1. business and industrial
2. business operations
3. management
4. project management

Smarter Network Storage
Low Carbon Network Fund
Progress Report December 2014
Smarter Network Storage
Progress Report December 2014
Contents
1
Executive Summary .................................................................................................................................................. 3
1.1
Project Background ........................................................................................................................................ 3
1.2
Summary of Progress .................................................................................................................................... 3
1.3
Risks and Issues Summary ........................................................................................................................... 4
1.4
Learning and Dissemination Summary .......................................................................................................... 5
2
Project Manager’s Report ......................................................................................................................................... 7
2.1
Progress in the reporting period ..................................................................................................................... 7
2.2
Project outlook into the next reporting period .............................................................................................. 29
3
Business Case Update ............................................................................................................................................ 30
4
Progress against budget ......................................................................................................................................... 32
5
Bank Account .......................................................................................................................................................... 32
6
Successful Delivery Reward Criteria (SDRC) ......................................................................................................... 33
7
Learning outcomes .................................................................................................................................................. 38
7.1
Main Learning Outcomes from the Reporting Period .................................................................................. 38
7.2
Learning, Communications and Dissemination Activities in this Period ...................................................... 40
7.3
Learning and dissemination activities over the next reporting period .......................................................... 42
8
Intellectual Property Rights (IPR) ............................................................................................................................ 43
9
Risk Management ................................................................................................................................................... 44
10 Consistency with Full Submission ........................................................................................................................... 46
List of Appendices ............................................................................................................................................................ 47
Appendix A: Progress against budget (CONFIDENTIAL) ....................................................................................... 47
Appendix B: Bank account (CONFIDENTIAL) ........................................................................................................ 47
Appendix C: Bid Risks Update ................................................................................................................................ 48
Table of Figures
Figure 1: The site in May 2014 (left) and later in November 2014 with landscaping and fencing (right) ........................... 3
Figure 2: Launch event on 15 December 2014. ................................................................................................................. 6
Figure 3: Smarter Network Storage organisation chart ...................................................................................................... 7
Figure 4: SNS 2014 key deliverables summary.................................................................................................................. 9
Figure 5: Energy Storage System components during construction ................................................................................ 10
Figure 6: Provision made in fencing and land alongside the Clipstone Brook past the site. ............................................ 11
Figure 7: Completed scaffold loading platform and high level DC bus-bars being assembled. ....................................... 11
Figure 8: PCS assembly on site and DC cable supports and termination boxes. ............................................................ 12
Figure 9: Fire suppression bottles and a ventilation louver during installation. ................................................................ 13
Figure 10: New 11kV switchboard extension and demonstration of the new RTU. ......................................................... 14
Figure 11: Before and after of the area within Leighton Buzzard 33/11kV site with the local substation providing the site
auxiliary supplies. .............................................................................................................................................................. 14
Figure 12: Levelling and preparation of the ground to be leased to the council for the use of the local residents. ......... 15
Figure 13: Considerate Constructors Scheme banner displayed prominently on the construction hoarding. ................. 16
Figure 14: Testing of the CAN-BUS signals ..................................................................................................................... 18
Figure 15: Testing life cycle .............................................................................................................................................. 20
Figure 16: High Level Deliverables of WS 3 during the Project Lifecycle ........................................................................ 26
Figure 17: NPV Breakdown of Reinforcement Route incorporating SNS ......................................................................... 30
Figure 18: Presentations at the Leighton Buzzard Society ............................................................................................... 42
Table of Tables
Table 1: Defects identified ................................................................................................................................................ 21
Table 2: SOCS software components .............................................................................................................................. 23
Table 3: Storage revenue sensitivity to operating different services ................................................................................ 31
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1 Executive Summary
1.1 Project Background
Energy storage is a key source of flexibility that can help address some of the challenges associated with the transition
to a low-carbon electricity sector. Storage, as identified by the Smart Grid Forum, is one of the key smart interventions
likely to be required in the future smart grid. However, challenges in leveraging the full potential of storage on
distribution networks to benefit other industry segments, and a lack of scale demonstrations are currently hampering
the efficient and economic uptake of storage by the electricity sector.
The Smarter Network Storage (SNS) project is carrying out a range of technical and commercial innovation to tackle
these challenges and facilitate more efficient and economic adoption of storage. It is differentiated from other LCNF
storage projects through the demonstration of storage applications across multiple parts of the electricity system,
including the distribution network but also outside the boundaries of the distribution network. By demonstrating this
multi-purpose application of 6MW/10MWh of energy storage at Leighton Buzzard primary substation, the project is
exploring the capabilities and value in alternative revenue streams for storage, whilst deferring traditional network
reinforcement.
The project aims to provide the industry with a greater understanding and a detailed assessment of the business case
with the full economics of energy storage, helping to accommodate increasing levels of intermittent and inflexible low
carbon generation. The project was awarded funding of £13.2 million by Ofgem, under the Low Carbon Network Fund
(LCNF) scheme in December 2012 and will last four years, from January 2013 to December 2016.
1.2 Summary of Progress
In this reporting period the project has completed the construction and commissioning of the Smarter Network Storage
facility, making it Europe’s largest battery owned by a network company. Despite some issues encountered during the
commissioning process, the facility is now operational and is completing testing ready for the System Integration
Testing phase, however there remain outstanding system defects that need further investigation which are covered in
more detail later in Section 2.1.
Figure 1: The site in May 2014 (left) and later in November 2014 with landscaping and fencing (right)
During this period Work Stream 1 (WS 1) has seen a vast effort in completing the civil and electrical construction work
at Leighton Buzzard and continuing into the testing phase. All installation work has been completed and the Electrical
Storage Device (ESD) has passed site acceptance testing, with 6MW of power exchange now demonstrated and at
time of writing is ready for System Integration Testing to begin.
During this period Work Stream 2 (WS 2) moved from software design phase and entered into development and testing
phase. The software suppliers completed development and their testing; in turn the project team integrated the
software solution and carried out acceptance testing using UK Power Networks’ infrastructure. Integration testing is in
progress to make the solution ready for trails.
Workstream 3 (WS 3) has identified a range of individual trials to demonstrate the storage capabilities and various
value streams. A comprehensive suite of detailed trial design documents has been completed which describe the
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hypotheses, technical requirements, processes, risks and expected outcomes. This includes pre-trial tests which
chronologically sit between commissioning of the energy storage system and handover of the software and hardware
infrastructure before the kick-off of the trial phase once the storage is operational. The pre-trial tests aim to serve as
confidence building tests as well as system integration tests for the various software and hardware sub-systems. The
initial trials to be carried out will be network-related, which have been designed by Imperial College London, and
support the work assessing the contribution to security-of-supply of shared-use storage. The pre-trial designs and the
initial network-related trial designs have been drafted and are awaiting confirmation of the exact execution dates and
the PI naming tags before completion, which are both expected in early January 2015 after completion of the full
commissioning of the SNS hardware and software infrastructure.
The key focus and deliverables from Workstream 4 (WS 4) during the period has been the completion of a report
detailing Commercial Arrangements for Integrated Use of Flexibility (SDRC 9.3 report, SNS4.6) together with the
completion and signing of agreements with Smartest Energy and Kiwi Power. This together with a confidential report
compiling other relevant evidence, mainly meetings and workshop notes, forms the evidence demonstrating the
successful completion of successful delivery reward criteria 9.3.
1.3 Risks and Issues Summary
Procurement Risks and Issues

RTU firmware had to be upgraded to cope with DNP3 protocol – This was because GE documentation was
inaccurate, as a result additional consultancy was required from GE to resolve this at an extra spend of £3,100.

Vodafone & BT data communications issues – Vodafone made a number of errors during the delivery of the
VRF connection at Leighton Buzzard, which is now completed. This resulted in delays in connectivity tests and
unplanned resource utilisation.
Installation and Other Risks and Issues

11kV switchgear joggle-box error – There was an error made by a sub-contractor of the supplier of the 11kV
1
switchgear that required the replacement of a joggle box required to extend the existing 11kV switch-board.
This was completed behind schedule but the supplier agreed to cover all additional costs.

Samsung SDI rack BMS error – Samsung SDI advised that the BMS circuit board they had supplied had a
fault that caused intermittent operation; this was identified on another installation. Replacement circuit boards
were supplied to resolve this issue by Samsung SDI and installed by S&C Electric and their subcontractor
causing some short delays.

Communications Interference issues – Electromagnetic interference causing loss of communications on a
CAN-BUS interface between the batteries and the battery management system caused significant delays,
meaning the completion of the commissioning was behind schedule. This has been rectified by improving
software resilience, replacing the cables with better screened cables and the installation of physical
containment. There are some further issues relating to circulating currents within the building that are still
under investigation at the time of writing, but are expected to be resolved within the next reporting period.
Towards the end of this reporting period and moving into the start of the next period full end to end integration testing
of the system will be carried out. Naturally work during the design stages has attempted to mitigate all problems that
could be encountered in enabling the different sub-systems to work together; however as with all innovative work
involving first-of-a-kind software and hardware platforms, there is an elevated risk of unexpected issues arising that
could cause further delays to the programme.
1
Joggle box: switchgear extension panel to enable on switchgear make/model to be connected to another
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1.4 Learning and Dissemination Summary
The SNS project continues to generate and capture key learning, which in this reporting period has predominantly
materialised from the installation and commissioning of the storage facility and through the process of implementing
novel commercial arrangements for operating the storage in the markets.
The key learning outcomes are summarised below, with further information available in Section 7.1:

Building a large scale ESD in a building presents different challenges to a containerised solution

The application of some standard charges as part of The Electricity Supplier Obligations could lead to
disadvantages for storage operators, and double counting of industry charges;

The application of some distribution-related charges do not always reflect the potential value or capability that
the storage system can offer;

The firmware of Remote terminal Units (RTUs) should be up to date prior to testing;

Improved understanding of storage amongst energy suppliers and standardisation of energy supply contracts
is needed to facilitate the adoption of energy storage

DNOs may need to contract or develop additional expertise in DC design
To ensure that the project is continually capturing learning resulting from the project, regular workshops involving the
project team are scheduled, outside of other governance and project meetings, which provides a forum for specifically
discussing and capturing new learning.
In addition, the partner forums, which have been held on 28 July and 18 November, provided an opportunity to discuss
and capture any additional learning with external project partners.
As part of WS 5, which is dedicated to learning capture, dissemination and stakeholder engagement, the Knowledge
Dissemination Roadmap has been reviewed and updated to reflect the evolving plans for engagement and
dissemination by the centralised learning and dissemination team.
The following internal dissemination activities, project–related events, communications and engagement have
been carried out during this period. Further detail is available in Section 7.2:

Network control briefings to ensure key staff remain engaged and integrated into processes for operating the
storage;

Construction site meetings and tours at the working level and management level;

Contributions to an EPRI Software Case Study Report;

Contributions to Storage and BSC Report by Elexon;

ESOF Meeting – A presentation was given on the business case for the SNS installation in Shetland, hosted by
SSE;

Knowledge sharing with the Japanese Institute for International Socio-Economic Studies;

Energy Central Article on Smarter Network Storage;

The project was featured in a short film, commissioned by the ENA on several aspects of Smarter Networks,
including the use of storage. The video can be viewed at: https://www.youtube.com/watch?v=YPF9cF_UTds

Presentation at the iMechE Event – ‘Storage: An Integrated Approach’;

