Jan 2018
Electricity Distribution and Electricity Transmission
FUSION
SPDEN01
Live
Jan 2018
Jan 2023
SP Distribution
SPEN Innovation Team
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Network Innovation Competition
None
Carbon Emission Reduction Technologies, Commercial and Comms & IT
£7,100,000.00
The energy market in the UK is evolving radically with `prosumers' increasingly engaged in generation, flexibility and supply of their own energy. All this activity is having a direct impact upon the operation and design of the network. Distribution Network Operators (DNOs) can make use of this flexibility to develop a grid modernisation strategy that takes account of the cultural shift in how energy is generated and consumed; consequently securing the provision of affordable, reliable and safe power within an electrical grid that is dominated by distributed energy resources and multiple fuel technologies.
Project FUSION will allow DNOs to make use the inherent flexibility that is available within a region by implementing a whole system approach across multiple energy vectors (transport, heat, gas electricity). This will be developed within a fixed frame of network parameters and demonstrate how flexibility across each energy vector can be optimised as part of a services market, to mitigate network constraints and provide a valid alternative to conventional network reinforcement and enable an agile market which can accommodate for future uncertainty in regional development.
The project will engage with multiple industry participants and stakeholders to realise the value of their flexibility by implementing an open access commercially structured market place which will allow multiple energy users to offer demand or generation services to the DNO to alleviate network issues in real time and reduce network losses.
Project FUSION will implement the Universal Smart Energy Framework (USEF) across North East Fife as a new open access market place for flexibility. The Framework has been developed as an international standard to deliver a universal market for flexibility and has been successfully trialled in the Netherlands.
However, the user device interface (UDI) and commercial framework have not been proven within the GB market and consumer context. Therefore, the project will develop USEF so that it is fit for purpose within the UK. This includes establishing the interface between USEF and each participant that is active within this flexibility market (network operators, suppliers, aggregators, flexible demand customers) and the commercial arrangements that facilitate a settlement process showing that flexibility products can be delivered reliably as specified and as scheduled.

Prior to the network trial the USEF commercial framework will be developed to take account of the market structures and algorithms within the GB market context. This includes the methodologies and safeguards specific to the GB market and regulatory framework to facilitate effective competition in flexible user price submissions and avoid market abuse; as well as demonstrating the safeguards to ensure that 3rd party procurement of flexibility does not result in unacceptable loading on the distribution network.
Once USEF has been adapted and is fit for use within the UK a network trial will demonstrate how a multi vector approach can provide valuable network flexibility by incentivising customers to provide the network with the flexibility its requires to alleviate network strain and defer expensive reinforcement. The trial will coordinate an array of LCTs across North East Fife in real time in partnership with USEF to show how traditional reinforcement can be avoided by peak shaving electrical demand by making use alternatives supplies of energy. For example, the provision of the gas network to alleviate the peaks in demand caused by the electrification of heat and transport.
Alongside the project, the local distribution network within North East Fife will be equipped with adequate monitoring to enable SPD to identify network issue in real time and request the required flexibility from the USEF market place. This will be a staged approach by identifying priority circuits which include customers and aggregators with the adequate flexibility that can be offered to the DNO.