May 2015
Gas Distribution
Gas CHP Impact Study
NIA_WWU_022
Complete
May 2015
Feb 2017
Wales and West Utilities and Northern Gas Networks
NGN- Peter Thomson (Project Manager) WWU- Ian Marshall (Project Manager) – (lead GDN) Element Energy (EE) – Ian Walker
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Network Innovation Allowance
None
Gas Distribution Networks
£116,084.00
This study will be run across two stages;

Stage 1 – With regard to gas-CHP technologies the study will consider the business models available to GDNs only at a high-level, in order to identify the value streams that GDNs could access to varying extents through different forms of engagement.

Stage 2 - With regard to gas-CHP technologies the study will consider the potential levels of engagement for GDNs and appropriate commercial arrangements in greater detail, including consultation with the GDN partners (as well as technology providers) in order to understand the feasibility of different models and how they would impact on GDN businesses.

The objective of this Project is to undertake the following tasks :–

Stage 1

  • Characterisation of different gas-CHP technologies by size, type, heat: power ratio, gas pressure/ramp rate/volume requirements, and by their typical applications / markets (domestic and non-domestic), including consideration of diurnal operating profiles, seasonality, etc.
  • Identification of commercial, technical and regulatory barriers to the widespread deployment of each technology, or potential negative impacts on GDNs – identified based on known technology characteristics and gas network operating parameters
  • High-level assessment of the relevant business models for GDN engagement with gas CHP  and the potential benefits available to GDNs from the widespread deployment of the technology in each of these potential markets – evaluated and quantified at a network-wide level
  • Outline strategic recommendations for GDN companies to engage with different gas CHP technologies, in order to maximise the benefits available to them, or avoid major issues identified with the widespread deployment of each technology – as well as recommendations for particular focus areas for further investigation in stage 2

Stage 2

  • Based on the stage 1 analysis, a more in-depth analysis of the benefits and challenges to GDNs of the widespread deployment of the most relevant gas CHP technologies will be undertaken. Gas flow modelling will be undertaken, in order to quantify the magnitude of the impact of gas CHP technologies in high potential applications and on each relevant section (IP, MP, LP, etc.) of the distribution network
  • A more in-depth analysis of the commercial models for GDNs to engage with the most relevant gas CHP technologies will also be undertaken, including additional data collected through consultation with GDN companies and gas-CHP technology providers
  • A detailed strategy for GDN companies to engage with selected gas CHP technologies, including specific, timed and detailed actions for individual teams within the gas network partners, to ensure GDNs are able to access the benefits identified, or avoid the barriers identified for the widespread deployment of gas CHP on their networks – including quantified trigger points for actions where necessary
The success criteria for the Project are:

  • A clear understanding & definition of widespread uptake

  • A clear identification of the benefits that could be available from engaging with the widespread deployment of selected gas CHP technologies and evaluation of the business models that could be employed by GDNs to access these benefits

  • Clear identification and quantification of technical/commercial/regulatory challenges to GDNs from the widespread deployment of gas CHP technologies

  • Clear recommendations for next steps for GDNs to engage with the most relevant gas CHP technologies, to mitigate any negative effects and maximise benefits from their deployments