ten Industrial and Commercial customers in the areas where the
network trials will be conducted. These include customers such as: Thameswey (the local heat and power
operator for parts of the central business district of Milton Keynes), Santander (banking group) and
Dominos (food manufacturer). These customers have indicated their willingness to participate in demand
side management and distributed generation trials.

Project logistics
We have been working as a co-located team since March 2011. We believe that co-location of resource
from the different project partners has been instrumental in producing this bid and therefore we would look
to continue this approach throughout the project. A suitable project space has been identified in the WPD
Milton Keynes offices and will be made available should this bid be successful.

Learning from 2010 projects

Our LCNF Tier 1 Programme and existing Tier 2 projects, LV templates and Low Carbon Hub have provided
FALCON real insights into the intricacies of delivering large scale LCNF projects. We have coupled this
learning with that of Logica's in their programme management role on UKPN's 2010 Tier 2 Low Carbon
London project to produce what we believe is a comprehensive set of insights to embed into and improve
our project.

How we have estimated our costs and benefits?

We have undertaken a bottom up approach to building the cost model and top down reviews to ensure
sensible cost apportionment across the project. During the bid development phases and through the RFI
process, we have spent time with partners agreeing scope and work break down structures. This enabled
the partners to generate detailed costs based on the scope. The costs have undergone rigorous review by
both the bid team and the WPD Central Finance team. During the reviews, duplicated scope and the
associated costs have been identified and eliminated where appropriate.

Benefits
We have based the benefits on the projected HV investment as identified in the Imperial College/ENA
Summary report on “Benefits of Advanced Smart Metering for Demand Response based Control of
Distribution Networks”. This report identified a number of scenarios based on varying levels of low carbon
technology penetration and the consequential investment required. In calculating the benefits of the Project,
we have taken the Base Case Cost as the traditional reinforcement investment for the 11 kV system based
on the 50% penetration scenario. Details of how the benefits of the Project have been calculated are
contained in Appendix F.
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How will we minimise the possibility of cost overruns or shortfalls in Direct Benefits?

Costs have been estimated with the greatest level of accuracy and granularity as practicable at the time of
bid submission. Based on the level of rigour we have applied to reviewing the cost model, we believe the
possibility of overrun is minimal. To eliminate the possibility of cost overruns or shortfalls in Direct Benefits
we will:
− implement strong governance;

− reduce uncertainty in the project at an early stage;

− implement risk management processes; and

− ensure costs are controlled.

Implement strong governance: WPD senior management will set project tolerances during the Project
initiation phase against which progress will be monitored throughout the Project lifecycle.

Reduce uncertainty in the project at an early stage: It is essential to identify as many potential risks
to cost overrun and shortfalls in Direct Benefits as possible: understand their likelihood; causes and impacts
so that appropriate mitigations can be planned. We have already started this process as evidenced from the
project delivery risks listed in Appendix D, figure 3. A very relevant example of our early use of the risk
register relates to risk FAL001 on the risk register. Earlier on in the bid phase, during the WPD acquisition of
Central Networks, the risk associated with resourcing the project team was given a high probability due to
the organisational uncertainty. However, the risk register is a live document and is continuously updated.
At the time of bid submission, WPD senior management identified and committed project team resources
and appointed the project manager. External resources were committed from our partner organisations,
(now captured in the form of an MOU). As a consequence of these actions the probability of resources not
being available at the time of bid submission was substantially reduced.

We recognise, however, that risk management is iterative and we will continue to monitor, identify and
mitigate risks as more information becomes available. We would anticipate the number and severity of the
risks to diminish as we move from project initiation and mobilisation into solution design.

Implement risk management processes: Every risk will be assigned a specific owner based on the risk
rating and the individual's ability to manage the risk. It is their responsibility to monitor the possibility of
the risk occurring and implement the mitigation plan, if required. Through regular project team meetings
and reporting, the Project Manager will be able to monitor the likelihood of the risk occurring and escalate,
where appropriate, to WPD senior management.
Ensure costs are controlled: Quantitative risk assessments will conducted by the Project Accountant.
They will ensure that all aspects of project financial control are implemented and adhered to throughout the
project lifecycle. The appointment of the Project Accountant will strengthen the financial controls applied to
the project.

How can we verify all the information contained in this proposal?

All data relating to the WPD network used in this proposal has been downloaded from operational
information and is as used in the regulatory returns. Current 11KV investment of £3.7m for WPD's East
Midlands network has been taken from WPD's 2010 business plan.

Base Case Costs

Base Case Cost data has been sourced from the joint Imperial College/ENA study `Benefits of Advanced
Smart Metering Demand Response Based Control of Distribution Networks' (version 2.0, 07 April 2010).
Specifically, the anticipated cost of 11kV investment based on traditional reinforcement has been taken
from the 50% low carbon technology penetration scenario. This is an industry-accepted and peer-reviewed
document.
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6: Project readiness contd.

Hardware costs

To obtain costs for the hardware to be deployed in the project, we have issued a Request For Information
(RFI) to a number of vendors with whom we have subsequently held detailed one-to-one discussions to set
out the objectives of the trials and gain a better understanding of their products. As part of this process,
we have requested and received case studies of previous installations.

The switchgear proposed for implementation of the automatic load transfer trial has been through the
Energy Networks Association (ENA) Switchgear Assessment Panel. Similarly, the protection relays proposed
for the implementation of the mesh network trial have been assessed by the ENA Protection Assessment
Panel. The dynamic asset management trial has been designed based on experience gleaned from previous
LCNF and IFI projects for overhead lines and transformers.

Environmental data

We have calculated the anticipated CO2 emissions savings resulting from a national rollout of FALCON based
on the Ofgem LENS `Big T&D' scenario. Appendix J gives full details of the assumptions and data sources
used in our calculations.

Future verification

In order to further verify and refine the information we have used in developing our project, we have built
into our plan a number of key processes and gateways. During the design phase, as described in our plan
contained in Appendix D, we have included activities which allow us to conduct peer reviews of the
information. Following these peer reviews, we will hold gateway reviews which are decision points for
determining whether the project should proceed based on the current information or whether more
information is required prior to continuing.

Our project team includes the role of an independent Technical Design Consultant. Part of this role will be to
consider and review all the information used in the project from the perspective of verifying this before use.
We have also included within our proposed project management office a Quality Assurance role. Part of this
role will be to ensure all quality controls are applied correctly in a timely fashion and the results are
recorded and circulated to appropriate parties.
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6: Project readiness contd.

How will we identify the circumstances under which the Project should be halted?

In order to ensure that the project proceeds smoothly, the project contains gateway reviews at critical
stages in its lifecycle, which are clearly indicated in the Project Plan.

The aim of gateway reviews is to assess whether or not the project can progress successfully to the next
stage. They provide assurance that the project is on track and being run in an efficient and cost-effective
manner and give further assurance to stakeholders and project team members alike that the project can
proceed.

The gateway review is a snap-shot at the point at which the review takes place. As such, recommendations
are based on the documents provided and the review process is intended to be supportive and forward
looking.

WPD senior management, with the Project Manager will:

− review the project plan, cost model and RAID log;

− review the output of the phase;

− assess them against the Successful Delivery Evaluation criteria; and

− ensure that the best available skills and experience are deployed on the project.

WPD senior management will review and agree the risk level associated with the project and assign a status
as outlined in Table 1 at the end of this section: Delivery Confidence Assessment.

They will then provide the Project team recommended actions. Actions fall in the following categories:

− Critical (Do Now): to increase the likelihood of a successful outcome, it is of the greatest importance
that the project should take action immediately;

− Essential (Do By): to increase the likelihood of a successful outcome, the project should take action in
the near future. Whenever possible, essential recommendations should be linked to project milestones
and/or a specified timeframe;

− Recommended: the project would benefit from the uptake of this recommendation. If possible
recommended actions should be linked to project and/or a specified timeframe;

− Halt the project: the project has exceeded the tolerances set and agreed at project initiation and the
situation is deemed to be irrecoverable. The Project is to be halted and WPD senior management will
contact Ofgem to discuss and agree the way forward.

We believe that this approach will give all the parties involved clarity and consistency from the outset.
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6: Project readiness images

Project readiness Images

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Section 7: Regulatory issues

Put a cross in the box if the Project may require any derogations, consents or changes to the regulatory
arrangements.

At this stage we do not believe that the Project will require any derogations. In arriving at this conclusion,
we have specifically considered the three areas which gave rise to derogation requests in last year's LCNF
Tier 2 bids, namely:

• derogation from ER P2/6 (SLC 24) for reduced security level;

• derogation from SLC 13A.18 for relief of obligations under SLC 13A.1 to 13A.4 (obligation to comply
with Common Distribution Charging Methodology (CDCM);

• relief from Interruption Incentive Scheme (IIS) for planned outages.

We discuss the rationale behind our conclusion for each of these areas below.

• ER P2/6 (SLC 24): in selecting our trial area, we have deliberately avoided areas of the network that
are already designated for DCPR5 reinforcement.

• SLC 13A.18: we are not planning to alter the current DUoS charging methodology for any customer
within the trial area. This includes those customers actively participating in the two commercial
intervention techniques (distributed generation and demand side management). The payments that
these customers will receive in connection with their participation will be made independently of their
DUoS charges, thus, we do not believe a derogation is required.

• Relief under IIS: the Project will necessitate installation of monitoring equipment on the network.
Although every effort will be made to minimise impact on the customers during this installation (see
section 8), some customer interruptions (CI) may be unavoidable. We currently estimate that CI will be
required for 50% of the 200 secondary substation installations required, affecting approximately 10,000
customers in total. We estimate that the customer minutes lost for each affected customer will be
approximately 120 (i.e. 2 hours). Based on these estimates, the protection of £125k has been
calculated as shown in the table. This sum has been included in our project costs, accordingly.

In addition to the three areas listed above, we have also considered the wider implications of the Project but
have not identified the need for any other derogations.
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7: Regulatory issues contd.

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7: Regulatory issues images, charts and tables

Regulatory issues images

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Section 8: Customer impacts

The greatest impact on customers will be in providing lasting customer benefits which are outlined in
section 3, the benefits section of this document. In describing the impact that the Project will have on
customers within the trial area, it is useful to segment the customer base into groups:

1. all customers;

2. existing 11kV customers with controllable generation or load;

3. new 11kV customers.

The impact on each of these segments is described below.

1. All customers

National Energy Efficiency Data Framework

Part of the learning that the Project will deliver is the ability to model future demands on the network based
on various different customer uptakes of low carbon technology. To do this, we intend building on the work
already done by DECC in their National Energy Efficiency Data Framework, an initiative to develop
understanding of energy use and the impact of energy efficiency measures. This will include a continuation
of the customer engagement used within this programme to which Katalysis, one of the contributors to the
Project, has been an instrumental part. We will also look to draw on the experience of the Open University
such as the user workshops they ran in connection with the Milton Keynes Electric Vehicle Programme
plugged in places and the customer engagement strategies they have developed including their award-
winning public engagement internet operations such as OpenLearn, iTunesUpages, OUverte and their
Elluminate platform for virtual conferencing. Only those customers who agree to participate in the Katalysis
trials will be impacted.

Planned Supply Interruptions

The intervention technique trials will require us to install new equipment on the network. However, we
believe that much of this can be installed with either minimal or no disruption to customers, using the same
techniques that are used every day to minimise the customer impact of planned work. In the case of new
technology (e.g. battery storage), we will look to learn from previous trials (e.g. EDFT1001) and, if deemed
necessary, will first conduct installation trials, including off-line trials on a test network. The learning from
this process will be applied to the detailed connection, technical design, planning and installation of this
equipment.

WPD's LV Network Templates 2010 Tier 2 project has provided a great deal of learning regarding installation
of substation monitoring equipment and, in particular, minimising customer interruptions (CI) and customer
lost minutes (CML). WPD has also recently proposed an LCNF Tier 1 project specifically looking at what
substation monitoring equipment is available on the market and its relative strengths and weaknesses. This
has shown that there is a wide choice of metering solutions available and that choice is a balance of scope
of usage, accuracy required, cost to the customer and customer impact (the installation of more expensive
devices may have less customer impact). The final report is anticipated to be available in time to inform
FALCON.

Based on our experience from WPDT2001 and this subsequent research, we believe that CI as a
consequence of metering installation can be restricted to around 50% of sites (i.e. 100 secondary
substations, equating to approximately 10,000 customers), each customer experiencing an interruption of
approximately 2 hours.

We believe that all alternatives have been considered and that the proposals we have are the best for the
customer and offer the least impact.
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8: Customer impacts contd.

Unplanned Interruptions
We do not anticipate any unplanned interruptions to supply. Should the unforeseen need arise to reduce o
customers' normal level of supply service we will follow our normal business processes of informing them
the impact. Supply disconnection as a result of this project will only be considered as a last resort, followi
utilisation of a switched alternative or temporary generation.

Charging
The impacts on customer charging will, where appropriate, be communicated by the agreed mechanism
Benefits to customers could include reduced connection charges and the potential for reduced DUoS.

Benefits through Automated Load Transfer and Meshed Networks

In the case of customers involved in the automated load transfer and meshed networks interventi
technique trials, we anticipate a small beneficial CML and CI impact.

2. Existing 11kV customers with controllable generation or load

The greatest impact on those 11kV-connected customers who decide to actively participate in t
commercial techniques (DNO control of distributed generation and demand side management) within t
portfolio of alternative interventions that the Project will model and trial. For these customers, th
involvement will span initial engagement, contractual negotiations and business-as-usual participatio
Each of these phases is described in more detail below.

• Ini tial engag ement: in the e arly stages we will confirm candidate customers based on custom
information held by WPD and supplemented with information from our Project Sponsor, Milton Keyn
Council (MKC). MKC has also offered to help facilitate introductions in a series of one-to-one meetin
with candidate customers (we have already held discussions with companies such as Thameswe
Santander and Dominos and have received positive interest in participation in the project).

The purpose of this phase of engagement is to identify a candidate set of participants. However, we w
be equally interested in those customers who decline the opportunity of involvement, to bett
understand the perceived barriers to participation.

• Contractual negotiations: Given our desire to manage constraints on HV feeders, it is highly unlike
that we will have sufficient customers on any given HV feeder to set prices via an auction or competiti
market. We will use our knowledge of traditional reinforcement costs to establish benchmarks to he
with these negotiations. We will then look to establish appropriate bi-lateral commercial agreements
give us access to generator support (technique 5) and demand side management (technique 6). The
agreements will outline the terms and conditions under which we will be allowed to instruct t
generation or load changes or, where appropriate, variations in power factor. The agreements will a
cover practicalities such as submission of forecasts, mechanisms for issuing notifications, the periods
notice that will be given, the form of payments (e.g. capacity and/or utilisation), the value of paymen
to be made We want to be sure that the agreements and procedures we put in place will be applicab
and acceptable to a wide range of generators and commercial customers to enable a wider rollout at
later stage once the value of these commercial techniques has been established.

