Impact case study database

The research undertaken at the University of Strathclyde between 2003 and 2008, in close collaboration with Scottish & Southern Energy Power Distribution (SSEPD), resulted in a spin-out, Smarter Grid Solutions Ltd, to commercialise the research [ S1]. From 2009, SSEPD started connecting additional wind generation to the Orkney power system under the ANM scheme with Smarter Grid Solutions, with reinforcement deferral savings of GBP30,000,000 from ANM scheme go-live. Smarter Grid Solutions Ltd continue to be at the forefront of advising power companies on ANM technology and this impact on design and investment policy is a direct result of the research. Specifically, since August 2013, the research has:

• Enabled the growth and commercial success of Smarter Grid Solutions Ltd;

• Increased the number of clean energy assets connected to the grid in globally, resulting in cheaper and greener energy available to customers and cost savings for power generation companies;

• Informed the investment strategy and planning of distribution network and system operators in the UK, further supporting the expansion of clean energy.

Enabling the growth and commercial success of Smarter Grid Solutions Ltd.

Smarter Grid Solutions Ltd (SGS) grew substantially from formation in 2008 with total revenues to the end of March 2013 standing at GBP6,100,000 [ S1]. By March 2020, the company’s annual revenue had grown to GBP10,040,000, with a total revenue since August 2013 of GBP40,200,000 [ S1]. As of 31^st July 2020, SGS employs 75 FTE staff, based in Glasgow, New York and California [ S1]. Director and Co-founder of SGS confirmed the importance of the underpinning research for the company’s business offer:

‘The ANM scheme marketed by Smarter Grid Solutions, based on the original collaboration between the University of Strathclyde and SSPED, enables our partners to design and implement solutions to enable connection of Distributed Energy Resources (DER), whilst maximising network efficiency and maintaining network reliability... We now have an enviable track record with the leading innovator companies, covering all types and sizes of DER, based on the proven value of this technology.’ [ S1]

Since August 2013, SGS has expanded its original product, AMN 100, into two products – AMN Strata and AMN Element. Both products continue to be based on the fundamental research into ANM conducted at Strathclyde and were further informed by ongoing collaboration with current Strathclyde researchers [ S1]. The Director of SGS highlights how this collaboration ‘allows us to maintain our competitiveness and continually increase our business offer.’ [ S1] SGS has invested around GBP25,000,000 in product development based on the research, and received over GBP3,000,000 in external investment to further develop the products in 2017 [ S1]. According to the Director: ‘This level of investment is further evidence of the value of Active Network Management to the renewables energy sector. The application of ANM technology in our products enables our customers to develop and operate their networks more efficiently and flexibly as required and incentivized by industry regulators.’ [ S1]

Increasing the number of clean energy assets connected to the grid globally

With SGS having proven the value of the technology since its establishment, more and more power generation and distribution companies are adopting ANM as part of their operational technology to complement existing systems. SGS’s connected generators list has grown to approximately 450MW as of July 2020, with contracts with distribution network operators to connect over 1GW in 2021 [ S1]. The operational systems list, using products with the Strathclyde IP, currently includes the UK, US and Europe [ S1]. Examples of the connections enabled by SGS, resulting in cheaper and greener energy available to consumers and cost savings for power generation companies, are presented below.

Similarly UK Power Networks (UKPN) partnered with SGS on their ‘Flexible Plug & Play’ project (2011-2014), which demonstrated the value of adopting the approach for the company, who subsequently committed to implementing an ‘industry-leading’ ANM system in their 2015-2023 Business Plan [ S3]. This commitment has recently been accelerated, such that UKPN are now deploying the system two years ahead of schedule to help facilitate flexible renewable energy generation connections. Since defining the Business Plan, UKPN has connected over 120MW of solar, wind and biofuel generators in East Anglia, England, providing energy to power approximately 120,000 homes [ S3]. UKPN’s system, powered by SGS software, was described by respected independent American consultancy group Wood Mackenzie as ‘amongst the world’s most advanced’ and has delivered over GBP70,000,000 in savings for energy generator customers [ S3]. Flexibility contracts are now being introduced as a matter of standard practice for UKPN as part of their transition to DSO, so that all suitable newly connected generators will have the opportunity to benefit from ANM [ S3]. This rollout of flexible generation connections is expected to result in 2.5GW of generation connections and is the fastest and largest enterprise rollout of this technology [ S3].

SSE Enterprise is responsible for providing SSE with innovative solutions for their energy infrastructure in the UK and Ireland, and adopted SGS’s ANM technology to support increased connection of renewable and other clean, distributed, flexible energy resources to the grid and market [ S4]. In particular, SSE Enterprise have used ANM Strata to connect their customer’s energy assets to their systems and markets [Text removed for publication] and have ongoing projects to connect generators at commercial and industrial customer sites, business and university campuses and local authority buildings [ S4]. Confirming the benefits of this technology, the Director of SSE Enterprise stated: ‘[it is] enabling us to meet our green ambitions, serve our customers well, keep our energy prices low and meet our business objectives… SGS’s expertise in control and aggregation has been invaluable to help us create a platform that operates as we need it to.’ [ S4]

