Scottish and Southern Electricity Networks
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Network Innovation Allowance
ED - Network improvements and system operability
Comms & IT, Demand Response, Energy Storage and LV & 11kV Networks
SSEN have released 5 CMZ zones to date, all structured around reinforcement deferral where the NPV of postponing reinforcement over a 4-6-year term provides the overall value of the service provision. To date, tender responses received from CMZ type procurement exercises have largely been from large scale I+C customers such as energy storage providers. Whilst, there has been an appetite from smaller community led initiatives to become involved CMZ, this has proven to be challenging for them due to the burden of conforming with the requirements of an OJEU procurement exercise and commercial barriers in place to protect the business such as Achilles registration.
In addition, SSEN’s current tender assessment process does not currently consider the wider societal benefit of a community providing the Flexibility, generation or efficiency of a CMZ service. Although SSEN has established a clear case for communities and local organisations providing services to a DSO, local groups are currently behind the curve in understanding this business case and as a result need assistance to commit to the concept. In short, the market place at a community level needs assistance and stimulation.
The objectives of the project are:
1) To reduce the barriers of participation in the CMZ process for smaller community groups by:
- Producing documentation that will aid smaller community groups in understanding the process and requirements of the SCMZ process
- Providing direct support to interested providers in the Drayton and Coxmoor Wood areas, through seed funding and/or consultant support
2) Determining the internal processes required for a future rollout of SCMZ to encourage participants in other CMZ areas by:
- Working with legal, planning, regulation, CMZ and procurement teams to design processes for the trial which pass approval from all these internal teams
- Gain approval for use of these processes for BAU applications
3) Determine a method for calculating the social and environmental benefits of SCMZ provider participation to include in network planning decisions in future by:
- Working with BEIS and Ofgem on calculations and approval