• Business as usual participation: Once we have contracts in place, we will commence trialling of t
commercial methods. The learning we are looking to gain from this phase of the trial is specifically t
practicalities of using these techniques (i.e. reliability of response, ease of use etc.), its effectiveness as
balancing tool and of equal, if not greater importance, the customer's experience of participation (we w
be looking to the OU to engage with participating customers throughout the trial to capture this in
number of innovative ways).

In order to maximise learning for all DNOs, we will capture the customer's perspective at every stage of t
customer engagement process, from initial engagement through to business-as-usual operation. We w
use this to derive meaningful insights into the best way of working with customers to deliver effecti
commercial techniques.
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8: Customer impacts contd.

3. New 11kV customers

Future new customers connecting to the 11kV network may receive faster and/or cheaper connections if the
connection requires 11kV reinforcement and alternative techniques can be used (we have assumed, for
business planning purposes, that 50% of 11kV constraints will be best alleviated using traditional
reinforcement).

In regard to the connection offer process, for the duration of the Project, new connection offers will remain
based on the existing network reinforcement methodology.
The full value of the project cost for a new connection in the FALCON trial area is to be costed on the
assumption that the trial equipment will be removed, therefore designed in accordance with the traditional
reinforcement strategy. If, at the end of the FALCON project, the benefits borne and technology is suitable
to be left on the network and means that the works quoted for the new connection are no longer required,
then the additional money from the customer will be returned.

We will also make all 11kV customers connecting within the Project trial area, if they have the required
characteristics, aware of the project and the benefits of participation.

Cheaper, faster connections apply equally to new LV customers, if their connection triggers 11kV
reinforcement that can be avoided using one of the six intervention techniques.
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8: Customer impacts images, charts and tables

Customer Impacts images

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Section 9: Succesful Delivery Reward Criteria

Criterion (9.1)
The Scenario Investment Model (SIM) design blueprint will be complete by September 2012 and
a prototype visualisation developed.
Cranfield will lead design workshops to determine the user requirements and detailed functionality required.
Attendees at the workshops will be ElectraLink, ELEXON, University of Bath and WPD. The workshops will
determine aspects such as the database sizing, the data architecture, and the input and output criteria
required. A customer data privacy strategy will be developed. Coding standards, version control and back
up methodologies will be developed. A separate activity will take place to determine the means of loading
measurement data from the 200 trial substations and other available SCADA data. This will include the
design of the Cisco telecommunications network infrastructure. We will have a fully designed blueprint of
the functionality and equipment required for the SIM. At this stage, Cranfield University will have recruited
the development and build team. The design will be reviewed by all the partners and signed off by WPD
Technical Experts and responsible managers and the learning from this phase will be shared with other
DNOs and the wider industry.

Evidence (9.1)
Commercial agreements will be in place with Cranfield University, ElectraLink, ELEXON, University of Bath,
Alstom, Cisco and Aston University by March 2012. Decision made on the required hardware and software
to be purchased. The SIM design blueprint will be documented. A prototype visualisation of the SIM will be
developed and available for viewing. A customer data privacy strategy, data resilience and back up methods
developed and documented. A draft operations manual for SIM will be produced by 28th September 2012,
which will be refined in the subsequent phases. All documents will be stored in the project files and subject
to version control as per the configuration plan.
A comprehensive communications plan detailing knowledge dissemination roles and responsibilities and
activities will be complete. A specific workshop will be held with other DNOs and LCNF project partners to
share the output of the final trials design (Milestone DE2). A FALCON website, e-newsletter and podcast will
be developed and established to disseminate the learning to a wider audience.

Criterion (9.2)
Substation load estimates will be developed based on industry and consumer data (initial report
by September 2012). The effectiveness of using estimates as an alternative to physical
substation monitoring will be established by the project. The SIM will compare the effectiveness of
estimated and measured load data. ELEXON, ElectraLink and Katalysis will establish the estimated
consumptions using total consumption data, and applying new profile curves to determine half hourly
usage. The profile curves will be defined building on work carried out in previous studies by WPD and
others (reflecting drivers such as building heating efficiency and heat loss, economic factors, etc). The
initial load estimates will be developed based on the substations within the WPD LV Network Templates
project. Measured substation data for comparison purposes will be obtained from the telemetry equipment
already installed.
Subsequently the estimated load data will be applied to customers in the FALCON trials area for use in the
SIM. The estimated data will be further refined using measured data from the 200 intelligent substations
later in the project. The effectiveness of using estimated substation load data will thus be determined.

Evidence (9.2)
Data access agreements will be in place with required processes approved for use by ELEXON by 31st March
2012. New customer groups will be defined and estimated demand profile curves developed by 19th
September 2012. By 28th September 2012 a dataset from the LV Network Templates Project data will be
chosen, (based on the new customer groups) to validate the estimated demand profile curves. The data
gathered will enable improved demand profile curves to be developed and further comparative iterations
carried out. An interim report containing analysis results i.e. the applicability of calculated data vs.
measured data, including analysis of error margins and model data validity across network types and time
variations will be shared in October 2012. By 27th September 2013 the estimated demand profile curves will
be applied to the trial area in order to refine the SIM. Real network data will be gathered from the trials and
loaded onto the SIM by 19th September 2014. Demand profile curves will be further refined. A final report
on the effectiveness of using estimates as an alternative to physical substation monitoring will be
disseminated by 30th September 2015 (Milestone DE6)
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9: Succesful delivery reward criteria contd.

Criterion (9.3)
Load scenarios based on a range of low carbon uptakes in the trials area will be created for use
by the SIM by October 2014.
Multiple Load scenarios will be developed reflecting different assumptions for the future values of the
consumption drivers. There will be a minimum of four scenarios but there may be many more. Some of the
scenarios will use similar assumptions to those underlying the load scenarios put forward by DECC and
Ofgem.
UK wide assumptions will be separated into regional values using publicly available data or purchasing
specialist datasets. E.g. economic forecast data will be applied at the lowest level that it is cost effective to
obtain data. The required network design scenario requirements for the SIM will be determined. Scenarios
where the network designs to be tested can not be automatically generated will be identified. Designs will
be created manually and stored as scenarios for use by the SIM.

Evidence (9.3)
Purchase agreements for specialist datasets will be in place.
At least four future low carbon uptake scenarios will be developed and published. Details of the scenarios
and the underlying assumptions will be documented and consulted upon (including other energy network
operators, DECC and Ofgem).
We will share the design scenarios requirements, which will be included within the testing specification.

Criterion (9.4)
SIM built and an updated run will take place to identify network `hotspots' by September 2013.
Cranfield will issue a system design document based on our functional design specification. The hardware
and software to build the SIM will be purchased and Cranfield will commence coding and integration of the
software components. They will agree the system test specification with WPD and load the scenario data,
the industry data and the measurement data. The SIM will then be run in line with the system test
previously agreed.
After the period of testing, an initial run will take place. We will have a better understanding of where the
`hotspots' are in the network now, and the available headroom to accommodate low carbon technologies.
Utilising the forecast scenarios we will understand where the hot spots will be under a series of low carbon
uptakes. This will allow us to confirm a range of investment needs of the 11kV network in the target area.
The learning from this phase will be shared with other DNOs and the wider industry.

Evidence (9.4)
The hardware and software to develop the SIM will have been purchased.
A system design specification will have been developed.
A system test plan will have been created.
The first outputs from the SIM will be available for viewing.
In October 2012,a specific workshop will be held with other DNOs and LCNF project partners to share the
initial identified 11kV `hotspots' from the data obtained from the LV Network Templates project(Milestone
DE2).
The wider learning gained from the Build phase of the project will be disseminated as per the
communications plan.
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9: Succesful delivery reward criteria contd.

Criterion (9.5)
The Engineering Intervention Technique trials 1-4 will be deployed onto the network and the
results loaded on the SIM. The results will be analysed and available for dissemination by
December 2014. Alstom and Aston University will prepare and agree with WPD equipment, resourcing and
deployment specifications for Intervention Techniques 1-3. WPD and Aston University will prepare and
agree a functional specification for substation batteries and agree technical and commercial arrangements
with GE. Alstom and GE will build the key components and WPD will witness factory testing. Key
components will be deployed in the trials area with the Cisco monitoring equipment. A programme of field
testing will take place. Trial data input into the SIM and analysis will demonstrate effectiveness in terms of
time saving, customer service and cost efficiency of the deployment of T1 - DAR onto one primary
substation and 6 11kV circuits; T2 - ALT: three automated load transfers schemes across 6 11kV feeders;
T3 - Meshed Networks: on 6 11kV circuits; T4 - Storage: batteries in 5 distribution substations. The learning
from these activities will be shared with other DNOs and the wider industry. The results obtained from these
trials will be fed into the SIM and further modified trials will be deployed with final results available in March
2015.
Evidence (9.5)
The equipment, resourcing and deployment specifications for Intervention Techniques 1-3 will be
documented.
Functional specification for substation batteries (Intervention Technique 4- Storage) will have been created.
Technical arrangements with GE will be documented and supported by formal commercial agreement.
The results of the field testing, loading the results of the trials in the SIM, and subsequent analysis will be
available and disseminated as detailed in the communications plan.
A specific workshop will be held to present the analysis of the network data by the SIM (Milestone DE4).

Criterion (9.6)
The Commercial intervention technique trials will be deployed onto the network. The results will
be analysed and dissemination by December 2014.
Customers taking part in trialling Intervention Techniques 5 - DG and 6 - DSM will obtain a new revenue
stream. Through these trials we will inform best practice for how DNOs will engage with I&C customers.
University of Bath (UoB) will develop a detailed specification for trials e.g. the amount of demand we would
want to move and develop the customer engagement strategy and propositions. Working with MKC,
customers in the target area will be approached and a commercial agreement negotiated. The energy
retailers of customer's choosing to be part of the project will be notified and invited to be more actively
involved. Through loading the results of the trials in the SIM, we will understand the effectiveness in terms
of time saving, customer service and cost efficiency of the deployment. In addition to the evaluation criteria
outlined above, we will find out how attractive the propositions are with I&C and DG customers. The
learning from these activities will be shared with other DNOs and the wider industry. The results obtained
will be fed into the SIM and further, modified trials will be deployed with final results available in March
2015.
Evidence (9.6)
A commercial agreement will be in place with the University of Bath by March 2012.
A comprehensive specification document detailing Intervention techniques 5 and 6 will be produced i.e.
components and locations of each of the trials.
Use cases detailing the learning requirements and outputs from the implementation of the two commercial
trials.
Commercial agreements with customers will be signed.
The learning obtained from loading the results of the trials in the SIM and their subsequent analysis will be
available and disseminated as per the communications plan.
A specific workshop will be held to present the analysis of the network data by the SIM and the outputs of
the trials (Milestone DE4).
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9: Succesful delivery reward criteria contd.

Criterion (9.7)
Assess the suitability of the Method for mainstream adoption and produce and optimum
investment plan by 30th September 2015.
An optimised future business plan for the trials area will be developed. We will be able to compare this plan
with the results of the updated run of the SIM outlined in criterion 9.4.
We will obtain an understanding of key sensitivities of low carbon uptake rates in a defined area and discuss
these with Ofgem to assist in the design of suitable regulatory mechanisms.
As the intervention technique data becomes available, the SIM will be refined with multiple intervention
techniques deployments and iterations of the SIM.
We will continue to develop the future low carbon uptake data, taking into account latest developments in
government policy and low carbon technology.
The industry data will also continue to be enhanced including the introduction of data smart meter installed
in the trials area.

Evidence (9.7)
Improved industry data will be documented and shared with the industry.
An investment plan will be developed and operational manuals for each intervention technique will be
developed and available for dissemination.
A final report consolidating the learning and the recommendations from the SIM will be developed and
available for dissemination.
Workshops will take place with other DNOs and Government to explore how the SIM can inform network
investment and policy (Milestone DE5)
A final report consolidating all the learning from the project will be produced. This will include
recommendations for follow on projects, if appropriate and lessons learnt from each phase of the project.
A final project symposium to share the outputs of the SIM will take place (Milestone DE6) and the findings
and the outputs of the whole project will be shared.

Criterion (9.8)

Evidence (9.8)
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Section10: List of Appendices

A. Full Submission Spreadsheet

B. Maps and Network Diagrams

C. Technical Overview

D. Project Support Documentation

a. High Level Plan (Fig 1)

b. Project Schedule (Fig 2)

c. Risk Register (Fig 3)

d. Project Organisation (Fig 4)

E. Partner Details

F. Base Case Method / Cost

G. Knowledge Dissemination

H. Letters of Support

I. Customer Communications Plan

J. Benefits
 APPENDICES

Contents

Appendix A - Full Submission Spreadsheet ...................................................... 1

Appendix B - Maps and Network Diagrams ...................................................... 2

Appendix C - Technical Overview ................................................................... 5

Appendix D - Project Support Document ....................................................... 21

Appendix E - Supporting Organisations Details ............................................... 28

Appendix F - Base Case Method / Cost .......................................................... 33

Appendix G - Knowledge Dissemination ........................................................ 38

Appendix H – Extracts from our Letters of Support ......................................... 43

Appendix I – Customer Communications Plan ................................................ 45

Appendix J- Benefits ................................................................................... 48

Appendix A - Full Submission Spreadsheet

Full Submission Spreadsheet is attached as a separate document.

1
Appendix B - Maps and Network Diagrams
The trials area will provide the test bed for proving the practicality and responsiveness of
the six techniques. The data gathered from the trails will be used in the SIM.
In order to ensure maximum benefit and robust assessment, the trials area we have
chosen for the Project:
includes a mix of urban, suburban and rural networks;
includes both overhead and underground linear assets;
is reasonably geographically contained to minimise travel and implementation
costs;
avoids areas already designated for DCPR5 investment;
is appropriate for the technique(s) being trialled (e.g. includes open ring circuits,
in the case of automated load transfer and mesh networks techniques, has a
sufficient density of HV connected customers in the case of the DSM technique);
has a high probability of becoming constrained in the near future (within 10
years).

The attributes of network that is required for each intervention technique are:
Dynamic Asset Rating – Urban and rural networks including radial, open ring
and meshed network types.
Automated Load Transfer – Urban and rural networks with open ring networks
Meshed Networks - Urban and rural networks with open ring networks
Storage - Urban and rural networks including radial, open ring and meshed
network types.
Distributed Generation – presence of one or more DGs on the network (this
would normally be in an urban area with open ring network)
Demand Side Management - presence of one or more HV customers with
flexible demand on the network (this would normally be in an urban area with
open ring network).