Provided Mr C.Tsai, CEO of Power Asset Holdings Ltd. (owner of Hong Kong Electric and 40% owner of UK
Power Networks), a tour of the SNS facility;

CIRED Abstract Submission on Forecasting by Newcastle University (September 2014);

CIRED Abstract Submission on the SNS Project by Panos Papadopoulos (September 2014);
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
ESOF Meeting – a presentation on the frameworks for cost comparisons of storage projects at the September
ESOF meeting;

Presentation at the IET Power in Unity Conference by S&C Electric in Birmingham (October 2014);

Presentation at the Major Energy Users Conference (MEUC);

Presentation at Ofgem WS6 Smart Grid Forum workshop;

Presentations at the LCNI Conference 2014, Aberdeen;

Input into a trilateral UK-Germany-France Workshop on Energy Storage hosted by Department of Business,
Innovation & Skills (November 2014);

Presentation at European Association for Storage of Energy Global Conference, Paris;

Partners Forums were held in London on 28 July and in Leighton Buzzard on 18 November;

Training was provided to the UK Power Networks local standby engineers about the facility on 25 November;
and

A launch event attended by the Parliamentary Under Secretary of State for Climate Change, Amber Rudd MP
was held on the 15 December 2014 to promote the SNS facility and provide a tour to senior stakeholders,
including Andy Burgess from Ofgem (see Figure 2: Launch event on 15 December 2014.).
Figure 2: Launch event on 15 December 2014.
The following local communications and engagement has been carried out during this period:

Presentation to the local community group, The Leighton Buzzard Society, to provide an overview of the
development, and the wider project; and

On site meeting with the Greensand Trust (working on behalf of Central Bedfordshire County Council) to
discuss plans for the leased land adjacent to the SNS facility.
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2 Project Manager’s Report
This section describes the progress made on the SNS project in the reporting period June 2014 through to December
2014, including the key milestones and deliverables met, any issues encountered, and provides an outlook into the
next reporting period through to June 2015.
2.1 Progress in the reporting period
2.1.1
Project resourcing and governance
2.1.1.1
Project Resourcing
The project team remains unchanged since the last reporting period, and has continued to leverage expertise in the
delivery of civil and electrical construction projects through UK Power Networks’ Capital Programme Directorate, and
our appointed Principal Contractor; Morrison Utility Services.
The following organisation chart, in Figure 3, shows all the allocated resources within the SNS project structure as of
December 2014.
Figure 3: Smarter Network Storage organisation chart
Engagement continues with the core project partners both through ongoing work, and at a more senior level through
the Partner Forums. A Partner Forum meeting was held on 28 July, where an update was provided on construction and
installation progress and the activity around SDRC 9.3 was discussed.
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A second Partner Forum was also held on 18 November at the storage facility in Leighton Buzzard. This provided our
project partners an early opportunity to have a tour of the storage facility, and discuss further the trial work to be carried
out in the next phase of the project.
2.1.1.2
Project Governance
The governance model, as described in the previous six month progress report, is unchanged and continues to be
operated by the Programme Management Office. The model identifies two distinct streams: Solution Governance and
Project Governance and helps to ensure a focus on developing effective technical and commercial solutions to meet
learning outcomes, as well as an effective structure for ensuring the overall solution is delivered on time, to budget and
to the appropriate quality.
Further information on this governance model, including supporting project control and reporting mechanisms, is
documented in the SNS Project Handbook (SNS5.4).
A number of additional processes have been developed to cover specific activities relating to operating the ESD during
the trial phase. These are listed below, but include processes for developing and agreeing trials, reconciling and billing
from the delivery of commercial services and internal reporting.
Key issues encountered
No significant issues have been encountered in this area during the reporting period.
Key deliverables

SNS 3.16 – Trials Process

SNS 3.17 – SNS Trials and Operation Invoice Billing Reconciliation Process flow
2.1.2
Project Planning
As highlighted in the previous 6-month progress report, the current reporting period has represented a critical period in
the project with a significant amount of activity occurring as the construction and commissioning took place, in parallel
with the development and testing of the IT solutions.
More regular progress reviews and workstream-level project planning has therefore continued throughout this current
reporting period to ensure progress is closely monitored and plans updated accordingly.
Several issues encountered during the commissioning of the storage facility have led to a delay of approximately eight
weeks in trial start, which are further described in Section 2.1.3 This has required ongoing re-phasing of various
dependent activities, but will not affect the level of learning generated from trials or subsequent key milestones due to
the flexibility and design of trial arrangements in the following phase. An updated high-level summary of the SNS
activities and deliverables achieved in 2014 is provided below in Figure 4.
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Figure 4: SNS 2014 key deliverables summary
Similar to the previous year, a strategic planning session was held with the project team on the 7 November 2014. This
provided an opportunity to review the objectives and structure of the project team ahead of the transition to the
operational and trial phase, identify the priorities and core work packages for 2015 and any additional dependencies
and risks for the year.
Key issues encountered
No significant issues have been encountered in this area during the reporting period.
Key deliverables
No new deliverables have been developed in this area during the reporting period.
2.1.3
WS 1 – Energy Storage Hardware
WS 1 covers the design and development of the storage system; hence many of the activities in the current stage of
the project are encapsulated within this WS. The focus within this reporting period has been the installation,
commissioning and testing of the energy storage system (see Figure 5) within the new building at Leighton Buzzard,
along with the additional equipment and network modifications required for its safe and effective integration. Detailed
preparations have been made for the operation of the system including the preparation of user guides and training
materials; delivered to UK Power Networks staff in the local area as well as to network control engineers and other
relevant staff.
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Figure 5: Energy Storage System components during construction
2.1.3.1 Design & Planning
Engagement with Central Bedfordshire Council has been sought during this reporting period on some aspects relating
to the site completion. Specifically this has included the approval of the appearance of a low fence along the edge of
the land being leased to the council for the use of the local residents. This includes the provision of ongoing access for
the council and the Environment Agency to maintain the land they are leasing and the Clipstone Brook respectively.
At the close of this reporting period the site will have been de-mobilised and the landscaping completed. The
landscaping is in progress at time of writing; having been delayed slightly by the warm autumn. The semi-mature trees
needed to be dormant before they could safely be moved.
Documents have been prepared to ensure that upon the completion of the site works the requirements of the Section
106 agreement with Central Bedfordshire Council are met. This includes the lease to the land that is being made
available for the use of the local residents, as shown in Figure 12; transfer to the council of the land they requested
alongside the Clipstone Brook, as shown in Figure 6; and a payment to the council to support the maintenance of the
land being leased to them.
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Figure 6: Provision made in fencing and land alongside the Clipstone Brook past the site.
During this period there were some late design changes that were implemented in the project. Although all relevant
stakeholders had been consulted during the design phase some late requests were made to add an additional 11kV
circuit breaker to the primary substation bus-bar and an additional Ring Main Unit. These are being used to support the
11kV network in the area by enabling additional 11kV circuits to be run from the primary substation and to provide
additional network flexibility. Although the work for this has been carried out by the SNS project the funding for all the
work has been provided separately
2.1.3.2 Construction
On 15 May 2014, in the last reporting period, the interior of the new building was handed over to S&C Electric to install
the batteries, power conversion systems, fire suppression system and cooling equipment. The first battery deliveries
from Samsung SDI arrived on 19 May. These were the first of 14 shipping containers of equipment from the Korean
supplier.
Due to the difference in levels between the ground, a container on a lorry trailer and the building loading bay an
intermediate level scaffold platform was constructed, as shown in Figure 7. This allowed the palletised equipment to be
easily offloaded from the containers onto a scissor lift that could raise them to the level of the building loading bay,
reducing the time taken to offload each container and ensuring employee safety in the process.
Figure 7: Completed scaffold loading platform and high level DC bus-bars being assembled.
The first elements to be installed were the DC bus-bars, hung from the high level structure of the building above the
position of each of the battery arrays (see Figure 7). The battery rack frames were then positioned and bolted together
and to the floor to create a stable structure. Once these frames were in place they could be populated with the battery
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trays themselves. This process carried on until early July, with the last array then completed on 18 August following the
delivery of the Power Conversion Systems (PCSs).
Following the completion of the battery arrays the different cable supports, cabling and ancillary equipment were
installed, as shown in Figure 8. The control cabling on the battery racks was installed between 22 July and 29 August
with the power cabling to connect the battery trays together left to the last stage before testing. This was done to
minimise the risk posed by the energy stored within the batteries by keeping them isolated in as small units as
possible.
The PCSs arrived in sections (see Figure 8) on 31 July from the USA and re-assembly was completed on 6 August.
These were then positioned with the transformers in the SNS building. Work then commenced on re-assembling them
from the shipping splits and connecting up the main and auxiliary cables.
Figure 8: PCS assembly on site and DC cable supports and termination boxes.
During this time further work was done inside the SNS building to install the fire suppression system and the heating,
ventilation and cooling system. These involved the mounting of acoustic louvers, fans, ducting, vents, gas sampling
pipework, fire grade cabling, control cabling and control boards, some of which are shown in Figure 9.
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Figure 9: Fire suppression bottles and a ventilation louver during installation.
Outside the building, work commenced in earnest during June to stitch the energy storage device into the local 11kV
network. From 11 June the CDM construction site was extended to include the existing Primary Substation adjacent to
the SNS building. A scaffold loading bay was erected to allow equipment to be safely delivered to the building as it is
also raised above the site flood level.
Using this platform on 16 June new 11kV circuit breakers were delivered to extend the existing switchboard and enable
the connection of the energy storage device (see Figure 10). Between 17 June and 1 July the new auxiliary battery
systems, automatic voltage control panel and Remote Terminal Unit (RTU) were delivered. As it is not possible to run
multiples of these systems, significant effort was required to integrate these with the existing equipment so that the new
unit could cope with the requirements of the energy storage system.
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Figure 10: New 11kV switchboard extension and demonstration of the new RTU.
Due to the increased auxiliary demand and the requirement for this supply to be secure the existing padmount
substation (providing low-voltage supplies) was removed and replaced with two new distribution substations on raised
plinths. Construction of the bases and access platform began in mid-July and was complete on 27 August. The first
new 11kV cables were installed on 21 August with the last cables on 9 September and all joint bays reinstated during
the first two weeks of October. The changes to this area of the site are shown in Figure 11.
Figure 11: Before and after of the area within Leighton Buzzard 33/11kV site with the local substation providing the site
auxiliary supplies.
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Once the majority of this work was complete UK Power Networks’ security contractor mobilised to site to install the
permanent security. The new building is secured to current company standards but the security at the adjacent existing
site was upgraded to protect the network connection of the energy storage device. This minimises the likelihood of
anyone interrupting the supply with potential network security or commercial implications and secures the high value
assets installed. During the current period there was a break in to the site on 17 September causing damage to the site
office. Nothing was taken and no damage was done to the SNS building itself or equipment contained within it.
During the week commencing 6 October the site management and facilities were moved into new cabins to enable the
original cabins to be removed and the land to be landscaped prior to leasing the land to the council. The hoarding has
also now been removed along with the hard-core that had been laid to form a working surface. Topsoil that had been
stockpiled from the original site clearance could then be distributed to make up the ground levels and provide for
planting.
Figure 12: Levelling and preparation of the ground to be leased to the council for the use of the local residents.
At time of writing the planting is complete and, by the close of this reporting period, the site will be completely
demobilised. It is planned to leave a single cabin on site to provide a safe room for meetings and to facilitate visitors to
site to support the dissemination of the learning from this project to other DNOs and the wider energy storage industry.
2.1.3.1
Testing
The initial 11kV energisation of the SNS switchboard took place on 12 September with sequential tasks following to
test the step-up transformers and AC side of the Power Conversion Systems. This formed part of a detailed testing
programme governed by the SNS1.3 Testing Strategy document.
The electrical testing continued largely without incident including full reactive power tests until the testing of PCS DC
side and transfer of power to/from the batteries. This is described in more detail in “Key Issues Encountered” below.
The ESD was broken down into its constituent units and commissioned by PCS and by Battery Energy Storage Device
Manager (BESDM – section of the ESD). The PCSs were checked following re-assembly then their auxiliary power and
control systems were tested. The PCS inverters were then tested to their full reactive power capability before control by
the BESDM devices was attempted and real power testing.
For each BESDM (representing two battery arrays) the communications were tested first, then basic control of the DC
contactors then initial charge and discharge tests. Following the resolution of the key issues (described below) the
batteries were then put through a “State of Health” calibration to confirm the batteries could be charged/discharged fully
and an endurance test, where any poor cell performance would be detected. Once each of the six BESDM devices and
their respective battery arrays were tested in this way the communications were enabled between these and the
Battery Energy Storage System Manager (BESSM) controller. Tests on the whole ESD could then be carried out.
The ESD system tests, operating in each mode required driven by the battery management system BESSM, are
complete. This marks the completion of the Site Acceptance Tests of the equipment supplied by S&C Electric and their
sub-contractors Younicos and Samsung SDI. System Integration Tests including other aspects of the IT and
forecasting system covered in WS 2 can then be carried out at the end of this reporting period through into the start of
the next one.
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Aside from the main electrical systems the ancillary systems were also all thoroughly tested. In order to sign off the fire
suppression system it was required to test the ability of the building to maintain air pressure to a certain level. This
ensures that if released the suppressant gas remains in place for long enough to suppress a fire. The building passed
this test at the first attempt.
The heating ventilation and cooling systems were tested to ensure the appropriate responses to temperature change
are made. The auxiliary supplies, metering and communications systems were also thoroughly tested.
2.1.3.2
Health and safety considerations
During this reporting period there have been two areas of focus regarding health and safety considerations. Firstly has
been the planning and management of the on-site construction work. Secondly has been the preparation to bring the
energy storage device into operation and preparing the business to receive it.
During this time there have been over 21,000 man-hours worked on site from S&C Electric and their subcontractors
alone with regularly 50-60 people on site at any time. For an extended period the site has been operating 12 hours
days Monday through Thursday to enable the efficient use of staff who have travelled to the area for the work and are
staying locally. This has required the full time attendance of one or at times two site mangers from the Principal
Contractor Morrison Utility Services (along with site management and supervisory staff from S&C Electric and their
subcontractors) to ensure that the work is co-ordinated and staff are controlled. At time of writing there have been no
Lost Time Incidents on the construction of this project.
The follow are some positive comments received by Morrison Utility Services from visitors to the sites through their
feedback cards:

“Well organised site. Very good induction, clear, balanced and effective. Site controlled, partitioned and zoned
for access control and work activity. Impressive generally, taken guidance for our systems”;

“Site person in charge gave me thorough site induction. All my questions were answered. I found the induction
was very descriptive and was presented excellent”; and

“Clear instruction, good visual aid for induction. Presentation Highlighted to risks on site, very good”.
On 9 July the site was audited by the Considerate Constructors Scheme receiving a very good score in the final report.
The specific feedback points were discussed with Morrison Utility Services to identify where further improvement might
be achieved.
Figure 13: Considerate Constructors Scheme banner displayed prominently on the construction hoarding.
During the build phase specific labour and manual handling saving devices were developed including the scaffold
platform discussed above and a device for the safe and efficient installation of the battery trays into the racks on site.
In preparation for the operation and ownership of the ESD by UK Power Networks significant effort was put into
developing approved procedures for the new equipment. This included discussions with the internal Health & Safety
teams and engineers as well as the suppliers involved. Discussions were also had with other DNOs to incorporate their
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learning form similar projects. Acknowledgements specifically go to Ian Lloyd from Northern Powergrid for supplying
and discussing their procedures, in addition to engagement from the Energy Storage Operators Forum.
Version 1 of an Engineering Operating Standard (EOS), “EOS 09-0074 Energy Storage Device at Leighton Buzzard”
was approved on 22 October. This first version contained all available information at the time of commissioning, which
was required before the system could be brought into operation. A revised version is planned for re-approval in the
next reporting period with the inclusion of final details incorporating as-built photographs and screen shots from control
systems that were not ready for inclusion in issue 1. This document becomes the reference document for site visitors,
ESD operators and network control engineers who have to interact with the ESD and points towards the various subsystem user guides where applicable.
At time of writing some initial training material has been developed to use to train both the local area engineering staff
and the network control engineers, those who might interface with the ESD on a day by day basis. This consists of
presentation slides and spoken training describing the system and operating requirements along with the issue of a
copy of the EOS document. Plans are in place to develop interactive training including guidance videos on the specific
tasks involved which it is expected will be produced in the next reporting period.
At time of writing as the construction work is coming to a close our CDM Co-ordinator is working closely with all the
parties involved in the project to ensure that a detailed and accurate Health and Safety file is compiled for the work on
site. It is expected this will be largely complete by the end of this reporting period with the final details closed out in the
next period.
Key Issues Encountered
There were several issues encountered during this reporting period, as might be expected. These are detailed below in
turn.
Upon initial preparations to position the battery racks in the new building late May/early June 2014 it became apparent
that the cast floor slab was not sufficiently flat for all the racks in an array to site level. This was resolved by using steel
packing shims to sit underneath the rack frames to ensure they could be correctly installed and would be supported at
all points required. Detailed investigations revealed that although a few sections of the floor were outside design
tolerance, even floor sections within the design tolerance were not sufficiently level. Tighter cast concrete floor
tolerances or the installation of fixing rails would be required for future applications. This would need to be considered
in future designs with regards to flexibility and future upgrades within a fixed building.
To make the 11kV connections to the existing primary switchboard work was required to extend the existing Reyrolle
LMT board with new HSS Eclipse circuit breakers coupled together with a bus-bar joggle chamber. This was a critical
task that had been done multiple times before so was not considered a high risk to the project. It transpired that a subcontractor to HSS had made an error in their design and provided an incorrect joggle chamber, stepping the new
switchgear too far backward. This meant that the back of the gear was not correctly supported and the operating
handle fouled the side of the joggle chamber, preventing correct operation. Once HSS were made aware of this issue
they took steps to construct a new joggle chamber in a reduced time-frame and covered all UK Power Networks costs
incurred in the replacement. This delayed the 11kV re-configuration work and particularly the modification of the SNS2
feeder CB but these delays were managed within the tolerance available in the site work programme.
There were two delivery issues relating to the novel equipment supplied to the project. The batteries supplied by
Samsung SDI were shipped with two separate palletised stacks of batteries on top of each other within the shipping
containers. Due to the motion in transit and the fact that the pallets were not tightly held in place the top layer moved
during shipping. It was the not possible to off-load them directly on site due to the equipment available; requiring
double-handling of equipment and some off-site storage. The second issue was a delay in shipping. Due to some
problems at their Wisconsin facility S&C Electric were not able to carry out the final testing and ship the PCS units until
seven weeks after the original planned ship date. The installation of these was not on the critical path of the project but
eliminated any opportunity to complete the installation work on site early and carry out extra testing. It also required
one of the battery arrays to be left out to allow for the delivery of the PCS units to their final position.
We were advised on 28 July 2014 Samsung SDI had identified (on another installation) a problem with their rack BMS
circuit boards. They had designed, manufactured and tested replacement circuit boards that were shipped to the UK for
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installation. This caused a small delay in the work on site that was within the project contingency; none of the
associated costs were borne by UK Power Networks.
By far the biggest issue encountered within WS1 during this reporting period came during the initial real power testing
of the batteries. Due to the time and logistic constraints it had not been possible to bring the batteries and PCSs
together for testing until the site installation (one is manufactured in Korea, the other in the USA) and we were aware
this presented an additional risk to the testing phase.
During the initial “real power” tests, significant problems were identified with the communications over a CAN-BUS link
between the Younicos Battery Energy System Device Manager (BESDM) PLC and the Samsung SDI battery rack
BMSs. These were the first tests to use the “DC chopper” side of the PCSs and to charge/discharge the batteries. This
affected all the battery arrays to varying degrees and resulted in the inability to run any further testing.
Following some initial investigations on site that determined this was an Electro Magnetic Compatibility (EMC) issue an
expert from TUV SUD, a specialist EMC testing and consultancy practice, was brought in to carry out detailed testing,
assessment and to provide recommendations. Obtaining sufficient measurements was a challenging issue due to the
ESD only being able to operate for short periods before tripping off due to the comms issue and requiring resetting.
In parallel with this testing, investigations into the components involved were carried out. It was confirmed they were all
CE marked stating tested compliance with the EMC directive and the factory test reports were assessed. It was
determined that the test reports were showing compliance and that the issues were therefore most likely to stem from a
result of the scale and specific nature of the installation situation and connecting cabling.
Initial recommendations from TUV SUD included adding additional EMC shielding and containment as well as
changing the cabling used for the CAN-BUS to screened cables (it transpired that the original cables supplied by
Samsung SDI were not screened). Implementing these changes, along with some software updates to improve error
rejection and resilience, allowed testing of the ESD to resume. At time of writing more detailed investigations are still
underway, however the full 6MW of the ESD has been successfully operated over a period of several hours and the
overall impact to UK Power Networks has been approximately a six week delay.
Once testing resumed following the rectification of the EMC issue some other unexpected performance issues have
been identified. Part of this has been traced to some errors in the installation leading to circulating currents, which may
also be exacerbated by the unique nature of the installation in a raised, purpose-built building but as stated above
further investigations are underway and it is expected to have this resolved early in the next period.
Figure 14: Testing of the CAN-BUS signals
There have been additional issues encountered around the level of audible noise in the PCS/Transformer room while
the ESD and the cooling system is in operation. This restricts the ability of people to be in this room during operation
without hearing protection.
It was noticed during the autumn weather that there were a few places where the structure of the building housing the
battery was letting in water. This was however sufficiently clear of all electrical equipment to not present a safety
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hazard. It was identified that where the ends of the Kingspan cladding were hidden behind a piece of trim these were
not all completely sealed, allowing the wind to blow water in through the join. The whole building was checked and the
issue was quickly resolved by Morrison Utility Services.
2.1.4 WS 2 – Smart Optimisation & Control Systems (SOCS)
WS 2 is responsible for managing the design, development, testing, integration and deployment of the end to end IT
solution; Smart Optimisation and Control System (SOCS). This platform will manage the shared-use of the storage
across multiple applications, whilst ensuring network security is maintained. The SOCS solution comprises two distinct
sub-systems, the software hosted within UK Power Networks’ corporate IT environment, called the Forecasting,
Optimisation and Scheduling System (FOSS), delivered by AMT-SYBEX, and the control software co-located with the
storage at site, called the Energy Storage System (ESS), delivered by Younicos on behalf of S&C Electric.
Progress against plan
During this period WS 2 entered into the software development and IT infrastructure implementation phase.
Software
The SOCS solution is made up of:

Forecasting, Optimisation and Scheduling System (FOSS) – built on AMT-Sybex’s various Affinity Suite
modules

Energy Storage System (ESS) developed by Younicos and S&C Electric on a Zenon SCADA platform. ESS
consists of the following functional composition:
o
Battery Energy Storage System Management (BESSM)
o
Battery Energy Storage Device Management (BESDM)
o
Storage Management System (SMS)

ENMAC – UK Power Networks’ Network Management System

Remote Terminal Unit RTU

PI – UK Power Networks’ data warehouse

Enterprise Service Bus (ESB) – UK Power Networks’ IBM Message Broker ESB (WebsphereMQ)
As per the agreed design and approach defined in SDRC 9.2 (Confirmation of the Smart Optimisation and Control
System design) the suppliers produced the technical specifications for each module; developed the code and tested
the software prior to delivering into UK Power Networks environments. The diagram below is an extract from the SNS
Testing strategy document (SNS1.3).
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Figure 15: Testing life cycle
The SOCS solution has been tested using the above approach, where the supplier demonstrated evidence of System
Testing and UK Power Networks witnessed the Factory Acceptance Test (FAT), using the scenarios were defined by
UK Power Networks and Newcastle University. Successful exit from FAT enabled the supplier to deploy the solution
onto UK Power Networks infrastructure in a controlled manner. Each deliverable was then Site Acceptance Tested
(SAT) by replaying the FAT scenarios on ‘Production to be’ environment, these tests were conducted by UK Power
Networks and/or the supplier based on the nature of the test.
At time of writing the SAT of the SOCS installation is complete and the project team are ready to commence System
Integration Testing (SIT), Non Functional Testing (NFT), User Acceptance Testing (UAT) and Operational Acceptance
Testing (OAT). These all use test plans/cases developed by UK Power Networks and Newcastle University. Through
all the testing phases, defects were identified, captured and tracked using UK Power Networks defect management
tool (IBM Rational Rose). The priority and severity of each defect was agreed by all parties through defect
management forums and subsequently released using the above testing model (shown in Figure 15). Often a number
of test cycles iterations are required before a successful conclusion of each test.
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Application
Phase
Defects Identified
FOSS
Open Defects from System Test into FAT
28
FOSS
Defects identified during FAT
19
ESS
Open Defects from System Test into FAT
15
ESS
Defects identified during FAT
39
Leighton Buzzard
Defects identified during Commissioning
28
Table 1: Defects identified
The table below explains in more detail the about the software component that makes up SOCS and its usage plus
their current status.
Software
Component
(Version)
Explanatory Notes
System
[Supplier]
Status and Progress made this period
BESSM Server
The BESSM system is the front-end
system of ESS that interfaces to
other systems and presents itself to
Users. It controls, operates and
monitors the storage device sited at
the Leighton Buzzard substation.
This is a completely new system.
Developed on the Zenon SCADA
platform.
Energy
Storage
System (ESS)
[Younicos;
COPADATA]
 Development and System Test
completed by Younicos;
 BESSM SCADA
 BESSM Control
 BESSM MQ
 System Test results provide to UK
Power Networks;
 FAT witnessed by UK Power Networks
at Younicos offices in Berlin;
 SAT completed as part of the
commissioning at Leighton Buzzard;
 At time of writing ready for SIT, NFT
and OAT by UK Power Networks on
site at Leighton Buzzard.
BESSM HMI
The BESSM client.
The BESSM is a thick client that
allows users to monitor and take
direct control of the storage device.
Developed on the Zenon SCADA
platform.
BESDM
Battery Energy Storage Device
Management (BESDM) x 6; one for
each 1.25 MVA Inverter Section,
managing the Power Conversion
System (PCS) and all Samsung
SDI battery racks connected to the
PCS as a logical Battery Energy
Storage Device (BESD).
Energy
Storage
System (ESS)
[Younicos;
COPADATA]
 Same as BESSM Server (above).
Energy
Storage
System (ESS)
[Younicos]
 Same as BESSM Server (above).
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Software
Component
(Version)
Explanatory Notes
System
[Supplier]
Status and Progress made this period
SMS
Storage Management System,
which controls the sets of PCS
units, typically comprises a Master
control and 1 or more PCSs that
take commands from a SCADA
protocol such as DNP3 or Modbus.
Each Inverter will have its own
Master control such that an SMS is
a combination of a Master, Inverter
and Chopper capable of 1.25 MVA.
Energy
Storage
System (ESS)
[S&C]
 Development and System Test
completed by S&C;
SMS HMI
The SMS has a HMI to monitor the
status of the storage device. This
component is not used in the
routine activities surrounding the
Storage device and primarily used
for commissioning and support
activity.
Energy
Storage
System (ESS)
[S&C]
 Same as SMS (above).
FOSS Application
FOSS provides a schedule which
the ESS will follow. This is a
completely new system built using
AMT-SYBEX’s Affinity Suite.
Forecasting,
Optimisation &
Scheduling
System)
(FOSS) [AMTSYBEX]
 Development and System Testing
completed by AMT-Sybex in two
phases (See Key Issues Encountered
for the reason to have two phases);
Phase 1 and 2
 FAT witnessed by UK Power Networks
at S&C offices in USA;
 SAT completed as part of the
commissioning at Leighton Buzzard;
 At time of writing ready for SIT, NFT
and OAT by UK Power Networks on
site at Leighton Buzzard.
 FAT witnessed by UK Power Networks
at AMT-Sybex offices in Belfast; the
two phases were witnessed over two
separate visits;
 SAT has started and will be completed
in the new year by UK Power
Networks using the data centre
servers;
 On completion of SAT, UK Power
Networks will commence SIT, NFT and
OAT.
FOSS Webserver
FOSS webserver provides the User
access to the FOSS
FOSS Database
FOSS database hold the historical
data for the SNS system.
FOSS IBM
WebsphereMQ
Message Client
Provides the client interface on the
ESB
Same as FOSS Application.
Oracle
Same as FOSS Application. Integrated
with PI database.
 FOSS has been integrated with IBM
WebspereMQ;
 At time of writing ready for SIT by UK
Power Networks.
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Software
Component
(Version)
Explanatory Notes
System
[Supplier]
Status and Progress made this period
KOMP IBM
WebsphereMQ
(or MQTT
Compatible)
Client
KiWi Operational Management
Platform. Externally hosted and not
used by UK Power Networks.
Sends despatch instructions to the
other components linked via the
ESB
KOMP (KiWi
Power)
 Developed by Kiwi Power;
PI SCADA
SCADA Data Historian; existing
system
PI (OSIsoft)
 Integrated KOMP with IBM
WebsphereMQ;
 At time of writing ready for SIT to be
conducted in conjunction with Kiwi
Power.
 SNS Configuration implemented by UK
Power Networks on existing PI system;
 Ready for SIT.
PIWebserivces
SCADA Data Historian WebServer;
allows systems to interface with the
PI system
PI (OSIsoft)
No longer used as FOSS database
connects directly to PI database.
ENAMC
(PowerOn) HMI
SCADA Control System; existing
system
ENMAC
(PowerOn)
(GE)
 Configured SNS changes on existing
UK Power Networks ENMAC system;
 Drawings and symbols for ENMAC
control screen configured by UK
Power Networks;
 Ready for SIT.
PowerOn FEP
Leighton Buzzard
Primary RTU
(T5500)
SCADA Control System; UK Power
Networks’ existing Network
Management System
ENMAC
(PowerOn)
(GE)
 Configured SNS changes on existing
UK Power Networks ENMAC system;
SCADA Control, new RTU
SCADA (GE)
 Configured SNS changes on existing
RTU using definitions extracted from
the ENMAC system;
 Ready for SIT;
 Integrated RTU with BESSM and
ENMAC;
 Commissioned at Leighton Buzzard;
 Ready for SIT.
IBM Websphere
MQ/
IBM Integration
Bus
Provides the messaging layer
(ESB) for the sub-systems to
communicate. Provides resilience
and data persistence.
IBM
Integration
Bus (IBM)
 Integrated with KOMP, BESSM and
FOSS;
 Ready for SIT.
Table 2: SOCS software components
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IT Infrastructure
As part of Work Stream 2 scope, the IT infrastructure was procured, installed, validated against architecture design and
made available for deployment of the SOCS solution. In particular, in this reporting period the following environments
were implemented:

FOSS Test environment – comprising of an application server and a database server; on these servers Oracle
and IBM WebSphere were installed and then connected the application server to a test instance of the IBM
Websphere MQ/IBM Integration Bus. AMT-Sybex then installed the FOSS application and database tier
connecting to a test instance of PI database. Finally, after the all the connectivity checks, the FOSS system
was ready for Site Acceptance Test (SAT) on this environment.

FOSS Production Environment – similar to FOSS Test environment, the production environment comprising of
an application server and database server; fully installed with Oracle and IBM WebSphere and integrated with
the production instance of the IBM Integration Bus. Then AMT-Sybex installed the SAT accepted version of
FOSS solution onto this Production environment and connected the database with Production PI SCADA
database. Finally, after the all the connectivity checks, the FOSS system was ready for System Integration test
on this environment.

BESSM test – this system was set up in Berlin by Younicos which was connected to test BESDM machines
which in turn was connected with a battery simulator. UK Power Networks conducted its Factory Acceptance
Test on this environment. Following the FAT period, this environment was used for testing connectivity with
IBM Integration Bus and the Test RTU.

BESSM Production – as part of the commissioning plan the BESSM and BESDM production infrastructure was
installed and implemented at Leighton Buzzard. This production environment is being used to perform the end
to end System Integration Testing.

ENMAC Pre-Production – an extract of the current ENMAC system was taken from production and restored in
a Pre-Production instance of ENMAC, and then the SNS changes were configured on top. This had to be
aligned with the line drawings defined by the drawing office team to change the EPN diagram to reflect SNS on
the control system. ENMAC Pre-Production was linked to the PI testing database.

RTU Test environment – a test RTU was modelled on the final Production RTU design and configured
accordingly. This was connected up to the Pre-Production ENMAC system, a network simulator and BESSM
test system in Berlin. The test RTU was used to confirm the DNP3 measurements settings between BESSM
and the RTU

RTU Production – as part of the SNS project it was a strategic decision to replace the RTU with a new T5500
RTU, this was installed at Leighton Buzzard during this phase. The SNS configurations were then installed on
top of the existing setup allowing SNS data to be transmitted to control and PI system via production ENMAC.
The SOCS technical solution is split between multiple sites with the principal UK Power Networks sites being the
Leighton Buzzard sub-station, UK Power Networks control centre and the UK Power Networks data centre. There are
external connections from non-UK Power Networks systems being integrated into the design.
The ESS is sited at Leighton Buzzard and has the need for resilient, real-time communication with the storage device.
Therefore, the following communication requirements were delivered in this reporting period:

Communication with storage device at Leighton Buzzard via a fibre broadband connection and backup ADSL
link;

Communication with the on-site RTU at Leighton Buzzard;

Communication with other SOCS components via the UK Power Networks’ ESB;

Provision of remote access for partners/suppliers to provide support.
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The communication architecture enables ESS to communicate with different parts of the UK Power Networks’ network
infrastructure: The on-site RTU is on the SCADA VRF (Virtual Routing and Forwarding), whilst the ESB is on the
corporate VRF, and third party support is normally provisioned through VPN tunnels through the corporate VRF. As a
result a number of firewall rules had to be configured across the UK Power Networks’ communication infrastructure.
Key Issues Encountered
A number of issues were encountered during development and test phase of the project. The key ones that had an
impact on the project time lines are listed below:

RTU firmware had to be upgraded to cope with DNP3 protocol
When testing data points between BESSM and RTU it transpired that the firmware version used on RTUs did
not have the DNP3 protocol capabilities contrary to technical documentation. Thus after numerous test and
consultations with General Electric (GE) it was deduced that a latest version of the RTU firmware was required.
This delayed the RTU configuration and testing by approximately four weeks which in turn had an impact on
testing the DNP3 settings defined in BESSM. Additional consultancy was required from GE at an extra spend
of £3,100.