AVANGRID, 3,100,000 customers throughout New York and New England, US

AVANGRID, part of the Iberdrola Group, partnered with SGS in 2015 to develop and conduct demonstration projects as part of the New York Reforming the Energy Vision policy [ S5]. The resulting project - Flexible Interconnection Solutions (FICS) – was designed to demonstrate a process for energy generation developers and AVANGRID to curtail generation (i.e. flexible capacity) rather than conventionally reinforcing the grid (i.e. firm capacity). This approach maintains the viability and benefits of renewable development while ensuring the grid remains within service requirement specifications, such as voltage and equipment thermal limits, using SGS ANM technologies [ S5]. This solution encourages the development of distributed energy resources in the New York system and market. AVANGRID is leveraging this work to help meet the Reforming the Energy Vision policy goals of increasing distributed grid connections, reducing electricity costs and improving the environment [ S5]. In the future, FICS has the potential to enable additional DER interconnections that would not be viable under the current model [ S5].

Enzen Global Solutions Energy Consultants

In 2020, SGS partnered with Enzen Global Solutions energy consultants to implement ANM in several global regions (notably Australia and India) and, in September 2020, announced a deployment project in the Southern Indian State of Tamil Nadu [ S6]. This area has a high proportion of wind and solar renewables, and ANM will be used to minimize renewable energy curtailment and improve system balancing. This project is the first of its kind in India and has a huge potential for scaling up in other parts of the country. Ultimately, this project will result in cheaper, quicker, and more flexible energy generation connections and will further advance India's clean energy goals [ S6]. Speaking in media coverage at the time, the Vice President of Enzen Global Solutions stated: ‘Enzen believes in leveraging best-in-class technology from across the globe to meet local needs, and that's why we're collaborating with Smarter Grid Solutions. The pilot is an important step in maximising renewable energy uptake by the grid, and realising the full benefit of renewable energy for electricity companies, project developers and communities.’ [ S6]

Informing the investment strategy and planning of distribution network operators

The successful deployment of ANM technology on Orkney gave confidence to power companies to invest in further deployments of this technology under innovation funding (i.e. Low Carbon Network Fund, Network Innovation Competition and Network Innovation Allowance) and to include ANM technology in their investment plans for the period 2015-2023 under the RIIO price control mechanism [ S2, S3]. This uptake of ANM was highlighted in the UK Government’s 2017 Smart Systems and Flexibility Plan as addressing the action on Distribution Network Operators to ‘make more efficient use of new technologies, providers and solutions ’ [ S7]. The Plan noted: ‘It is critical that DSO [Distribution System Operators], transmission owners (TOs) and the SO [System Operator] develop timely and appropriate reforms to the way they plan, operate and engage with one another and customers, in order to manage the networks more efficiently and minimise whole system costs… We are seeing progress now (such as growth in active network management and greater coordination), but further demonstrable progress must be made.’ [ S7]

In their recently published DSO strategies (2017-2020), all 6 UK Network Operators committed to expanding ANM as a key aspect of their development plans [ S8]. As highlighted above, SPEN and UKPN have integrated ANM into their standard practice [ S3, S4, S8a, S8b]. Scottish and Southern Electricity Networks (SSEN), as a collaborating partner in the Orkney project, specifically highlights the work of SGS and the University of Strathclyde in their DSO update: ‘SSEN pioneered flexible connections alongside Smarter Grid Solutions and the University of Strathclyde in Orkney’. [ S8c] By 2019, SSEN had made ANM available to all generator customers in SSEN distribution areas and had delivered over 200MW in flexible connections [ S8c]. Through their ANM Centralisation project, SSEN invested GBP1,800,000 in a new ANM system to support this roll-out [ S8c]. In their DSO strategy published in February 2020 [ S8d], Western Power Distribution, who have been rolling out ANM since 2016, stated their intention to ‘Roll out Active Network Management across entire network by 2021, with expanded connections options available for customers allowing them to get quicker and cheaper access to the network’ [ S8d]. Electricity North West listed ANM as an ‘enabler’ and committed to implementing a whole system ANM suite to allow dispatch of flexible resources and help manage the flow of energy, highlighting ‘whole system benefits through coordination between transmission and distribution requirements delivering efficient network solutions and striking the right balance between new build and flexible solutions.’ [ S8e] Northern Powergrid, who already have one live ANM zone in the North of England and 433MW of contracted flexibility across three other ANM zones, also included ANM as a ‘key enabler for decarbonisation’ stating: ‘through ANM, we are able to actively manage exports from generation customers in order to provide them with cost-effective connections to the distribution network. This scheme is ground-breaking for us, as it is our first replicable scheme, meaning that we now have a standardised solution that we can roll out anywhere this situation occurs on our network.’ [ S8f]

Through the commercialisation of ANM products sold by SGS, the Strathclyde research developing ANM has been picked up by leading distribution network operators to provide cleaner and more efficient energy, and has enabled them to adapt to Government regulations and recommendations. Summarising the benefits of partnering with SGS, Head of Smart Grid Development at UK Power Networks stated:

‘By increasing the connection of renewable energy resources, we are able to meet our network development, customer connections and clean energy goals, improve the flexibility and efficiency of our network, and reduce the costs of network connection for energy generators as well as our customers… we consider ‘efficient and effective’ networks and being ‘net zero ready’ to be key innovation themes that support our business offer and Smarter Grid Solutions enables that.’ [ S3]