In deciding on the scale of deployment, we have struck the optimal balance between
maximising the statistical validity of the trials and minimising the cost and risk of delivery
in order to provide best value-for-money. The Trial area selected for the project is the
South East Midlands. We believe this area provides a representative mix of customers and
assets. It is mainly constructed of overhead and underground open ring networks with a
few radial spurs, together with a number of distributed generators and HV connected
customers. The different network configurations and customers in this trial area are
representative of over 90% of the national 11 kV network. The other 10% of the existing
national HV network comprises of meshed networks and radial 11 kV feeders. All of the
techniques being trialled, with the exception of automated load transfer would be
applicable to existing meshed networks and radial networks.
Our trial area will comprise six primary substation transformers, namely: Newport Pagnell,
Childs Way, Newton Road, Fox Milne, Bletchley Grid and Marlborough Street. These
substations supply 80 HV feeders totalling 350 km of linear assets (both overhead and
underground). The substations serve 200 secondary substations which, in turn, serve
55,000 customers.

2
Figure 1 below, shows the location of each of the six primary substations and the area
they feed.

Newport Pagnell

Bletchley

Marlborough St

Fox Milne

Childs Way

Newton Road

Primary

FIGURE 1: Map of the trial area

3
Figure 2 below is a diagram that represents the trials and now they will inform the SIM
and the learning process.

The figure above shows how the Method links both the Network Trials
Area and the SIM to maximise learning.
The six intervention techniques are implemented in the trial area and
also modelled in the SIM. This parallel interlinked approach maximises
the learning and ensures that it is directly applicable to future load
scenarios.

4
Appendix C - Technical Overview

1. SCENARIO INVESTMENT MODEL (SIM)

The SIM provides the modelling required to cope with increasing uncertainty in future
demand. A key feature of the SIM is its ability to not only identify current and future
network constraints, but also model combinations of different techniques for addressing
these constraints to determine the best solution in terms of whole life cost of ownership,
duration of implementation, operational network performance, the customer impact and
flexibility to cope with future load

The SIM comprises two major components:

A network modelling tool within which sections of network can be represented, various
network reinforcement techniques modelled and power flows/voltages across the network
calculated, highlighting areas of constraint. It will be based on two established network
modelling tools, namely: GROND, a tool used extensively within the UK, and a European
modelling tool called DPLAN
A simulation harness This allows data entry for load scenarios, technique models and
network information It will allow multiple solutions comprising different combinations of
reinforcement technique and load scenarios to be run in the network modelling tool and
evaluating and comparing the results of each to determine the optimal solution.
The individual modules of the SIM are shown in the figure below:

SIM Modules

The Simulation Harness extends the Network Modelling Tool to compare multiple solutions
on multiple load scenarios. It will have the ability to combine real measured data from the
trials area with multiple predicted load growth scenarios. The simulation harness will be
developed by Cranfield IVHM Centre.

It consists of the following modules:

Scenario Data Input Module: This will input predicted load scenarios and measured trial
area data. It will have the ability to combine these inputs. This data will be routed to the
Network Modelling Tool.
Economic Model: This will contain an NPV whole life cost model of all techniques the
output will be used in the Design Support Tool.

5
Network data Input Module: This will allow the trials area (or any future trials area)
parameters to be entered into the Network Modelling tool. It will also input the modelling
data of the techniques used in the project.
Design Support Tool: This is the heart of the SIM it will allow multiple runs of the
Network Modelling tool to be compared to determine possible solutions. Using the output
of the Economic Model is can determine the most effective solutions.
Visualization Tool: This will be based on commercial software and provide a clear
presentation of the SIM results.
Controller: This will manage the process of running multiple power flow calculations for:
a series of time slices along a future network load profile to assess how constraints
are likely to develop over time
a number of revised network models to compare the effectiveness of combinations
of intervention techniques
The Controller will also determine the weighting to be applied to the various assessment
criteria within the Design Support Tool and Economic Model.

1.1 SIM Operation

The SIM will be validated using aggregated half-hourly load profiles calculated from
settlement data. Next the results of physical trials and the measurement obtained from
the trials area will be input and compared with those predicted by the validated SIM in
order to tune and calibrate the model. After this the SIM will available to assess the
impact of combinations of techniques on measured load and future load profiles This
provides the ability to determine the best solution for both current and predicted load
profiles thus plan the network to enable the installation of future low carbon technology.
The ability to automate the running of multiple calculations for a variety of inputs and to
marshal and compare the results from these calculations will allow:
assess network performance over time against a variety of possible future load
profiles including various rates of uptake of low carbon technology
assess the relative effectiveness of different intervention solutions against a common
future load profile
perform sensitivity analysis on a candidate network solution using a variety of
possible future load profiles
It will be possible to use the SIM to analyse any section of 11kV network, simulate
interventions and calculate the associated benefits and display then in a graphic form.

The figure below shows how the key modules of the SIM interconnect in operation.

6
 Controller

Derived
Sub-station
Data

Future

Results
Buffer
Data Scenario Data Network Design Visualisation
RESULTS
Scenario Loader Modelling Tool Support Tool Tool

Trial Area
Measured
Data

Cost Economic Model

( purchase and Data
operation ) NPV

Techniques
Model
Network Data SIM Harness
Input
Trial Area
Information

SIM

The combinations of load scenarios, techniques to be applied and the weighting of

assessment criteria will all be set in the SIM Controller at the start of a run. The Data
Buffer will store the outputs of multiple operations of the Network Modelling Tool required
to assess various options of load and techniques. The output of the Buffer will then to feed
into the Design Support Tool which will compare the results to determine the best
candidate network solution in for each area of the Trial Network for the given load
Scenarios. The output will be passed to the Visualisation Tool to display.

2. Demand Scenario Data

Data used on the project will be obtained from three sources:
Aggregated half-hourly load profiles calculated from settlement data
Metered Data obtained from the trials area via Monitoring equipment
Estimated future load profiles
The aggregated half-hour load profiles will be used for initial proving of the SIM. The
Metered Data will be used to assess the operation and performance of the intervention
techniques in addition to determining the validity of the aggregated load profiles. Finally
the Estimated future load profiles will be superimposed on the metered data in the SIM to
assess and evaluate the robustness and applicability of techniques to future load growth.
2.1 Metered data
For the purposes of assessing the performance of intervention techniques and in parallel
determining the accuracy of the estimated half-hourly data actual metered half-hourly
data is required. This will be obtained from the trials area via the Cisco communications
infrastructure. The data will be routed and stored in a Data Buffer form use in the SIM.
2.2 Aggregated half-hourly load profiles calculated from settlement data
Substation load profile data developed will be used in the initial development and
verification of the SIM. DNOs currently have access to both half-hourly and non half-
hourly settlement data for each premise attached to their networks. This data is currently
aggregated by Elexon by Supplier and GSP Group for settlement purposes. With Elexon’s
support, we will re-create and modify part of the settlement process in order to aggregate

7
this data by secondary substation. We will then assess its accuracy by comparing it with
the corresponding actual load profiles obtained from substation metering to determine
whether the existing settlement data provides a viable alternative to installing meters in
all secondary substations.
The benefits of using load profile data obtained from settlement is that it is available now,
for all DNOs, without the customer interventions and lead time involved in installing
secondary substation metering. This raises the prospect of a DNO performing an initial
assessment of constraints on their entire 11kV network as an entirely paper-based
exercise. Even if this data is found to be have limited accuracy, it may still be sufficient
for the purpose of generating an initial hotspot map of constraints within the SIM that
could be used by the DNO to target deployment of substation metering in areas of
predicted constraint, thus focusing investment in areas where it is most likely to be
needed.
We will initially assess the value of settlement data by modelling elements of WPD’s South
Wales network and utilising metered substation data collected as part of WPD’s 2010 LV
Network Templates Tier 2 Project. We will then demonstrate the applicability of this
technique to other DNO networks by validating the results against WPD’s East Midland
network once metered substation data becomes available from FALCON.
We believe this new use of existing data is truly innovative in that:
it finds a new use for existing data that is available to every DNO;
it could be adopted by all DNOs in a very short space of time to inform their 11kV
investment strategy;
it will generate learning that will be used by ELEXON in assessing the accuracy of
their settlement profiles and is, therefore, a clear demonstration of an LCNF project
spreading learning beyond DNOs;
it will build on previous investment in LCNF by utilising substation metered data
from WPD’s 2010 LV Network Templates Tier 2 project.
Our partners for this initiative are Elexon (the central industry body responsible for
delivering the Balancing and Settlement Code in Great Britain) who will provide the
settlement systems required to derive the half-hourly profiles and Logica (designer and
developer of these systems) who will make the necessary modifications, run these
systems on a quarterly basis to generate the substation profiles and compare the results
with the metered substation profiles.
2.3. Aggregated half-hourly load profiles calculated from revised profiles
In addition to obtaining estimated half-hourly substation profiles from existing settlement
data, we will experiment with improving these profiles by developing new, more
sophisticated customer profiles based on a wide range of additional factors, such as
occupation and demographic characteristics. This work will build directly on DECC’s
National Energy Efficiency Framework initiative. Our partners for this initiative will be
ElectraLink and Katalysis. The profiles produced by this exercise will be converted into
half-hourly secondary substation load profiles by Logica during the quarterly run of the
modified settlement systems.
2.4. Future load scenarios generated for investment planning
The preceding steps enable the final stage of producing a set of future load scenarios for
investment planning purposes. New profiles will be used to reflect the low carbon
economy (e.g. premises with heat pumps and/or photovoltaics installed, premises with an
EV etc.). These profiles will be of use in developing the future load scenarios which model
different levels of uptake of low carbon technology. These scenarios, based on current
usage, low carbon technology uptake and economic forecasts, will be fed into the
simulation harness to identify and evaluate optimal investment strategies.

8
3. Intervention Techniques

Safety
For all the Intervention techniques described in this section the practical deployment of
the proposed trial equipment will follow WPD’s existing safety policies and procedures,
with the core documents being ESQCR:2002 and the Power Systems Operations Manual.
Full risk assessments and method statements will be undertaken for all on-site equipment
installation.
3.1 Technique 1 - Dynamic Asset Ratings
In this technique we will be asking the following questions:
How long does a cable take to heat up to its optimum operating temperature when
subjected to high load?
How long does it take for the cable to cool when the load is reduced?
What would be the effect of short term high loading on overhead lines and their
sag?
Can we create a dynamic load profile and use this information to amend our
existing summer/winter ratings?
Can the circuits provide a robust alternative for supporting 1st and 2nd circuit
fault?

The benefits of this technique include:

Utilisation of Spare Capacity,
Studying the impact of using dynamic circuit ratings on other equipment,
Prediction of long term implications from operating outside design constraints (e.g.
lifetime degradation),
Dynamic circuit ratings could be used to maintain supply to a greater number of
customers during fault conditions,
Avoidance of unneeded reinforcement, and
Maximise cyclic capacity (eg. Low load cooling times).

Dynamic Assets have previously being trialled and implemented on higher voltage circuits
(33kV / 132kV) overhead line circuits to increase the output allowed from Wind Farms
without having to replace or reinforce the connected circuits. Similar benefits could be
obtained by expanding this technique to encompass points on the network where dynamic
circuit ratings may be able to achieve extra utilisation within allowable rating.

9
The proposed solution is based on the Alstom Grid MiCOM P341 product. This product has
been successfully used on a previous trial with WPD for Dynamic Line Rating (DLR) on a
132kV circuit between Boston and Skegness. It has also been used on a trial with Scottish
Power to cover Dynamic Cable and Transformer Rating, in addition to DLR.
The ALSTOM MiCOM P341 DLR uses real-time measurements from weather sensors to
calculate the real-time ampacity automatically, which is then compared to the actual line
current. The sensors are connected to the relay via the current loop inputs (a range of 0-
1mA, 0-10mA, 0-20mA or 4-20mA is available). Wind speed and direction, temperatures
and solar radiation can all be used as inputs to the relay or a combination of them.
Variables not measured can be set using conservative fixed values based on Engineering
Recommendation P27. The most significant measurements are the wind speed and the
ambient temperature.
Note that the ampacities calculated in this technique will be used in Technique 2
(Automated Load Transfer) to improve the different switching plans, and make an efficient
use of the network.
The trial will include equipment to monitor six Feeders (including Overhead Lines and
Underground Cables) and one Distribution Transformer
Whilst on previous implementations parameters have been specifically applicable to
overhead lines (e.g. Wind Speed, Solar Energy ), for this proposal parameters will also be
specifically applicable to the particular items of plant in question (e.g. Output from Plant
Temperature Sensors ).

10
 Configuration of 132kV Boston-Skegness

Typical Primary Substation/s and 11 kV Feeder

arrangement showing location of Dynamic Asset
Rating Equipment.

3.2 Technique 2 - Automated Load Transfer

In this technique we will be asking the following questions:
How effective is automated load transfer in reducing peak flows?
Are voltages on the network improved by load transfers?
Is there any significant decrease in losses?
What improvements are there to CMLs and CIs?

The benefits of this technique include:

Utilisation of Spare Capacity,
Automated load transfer at peak times,
Voltage Regulation,
Even Load Profile of circuits,
Extra support for highly loaded primary sites,
Real-time transfer of load across feeders and primary sub stations real time, and
Real-time transfer of generation across feeders and primary sub stations real time.
Automated Load transfer can be applied to 11kV networks in which secondary substations
can be supplied from different HV feeders but are normally only supplied from one at any
time normally configured in an open ring configuration.
In the simplest form of open ring network, there are two feeders which supply a ring
divided into two sections by an open switch. Each secondary substation has two potential
sources of supply (i.e. from either of the two 11kV feeders that make up the ring).
Automated load transfer uses this feature to dynamically alter the number of secondary
substations that are fed from each of the feeders by closing the open switch and using
remotely operated switches between substations to effectively change the length of each
11kV feeder. If one half of the ring has exceptionally high load whilst the other has spare

11
capacity, load can be shifted between the two by shortening the overloaded feeder at the
expense of the feeder which has spare capacity.
The proposed load transfer intervention technology will identify feeders with spare
capacity present. Load will only be transferred to feeders with appropriate spare capacity
available; therefore the N-1 capacity will not be compromised. This intervention will allow
the load to be dynamically shifted, however, if an instance arose where the network were
to get close to N-1 capacity then the existing network control methodology and procedures
would be initiated, which have been derived for static feeders.

To enable automated load transfer the following are required:

1. Knowledge of the power flows and voltages on the network (and possibly predicted
flows/voltages over the next few hours)
2. Capacities of the feeders affected (these may need to be dynamically calculated if
Technique 1 is being used on the same feeder)
3. Modelling of potential network reconfiguration to confirm resolution of issues and
prevent creation of new issues
4. Automated switch gear at the appropriate places to control
5. Algorithms / Systems to make a decision on the reconfiguration and when it needs
to be initiated.
6. Potential need to modify protection settings for the revised network configuration
Alstom, our partner for this technique, will provide trial e-terra licences that will cover the
6 primary substations for the 4 year duration of the project. The e-terra licence will cover
the following functional areas
Network View
Network Analysis
Network Optimizers
Load VAr management
Automated Feeder Reconfiguration

In addition Alstom will provide a Trial PhasorPoint license for 3 substations and 3 Phasor
Measurement Units (PMUs) for the trial.
The network will require the appropriate automated switchgear to be installed:
On the overhead system this will involve utilising existing automated pole mounted
reclosers and sectionalizing devices and installing new equipment where required. The use
of Nulec N12 PMR’s and RL27 sectionalisers would be preferred due to their ability to
monitor voltage and current and the already proven communications with Poweron.
On the underground system there is existing equipment that is fully automated. There are
options of using automated switches or installing CB’s to add additional security and
protection to the network. Voltage and current analogues can also be utilised on
underground equipment.
Shown below is an example of how automated Load Transfer can be configured at two
feeders on the Newport Pagnell Primary substation.