Vodafone & BT data communications issues
There were number of process related issues with getting Vodafone to deliver the VRF connection at Leighton
Buzzard. After a number of site surveys it was deduced that BT Openreach needed to dig the road outside the
UK Power Networks building in Leighton Buzzard. Secondly, the routers and switches installed were
incorrectly configured. This did not have any impact onto the overall project timelines, though it resulted in the
WS lead spending a lot of time chasing the supplier.

Revisited the Energy Cost model for the optimisation algorithms
During the design walk through of the optimisation module, it was agreed with Newcastle University that the
energy calculation can be improved and thus a revised model was designed. This has now been implemented
as part of the optimisation solution. This delayed the delivery of the FOSS phase 2 by approximately eight
weeks form originally planned. There were no addition costs incurred as AMT-Sybex and Newcastle University
absorbed this additional effort in their timetable to accommodate this refinement.
Key Deliverables
During this period the following milestones were achieved:

SNS 1.3 – SNS Testing Strategy

SNS 2.5 – Demand Forecast Error Analysis

SNS 2.10 – SOCS Training

SNS 2.12 – Long Term Electricity Demand Forecast for Energy Storage Scheduling

SNS 2.13 – Improving Long term Electricity Demand Forecasting Through Data and Interactions

FOSS and ESS testing and results

SOCS Test and Live Environments
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2.1.5 WS 3 – Storage Value Streams, Services and Modelling
WS 3 predominantly covers the activities relating to the operational phase of the project, including the design and
execution of the range of trials to demonstrate the storage capability across a range of distribution network, ancillary
and wholesale services.
Progress against plan
In this reporting period, the detailed trial designs have been completed and the DNO trials are ready to be initiated as
illustrated in Figure 16.
2013
- Services Approach
- Services Use Cases
- Conflicts, Synergies
and Commercial
Strategies for Storage
2014
2015
- Wholesale Market Trials
- Detailed Trial
- TSO Trials
Designs
- DNO Trials (In Progress) - Optimised /Integrated
Trials
- Trial Data Analysis
- Storage contribution to
Security of Supply
2016
- SDRC 9.6 Analysis of
Integrated Storage
Contribution to Security of
Supply
- SDRC 9.7: Successful
Demonstrations of Storage
Value Streams
- Value, Carbon Benefit and
Cost Targets of Storage and
SDRC 9.6 and 9.7 Reports
Figure 16: High Level Deliverables of WS 3 during the Project Lifecycle
Within DNO trials, a number of pre-trial tests will be conducted to validate that the SNS software and hardware solution
is able and ready to deliver the core and long-term trials. It should be noted that numerous tests have been conducted
previously under WS 1 and WS 2 commissioning and testing processes; however these WS 3 pre-trial tests are part of
the whole SNS System Integration Testing, firstly because they require a number of SOCS subsystems and ESS
hardware to be integrated and secondly, because they aim to verify that the anticipated functions of the end to end
SNS solution comply with the requirements to deliver the core trials. Specifically, the pre-trial tests to be conducted are:

Set-point stability and accuracy tests: the aim of these tests is to ensure that the required set-points were
sufficiently realised by the BESSM control system and that network voltage changes does not affect the
realisation of the set-points.

Reserve tests: the aim of these tests is (i) to ensure that the interface with KiWi Power was efficient in
transferring dispatch/deactivation signals for the delivery of reserve services (i.e. Fast Reserve and Short
Term Operating Reserve) following an instruction from National Grid and (ii) to ensure that BESSM
delivers the service within required performance criteria that include defined energy delivery within specific
timelines.

Response tests: the aim of these tests is to ensure that BESSM is able to deliver response services (i.e.
Frequency Control by Demand Management, Static and Dynamic Firm Frequency Response) adhering to
the required technical characteristics (i.e. dispatch power vs grid frequency characteristic) within the
required response time (i.e. 2 seconds).

Peak shaving tests: the aim of these tests is to ensure that BESSM is able to deliver peak shaving using
active and reactive power capabilities of the ESS taking into account various pre-defined parameters (such
as loading limit at the 11kV) and trigger signals from the RTU to flag N-1 conditions.
The above tests are planned to be carried out and their results will be documented in the DNO Trials report which will
be completed in the next reporting period.
Operational and reporting templates for the trial period have been developed. These templates will be used by the SNS
operational team to inform the control room and network operations of the upcoming trials on a weekly basis, but also
aggregate operational and anticipated costing information to assist with reconciliation of the cash flows between UK
Power Networks and the trial partners during the trial period.
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Modelling work has been conducted to support the negotiations between UK Power Networks and National Grid for
deciding the pricing for frequency response services provision. Availability and utilisation prices were decided based on
the installed cost of SNS, fixed and variable charges that are anticipated during its operation and an index-linked
component for energy utilisation and these have now been factored into the new business case view as shown in
Section 3.
The metering system that will be used in SNS has been designed and developed with Siemens plc and FAT was
witnessed successfully on 26 June. The metering system was installed, and was commissioned on 15 November. The
contracts required for metering system provision and metering system operation have been finalised and signed.
A spreadsheet-based tool that will serve as a decision making tool for acceptance or rejection of a tolling profile has
been developed. Every Friday, a tolling profile for the following week will be sent by Smartest Energy and the SNS
operational team will use this tool to evaluate whether the proposed profile is technically feasible. This tool requires as
inputs the load forecast for the evaluation week and the active schedule for that week that indicates the services that
have already been booked and their parameters.
A triad avoidance process has been developed. During each triad period (i.e. November to February inclusive each
year), Smartest Energy and KiWi Power will send approximately 25-40 triad warning messages via email to the SNS
operational team highlighting the possibility of a triad on the day of the warning. Triad forecasting has been out of the
scope of the SOCS system and the SNS operational team will consult the triad avoidance process on receipt of a triad
warning message to decide whether amendment in the daily dispatch schedule is required to minimise the potential
costs from importing energy during the triad period.
Key issues encountered
No issues have been encountered in this area during this reporting period.
Key deliverables

SNS 3.5 – Service Trial Detailed Approach

SNS 3.16 – Trials Process Flow

SNS 3.17 – Trials Invoicing and Reconciliation Process
2.1.6 WS 4 – Commercial & Regulatory Frameworks
This work-stream is responsible for the commercial and regulatory aspects of the project, including assessment and
validation of specific business models for storage, and identification of key regulatory barriers.
2.1.6.1
Smart Commercial Agreements
The key focus and deliverables from this work-stream during the period has been the completion of a report detailing
Commercial Arrangements for Integrated Use of Flexibility (SDRC 9.3 report, SNS4.6) together with the completion
and signing of agreements with Smartest Energy and Kiwi Power. This together with a confidential report compiling
other relevant evidence, mainly meetings and workshop notes, forms the evidence demonstrating the successful
completion of successful delivery reward criteria 9.3.
During this reporting period, the new Storage ‘Aggregator Services Agreement’, which has been under development
over the course of this year, was completed. The contract allows delivery of the range of ancillary services to be trialled
with Kiwi Power. Kiwi Power has also put in place back-to-back commercial arrangements with National Grid for the
provision of ancillary services using the storage capacity. If storage is to be operated in this multi-purpose way, the
need to access the balancing markets also leads to the requirement for access to the wholesale electricity market to
enable charging and discharging when required.
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In the SNS model operated by the project, charging and discharging of the battery is enabled through Smartest Energy,
an energy supplier with whom an Energy Supply and Tolling agreement has also been successfully completed during
the period. This agreement also provides an opportunity for an additional ‘Tolling’ service, which enables the supplier to
take commercial control of the device for a period of time to manage their imbalance risk or arbitrage, in return for a
fixed fee.
Negotiation of these first-of-a-kind contracts has generated a comprehensive understanding of the structure, costs and
benefits of all non-energy related charges and levies that helps to further inform the business case for storage, in
addition to key market-related learning around issues that could pose further barriers to the adoption of energy storage.
SDRC 9.3 demonstrates that these commercial arrangements for the independent service trials and optimised period
of operation have been developed and translated into ‘skeleton’ contract heads of terms, providing the basis of
commercial arrangements that could be tailored for other forms of flexibility and leveraged system wide by other DNOs.
2
The SDRC 9.3 report has been published on the SNS project web page and was submitted to Ofgem before the end
of October.
This learning report describes the implemented smart commercial arrangements for the SNS commercial operating
model, which represent first of a kind contracts for operating storage in this way, and shares them in the form of
‘skeleton’ contract heads of terms. It also identifies new specific learning relating to additional barriers in implementing
such agreements for storage, and in the frameworks for certain industry charges.
The project has been consulted by Ofgem on the legal and regulatory barriers work undertaken, the details of which
were reported in the June 2014 progress report. A presentation was made to the Ofgem WS6 Smart Grid Forum group.
In addition, a response was provided to a letter dated 14 November 2014 from Ofgem seeking a more detailed view on
how storage fits into the current European framework, in particular the ‘third energy package’ (Directive 2009/72/EC).
Key issues encountered
With regards to the Aggregator Services Agreement, Kiwi Power required suitable back to back arrangements to
support all of the balancing services being provided. Suitable arrangements were in place for all services with the
exception of Firm Frequency Response (FFR). Here, it was necessary for Kiwi Power to negotiate a bespoke back-toback agreement with National Grid. Whilst this negotiation took much longer than was anticipated, it did provide the
project with an opportunity to understand the assessment methodology operated by National Grid, and an opportunity
for National Grid to understand more about the technical capabilities of energy storage. It also identified that there was
a trade-off between the level of pricing and the length of contract that could be achieved. This results from National
Grid factoring their greater uncertainty of requirement into the prices they offer resulting in a short term increase, and is
an additional challenge that new storage developers may face when securing finance for storage projects.
Key deliverables
2

SNS4.2 – Client Services Agreement (Aggregator Services), Kiwi Power;

SNS4.3 – Energy Supply and Tolling Agreement, Smartest Energy;

SNS4.6 – Commercial Arrangements for Integrated Use of Flexibility (SDRC 9.3 Report);

SNS4.13 – SDRC 9.3 Evidence Report.
http://innovation.ukpowernetworks.co.uk/innovation/en/Projects/tier-2-projects/Smarter-Network-Storage-(SNS)/
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Progress Report December 2014
2.1.7 WS 5 – Learning & Dissemination & Stakeholder Engagement
WS 5 was specifically created to ensure the effective identification, capture and dissemination of learning from the SNS
project. Activities relating to the learning and dissemination carried out during this reporting period are provided in
Section 7 of this report for clarity.
Key issues encountered
No significant issues have been encountered in this area.
2.2 Project outlook into the next reporting period
The next reporting period sees the project enter the operational trial phase, which involves the trial of the storage for a
number of specific network and commercial services. The focus of the next reporting period will therefore be across the
following areas:






Close down of the construction activities and finalisation of planning obligations, including the final
reconciliation of costs associated with the storage build and install;
Completion of testing including System Integration Testing;
Continued training and collation of engineering documentation, procedures and asset management
methodologies for the storage;
Day to day operation of the storage facility, following the established processes and refining them where
appropriate;
Execution of the trial schedule, and capture, analysis and documentation of trial data; and
Follow on work relating to regulatory and legal frameworks, exploring potential solutions to the barriers
Activities expected within the next reporting period relating to learning and dissemination are described in Section 7 of
this report for clarity.
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3 Business Case Update
One of the key purposes of the SNS project is to help quantify the general business case for the economic use of grid
scale storage on the distribution network, when leveraged for additional benefits across the full electricity system. Work
associated with developing this business case will come from the specific learning that is gained throughout the life of
the SNS project.
This generic business case will be dependent upon the form of business model which is chosen and the assumptions
that are made regarding all of the current unknowns. This project is looking to identify and quantify many of these
unknowns and apply them to the various different business model structures to help drive forward the adoption of
storage for the benefit of customers and industry. These business model structures were consulted upon in 2013
3
(SNS4.1 – Storage Business Model Structures Consultation) .
For the particular project installation, we are tracking changes to the main drivers of the business case and it is the
project’s intention to use this section to provide an ongoing update to the general economics of the installation as these
drivers evolve and as further learning emerges.
During this period, further refinements to the final costs of the civil build and electrical connection aspects have now fed
into the business case assessment. In addition, the conclusion of the pricing discussions with National Grid have
allowed more accurate pricing to be included for the ancillary services that are to be trialled in the upcoming phases of
the project.
The revised discounted cash flow incorporating all of these changes is shown below.
Conventional
Once Proven Successful
£m
16.0
5.4
12.0
2.9
16.8
8.0
2.6
11.4
2.5
4.0
5.1
3.3
0.0
Conventional
Reinforcement
SNS
Project
Cost
1st of a kind
costs
Installed
Cost
Tech
Cost
Reduction /
Ahead of Need
Future
Income
Streams
System
Cost
Savings
Future Net
Method Cost
Figure 17: NPV Breakdown of Reinforcement Route incorporating SNS
By way of a reminder, the key assumptions relating to the discounted cash flow analysis are as follows:

All values are Net Present Value, over a 10 year period;

Discount factor used is 7.2%;

‘Installed cost’ represents storage capex and estimated opex over the 10 year period;
3
http://innovation.ukpowernetworks.co.uk/innovation/en/Projects/tier-2-projects/Smarter-Network-Storage-(SNS)/Project-Documents/SmarterNetwork-Storage-Business-model-consultation.pdf
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Progress Report December 2014

‘First of a kind costs’ represent non-core storage installation costs, including other R&D work, and first-of-akind development costs within SNS;

‘Technology cost reduction’ represents the expected price reduction in core storage technology occurring
between the period of the SNS installation, and the point in time when storage would otherwise be installed as
part of a BaU intervention to relieve the network constraint; and

System cost savings represents the wider system efficiencies materialising from reduced curtailment, reduced
greenhouse gas emissions and system balancing and operation savings.
In this reporting period, the overall lifetime installed cost (£11.4m) has become very slightly more favourable, reflecting
more accurate actual costs from the final stages of the site work.
The estimate for future revenues, over the 10 year period, has also increased favourably to £2.6m due to the inclusion
of finalised pricing for FFR. The overall revenues represent a conservative even split between the two key ancillary
services STOR and FFR. Additional services are being trialled as part of the SNS project, but have not been included
here in the interests of maintaining a conservative estimate. As an example, benefits from triad avoidance have not
been factored in, due to the uncertainty in estimating the actual triad periods, however could represent a reasonably
significant additional benefit for commercial storage operators.
As in the previous 6-month report, a basic sensitivity analysis has been performed to indicate an approximate upper
bound of expected revenues for a commercial operator assuming the storage is just optimised towards providing the
higher value service of FFR. The table below shows these results:
Scenario
Future Income Estimate
(10 yr NPV)
Future Net Method Cost
(10 yr NPV)
Even mix of STOR and FFR (as above)
£2.6m
£3.3m
FFR Only
£4.7m
£1.2m
Table 3: Storage revenue sensitivity to operating different services
As shown in the table above, if just the higher value service of FFR is provided, revenues of circa £4.7m may be
possible which would reduce the future net method cost to £1.2m, making the storage solution cost competitive with
the conventional reinforcement (even without the system cost saving aspects included).
This highlights the importance of optimisation in maximising the benefits for storage, and is due to be explored further
within the project using the SOCS platform currently under development.
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4 Progress against budget
This section will be provided in Appendix A
5 Bank Account
This section will be provided in Appendix B
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6 Successful Delivery Reward Criteria (SDRC)
SDRC
9.1
Criteria
Design & Planning Considerations for largescale energy storage.
Successful early capture and dissemination of
learning related to the practical issues and
consideration in the design and planning of largescale distribution-connected storage by 1 October
2013.
Evidence
 Minutes and notes captured from meetings with
local planning authorities and environment
agency.
Progress
Date
This SDRC was been completed on schedule
in a previous reporting period. The summary
learning report is available on UK Power
Networks innovation website.
1 October
2013
This SDRC was been completed on schedule
in a previous reporting period. The technical
report is available on UK Power Networks
innovation website.
30
December
2013
 Planning approval granted at either Leighton
Buzzard Primary or an alternative contingency
site.
 The final design of the storage facility will be
signed off by UK Power Networks Design Review
Board.
 A summary report of the key learning and
considerations in securing planning at the trial
site, and how this impacted designs, will be
produced and shared through the project website.
9.2
Confirmation of the Smart Optimisation &
Control System design.
Successful completion and sign off of the overall
design of the Smart Optimisation & Control System
by 30 December 2013. The functional design will be
developed with operational partners and Durham
University, and incorporate the description of
business processes to be implemented across
participants to facilitate the SNS Solution.
 Regular meetings held between UK Power
Networks, operational partners, Durham
University and AMT-SYBEX to further develop the
full requirements and design, with minutes and
notes captured.
 The final design will be signed off by UK Power
Networks, including approval by UK Power
networks IT Design Authority Board.
 A report describing the final design, optimisation
and forecasting algorithms and business
processes required will be produced and shared
through the project website.
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Progress Report December 2014
SDRC
Criteria
Evidence
Progress
Date
9.3
Commercial arrangements for integrated use of
flexibility.
The commercial arrangements for the independent
service trials and optimised period of operation will
be developed and translated into skeleton contract
templates by 31 October 2014. These will provide
the basis of commercial arrangements that could be
tailored for other forms of flexibility and leveraged
system wide by other DNOs.
Practical and ongoing experience of the
arrangements during the operational periods will be
captured and reflected in the project final report
(SDRC 9.8), with any recommended changes to
these arrangements.
 Meetings will be held between UK Power
Networks and the operational partners to discuss
and design the necessary arrangements for the
service trial demonstrations, with minutes and
notes captured.
This SDRC has been completed on schedule
during this reporting period.
31 October
2014
 Completed commercial arrangements will be
signed off by UK Power Networks legal counsel
for the provision of reserve, response and
wholesale market services using the storage.
 Reviews of the commercial arrangements
underpinning the service trials will be carried out
by UK Power Networks and will be developed into
contractual templates for reuse by DNOs and
other industry participants and subsequently
shared.
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 A report entitled “Commercial
Arrangements for Integrated Use of
Flexibility (SNS4.6)” has been published on
the UK Power Networks innovation
website. This report contains skeleton
contract templates.
 A confidential report entitled “SDRC 9.3
Evidence Report (SNS4.13)”, which
provides references and details of
meetings held, has been submitted to
Ofgem.
 Suitable commercial contracts have been
entered into with Smartest Energy and Kiwi
Power.
Page 34 of 54
Smarter Network Storage
Progress Report December 2014
SDRC
Criteria
Evidence
9.4
Energy Storage as an Asset.
Successfully commissioned energy storage device,
with knowledge developed, captured and
disseminated relating to the commissioning and
operation.
The knowledge generated through the early
operational experience and training materials will be
incorporated, along with methodologies for the
asset management and maintenance of storage. A
visit to the storage facility will be organised and
hosted for interested DNOs and other stakeholders
to provide an additional opportunity for
dissemination.
 Sign off of documentation of the installation,
commissioning and test of energy storage device.
Progress
 Training will be undertaken with operational field
staff relating to safety and operational procedures
of the energy storage device and training
materials will be shared.
 Meetings will be held with asset management to
establish and design appropriate asset
management methodologies for storage. Minutes
and notes will be captured and the methodologies
and considerations for large-scale storage will be
shared.
Activities contributing towards this SDRC
include:
Date
29 May
2015
 Ongoing construction and final construction
drawings and engineering documentation
for the SNS facility;
 Initial training carried out with field staff
This SDRC remains on schedule to be
delivered as planned.
 At least one visit to the storage facility for DNOs
and other stakeholders will be organised and
hosted by UK Power Networks.
9.5
Evolution of Regulatory and Legal
Arrangements for energy storage.
This criterion relates to the assessment of
regulatory, market and legal considerations in the
wider deployment of distribution-connected storage
and development of recommendations to facilitate
the optimum use of storage and other forms of
flexibility. This assessment, incorporating learning
captured during the development and operation of
trials will be completed by 30 September 2015.
 Regular meetings will be held with project
partners and other stakeholders to discuss
ongoing reviews and amendments to the
regulatory frameworks and the impact on energy
storage, incorporating EMR, Electricity Balancing
SCR and other on-going developments. Minutes
and notes will be captured and stored.
 Interim reports and or briefing notes may be
published to facilitate these meetings.
 Assuming that the issues identified have not been
solved in regulation in the interim period, issue a
report detailing the market and regulatory issues
affecting storage, the way future developments
may impact storage flexibility and possible
changes required to regulatory and commercial
frameworks will be produced and shared through
the project website.
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At the request of Ofgem, work on the first
part of this activity was pulled forward a year.
An interim report on Regulatory and Legal
framework identifying barriers to the
introduction of storage has been published.
Further activities contributing towards this
SDRC include:
 Ongoing monitoring and analysis of
regulatory and market arrangements.
This remainder of this SDRC remains on
schedule to be delivered as planned.
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30
September
2015
Smarter Network Storage
Progress Report December 2014
SDRC
Criteria
9.6
Analysis of integrated energy storage
contribution to security of supply.
This criterion relates to the studies undertaken on
the contribution of energy storage to security of
supply over various time scales. An emphasis will
be placed on quantifying the risks to supply when
the network is supported by energy storage with a
limited amount of energy, taking also into account
that storage may be used to provide other services.
9.7
Successful demonstrations of storage value
streams.
The end to end learning from the planning to the
operational performance in performing a range of
services with the storage facility will be captured
and shared.
Both technical data, relating to the impact of the use
of the storage on the distribution network, and
commercial data, relating to the way in which the
service was provided and any economic return for
the service will be identified and shared.
Evidence
Progress
Activities contributing towards this SDRC
include:
 Scenario tests will be designed to demonstrate
and assess the storage contribution to network
security by Imperial University.
 Operational data and performance relating to the
trials will be captured and analysed.
 Assuming that storage has not been incorporated
into the security of supply standards within the
Distribution Code in the interim period, a
summary report will be produced by Imperial
College London describing the methodology
applied, key assumptions and results of the
analysis of the benefits of energy storage to
distribution networks and contribution to security
of supply, including recommendations for
amendments to network design standards.
 The detailed trial plans for each storage service,
including key requirements and processes
required, will be captured through meetings with
UK Power Networks and operational partners and
shared through the project website.
 The operational data relating to the impact on the
distribution network will be collected and stored
by Durham University. Any financial performance
data will be captured and reported by UK Power
Networks.
 A report assessing the capabilities of the storage
device in providing the range of services will be
produced and shared, incorporating an
assessment of the relative value of services
provided.
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Date
29 January
2016
 The development of trial designs that will
deliver the operational learning required to
assess contribution to security of supply.
 Meetings/conference calls have been held
with Imperial College London to scope,
monitor and track progress.
 Development of requirements for ancillary
services testing and delivery with National
Grid, KiwiPower, S&C Electric and
Younicos.
This SDRC remains on schedule to be
delivered as planned.
Activities contributing towards this SDRC
include:


The development of commercial
arrangements underpinning these value
streams and the development of
invoicing and reconciliation processes
between UK Power Networks and the
energy Supplier and the Aggregator.
Development of trial plans for value
Streams.
This SDRC remains on schedule to be
delivered as planned.
Page 36 of 54
30 March
2016
Smarter Network Storage
Progress Report December 2014
SDRC
Criteria
Evidence
9.8
Full Evaluation of the SNS Solution.
A detailed final project report describing the project
findings,
knowledge
generated
and
recommendations on the wider roll out of the SNS
Solution will be produced.
 Lessons learned throughout the project have
been captured and recorded and shared.
The report will be designed to provide sufficient
information to:

Validate and assess which future business
models for storage are viable

Inform stakeholders on the commercial
arrangements and software platforms
necessary to enable these business models.

Inform the ways in which storage can be most
economically incorporated into future DNO
business plans.

Assessment of the impact on different future
market scenarios on the business cases,
including varying carbon prices, high versus low
wind penetration and demand side response.

Compare the performance and value of storage
flexibility to other forms of flexibility

Inform the design and structure of future
product or services that storage may provide to
DNOs and TSOs.
Progress
 Analysis has been carried out on the business
models for storage, and validated with
commercial results from operational trials.
 Comprehensive end of project report developed,
incorporating the information above, and shared
through the project website and other
dissemination channels.
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Activities contributing towards this SDRC
include:




Completion of the business models
consultation and collation of responses
Ongoing construction for the SNS facility
Ongoing development of trial designs
and plans
Ongoing assessment and capture of the
lessons learned
This SDRC remains on schedule to be
delivered as planned.
Page 37 of 54
Date
30
December
2016
Smarter Network Storage
Progress Report December 2014
7 Learning outcomes
7.1 Main Learning Outcomes from the Reporting Period
During this reporting period, SNS has continued to capture specialised learning relating to the construction, installation
and commissioning as well as the regulatory and market aspects of distribution-scale energy storage. The key learning
outcomes from this reporting period are explained below.
A number of key findings have been identified through the installation and commissioning of the storage facility,
development of the SOCS platforms and development of the smart commercial arrangements. These include:
1. Building a large scale ESD in a building presents different challenges to a containerised solution
Important learning has been generated by the project as a result of carrying out the storage installation and
commissioning at this scale in a purpose-built building. Overall system design becomes more important and
additional aspects need greater consideration when installing an ESD into a building rather than in containers.
The reduced distance and screening between plant and equipment presents additional challenges around
electromagnetic interference that may not otherwise be apparent.
Although the root causes of the issues identified are not fully confirmed at time of writing, considerations from
suppliers for a “whole system” design and testing of the systems they supply rather than individual elements
may have gone some way to eliminating the problems seen and the manufacturer has also learnt valuable
lessons from this stage of the project.
2. The application of some standard charges as part of The Electricity Supplier Obligations could lead to
disadvantages for storage operators, and double counting of industry charges
In developing the smart commercial arrangements for the SNS operating model, that have been shared in
SDRC 9.4 (Commercial Arrangements for the integrated use of flexibility), a number of key learning points
have been generated in relation to a number of standard industry charges and their applicability for storage.
Climate Change Levy
In particular, the application of the Climate Change Levy (CCL) to storage, which is an energy tax administered
by HM Revenues & Customs (HMRC) under primary legislation introduced through the Finance Act 2000 leads
to some discrepancies. It is typically levied on energy consumed by industrial and commercial users (but not
domestic consumers). The statutory instrument (SI) that defines the CCL framework defines ‘renewable
sources’ of energy as being ‘sources of energy other than fossil fuel or nuclear fuel and includes waste
provided that it is not waste with an energy content 90 per cent or more of which is derived from fossil fuel’.
Aside from the debate that storage could be considered to be time-shifting energy only, and not a source as
such, this definition could give latitude for storage qualifying as a renewable source of energy, as it is not fossil
fuel or nuclear.
The SI however states that ‘the amount of a supply of renewable source electricity is to be calculated at the
point at which such electricity is first delivered from a generating station to a distribution or transmission system
within the United Kingdom (excluding territorial waters)’. This confirms that a LEC is allocated at the original
point of generation. As export from storage relies first on prior import of energy, this existing generation output
may be from a renewable source, and so a LEC could already have been issued. If this was the case, issuing a
LEC at the point of export from storage would therefore be double-counting.
By default, it may be argued that CCL charges should apply to storage operators, which has the effect of
increasing the import charges for everyday operation. However, from engagement with the HMRC, it was
recognised that the guidance did not deal explicitly with the treatment of energy storage and it was advised that
storage in a battery would not change the fact that it was initially generated from a renewable source.
Therefore HMRC would not see the discharge of electricity from a (lithium-ion) battery storage device as
generation, and therefore it would not be subject to CCL upon discharge. It was possible to reflect this
exemption in the commercial arrangements surrounding the SNS facility, but it is believed the industry would
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benefit from formal guidance or amendments to the scheme to ensure consistent application of this exemption
and avoid disadvantages for storage operators.
Contracts for Difference & Feed in Tariff
Similar to the above learning point, the application of renewables subsidy payments including FIT and
Renewable Obligations to storage operators increases import charges and leads to further disadvantages over
conventional generation response providers.
Feed-in tariffs with Contracts for Difference (FIT CfD) will replace the current support mechanism, the
Renewables Obligation (RO), in 2017 after running in parallel from 2013 and will be administered by Ofgem.
The first payments to developers start from April 2015 and a levy will be applied to all suppliers in proportion to
their supply account to pay for it. Imported energy used to charge up storage devices will by default be subject
to this levy.
Similar to the CCL charges above, the subsequent export of energy from storage means that this same energy
will be ‘consumed’ for a second time, meaning that a subsequent customer will be liable for FiT payments on
the same energy. This suggests that suitable exemptions for storage need to be implemented to prevent
double-counting and prevent any disincentives for storage developers.
3. The application of some distribution-related charges do not always reflect the potential value or
capability that the storage system can offer
The project has identified that there may be scope to improve pricing frameworks to better reflect the benefit
that storage could provide to the distribution networks in some circumstances.
A particular example relates to charges to connected customers for reactive power. Reactive power exchange
with the network is currently charged based on the type of asset, i.e. load or generator. The charges are
calculated based on the amount of reactive energy exchanged with the network, but only the amount above
33% of the active power exchange at each half-hourly period, is charged.
Storage systems which include power electronic inverters have the ability to provide four-quadrant operation
(i.e. independent provision of real and reactive power in different directions). However, with the current pricing
structure there is no mechanism to be appropriately compensated (or charged) for combinations of
real/reactive power that are in different directions (e.g. import real power, export reactive power).
As a consequence, there is currently no incentive for any third-party owned/operated storage connected to the
network to provide any reactive power services, that could potentially be utilised for distribution network
support, for example to reduce losses or improve power quality.
4. The firmware of Remote terminal Units (RTUs) should be up to-date prior to testing
The RTU unit is a key device in the overall system that facilities communication between the onsite control
system BESSM, the SCADA network and the FOSS control system. An issue was encountered, as described
further in Section 2.1.4, during the testing of the RTU which manifested as an inability for the BESSM system
to communicate correctly with the RTU.
The cause was the firmware version used on the RTUs which did not have the correct DNP3 protocol
capabilities as described in the latest available technical documentation from GE. Several days of diagnosis
and testing were needed to identify this issue, which could have been avoided if the latest firmware had been
installed at the beginning of the test process.
5. Improved understanding of storage amongst energy suppliers and standardisation of energy supply
contracts is needed to facilitate the adoption of energy storage
A reasonably significant amount of time and effort was required to develop the contract with Smartest Energy
for the energy supply to the storage facility. This was in part due to the first-of-a-kind nature of this contract
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between a large-scale DNO-owned storage facility and an energy supplier, but also due to some of the
ambiguities over application of supplemental industry charges, as described in learning points 1 and 2 above.
Contracts more typical of the core business of energy suppliers, for example power purchase agreements with
generators, or standard commercial tariff agreements with demand customers, have been in existence for a
long period of time, and so require relatively little input and development to implement.
In order for this particular commercial model to be a viable and interesting proposition for energy suppliers,
much greater standardisation is needed in these contractual arrangements. Increased awareness of the
benefits and operating characteristics of storage amongst energy suppliers would also benefit the industry in
the same way. The risk otherwise, is that storage developers could find it challenging to put commercial
arrangements in place for efficient access to wholesale markets, and potentially fails to secure the ability to
charge/discharge at economical rates.
6. DNOs may need to contract or develop additional expertise in DC design
It has been identified that DNOs may not have the expertise within their organisation to review and sign-off on
contractor’s design of DC systems. DC system design has some differences from AC system design which
may lie outside the experience of DNO engineers. If this is the case a third party consultancy may be required
or a commercial structure implemented where the contractor self certifies but takes on all the commercial risk.
7.2 Learning, Communications and Dissemination Activities in this Period
As described previously, a comprehensive Knowledge Dissemination Roadmap has been developed in order to
capture all the key learning activities and events. This has continued to evolve and be updated with the project and is
available on request.
There are four core elements to the Knowledge and Dissemination Roadmap, covering the following areas:

Internal Communications;

External Communications;

Local Engagement; and

Knowledge Dissemination.
The following provides an update on the progress on each of the above elements:
7.2.1
Update on Internal Communications

Network control briefings – Meetings have been carried out with our control engineers to show them the
SNS facility, ahead of training, as well as to allow input into the control screen designs to ensure they remain
engaged and integrated into processes for operating the storage;

Construction site meetings and tours – Monthly meetings have continued to be held by Morrison Utility
Services at the Leighton Buzzard construction site to review progress, discuss any risks and issues and
engage with third parties involved in the programme, for example communications providers.