12
 Newport Pagnell - Current

Substation
Westbury
House Dovecote Queens
Cable (Blue circuit)
Pearmain Close Close Avenue
Cable (Red circuit)

Open Point

Byron Carrol Wesbury Red House

M1 Lewis
Drive Close Lane Newport
Motorway Close
Pagnell
Services

Potterfield
Road
The Lamb
Walnuts Close
Bakelands Flora Lake Green
Thompson Lane Field
Drive Road
Penny Mulberry
royal Park Little Broad
Gardens Linford Street
Whitton Cypress
Lane Flats
Way

The Brockwell
Chestnuts
Bakelands Green
Park
Richmond
Newport Drive
Way
Pagnell Local

Newport Pagnell

An example of how Automated Load Transfer can be configured on these feeders the
following actions can be taken:

1. Install an Automated Open point at the following locations

a. M1 Motorway Services ( on The Walnuts Bakelands circuit)
b. Carrol Close (on the Lewis Close circuit)
c. Byron Drive (on the M1 Motorway Services circuit)
2. Install monitoring equipment and rules to allow operation of the Automated Load
Transfer

The new configuration can be seen in the diagram below.

The normal Open point would be at Byron Drive. However if the Automated Load Transfer
monitoring equipment detected that the red circuit (which in the normal state also
supplies the Orange section) was overloaded and their was spare capacity on the blue
circuit then the following actions would occur
1 Close the Open Point at Byron Close
2 Open the Open Point at M1 Motorway services

This essentially transfers the Orange section from the red circuit to the blue circuit. In a
similar way the yellow section can be transferred from the blue circuit to the red circuit if
the blue circuit was overloaded and there was spare capacity on the red circuit.

13
 Substation

Blue circuit

Newport Pagnell – With Red circuit

Orange Section (Transferable)
Automated Load Transfer Yellow Section (Transferable)

Automated Open Point

Westbury
House Dovecote Queens
Pearmain Close Close Avenue

Byron Carrol Wesbury Red House

M1 Motorway Lewis
Drive Close Lane Newport
Services Close
Pagnell

Potterfield
Road
The Lamb
Walnuts Close
Bakelands Flora Lake Green
Thompson Lane Field
Drive Road
Penny Mulberry
royal Park Little Broad
Gardens Linford Lane Street
Flats Whitton Cypress
Way

The Brockwell
Chestnuts
Bakelands Green
Park
Richmond Drive
Newport
Way
Pagnell Local

Newport Pagnell

3.3 Technique 3 – Meshed Networks

In this technique we will be asking the following questions:
How easily can meshed networks be applied on rural/suburban networks?
Are different configurations preferable depending on the load density?
Are voltages on the network improved?
Is there any significant decrease in losses?
What improvements are there to CMLs and CIs?
What are the protection issues that need to be overcome?

The benefits of this technique include:

Enhanced Network Security,
Zero Customer impact from circuit fault,
Improved Voltage Regulation,
Enhanced Distributed Generation Capability,
Even Load Profile of circuits,
Utilisation of Spare Capacity,
Lower Impact to customer and generation for routine maintenance, and
Extended Asset Life.

14
Meshed networks are currently used in the UK in high load density city centre area where
high level of security of supply is required. This has a high cost of implementation as it
requires more complex protection arrangements and a very high level of automated
switchgear.
A hybrid meshed network will be developed for use in suburban and rural areas without
the cost of full asset replacement and installation of a pilot cable system for unit
protection. The hybrid meshed network will still provide the benefits of an improved
security of supply together with the ability to improve utilisation of the network capacity
and support larger more volatile loads such as may occur with low carbon technologies.
The aim of the technique is to evaluate the cost benefit of meshing networks at 11 kV.
Alstom will be the partner that will provide support for this technique.

Initially a network model of the unmeshed network that may also include embedded
generation, using the power system simulation software package will be produced. The
intention is to transform this network to a meshed network and then to repeat the
network studies (load flow, short circuit fault and voltage stability) in order to:-
Evaluate enhanced capacity and impact on losses.
Evaluate fault level & protection.
Assess costs of meshing.

A study of the identified network will be carried out in order to establish the optimum
points on the network to install any new equipment, if necessary.

Distributed generation will be a consideration in the project as the effects on voltages can
affect customers. By meshing feeders, voltages can remain stable with even load share,
the potential to use generation for extra support can be utilised with minimum impact.The
proposed protection solution is based on the Alstom Grid MiCOM P521 product.
The diagrams below show a potential open ring feeder configuration at Fx Milne and how
the change to a mesh network

Substation
Fox Milne: Current
Open Ring Cable (Blue circuit)
Cable (Red circuit)
configuration
Open Point
Mkey Food
Northfield

Fox Milne

Northfield Drive Northfields

Wayside Group Afus

Coca Cola Nacano

Northfields Northfields

Sperry
Northfield

By doing the following actions a simple hybrid mesh network can be created:
1. Closing the Open point switch at Coca Cola Northfields

15
 2. Installing automated switchgear at Coca Cola Northfields and Northfields Afus
substations (if not already automated)
3. Create three unit protection zones
a. Fox Milne to Coca Cola Northfields (via Northfield Drive)
b. Coca Cola Northfields to Northfields Afus (Via Sperry Northfield)
c. Northfields Afus to Fox Milne (via Mkey Food)

The following mesh network is created.

Substation
Fox Milne: Mesh
Cable (meshed circuit)
configuration
Open Point

Mkey Food
Northfield

Fox Milne

Northfield Drive Northfields

Wayside Group Afus

Coca Cola Nacano

Northfields Northfields

Sperry
Northfield

3.4 Technique 4 – Battery Storage

Battery storage has the potential to provide a number of services which will all be tested
namely:
Reducing the peak flow within a HV feeder in order to defer reinforcement.
Phase balancing
Voltage support

Batteries will be installed at 5 Secondary substation sites within the trial area and these
will include both rural and urban networks. The batteries planned to be used are GE
Durathon which are based on Sodium Metal Halide technology compact units and have
previously been used in the transport sector.
The Durathon Battery technology provides a longer life-span than traditional storage,
offering a life-cycle of up to two decades, whilst delivering and maintaining a round trip
efficiency of 82%. Each battery unit delivers 21kWh of energy with dimensions 320 x 510
x 930 mm. GE’s specification is based on an 80% depth of discharge (DOD). The DOD can
be varied to suit, changing the performance and life-span of the battery. Increasing the
DOD will increase its kWh performance with an obvious reduction in life-cycle.

An installation at each substation will compose of a number of batteries and a Power

Conditioning Unit (PCU) which will manage the charge /discharge cycles. The batteries will
be installed and connected to the LV side at the secondary substation and will typically be
sized to have an output of around 10% of the secondary substation transformer capacity.
With an output of around 10 kW per battery, a secondary substation with a 500 kVA

16
transformer would have a number batteries installed which would deliver the required
output of over a 2 hour period.
When selecting the specific locations on the network for using it for peak lopping/load
shifting then the shape of the load curve is an important consideration. The load curve
must have the following attributes
peaks that need to be reduced to the required level (taking into consideration any
modified level as a result of technique 1 – Dynamic Asset rating )
energy delivering requirements
sufficient spare network capacity between peaks to recharge the batteries

3.5 Technique 5 / 6– Distributed Generation/ Demand Side Management

The same process is expected to used for both Distributed Generation and Demand Side
Management
The key elements to the trialling of these techniques are:
1. Identifying the potential customers which have the ability to participate
2. Developing a Commercial Agreements Proforma
3. Develop the DG/DSM Operational Decision Tool
4. Agree individual parameters and sign Commercial Agreements with each customer
5. Establishing Communications methods and processes
6. Install monitoring/metering equipment

Element 1 has already commenced with a number of HV Demand and Distributed

Generator customers within the Trial area already contacted and agreeing in principle to
participate in the trial. (There are around 90 HV connected customers in the Trial area)
A key part of the project is to develop a Commercial Agreements Proforma. The
development of this proforma will be in association with the customers who have initially
indicated an interest in participating in the trial and will contain the following:
1. Response time (minimum notice the customer requires to act on a request for
support)
2. Level of support (the maximum support that can be provided)
3. Duration of support (how long support can be provided)
4. Frequency of support ( How often the support can be requested in a given period)
5. Available periods for the support (Specification of when support is available (e.g.
between 8:00 to 18:00 hours weekdays))
6. Payments (This is expected to be split into an “availability” payment, “usage”
payment and possibly penalties for not proving support when requested.)
7. Monitoring equipment
8. Communications process (requests / confirmation for support)
This is not a comprehensive list and these will be developed with the participating HV
customers.
To enable WPD to request support, an Operation Decision Tool will be developed. The
Operational Decision tool will forecast the demand profile for the following assessment
period for each element of the HV system that is influenced by each DG/DSM support Unit
and by comparison to the asset rating (which in the later trial period will include any
Dynamic Asset Rating calculated using Technique 1) will determine if any support is
required and if so the volume, time and period for the support. The assessment period will
be driven by the response time (see point 1 of the proforma above). The trial expects that
different response periods will be trialled (e.g. 2hr (immediate), 8hr (today) and 24hr
(next day))

17
The forecasting element of the Operational Decision Tool will initially be based on the
typical historic load profiles of the HV circuits supply the DSM/DG support unit. During the
project, this will be developed further using the learning from the SIM demand profile
development to determine whether this provides a more accurate forecasting mechanism.
The trial is primarily concerned with the development to the commercial agreements, the
trialling of the Operational Decision Tool, and the responsiveness to participants to
requests for support and their effect on the HV network. As such no special
communication/control mechanism is planned to be installed. The exact communication
method will be agreed with each customer separately and this partially be dependent on
the response time agreed. Initially telephone, email and text messages will be offered,
with a business process that will include confirmation of receipt and possibly
commencement of the requested support.
Shown below are simplified network diagrams showing the connection of a Generation
Customer and a Demand Side Management customer who are interested in participating in
the trial.

An example of a HV
Customer

Wavendon Gate

Gregories Dr
Wavendon C HV Customer

Substation (No open

point)

Walton Road Cable

Wavendon
Open Point

Handel Mead
Arne Lane
Old Farm Park
Old Farm
Park Boyce
Crescent Old
Byrd Crescent
Farm Park
Old Farm Park
Allen Denver
Tilbrook
Holst
Geest Crescent
Prepared Wood
Foods

Paul Sansetsu Kingston Foods Industrial Units Sansetsu

Stewart No1 Tilbrook Tilbroos Drive Tilbrook No2 Tilbrook
Racing
Tilbrook

18
 Thameswey CHP Generation
Upper Fourth
Street CMK

Solstice
House CMK

Eldergate

CHP
Generation

CHP Generation

CBX4 Substation (No open

South 5th Temporary point)
Street Supply
Cable
CMK
Open Point
To Portway

Childs Way

4. Communications Structure
The communications infrastructure for FALCON will link the 200 sub-stations within the
trail area with the Trials Network Manager and Data Storage. It is design using open
standards. The transport layer will be realised using WiMAX technology (IEEE 802.16).
This will provide resilience via the provision of a full mesh interconnecting all the sub-
stations. The traffic will be routed over this layer between Cisco CGR 1000 Connected
Grid routers installed at each sub-station using IPv4. Data from the monitoring devices
and relays at each sub-station will be connected to the router via a mini-RTU (for
analogues) or directly via Ethernet.

19
 A pair of Cisco CGR1000 will be used to interface the network data to the Data Bus. This
bus will connect the following:
Trials Network Manager
Data Store
SIM

The Data Store will be used to collect and store the ½ hour monitored data from the sub-
stations. This data will then to feed into the SIM when required.
The Trials Network Manager will be used to control and monitor the techniques installed in
the trial area. A connection from the Operational Network Manager to the Trials Network
Manager will allow the Operational Network to override the trial so that any impact on
customers can be reduced and to allow the management of fault conditions.
Cyber-Security is key to the operation of the communications infrastructure. The Cisco
CGR 1000 has built in firewall functionality and encryption of the IP traffic. It should be
noted that the trials network will be a private IP network with no direct connection to any
public networks. A part of the project the network will be independently tested to
determine its resilience to cyber attack.

20
Appendix D - Project Support Documentation
Figure 1 - High Level Plan

Dec 2011 Mar 2012 Sept 2012 Sept 2013 Mar 2015 Sept 2015

MOBILISATION SOLUTION DESIGN SOLUTION BUILD TRIAL IMPLEMENTATION CLOSURE

LOAD REAL
HARDWARE NETWORK DATA
REVIEW AND SOFTWARE AND LOAD
FINALISE USE PURCHASE GROWTH
CASES SCENARIOS
GENERATE NEW
DESIGN RULES
INITIATION SCENARIO
INVESTMENT
MODEL ASSESS RESULTS
CONFIRM TRIALS
SOFTWARE
AREA SCENARIO DEVELOPMENT
INVESTMENT LEARNING
MODEL DESIGN DISSEMINATION
OPERATE
SCENARIO DEPLOY MODIFIED
DETAILED INVESTMENT LEARNING FROM TRIALS
DESKTOP MODEL INTERVENTION
NETWORK REAL DATA VALIDATION TECHNIQUES TO
DESIGN COLLECTION SIM
INFRASTRUCTURE SCENARIO
SOLUTION DESIGN –
USE CASES INVESTMENT MODEL
BUILD GATHER
INTERVENTION
BAU TECHNIQUE
OPERATIONS DEPLOY RESULTS
INTEGRATION MONITORING
PLANNING EQUIPMENT OPERATE SCENARIO
INFRASTRUCTURE INVESTMENT MODEL

MOBILISATION
SOLUTION DESIGN –
METHOD
INFRASTRUCTURE
DEPLOY PROJECT
INTERVENTION OPERATE TRIALS CLOSURE
TECHNIQUES 1-6 GWR 5

GWR Gateway GWR GWR GWR

1 Review Process 2 3 4

DE 1 DE 2 DE 3 DE 4 DE 5 DE 6

Learning Dissemination

Communication and Stakeholder Engagement

21
Figure 2 - Project Schedule

22
Figure 3 - Risk Log:

Figure 1 below is a snapshot of out Project Risk Log. We will be happy to provide the full document upon request.

Risk Register Last updated

Project Name: FALCON

High Level Definition Cause Effect

Risk Ref. Last

Risk Status Owner "There is a risk that..." Impact Probability Proximity Rating Movement Raised by Raised on Target Date "...because of..." "...leading to..." Mitigation Action Plan Issue ID
No. Updated

Respon If risk has

See Table Late date How will this Risk be ID of Issue Risk
sible See Table below See Table below changed to a Who raised when was it Target Date What will Trigger
Next No. Dropdown list Details of the Risk below Auto Calculated the risk was What will happen if it occurs? has transferred
for Score 1-5 Score 1-5 higher / the Risk? raised? for Resolution the Risk? avoided?
Score 1-5 updated to
mgmnt lower priority

Other significant
or higher priority Early checking, monitoring
actvities running A significant delay in the and identification of other
The Project Team cannot be pre bid
FAL001 Raised WPD 3 1 2 6 01/12/11 16/08/11 in parallel might project start date, milestones projects which may impact
effectively resourced submission
impact WPD ability or deliverables on this project. Impact
to resource analysis process in place
FALCON
Detailed documentation of
The Project Delivery Team does the legacy Bid technical solution, key
pre bid A gap in the project delivery
FAL002 Raised WPD not have the knowledge 5 3 5 75 01/12/11 16/08/11 team being made members of the bid team
submission knowledge
required to deliver the project redundant seconded to the project
team
The overall Project scope and poor control,
cost could creep underestimation of
increased cost, delays in Early planning RFI process,
costs at bid
pre bid project shcedule, and Project Accountant role
FAL003 Raised WPD 4 2 3 24 01/09/12 16/08/11 stage, changes in
submission dissemination outputs are of identified to keep a handle
technical scope,
poor quality on project costs
partner uncertain
of their scope

Partner perceptions on their Engagement with partners

Lack of clarity in Cost increase, funding
project scope may change as pre bid has been ongoing for some
FAL004 Raised WPD 4 2 5 40 06/03/12 16/08/11 discussions during contribution decreasing, lack
we move from MoU to signing a submission months. MoU describing
the bid stages of partner resource availability
formal contract. scope is in place and agreed

Consider if activity is critical

Misunderstood
(at that stage in the
A Partner may withdraw from technical Delay in schedule, inability to
pre bid project), Understand if
FAL005 Raised WPD project or have oversold their 5 2 4 40 06/03/12 16/08/11 requirements, achieve successful delivery
submission activity can be picked up by
solution misrepresentation reward criteria
exsiting partners/suppliers or
of solution
seek new partner

Logica unable to resource the WPD will find resource

Project Office, Independent Lack of internally if necessary.
pre bid inability to undertake the
FAL006 Raised WPD Technical Design Consultant and 5 1 1 5 01/12/11 16/08/11 understanding of Continual dialogue and
submission project
Quality Assurance and Benefits the requirements planning will have mitigated
Management roles this risk sufficiently.
Early and detailed
Cranfield discussions with Cranfield to
Poor quality of SIM operation
University do not ensure scope is understood.
The SIM software cannot be and outputs. Delays in project
pre bid have the Formal contract will contain
FAL007 Raised WPD designed within the required 4 1 4 16 01/09/12 16/08/11 schedule, increase in cost
submission appropriate significant technical
timescales (apply more resource), early
resource to requirements and required
learning delayed
develop it deliverables.

Early and detailed

discussions with
Lack of Aston/Birmingham to ensure
Aston University, together with
pre bid understanding of Increased costs, delay in scope is
FAL008 Raised WPD Birmingham University are unable 2 2 4 16 01/09/12 16/08/11
submission scope during bid timescales understood.Consider
to deliver against their scope
phases whether other academic
partners could pick up the
work

23
Figure 3(b) - Definition of Ratings as recorded in Risk Register

Rating Impact Probability Proximity

Inability to deliver, Certain Imminent

5 business case/ objective not (Award - Mobilisation)
viable
Substantial Delay, key More likely to occur than not Likely to be near future
4 deliverables not met, (<1year)
significant increase
Delay, increased costinin 50/50 chance of occurring Mid to short term
3 excess of tolerance (1-2 years)
Small Delay, small increased Less likely to occur Mid to long term
2 cost but absorbable (2-3 years)
Insignificant changes, re- Very unlikely to occur Far in the future
1 planning may be required (4 years)

24
 Figure 4 - Project Organogram

WPD Senior
Management

Technical
Partner Project Technical Design Solution
Forum Manager Authority Design
Consultant

Learning
p/t T1
Dissemination SIM development
development &
(UoB) & implementation
implementation Project Support
lead
lead Officer

p/t T2&3
Learning ICT & Quality
development &
Dissemination - cybersecurity Assurance and
implementation
Academic (surf) Benefits
lead
Management
Cranfield, Aston/
Birmingham p/t T4 p/t T5&6
University development & development & p/t Project
OU implementation implementation Accountant
lead lead
Learning
Technique development and implementation KEY
Dissemination -
industry p/t Stakeholder
Management WPD roles WPD roles – support
Alstom, Cisco from business
GE, Electralink (procurement
Project Office Logica roles
Elexon, Logica excluded from
structure, although
Learning dissemination Academic required)
roles

25
Roles and Responsibilities

Role Brief description

Project Manager Responsible for the day to day delivery of the project scope within the agreed budget and timescales. Will be responsible for
presenting all changes, risk actions and progress reports for the approval of the Sponsor, undertaking the agreed actions in line
with governance model.

Project Support Providing supports and information to the Project Manager as required, ensuring that all Project Management Office operational
Officer (Logica) systems and processes are managed and maintained, this includes managing the configuration plan, the project file, reporting
and admin as well as finance, procurement and facilities.

Quality Assurance Reviews the outputs from individual techniques and project phases to monitor and confirm that the overall project
and Benefits outcomes (benefits) will be realised. They will also scan environmental factors external to the project to determine
Management (Logica) if these will impact the project benefits. All risks to the project benefits will be included in the risk register and
managed by the Project Manager.

Project Accountant Responsible for qualitative analysis of risks in the RAID log. Ensures that all aspects of project financial control are implemented
and adhered to throughout the project life cycle. This will include control of budgets, invoicing and monthly reporting. Any
deviation from the project earnt value will be reported to the Project Manager.

Stakeholder Ensures that the project has a comprehensive communication plan in place and then monitors and maintains the plan. Provides
Management reports on activities and issues to the Project Manager. Responsible for engagement with key project FALCON stakeholders.

Technical Design Accountable for the overall solution design and implementation of the Scenario Investment Model and Intervention
Authority techniques 1-6. Overall responsibility for partner or supplier technical input.

Technical Design Provides assurance that technical standards are maintained throughout solution design and trial implementation,
Consultant (Logica) Supports the Technical Design Authority by auditing the overall solution design and implementation.

SIM development & Responsible for the development of the Scenario Investment Model, defining the detailed scope of the relevant partner(s)
implementation involvement. Supports the Technical Design Authority in developing the relevant documentation for solution design and any
lead gateway reviews. Provides progress updates to the Project Manager as agreed.

26
 Role Brief description

T1 development & Responsible for the development and implementation of the Technique 1 –Dynamic Asset Rating, including defining the detailed
implementation scope of partner/supplier involvement, liaising with procurement and WPD operational staff as required/directed by the Project
lead Manager or Technical Design Authority

T2&3 development Responsible for the development and implementation of the Technique 2 – Automatic Load Transfer and 3- Meshed Networks,
& implementation including defining the detailed scope of partner/supplier involvement, liaising with procurement and WPD operational staff
lead

T4 development & Responsible for the development and implementation of the Technique 4 – Storage, including defining the detailed scope of
implementation partner/supplier involvement, liaising with procurement and WPD operational staff
lead

T5&6 development Responsible for the development and implementation of Technique 5 – Distributed Generation and 6- Demand Side
& implementation Management. This includes , including defining the detailed scope of partner/supplier involvement, liaising with procurement
lead and WPD operational staff as required, retailers and customers.

ICT and Cyber- Responsible for the overall design and implementation of the telecommunications structure and relationship with Cisco, Westica
security JRC. Ensuring that the overall architecture has been cybersecuirty tested and the results are passed to the Project Manager for
onward dissemination.

Learning Responsible for coordinating the learning dissemination activities of all parties but focusing on the management of academic
Dissemination institutions.
(University of Bath)

27
Appendix E - Partner Details
Partner Engagement Model

Below we have summarised their individual roles and responsibilities and their individual
attributes that shows what we believe they will bring to the project.
Organisation: Logica

Role Summary Logica will be providing Project Office support to the Project as well
as specialist skills as required, for example, Independent Technical
Design Authority, Benefits Management and Quality Assurance roles.

Logica has helped WPD to shape FALCON throughout the 2011 LCNF Tier 2 bidding process. We
have gained an excellent insight into the technical and delivery-related aspects of the project and
are committed to providing ongoing programme management and technical support to WPD
throughout the project lifecycle.
What does Logica bring to FALCON?

Sustainability is one of Logica’s three global strategic themes. In the UK, we are focusing on
helping DNOs extract the maximum learning and value from Ofgem’s LCNF. We can add
significant value to the WPD project in key areas:
Track Record: Logica has a recognised delivery capability within the utilities industry. With
respect to LCNF, we are currently helping UKPN to deliver Low Carbon London.
Project Understanding: our role on the FALCON bid has given us a unique understanding of the
objectives and challenges of the project. This insight will enable to a seamless transition from bid
to project delivery.
Partner Engagement: during formulation of the bid, we have developed strong relationships
with the other partners based on clearly articulated roles and responsibilities.
Industry Knowledge: Logica has been involved at the heart of every significant industry
transformation in GB (e.g. the Pool, 1998, NETA, BETTA, smart metering etc.). Having designed,
built and operated the central market settlement systems for ELEXON for the past ten years, we
are uniquely qualified to help WPD with their planned innovative use of settlement data. Having
implemented DPLAN in Portugal’s InovGrid programme, we also have unique capabilities to assist
with production of the SIM.
We believe that the combination of a proven track record in delivering complex utility
programmes, existing LCNF programme management experience, deep industry knowledge, a
profound understanding of FALCON gained through helping to shape the bid and established
relationships with all key partners will enable us to manage a seamless transition from bid to
project delivery, enabling a timely start to the project and early benefits realisation.

Organisation: Aston University

Lead partner on network modelling and simulation of the impact of
Role Summary
the four intervention methods.

Aston University will undertake initial definition of the network incorporating 200
substations and the four specified technical intervention methods.
What do Aston University bring to FALCON?
This work will provide the base data on the characteristics of the defined 11kV network,
its responsiveness to each of the technical implementation methods and an indication of
how the network modelling system and the simulator can be applied to other network
configurations. The Partners will bring their prior experience and knowledge of

28
developing and using power system modelling software to inform project development
and to achieve successful outcomes.

Organisation: Cranfield University ( Boeing IVHM Centre)

Role Summary A simulation model will be developed by Cranfield's IVHM Centre

using the provided domain knowledge and the learning from some
earlier works done at the University. The project mainly includes
three major steps: development of simulation model, analysis of
future scenarios, and analysis of actions to be taken for the
scenarios.

Cranfield University through its IVHM Centre will lead the first phase of the project,
which involves building a computer simulation of the 11kV system and its visualisation.
The IVHM Centre has the ability, expertise, and experience to analyse, simulate and
visualise the systems. A simulation will be developed by IVHM Centre and Cranfield
CSRC (Cranfield Complex Systems Research Centre) building on previous expertise from
the CASCADE project (described below) and using the provided domain knowledge.
What do Cranfield University bring to FALCON?

Prior relevant projects:

1) Setting up the consortium for the Cranfield IVHM Centre (£9.5m): Core Partners:
Boeing; Rolls-Royce; BAE Systems; Thales; Meggitt. Members: MoD; Alstom
2)FLAVIIR(£6.5m): BAE Systems/EPSRC funded University Partnership to build and fly a
UCAV, involving a total on 10 UK universities led by Cranfield University demonstrates
the university's ability to lead and manage diverse consortia and deliver outstanding
results.

Organisation: University of Bath

Role Summary Project dissemination, leading Methods 0,5 and 6, management of

academic participants

The University of Bath will lead on the knowledge capture , dissemination and customer
engagement. This will be led by Dr Ian Walker. The University has significant experience
in engaging DNOs and the power sector in a variety of power and low carbon related
projects e.g. Transition Pathways to a Low Carbon Economy, LV templates, LRIC pricing
methodology. Bath will also bring together dissemination of FALCON with its roles in
Project BRISTOL and LV networks project (funded last year through LCNF). The
dissemination will be undertaken chiefly in conjunction with the Open University but with
input from all partners. Bath will also support the evaluation framework of techniques 5
and 6 on distributed generation and demand side management.
What do University of Bath bring to FALCON?
The University of Bath has been involved in a significant number of relevant large
projects across the power networks landscape in the 132kV, 33kV, 11kV and LV
networks including
The evaluation work on techniques 5 and 6 will be led by Dr Furong Li who is lead
academic for Bath with input into the LV Network Templates project and whose work on
flexible charging methodologies has been endorsed by Ofgem and taken up by three
DNO's.

29
Organisation: Cisco Systems
Communications equipment provider
Role Summary

The communication components are specifically designed for the substation environment
and are IEC 61850 compliant. These devices provide the communications routing
network over a variety of communications media and the data traffic routing capability.
Cisco has worked with several utilities optimising the substation communications
architectures.
What do Cisco bring to FALCON?
Cisco has worked with several lighthouse utility customers and equipment providers on
both substation automation and smart meter integration to develop a standards based,
secure and scalable architecture. This includes working on the various communications
standards that may be used within this project and driving the standardisation of
proprietary ones. This architecture has defined the capabilities of the products that will
be used and gives the project a Cisco validated design as well as example use cases that
can be built upon.

Organisation: Milton Keynes Council

Supporter of the project , assisting in end customer contact and local
Role Summary
interest stimulation

It is our belief that by involving a major Borough within the WPD region demonstrates
the local commitment to FALCON and furthermore demonstrates the Council’s
commitment to their carbon reduction programme. This is evidenced by their Low
Carbon Living Programme and their ambition to be an exemplar to their community.
a. Other initiatives that MKC have been involved in are:
b. One of the first awarded plugged in places schemes in the UK
c. Development of a city energy partnership with E.ON. The principal objective of the
relationship between E.ON and MKC is as follows:
- Develop infrastructure solutions that safeguard energy security for companies and
citizens
- To reduce City wide energy consumption / carbon footprint / energy costs
- To increase energy efficiency through smart initiatives / technologies
- To seek continuous improvement through an agreed regular communications and
partnership working programme
- To deliver additional benefits to the community through education, training, job
creation and community engagement
- To deliver services to the highest standards of quality.
d. Developing and implementing a Smart Homes demonstrator.

30
Organisation: Elexon Limited

Role Summary Elexon will provide access to the systems required to process and
aggregate this data to specific substations/HV feeders

Elexon will assist in obtaining the customer settlement data to be used to build
substation load profiles for modelling purposes. They will also provide access to the
systems required to process and aggregate this data to specific substations/HV feeders
What do Elexon bring to FALCON?
Elexon delivers the Balancing and Settlement Code (BSC) and the services that
underpin the successful operation of Great Britain’s electricity trading arrangements.
The BSC requires each customer site to be assigned to a profile class dependent on the
type of customer. It then creates demand profile for each profile class for each day
dependent on a number of factors and then these are then aggregated for all the
customers of a supplier. A similar process will be created in FALCON but instead of
aggregating up to a Supplier this will be aggregated to a substation to which the
customer is connected.
Elexon will also have a keen interest in the revised profile creation process which is
being trialled in FALCON. If this is proven to provide significantly more accurate profiles
for customers then the new process may influence changes to the BSC.

Organisation: ElectraLink Limited

Modelling Consumer demand under various low carbon interventions
Role Summary
using a range of datasets including consumption.

Project Role:

Develop and maintain a model of substation 11kV load. This will be based on physical
and demographic characteristics of residential and non-domestic properties attached to
the metered test substations and using MPAN consumption from industry data.
What do ElectraLink bring to FALCON?
The team brings extensive and directly relevant experience of this type of data usage
and modelling. ElectraLink has managed data transfer in the electricity retail market in
GB since 1998. ElectraLink's subcontractor has very extensive background in the data
sources needed for this model and the development of forecasting tools. Most recently,
the team has supported DECC in the development of its National Energy Efficiency Data
Framework of all properties, their physical and occupant characteristics and their gas
and electricity consumption history over five years. The members are acknowledged
experts in this field and are also familiar with the analysis and presentation tools needed
to make the project a success.

Organisation: GE Digital Energy

Role Summary Provider of the storage batteries for Technique 4.

GE proposes to demonstrate an Energy Storage System (ESS) that is based upon the
DurathonTM battery technology and a closed loop liquid cooled power conversion system
with state-of-the art controls specific to utility applications. GE’s role is therefore limited
to the provision of batteries that form one of the techniques being trialled.
What do GE Digital Energy bring to FALCON?

31
GE have an innovative battery technology that offers benefits within the 11kV network,.
Specifically at distribution substations. They have also developed a control mechanism
for their batteries that will link directly to the network management platform to allow the
batteries to be used as an integrated storage medium to address peak constraint issues
within the network.

Organisation: The Open University

Supporter of the project , assisting in the dissemination of learnings
Role Summary
via various media
The Open University will support elements of the project, specifically those concerned
with customer satisfaction and engagement .Specifically these would be:

Stakeholder Engagement:
Market and customer segmentation
Support the development of a customer engagement plan
Development of innovative engagement solutions, web portals, social
networking, audio/video media
Customer Feedback:
Development of customer satisfaction measuring techniques
Gathering and analysis of data on customer satisfaction
Learning Dissemination
Delivery of internal and external dissemination programme (short
courses, web based learning, secure data access portal)
What do Open University bring to FALCON?
They will be drawing upon and building on, for example, the existing work conducted as
part of the OU’s contribution to the Milton Keynes Low Carbon Living Programme and, in
particular, the current Plugged in Places electric vehicle project.
Eventually the website will include a wide range of interactive tools for people to find
information, learn and explore. For example, one likely tool would be for people to model
the impact of different combinations of technologies on their own house or small
business, what tariff systems are involved and how to take advantage of the
Governments feed-in-tariff for distribution connected generation.

32
Appendix F - Base Case Method / Cost
Base Case Costs
FALCON provides a method of providing an optimum strategy with a prioritised evaluated
set of options to develop the HV network using a number of growth scenarios. The base
case cost for the development of the HV network has been taken from the Imperial
College / ENA report (Benefits of Advanced Smart Metering for Demand Response based
Control of Distribution Networks, Summary Report V2.0).

Table 6.1 of the report identifies a range of scenarios and the investment required in the
HV network using currently applied techniques for a range of low carbon uptake scenarios
from a 0%-100% penetration. These investment costs range between £ 0.7 -4.5 bn
depending on the penetration scenario adopted. For the purpose of this project the Base
Case cost is using the 50% penetration scenario (by 2030) which indicates an investment
on the HV network using current techniques of £3.7 bn.

The trial area for FALCON constitutes the following six primary substations in the South
Midlands - Newport Pagnell, Childs Way, Newton Road, Fox Milne, Bletchley Grid and
Marlborough Street. There are 55,000 connected customers in these six primary
substations. The total number of connected customers in the United Kingdom is 28.7 m.
The Base Case Cost for the selected trial area is therefore:

Method Costs
THE SIM will support the identification of the optimum solution for reinforcement using
either the existing techniques or one of the new techniques being trialled and modelled
under FALCON.
The process of identifying the saving by applying one of the new techniques is as follows:
1. Identify the expected level for which the new techniques and the existing technique
for reinforcement would be used.
2. For each new technique for where it is used the average savings over the existing
technique
3. The effectiveness of the new technique compared to the effectiveness over the
existing technique (e.g. would it solve the issue for the same period of time as or is it
for a shorter period of time)

In addition an assessment of the saving of time to implement a new technique compared

to that of traditional reinforcement has been assessed. This provides a measure of the
benefit of being able to respond more quickly to the changing demands of customers as
may occur when new low carbon technologies are taken up.
The values and rationale for these assumptions are given below. Traditional reinforcement
techniques will continue to be a cost effective mechanism for meeting the increased
capacity. As a conservative estimate it is expected that the new techniques being trialled
under FALCON will replace traditional reinforcement for only 50% of the cost. This is
supported by the Imperial College study where for the 50% penetration scenario that the
smart grid solution would require £1.8bn of investment (Table 6.2) against a £3.7bn for
traditional reinforcement (Table 6.1).

When assessing the percentage take up of each new technique it is recognised that more
than one technique may be used simultaneously. The percentages are therefore greater
than 100% but the cost savings have then be normalised by dividing by the total
percentage uptake. Based on the assumptions of costs savings, effectiveness, uptake for

33
each technique (as set out in the table below) the expected national saving on the HV
reinforcement is £659 m (see below for calculation).

The Method Based Costs for the selected trial area is therefore:-

National Savings on HV reinforcement

The calculation of the national savings on HV reinforcement costs is based on the

following:

1. 50% of alternative techniques would be used instead of traditional reinforcement

2. The total cost of 11kV reinforcement is £3.7 bn based on the 50% low carbon technology
penetration scenario in the ENA/Imperial College paper.
3. The estimated % uptake, % effectiveness and % cost saving for each alternative intervention
technique as set out in the table F-1 below.

For each alternative technique a gross % saving is calculated as the product of the % uptake,
% effectiveness and % cost saving. This gives the following values :

Alternative to Traditional % % % cost % Gross

Reinforcement uptake Effectiveness savings Savings
1. Dynamic Asset ratings 60% 50% 80% 24%
2. Automated Load Transfer 20% 100% 50% 10%
3. Meshed Networks 5% 100% 30% 2%
4. Battery 10% 100% 10% 1%
5. DG 5% 50% 50% 1%
6. DSM 20% 50% 50% 5%
Total 120% 43%

In order to normalise the % gross savings, the aggregate of the % Gross savings is then
divided by the aggregate of the % uptakes. This gives an overall gross savings for all the
alternative techniques of 35.625%

Finally this overall gross savings value is multiplied by the % of reinforcements for which these
alternative techniques would be used (50%) and the total costs of reinforcement under the
50% penetration scenario (£3.7 bn) i.e.

35.625% * 50% * £3700m = £ 659m

The % uptake, % effectiveness and % cost saving values used in this process are WPD
estimates. The rationales behind these estimates are set out in the table F-1 below. The value
of these estimates will be validated in FALCON during the trialling of each intervention
technique. When assessing the percentage take up of each new technique it is recognised
that more than one technique may be used simultaneously. The percentages are therefore
greater than 100% but the cost savings have then be normalised by dividing by the total.

34
TABLE F-1
The table below sets out the assumptions we have used in developing our Method cost calculations.

The table shows, for each of the techniques being trialled, the percentage we have assumed against four criteria; uptake, effectiveness, cost
saving and time implementation savings. This table supports the spider diagram shown at the end of Section 3 of the main pro-forma.

% Time Implementation
% Uptake % Effectiveness % Cost Saving
Saving

60% 50% 80% 75%

Dynamic Asset Rating

There is no material barrier to When installed the The cost for instigation of Dynamic Asset Ratings require
the installation of this on assumption is that Dynamic dynamic asset management some monitoring equipment to be
transformers and overhead line. Asset rating will handle the will be the installation of installed and changes in operation
The reason that this is not 100% peak load for 50% of the monitoring IED, associated procedures. Implementation
is an assumption that this normal asset life without the communications and effort is contained within the
technique cannot be cost need for any additional re- algorithms in the network substation site or on the
effectively applied to all cables. enforcement. This can be management platform. It will Overhead circuits with no impact
This is due to the limitation on translated into an average save an estimated 80% over on planning consents /Traffic
measuring all the factors delay to re-enforcement of 20 traditional re-enforcement Management Act requirements
created by variable soil and years. materials and outage risk
ducting conditions. management.

20% 100% 50% 50%

Automated Load Transfer

The network configuration will If automated load transfer is The cost for instigation of Automated Load Transfer may
require feeders to be in install it will reduce the need automated load transfer will require the installation of new
proximity that can benefit from for any re-enforcement over be the installation of switchgear within substations.
the automatic load transfer. This the normal asset lifecycle of automated switchgear, Implementation effort is
will be governed by 40 years. associated communications contained within the substation
demographics and existing and algorithms in the network site with no impact on planning
network configurations. The management platform. It will consents /Traffic Management Act
view from initial studies is that save an estimated 50% over requirements
this technique can be applied to traditional re-enforcement
20% of the HV network. materials and outage risk
management.

35
 % Time Implementation
% Uptake % Effectiveness % Cost Saving
Saving

5% 100% 30% 50%

The load configurations that will If the feeders are meshed it The cost for instigation of a Meshed Networks will require the
Meshed Networks

allow mesh network to deliver will reduce the need for any mesh will be the installation installation of new switchgear
benefits will be limited. These re-enforcement over the of automated switchgear, within substations and new
will occur in mainly urban areas. normal asset lifecycle of 40 protection, associated protection arrangements for the
A conservative estimate is that years. communications and mesh. Implementation effort is
mesh networks will deliver algorithms in the network contained within the substation
benefit in 5% of the network. management platform. It will site with no impact on planning
save an estimated 30% over consents /Traffic Management Act
traditional re-enforcement requirements
materials and outage risk
management.
10% 100% 10% 75%

The uptake of batteries will be When a battery is installed The cost for instigation of a The Batteries being trialled will be
limited to some degree to areas the assumption is that it will battery in a distribution sited within substations. They are
where they are cost effective reduce the need for any re- substation, associated intended to be easily connected to
Battery Storage

compared with traditional re- enforcement over the normal communications and the LV board teed into a feeder
enforcement. We have again asset lifecycle of 40 years. algorithms in the network within the substation site.
used a conservative estimate. management platform. It will Implementation effort is
As battery take up increases the save an estimated 10% over contained within the substation
volume of production will lead to traditional re-enforcement site with no impact on planning
a reduction in unit price and materials and outage risk consents /Traffic Management Act
increase the relative uptake. The management. This is due to requirements
project will determine unit prices the high cost of battery
and their implementation on the technology. If the volume of
relative uptake of the solution. battery production increases
then the costs will reduced.

36
 % Time Implementation
% Uptake % Effectiveness % Cost Saving
Saving

5% 50% 50% 25%

Distributed Generation

This is limited to 5% as it only When instigated the The cost of DG management Standard Commercial Pro-forma
addresses DG connected directly assumption is that DG active will be the commercial will have already been developed.
to the 11kV network. management will handle the agreements required with the It is expected that detailed
peak load for 50% of the suppliers plus the additional contract negotiation will take
normal asset life without the communications some time although
need for any additional re- infrastructure required and implementation once agreement
enforcement. This can be algorithms for the network is made can be done swiftly as
translated into an average management platform. It will the base requirements of
delay to re-enforcement of 20 save an estimated 50% over monitoring and communications
years. traditional re-enforcement equipment can be easily deployed
materials and outage risk
management.

20% 50% 50% 25%

Demand Side Management

This is limited to 20% as it an Where DSM is used in the The cost of DSM will be the Standard Commercial Pro-forma
estimation of the percentage of network it is assumed that it commercial agreements will have already been developed.
controllable demand connected will reduce the peak load for required with the industrial It is expected that detailed
directly to the 11kV network. 50% of the normal asset life and commercial consumers contract negotiation will take
to a level that does not need plus the additional some time although
any additional re- communications implementation once agreement
enforcement. This can be infrastructure required and is made can be done swiftly as
translated into an average algorithms for the network the base requirements of
delay to re-enforcement of management platform. It will monitoring and communications
20years. save an estimated 50% over equipment can be easily
traditional re-enforcement deployed.
materials and outage risk
management.

37
Appendix G - Knowledge Dissemination

Background
FALCON’s aim is to address the constraints on the 11kV network hindering uptake of low
carbon technologies.
The Project delivers new knowledge in the form of a long-term investment model consisting
planning guidelines for determining the best individual and combination of technical and
commercial techniques for solving constraints in a wide range of different current and future
11kV network scenarios. The outputs will be delivered to key stakeholders as a robust and
enduring framework for assessing future innovative approaches.

The need for knowledge capture and transfer

Knowledge capture and transfer are vital as the issues concern the whole of the UK. DNOs not
directly involved in FALCON need to be able to learn from the project and effectively employ its
methods and insights in the planning and development of their own 11 kV network. Due to the
multidisciplinary nature of the Project, there must be co-ordinated learning across all the
partners, to allow the project’s outputs to be captured and shared. Equally, the knowledge
transfer must reflect the multi-stakeholder perspective of the future network grid and
recognise that stakeholder needs are different consequently the style of dissemination and
level/type of knowledge transferred must be tailored to meet audience needs. This co-
ordination approach will be managed by the University of Bath.

Knowledge transfer as a tool

People and organizations are not passive recipients of information – rather, new information
often causes changes in beliefs, attitudes and behaviour. The process of sharing knowledge
from FALCON will be a tool to influence the uptake of future low-carbon technologies and
thereby influence the future demand on the 11 kV network.

Systems and processes for knowledge capture

The knowledge captured during the Project is centred on the (SIM). This assesses six
intervention techniques, each consisting of a technical solution linked to a benefits case
which will be investigated and validated.
The assessment of each intervention technique involves several project partners, and the
new knowledge that emerges from these partners and their outputs must be captured,
stored, analysed, protected and ultimately transferred to the other stakeholders. The
knowledge will need to be captured in multiple ways. There will also be early agreement
and sign off of a communications plan so that all partners understand their roles and
responsibilities in disseminating knowledge. The means for capturing knowledge will be:

Technical reports, reviews and specifications

Models and related training manuals
Notes and minutes from project team meetings
Progress and final reports
Patents and IPR
Academic and journal papers
A secure server which holds:
o A research database for reports and papers
o A wiki on which reports and notes can be collaboratively assembled and
multi-partner discussions maintained outside of formalised meetings
o An email archive; all emails concerning the Project can be copied to this
server where they will be archived in a searchable format
Interviews and surveys. This will be a key knowledge capture tool for this part of
the project and will be one of the core roles for the researcher employed at the
University of Bath. This researcher will visit key people involved in the FALCON
project at various stages of the project and, using pre-arranged interview protocols
as well as free-flowing conversations, will record the conclusions that emerge about
each method, as well as the decision processes by which these are reached

38
 Logs of lessons learned, maintained throughout the project by the Project Manager
and project support
Post-implementation review.

A two-way dialogue is required with Stakeholders to maximise the impact of the project.
In addition to capturing knowledge from the project and its team, there is the need to
capture knowledge and feedback obtained from external stakeholders engaged by the
project in its knowledge dissemination activities. These will include:

Market research and interviews with DNOs, other LCNF projects, other key
stakeholders and the general public
Recording of feedback and discussion sessions at workshops and seminars
Feedback given by stakeholders through the website portal.

Systems and processes for engagement

The key recipients of knowledge output will be the UK DNOs, energy retailers, UK
Government (DECC, BIS), equipment manufacturers and Energy Networks Association.
Although these bodies are likely to have some interest in the raw information from the
knowledge capture process– they are more interested in processed information, in which
all our learning is synthesised to simple rules, concrete conclusions, recommendations and
action plans. We envisage a variety of methods for providing members of this audience
with such outputs, including:
Representation on the Project Forum occurring on a six-monthly basis to allow
knowledge sharing between LCNF projects and to other ongoing initiatives funded
by Government and other bodies, e.g., SmartGrid GB
Early-stage market research to understand the expectations of the Project from the
audience and to ensure that the proposed communication plan and methods is
appropriate to, and meets the needs of, these stakeholders
Regular stakeholder/team meetings
Workshops and symposia, including an early workshop to elucidate links and
learning opportunities between the various LCNF projects in which these partners
are involved (Project FALCON, Project BRISTOL, Customer Led Network Revolution,
Low Carbon London, etc.) Some of these can be undertaken virtually to permit the
widest participation using the Open University’s Elluminate platform
Technical operational guide manuals for the SIM
Outputs from the project can be structured for DNOs, energy retailers and other
stakeholders to be delivered as online podcasts and web-delivered CPD training
materials
Provision of access to the secure project wiki
Regular e-newsletters
A LinkedIn group, facilitating contact between interested people
Technical reports
Academic papers
The technical face of the FALCON website
Articles for in-house newsletters and industry magazines
Press releases.

The second key group of recipients of the knowledge generated will be industrial and
commercial customers. In addition to some of the methods listed above, specific
mechanisms for engaging these stakeholders include:
Customer recruitment campaign – information packs, site visits and generation
contracts
Information leaflets with their bills
Customer focus groups
Focussed workshops.

39
Academics will also be recipients of the knowledge disseminated by the project. The
outputs, knowledge and insights from the project would be used to inform teaching of the
next generation of engineers and provide opportunities for the development of further
research projects. This group will be engaged specifically through:

Journal and conference papers, posters and presentations

The development of joint research projects related to the Project
The outputs of, and insights from, the project will be developed jointly by Bath,
Aston, Cranfield and Open universities into course materials for undergraduate,
postgraduate and CPD teaching
Teaching materials can be further developed to allow science teachers to integrate
information on low carbon technologies and behaviours into their lessons.

The final group to be engaged are the end-users of the network. The members of this
group are important as ultimately it will be their uptake of low-carbon technologies that
will determine the demand on the 11 kV network. Dissemination will allow end-users to
learn about how FALCON and low carbon technologies could benefit them. There will be a
range of one- and two-way engagement processes including:

Press releases and briefings, focusing on both national and local angles to the
Project
Surveys to improve our understanding of attitudes, perceptions and behaviours
related to energy use, low-carbon technologies and network grid demand issues
Leaflets (e.g., delivered with energy bills)
Notices on energy companies’ customer websites
Newsletters and Public displays e.g. at libraries, supermarkets or suitable public
events
A public and non-technical face to the website providing interactive information and
tools through which users can learn about energy, networks and low carbon
technologies. This would be linked to social media.
Notices on energy companies’ websites, with links to project’s public facing website
YouTube programmes and podcasts.

These activities will be informed by public engagement research, drawing on the

experience of Bath and the Open University.

Systems and processes to evaluate knowledge capture and customer

engagement
Over the course of this project, it will be important to check that the above knowledge
capture and engagement processes are working. This process breaks down into various
areas: auditing the knowledge capture process regarding the SIM and Intervention
Techniques and then auditing the knowledge transfer process for this information.

Knowledge capture audit

We will be gathering a considerable amount of information about methods and
technologies for managing the 11 kV network. To audit the extent to which the knowledge
capture methods properly record the learning from the project, we propose to have core
materials (technical reports, models, training manuals, meeting minutes) periodically
audited by impartial experts. The auditors' reports will allow project members to check
that everything that should have been captured has been recorded, in a form that could
be used by DNOs or other intended stakeholders. In other circumstances, for example
with surveys of key stakeholders and the public, we cannot know objectively what the
results should look like, the above form of audit is not feasible. The method for assuring
the quality of these data will not come from our data collection and analysis methodology,
and from using power analyses, where applicable, to ensure that sufficient people are
tested at various stages of the project.

40
Knowledge Dissemination audit
Information on network management methods will be provided to interested parties
through a variety of methods, as outlined above. The success of these efforts might be
evaluated through methods including:

Before-and-after surveys of key people to assess the extent to which core

messages have been successfully received
In-depth interviews in which the lessons taken from knowledge dissemination
efforts are investigated. Such interviews will allow more detailed information to
be gathered than the survey, for example they can explore the extent to which
a person is able to employ one of FALCON’s models to make decisions and
feedback lessons learned from this.

Track record for each partner

The University of Bath

The University of Bath has an extensive track record of knowledge capture, dissemination
and engagement with stakeholders in the power industry, as well as in many other
branches of industry and government. The University of Bath, which shared a Nobel Prize
for climate change work, is involved in flagship projects across the energy sector which
will help shape the UK’s future energy system, including the EON / EPSRC funded
Transition Pathways to a Low Carbon Economy, SUPERGEN FlexNET and the LCNF Tier 2
funded LV Customer Templates project.

The University is also the chosen delivery partner by The Goldsmiths for a Sustainable
Energy course delivered to secondary school teachers on an annual basis
(http://www.bath.ac.uk/news/2011/07/26/summer-school/).

The Open University

The Open University is internationally renowned as a distance learning university. It is
constantly ranked in the top three UK universities for the quality of teaching and also has
a strong research reputation. The OU has been working with the MKC on activities for the
MKC Low Carbon Living programme. This is drawing upon both the Open University’s
expertise for public engagement through mass and web-based media and its specific
experience in the engagement of users of low carbon domestic technologies. For example
the OU has hosted user workshops in connection with the MKC Electric Vehicle plugged in
places programme, produced an e-newsletter and supported the programme’s website and
data repository development.

The University’s environment and energy programmes are supported by its award-winning
public engagement internet operations, which include:

OpenLearn website (http://openlearn.open.ac.uk/) which links to many of the

OU/BBC co-produced programmes and includes online discussion forum on subject
areas. This site won the ICT Initiative of the Year Award at the Times Higher
Leadership & Management Awards ceremony in June 2010
Open Learn includes the Creative Climate section, which includes downloads and
interactive tools on home energy issues
Podcasts (http://podcast.open.ac.uk/) and also available through YouTube
OU’s iTunesU pages (the first university worldwide to hit 20 million downloads)
OUverte: the new Open University Online Community for environmental, social and
economic sustainability.

Cranfield University
The Cranfield IVHM Centre has world leading expertise and experience in the analysis,
simulation and visualisation of systems. IVHM will support the dissemination strategy

41
through the sole and joint publication of academic and conference papers, links to its
website / related project websites and in conjunction with the other academic partners
facilitate dissemination / technology transfer through IVHM’s training and educational
offerings such as short courses and the newly launched IVHM MSc. IVHM’s extensive track
record in dissemination is demonstrated by its participation in a number of high profiles
network related projects:

EEDA funded project (Cranfield and University of Central MK) - End to end
demonstrator development - from point of generation to end consumers.

CASCADE a complexity science based investigation into the concepts of the smart grid –
this project has developed an agent-based modeling framework.

Aston University
Aston University has an excellent track record of engagement with the power industry and
with the proposed FALCON partners. Current research includes a project on meshed
networks (the outputs of which will input to FALCON) with WPD and a further CASE Award
with Alstom Grid. Aston is currently leads or is involved in a number of flagship EPSRC
SUPERGEN projects. In conjunction with the other academic partners particularly the
Power Engineering research groups at Birmingham and Bath, Aston will disseminate
findings through journal and conference papers but also seek to develop future research
projects with these institutions. In conjunction with Bath, Open and Cranfield, Aston will
seek to develop the outputs of the project into teaching materials that can be used in
undergraduate, postgraduate and CPD training with the power industry.

Alstom
Alstom is a global leader in transport, power generation and power transmission and have
considerable knowledge and experience gained over many years in Power Systems
Infrastructure. Alstom have been heavily involved in the areas of Dynamic Asset
Management and Meshed Networks and have successfully developed, designed,
manufactured, installed, tested and commissioned working solutions for a number of
industry partners.
Alstom have established protocols for knowledge capture and data management. In terms
of knowledge transfer Alstom could provide support to the FALCON project dissemination
activities through the co-authorship of journal and conference papers in conjunction with
the academic partners, through their Alstom Web TV, Twitter, Facebook and YouTube
presences as well as through attendance at project dissemination events.

ElectraLink
In relation to ensuring knowledge capture, ElectraLink’s Quality Management System is
certified to meet the requirements of ISO 9001:2008. Electralink will support the
dissemination of the project through attendance at workshops, presentations in relation to
the technological forecasting / scenario modelling aspects of the project. In addition,
Electralink publish a quarterly electronic newsletter which is widely disseminated within
industry providing an important dissemination route to publicise FALCON and its findings.

Cisco
Cisco’s knowledge capture will be based on its Business Management System which is
made up of two parts; the Quality Management System and the Environmental
Management System. Cisco will support knowledge dissemination through co-authoring
papers with the academic partners, engagement within project dissemination events and
authoring of technical reports

42
Appendix H – Extracts from our Letters of Support
The following list of Partners, Suppliers and Supporters has written to confirm their
roles and support of the Project. Full copies are available on request.

“Logica has supported WPD throughout the 2011

LCNF bidding process and have contributed to the
development of the project concepts and trial
designs.

We are delighted to be the Project Partner and are

fully committed to working with WPD to ensure a
successful conclusion to the project. “
Tara McGeehan Utilities Director

“...to enable successful delivery of the project, WPD has

communicated the intentions to establish a forum for project
partners; Cranfield University agrees on the creation of such a
forum as a mechanism to ensure that the objectives of the
FALCON project are met and welcome the opportunity to be an
active participant. Consequently, we at Cranfield University are
in full support of the FALCON project.”

Clifford Friend, Deputy Vice Chancellor

Alstom Grid is grateful for the opportunity to contribute its

expertise and global experience in smart grid control rooms
and distribution automation technologies towards the FALCON
project. We recognise the benefits that increased network
flexibility will bring to a low carbon transition and consider that the objectives set for the project will
help make this a reality. As the Leading Industrial partner, Alstom Grid will develop and deploy
innovative technical solutions for the intervention techniques to be trialed. Including; utilisation of
dynamic asset ratings, automatic load transfer between feeders, implementation and operation of
meshed networks, control of distributed generation and demand.

Robert Weston SMART Grid Director

The FALCON project provides the University with a

significant opportunity to demonstrate the benefits of
our research at the real world scale. T he University is
strongly committed to working with industry partners
to enhance the outreach and socioeconomic impact.
Professor Jane Millar Pro-Vice-Chancellor (Research

“The Council has supported WPD in the development of the FALCON

bid and is fully committed to being an active partner in its
implementation. We will integrate the project within our overall
programme in order to strengthen the impact and maximise
learning.

We would be delighted to explain further why we have such a belief

in the value of this project and its close fit with our community’s
ambitions to be a low carbon living exemplar.

“ David Hill, Chief Executive

43
“ ElectraLink will develop and maintain a model of
substation 11kV load based on physical and demographic
characteristics of residential and non-domestic properties
attached to the metered test substations and using MPAN
consumption from industry data. This is a vital input to
the rest of the project, allowing it to examine the
operation of the network under many economic and usage scenarios, including take-up of
renewables and for future horizons. The Project FALCON partner forum will help maximise the
outputs of the project. We are pleased to confirm our interest in attending this.”

Owen Turrell, Business Development Manager

“...the Open University is strongly committed to project FALCON and we are

confident that we can make a significant contribution to its success.”

Professor Alan Bassindale, Pro-Vice Chancellor

“Cisco is pleased to be selected as one of the partners to

work with WPD on the LCNF project. This project will enable
WPD to assess many of the benefits of a true SmartGrid
infrastructure combining both theoretical and practical studies
to assess the impact of various grid reinforcement methods.
Cisco is excited to be working with WPD and its partners on
this project to supply the communications hardware and to
ensure a reliable, robust and security communications infrastructure is design using Cisco
SmartGrid Service.”
Andrew Longyear, Business Development

JRC would like to express support for Western Power Distribution’s FALCON
project being considered under the Low Carbon Network Fund initiative. JRC
would see the Project as providing valuable insights into the communications
needs for the Smart Grid at distribution voltage levels.

Adrian Grilli
Managing Director

GE Digital Energy is fully committed to supporting Western

Power Distribution’s LCNF Falcon bid and in addition to the
above benefits we also believe the network challenges and
opportunities identified within the aims of the project are
representative of what can be expected across the United
Kingdom during the transition to a low carbon future.”

Keith Redfearn, Regional General Manager

44
Appendix I - Summary of Customer Communications for FALCON project

Target start
Stakeholder
Knowledge / Project outputs Communication tools Use of data date
group
Other DNOs, Use Cases Intervention technique and combined Feedback from training Q1 2012
Ofgem, Other Final intervention technique hypotheses courses will be fed back to
LCNF hypotheses Software models Aston, Cranfield, Alstom and Q1 2015
projects, Data analysis tool Technical training manuals for models GE to feed into iterations of Q1 2015
National Grid Model scenarios based on the produced Intervention Techniques 1-4 Q1 2012 -
intervention techniques Progress reports Feedback from workshops onwards
SIM design documentation Technical reports will be fed to all partners Q1 2012 –
Load Growth Scenarios Press releases involved in the SIM and onwards
Economic simulator model Training sessions / courses to provide Intervention techniques Q1 2012 -
Final simulator design training on models and gather feedback Data from surveys and onwards
for further development market research will be Q2 2014, Q1
Face-to-face meetings captured and utilised by Bath 2015, Q3 2015
Participation on Partner Forum is refining the stakeholder
engagement, knowledge Q1 2012 onwards
capture and communication Q1 2012 onwards
plans.
SIM code technical and public website and Project Information regarding Q1 2012 onwards
Developed visualisation tool newsletter outline commercial
Algorithms for technical Surveys agreements will be fed back Q1 2012, Q3
management platform Workshops/events to communicate to Bath / WPD 2015
Outline commercial learning and gather feedback MPAN databases used to link Q1 2012 onwards
agreements Access to research database substations/ feeders to
Outputs of simulator operation architecture meter data Q2 2012 onwards
Final SIM Contract (including information on data Q2 2014
Outputs of Superimposed Load use; terms and conditions) for Q1+2 2012
Growth profiles on SIM techniques 5 and 6 Q3 2012
Market research annually
Annual LCNF conference Q2 2012
Annual FALCON conference annually
Energy Final intervention technique Intervention techniques and combined Feedback from workshops Q1 2012
Retailers, hypotheses hypotheses will be fed to all partners
DECC, Data analysis tool Face-to-face meetings involved in the SIM Q1 2012 onwards
Government Model scenarios based on the Participation on Project Forum andIntervention techniques
/ Local intervention techniques Public and technical website and Data from surveys and Q1 2012 onwards

45
 Target start
Stakeholder
Knowledge / Project outputs Communication tools Use of data date
group
Government, Load Growth Scenarios newsletter market research will be
OEMs, Economic simulator model Progress reports captured and utilised by Bath Q1 2012 onwards
Energy Final simulator design Technical reports is refining the stakeholder Q1 2012 onwards
Networks Developed visualisation tool Press releases engagement, knowledge Q1 2012 onwards
Association, Algorithms for technical Surveys capture and communication Q1 2012, Q3
NGOs management platform Workshops/events to communicate plans. 2015
Outline commercial learning and gather feedback Information regarding Q1 2012 onwards
agreements Market research outline commercial
Outputs of simulator operation Articles in industrial press / in-house agreements will be fed back Q1+2 2012
Outputs of Superimposed Load magazines of GE / Alstom to Bath / WPD
Growth profiles on the SIM Annual LCNF conference Q1 2012 onwards
Annual FALCON conference Q3 2012
annually
Q2 2012
annually
Industrial Model scenarios based on the Customer recruitment campaign. Details Contact and contract details Q1 2012
and intervention techniques of this TBC but might include: of clients will be stored
commercial Economic simulator model - information packs (digital and securely by WPD. Contact
customers, Outline commercial print) details will be passed to
potential agreements - telephone calls/site visits Bath. Q1 2012 –
power Information derived from Information leaflets with their bills Information regarding annually
generators outputs of economic and Press releases outline commercial Q1 2012 –
network models showing Face-to-face meetings agreements will be fed back onwards
potential benefits of adopting Letter with results of feasibility study to Bath / WPD Q1 2012 -
DG and DSM Customer focus groups onwards
Contract (including information on data Q3 2012
use; terms and conditions) for Q2 2012 –
techniques 5 and 6 annually
Q1 2013
FALCON project public and technical Q1 2012 –
website and FALCON project newsletter onwards
Surveys
Q1 2012, Q3
2015
Workshops/events to communicate Q1 2012 onwards
learning and gather feedback
Market research Q1+2 2012

46
 Target start
Stakeholder
Knowledge / Project outputs Communication tools Use of data date
group
Annual LCNF conference Q3 2012
Annual FALCON conference annually
Q2 2012
annually
Academic Final intervention technique Annual LCNF conference All papers and conference Q3 2012
institutions hypotheses Annual FALCON conference proceedings to be made annually
Data analysis tool Journal papers within publications such freely available Q2 2012
Model scenarios based on the as IEEE Proceedings annually
intervention techniques Conference papers at suitable academic Q3 2012 onwards
Load Growth Scenarios conferences
Economic simulator model Project academic institutions to meet in Q4 2012 onwards
Final simulator design academic team meetings
Outline commercial Joint research projects Q1 2012 onwards
agreements Teaching materials
Outputs of simulator operation TV / Youtube programmes Q1 2013 onwards
Final SIM Podcasts Q1 2014 onwards
Outputs of Superimposed Project FALCON technical website and Q1 2012 onwards
Load Growth profiles on SIM newsletter Q1 2012 onwards
Q1 2012 onwards

General Outputs distilled from the Information provided with Utility bill Feedback from surveys and Q1 2012
public, knowledge gathered by project Social media data collected fed back to Q1 2012 onwards
Schools FALCON tailored to provide more Newsletters/ public information displays Bath Q1 2012 onwards
general knowledge on the Articles in local press Any personal data / views to Q1 2012 onwards
network/low carbon technologies be held securely by Bath and
Engagement of schools with curriculum destroyed at the end of the Q1 2013 onwards
suitable materials in conjunction with project
Project B.R.I.S.T.O.L
Surveys Q1 2012
Workshops Q1 2012 onwards
Project FALCON public website and Q1 2012 onwards
newsletter
TV / Youtube programmes Q1 2012 onwards
Podcasts Q1 2012 onwards

47
Appendix J- Benefits
Direct Benefits

We do not expect the project to deliver significant Direct Benefits during the course of the
project as there is to be no change to the existing DR5 business plan; that is to say there
is to be no asset deferment or life-cycle increase availability through this project’s time
line.

Throughout the project there will be elements that decrease and elements that increase
the network losses. Existing standard asset ratings of equipment are often the “worst
case” scenario, through real-time measurement the expectation is that a greater power
delivery from the existing asset can be achieved. Therefore, the use of real-time asset
ratings will produce an increase in network losses, due to the I2R effect on the network.
Using DG and DSM to alleviate pinch points, i.e. reducing load on the network at critical
times, will have the effect of reducing network losses, again due to the I 2R effect on the
network. The LV energy storage is expected to utilise the high level of LV generation
currently on the network, at times of low load to charge, therefore reducing some of the
distribution losses generally experienced. These losses are typically 3% at 11kV and 7% at
LV. However, there are losses associated with the efficiency of the storage devices, which
have an expected round trip efficiency of 82%. Utilising the storage over an area of 11kV
network should mean that the net losses due to battery installation remain largely
unchanged. Through the utilisation of all these methods on the 11kV network, there is
likely to be a nil effect on network losses.

The minimal Direct Benefits for this project will come, primarily, through the reduction in
customer minutes lost (CML) and customer incidents (CI), driven by increases in network
security through meshing and automation inclusion. Providing 11kV load transfer and
meshing shall significantly increase the level of automation seen on the network.
Calculations derived by WPD indicate that installing automation on to an 11kV circuit has a
corresponding effect of reducing the CML’s by 0.015 and the CI’s by 0.015. By maximising
the benefits through automatic load transfers and network meshing, the network security
delivered to the end customer should see a tangible increase. Direct Benefits have been
calculated on the value associated with the IIS improvement, based on 5 effected circuits
in 2011/12, 10 effected in 2012/13, 15 effected in 2013/14 and 2014/15. The IIS value
has been calculated on a 0.015 CML and 0.015 CI improvement per circuit, borne by load
transfer and meshing, where 1 CML has a value of £420k and 1 CI £120k.

Carbon Benefits

Assumptions and Data Sources for calculating Carbon benefits

A study was carried out by Logica, looking at the impact of the national rollout of the
FALCON method. This study concluded that the national rollout would give rise to a
reduction of 680 thousand tonnes of CO2 emissions as compared with the Ofgem LENS
Report “Big Transmission and Distribution” scenario. In order to estimate the potential
savings in CO2 emissions, a series of assumptions have been made. This appendix details
all these assumptions.

Average annual electricity demand for project benefits is taken from an average of
2005 and 2006 consumption for the WPD Midlands area, these being recent years for
which good data was available. Going forward and looking at Great Britain as a whole, the
projections for annual electricity demand have been taken from the Ofgem LENS Report
“Big Transmission and Distribution” scenario.

The savings estimates are based on data from WPD Midlands, much of which has formed
the basis for previous regulatory submissions to Ofgem.

48
Line losses on the 11kV network have been taken as 0.67% of total demand, in line with
the figures from “TDP/CN 16 2008: Loss Calculations for Central Networks, September
2008”. Savings from reduced line losses arising from the implementation of meshed
networks, has been estimated to be 40% where this technique can be used. We estimate
that meshed networks will give this level of savings across 5% of the network, giving an
overall estimate for reduction in line losses of 2%.

The current levels of reinforcement across the CN network have been taken from two
Excel spreadsheets supplied by WPD: “CN West NADPR Workbook” and “CN East NADPR
Workbook”. Figures from 2010 were used as this was a year that could be taken as
typical of the current approach.

Data on the carbon cost of reinforcement has been taken from Jones, C.I., McManus, M.C.,
“Life-cycle assessment of 11 kV electrical overhead lines and underground cables”, J Clean
Prod (2010), doi:10.1016/j.jclepro.2010.05.008. The “Inventory of Energy and Carbon”
produced by the Sustainable Energy Research Team at Bath University (Inventory of
Carbon & Energy (ICE) Version 2.0 Prof. Geoff Hammond & Craig Jones Sustainable
Energy Research Team (SERT) Department of Mechanical Engineering University of Bath,
UK, http://www.bath.ac.uk/mech-eng/sert/embodied/ ) was used to obtain values for
embodies carbon.

To obtain a conservative estimate of the carbon benefit of reduced reinforcement, a

number of assumptions were made. Firstly, only overhead lines and underground cables
were considered. Then, the Network Investment Model was considered applicable across
90% of the network, and gross savings of 40% could be obtained. Other constraints
(practicality, operational etc) are thought likely to reduce this by 10%. Thus overall
savings of 32% of the carbon cost of reinforcement on lines and cables have been
estimated as the potential for savings.

Carbon savings from reduced reinforcement come from the savings in embodied carbon of
the different materials which would otherwise have been used in the avoided
reinforcement. Carbon savings do not scale directly with cost. The basis of the
assumption, that we can achieve a 40% saving, is on the accumulated expertise of the
wider project team taking into account the attributes of Project FALCON and taking
previous project experiences into account. This we believe is a conservative view and will
be verified during the course of the Project and made available as new learning.

The value obtained for the CN network was scaled to Great Britain in proportion to annual
demand. Cumulative figures for 2016 to 2050 were calculated by assuming that
reinforcement requirements would remain approximately the same and that therefore the
same carbon saving could be achieved every year. This gives an underestimate as it is
likely that reinforcement needs will increase and so the carbon savings from applying the
FALCON method would also increase.

Carbon Emission Factors for grid electricity for the present day have been taken from:
http://www.defra.gov.uk/environment/business/reporting/pdf/100805-guidelines-ghg-
conversion-factors.pdf. For future carbon emissions factors for grid electricity, we have
used the Ofgem LENS Report “Big Transmission and Distribution” scenario.

Carbon Valuation has been undertaken using the DECC non-traded shadow carbon
prices, taken from:
http://www.decc.gov.uk/assets/decc/what%20we%20do/a%20low%20carbon%20uk/carb
on%20valuation/1_20090901160357_e_@@_carbonvaluesbriefguide.pdf

49
 FALCON Addendum

REF: Ofgem Expert Panel Issue: Cost/Benefit of Intervention Technique 4-

Storage

At the Ofgem Evaluation Panel presentation on 3rd October 2011 the cost of battery
storage was questioned in light of the learning that will be gained in comparison with the
other intervention techniques.

The Panel suggested we review the overall cost of Intervention Technique 4-Storage in
order to strengthen Project FALCON‟s business case.

We have detailed our assumptions on the benefits of storage within the core bid
documentation and, following a further review, stand by these assertions. Being able to
accurately model storage within the SIM remains a fundamental requirement of FALCON.

We shared the panel‟s feedback with our battery supplier and specifically asked them to
evaluate all possibilities to make the overall cost of the Intervention Technique 4-
Storage more acceptable to the Panel without compromising the learning. Options were
discussed as outlined below.

Option 1: Battery supplier to reduce the unit cost of storage for 10 sites

Option 2: Provide costs for 5, rather than 10 sites

We will explore options to maximise the value for money associated with battery
storage.

The table below highlights the updates made in the revised bid submission:

Ofgem
Document
Page Description of Update Clarification
Section
Addressed

Pro-Forma

Section 1.4 1 The values for the Second Tier Funding and Expert Panel
External Funding have changed to reflect the Issue 3/10
impact of reduction in the storage scope

Section 2 2 The words describing changes since the ISP n/a

submission have been updated to reflect the
latest position

Section 2.2 7 Scope of storage installations reduced from 40 Expert Panel

devices over ten sites to 30 devices over 5 sites. Issue 3/10
 Section 9.5 51 Criteria updated to reflect change in scope of Expert Panel
storage trial. Five sites rather than ten Issue 3/10

Section 4(b) 20 Text of 4 (b) updated to explain further WPD‟s Q1

direct input to the source of the investment costs
taken from the ENA/ICL paper.

Section 4(b) 20 Corrected typo - the word “investment” was n/a

omitted from the end of the last paragraph.

Section 6 36 Words included to address Q13 around the Q13

probability assigned to the risk of being able to
resource this project.

Section 7 41 and Section 7 has been revised to provide clarity and Q6

43 consistency. WPD is seeking £125k protection
against IIS penalties. The value given for the
number of customers has been corrected from
2000 to 10,000.

We have included the table which shows how the

protection value has been calculated

Section 8 44 - 45 Section 8 has been updated to reflect the correct Q8

values used in the calculation of CI‟s and to be
consistent with other sections.

The statement claiming protection against IIS is

not required has been deleted.

Section 8.3 46 Section updated to clarify the process of Q16

managing new connections in the trial area
during the trial period.

Section 9 49 - 52 Section 9 updated to reflect a revised set of Q17

Successful Delivery Reward Criteria.

Appendices

Appendix C Section numbering has been updated n/a

 Appendix C 9 Appendix updated to confirm the position Q10
regarding safety criteria during the deployment
of the intervention methods. All deployments will
comply with WPD safety policies and procedures.

Appendix C 12 For the Automated Load Transfer technique we Q11

have added words to show that we will not
compromise the N-1 capacity situation with
regard to capacity on feeders.

Appendix D 24 Updated to include definitions of the ratings used Q12

in the risk register

Appendix F 33 - 34 Appendix updated to show the calculations from Q2

which the £659m is derived.

Appendix J 47 - 48 Appendix update to further clarify the 40% Q15

assumption used in our calculations.

Spreadsheet

Whole Project The “Whole Project Costs” tab has been updated Q4
Costs tab in line with Q4. Cells AC7 to DV59 have been
completed in Version 6 of the spreadsheet

Version 7 of the spreadsheet has been updated Q5

to reflect customer payment request.

Direct The spreadsheet Version 7 has been updated to Q7

Benefits tab remove the Direct Benefits of £283,500. The
calculation error has also been corrected.

Whole Project The spreadsheet version 7 includes information in Q9

Costs tab the column „Unit cost/total person days/payment
per user/expected length of contract‟.

Whole Project Reduction in overall project funding Expert Panel

costs tab Issue 3/10