Capital Programme management meetings – Monthly meetings have been held with Capital Programme at
the senior management level, to review progress and spend, and discuss any risks or issues during the
construction and commissioning

Training sessions for local engineers – A training session has been held for the engineers in the area local
to Leighton Buzzard who might get called out to operate or inspect the ESD, or potentially visit to assist
investigation of a fault.
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7.2.2
4
Update on External Communications, Knowledge Dissemination and Local Engagement

EPRI Software Case Study Report – Contributions, via an interview, to a report of case studies on
‘Distributed Energy Resource Management Systems’ by the Electric Power Research Institute (EPRI), covering
the details of the SOCS system for scheduling and optimising the storage

Elexon Storage and BSC Report – Contributions, via an interview, to a project by Elexon examining the
future potential of storage, and challenges in relation to the BSC

ESOF meeting – A presentation was given on the business case for the SNS installation in Shetland, hosted
by SSE (June 2014)

Knowledge sharing with the Institute for International Socio-Economic Studies, Japan – A workshop
was held with ISES members to discuss the SNS project, and other smart grid developments (June 2014)

Energy Central Article on Smarter Network Storage – An article authored for Energy Central describing the
4
project and it’s key objectives (July 2014)

ENA Smarter Networks Video series – The project was featured in a short film, commissioned by the ENA
on several aspects of Smarter Networks, including the use of storage. The video can be viewed at:
https://www.youtube.com/watch?v=YPF9cF_UTds

iMechE Event – ‘Storage: An Integrated Approach’ – The project and details of the construction and
commercial aspects was presented at the iMechE storage conference, which also initiated a number of follow
on meetings with specific organisations for further dissemination (September 2014)

CIRED Abstract Submission on Forecasting – An abstract paper authored and submitted for the CIRED
conference on the forecasting methods and algorithms developed for the SOCS platform by Newcastle
University (September 2014).

CIRED Abstract Submission on the SNS Project – An abstract paper authored and submitted for the CIRED
conference introducing the SNS project and the key aims, methods and hypotheses (September 2014).

ESOF Meeting – A presentation on the frameworks for cost comparisons of storage projects, based on the
work within the SNS project in Buxton (September 2014)

IET Power in Unity Conference – The SNS project, and the technical details of the installation, was presented
by S&C Electric in Birmingham (October 2014)

Major Energy Users Conference (MEUC) – An overview of the project was presented by the Regulation team
in London (October 2014)

Ofgem WS6 Smart Grid Forum Presentation – The project’s latest commercial and regulatory learning was
presented to the WS6 group in London (October 2014)

LCNI Conference 2014, Aberdeen – The SNS project presented at the storage session relating to drivers of
the business case for energy storage, and provided an overview of the SOCS IT platform (October 2014)

Presentation to the Leighton Buzzard Society – A presentation on the project and details of the storage
facility, was provided by the project team to the local community group, the Leighton Buzzard Society (October
2014). A selection of photos from the event are included below.
http://www.energycentral.com/generationstorage/energystorage/articles/2953
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Figure 18: Presentations at the Leighton Buzzard Society

Meeting with the Greensand Trust – A meeting was held on site with an advisor from the Greensand Trust, a
local charity involved in the protection of wildlife and green spaces in the area, to discuss plans for the leased
land adjacent to the SNS facility.

Trilateral UK-Germany-France Workshop on Energy Storage hosted by Department of Business,
Innovation & Skills – The SNS project was involved in providing input into this policy-based workshop on
storage entitled “How can innovative policy support energy storage technologies in the future energy system?”
(November 2014)

European Association for the Storage of Energy (EASE) Global Conference, Paris – The SNS project
was presented at the first EASE conference, providing insights into the business case for storage (November
2014)

Partners Forum – Partners Forums were held in London on 28 July to discuss progress and review the
upcoming scope of work for SDRC 9.3. In addition, a second Forum was held at site in Leighton Buzzard on 18
November, to provide a progress update to partners, provide a tour of the facility and discuss the next phases
of the project

SNS Launch Event – The SNS facility was officially opened with a visit by Amber Rudd, MP, the
Parliamentary Under Secretary of State at the Department of Energy and Climate Change (December 2014).
7.3 Learning and dissemination activities over the next reporting period
In the next reporting period, it is expected that there will be significant interest in the facility both across the UK and
internationally. A number of visits for appropriate stakeholders will be carried out, with the aim to share the learning and
encourage the replication of energy storage projects. The project will continue to disseminate internally, through
ongoing training and briefings to ensure local network and Control staff are confident in the use of the facility, in
addition to beginning the process of informing the Planning departments on the appropriate use of storage in future
network infrastructure development.
Confirmed activities at the time of writing are summarised below:

Smart Energy UK, London – Presentation of the project and it’s key learning (January 2015)

ESOF Meeting – A visit to the facility for the other UK DNOs (February 2015)

Article in ‘Cable’; UK Power Networks’ internal magazine for field staff
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Smarter Network Storage
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8 Intellectual Property Rights (IPR)
During the current period, the following key IP has been generated:
WS
WS 1
WS 1
WS 1
WS2
ID
SNS1.3
SNS1.9
SNS1.24
SNS2.5
WS 2
SNS2.12
WS 2
SNS2.13
WS 3
WS 4
WS 4
SNS3.5
SNS4.2
SNS4.3
WS 4
SNS4.6
WS 4
SNS4.14
PRODUCT
Testing Strategy
Storage Training
Engineering Operating Standard (EOS 09-0074)
Demand Forecast Error Analysis
Long Term Electricity Demand Forecast for Energy
Storage Scheduling
Improving Long Term Electricity Demand
Forecasting Through Data and Interactions
Service Trial Detailed Approach
Client Services Agreement (Aggregator Services)
Storage Energy Supply & Tolling Agreement
SDRC 9.3 – Commercial Arrangements for
Integrated Use of Flexibility, including Contract
Skeleton Templates.
Regulatory Framework Evaluation notes
OWNER
UK Power Networks
UK Power Networks
UK Power Networks
Newcastle University
Newcastle University
Newcastle University
UK Power Networks
UK Power Networks
UK Power Networks
UK Power Networks
UK Power Networks
SNS2.9 SOCS Testing Approach was delivered under SNS1.3 Testing Strategy.
The following IP is expected to be generated during the next reporting period:
WS
WS 1
ID
SNS1.12
WS 1
SNS1.10
WS 2
WS 3
WS 3
WS 3
SNS2.10
SNS3.6
SNS3.7
SNS3.8
PRODUCT
SDRC 9.4 – Energy Storage as an Asset
Inspection and Maintenance Procedures for
Storage
SOCS Training
DNO Service Trial Report
Reserve Trial Report
Response Trial Report
OWNER
UK Power Networks
UK Power Networks
UK Power Networks
UK Power Networks
UK Power Networks
UK Power Networks
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Smarter Network Storage
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9 Risk Management
The SNS project has established a rigorous and proactive risk management process, as described in the SNS Project
Handbook. It allows for the communication and escalation of key risks and issues within the project, it also defines
where decisions will be made and how this will be communicated back to the WS level where the risk or issue has
arisen. Risks are reviewed weekly at WS level and fortnightly at project level by the Project Board. Key project risks are
then escalated to the Project Steering Committee for review and approval of the mitigation on a monthly basis.
9.1 Full Submission (BID Risks) – update
This section is provided in Appendix C.
9.2 Risks raised in the current reporting period
REF
NO.
Status
R0104
RAG
WS
RISK & IMPACT DESCRIPTION
-
WS 3
R0105
G
WS 3
R0106
-
WS 3
Connections works for Stewkley Rd
23MW PV Farm are incorrectly
perceived as an overrun or
modifications to the consented SNS
development by the Council and/or
residents.
Output from the Stewkley Rd 23MW
PV Farm is not monitored, or
considered in FOSS.
Consideration is not given to the visual
impact of the connection equipment for
Stewkley Rd PV Farm.
R0107
-
WS 4
R0108
A
WS 2
R0109
-
WS 4
No LV metering on auxiliary feeders.
R0110
G
WS 4
R0111
A
WS 2
Under the EST Agreement with
Smartest there is a risk that UK Power
Networks will have to compensate
Smartest for lost triad benefit costs if
during a week that Tolling has been
chosen and they schedule to export
from the device during what is later
confirmed as a triad period, and UK
Power Networks have chosen to
disrupt their submitted schedule casing
them to lose valuable triad benefit.
ENMAC migration from pre-production
to production has a resource conflict.
Pricing information/back-to-back FFR
arrangements with National Grid are
still outstanding when KiWi service is
due to start on 31/10/14.
ENMAC & RTU development delayed.
Testing of ESS cannot take place
without RTU.
MITIGATING ACTIONS
Risk Closed: Risk was raised with
Connections directorate, and civil works
agreed to be carried out in existing
compound under permitted development.
Monitor risk and initiate mitigating actions if
Stewkley Rd Farm connection is confirmed.
Risk closed: Visualisations were updated
to check visual impact & discussed with
OP&C (UK Power Networks consents
team). Feedback from UK Power Networks’
consents team was that no further
engagement with the council is needed.
Risk closed: Negotiations between KiWi
and National Grid completed.
02/10/14: RTU software upgraded to the
latest version. ENMAC testing started. New
problems have been identified with RTU
calibration.
Risk closed: metering installed.
Don't choose tolling option during a likely
triad period (i.e. between November and
February).
To eliminate the risk completely, the Tolling
option should not be selected between
November and February.
Meeting between Network Control and
Operational Telecoms to agree the
migration steps and responsibilities.
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REF
NO.
Status
R0112
RAG
WS
RISK & IMPACT DESCRIPTION
A
WS 3
R0113
R
WS 2
R0114
A
WS 2
Delay to SNS commissioning, will
cause delay to (i) response trials and
potential loss of profit from service
delivery and (ii) Peak-shaving trial.
(iii) Energy storage system unable to
support the network during the 2014
winter.
ENMAC resource no longer available
to do development/testing.
Further changes to ENMAC will be at
risk from development and testing
prospective.
IBM Messaging broker currently has
no data security features.
SNS could lose messages accidentally
or maliciously by users who have
access to IBM messaging.
MITIGATING ACTIONS
Monitor progress against risk
R0103/R0108.
Project team working with Network Control
to ensure sufficient resources. Allocated
resource primarily supports production
changes only. Project might conflict with his
day-to-day priorities.
Options:
i) Using development installation of IBM
messaging which we have locally build
security around it.
ii) Engage with IBM to configure production
installation to have security defined.
ii) UK Power Networks IT security team to
manually design and implement security on
all installations.
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List of Appendices
Appendix A: Progress against budget (CONFIDENTIAL)
(See separate document)
Appendix B: Bank account (CONFIDENTIAL)
(See separate document)
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Appendix C: Bid Risks Update
This section provides an update of the bid risks that remain open.
REF
NO.
RAG
Status
RISK & IMPACT DESCRIPTION
The building is not delivered on time.
R0001
R0002
-
-
The building is not delivered to
specification resulting in rework and
cause delays.
The installed storage technology fails and
needs to be disconnected from the
network whilst being repaired or replaced.
R0005
R0006
R0007
G
-
G
Operational and Health and Safety
procedures are not approved for use of
the Storage device, so UK Power
Networks staff are unable to operate the
equipment.
The installed storage technology has a
catastrophic failure, which adversely
affects customers’ supplies and needs to
be disconnected from the network
resulting in project delays.
MITIGATING ACTIONS
UPDATE
Regular progress meetings/reports to track
progress and highlight/remove potential issues.
Use standard Networks design policies and
procedures, where possible.
Regular design meetings/reports to ensure strict
change control. Key stakeholder engagement to
ensure compliance with UK Power Networks
design policies and procedures. Rework to be
completed at the contractors expense.
Close collaboration with the storage device
manufacture to ensure the design meets UK
Power Networks specification and standards
through robust testing (maintenance & training
delivered by the storage device manufacture).
Replacement parts are to be made easily
available. With a regular maintenance cycle.
Engage with UK Power Networks’ Health, Safety
Sustainability and Technical Training (HSS&TT)
team to design suitable and approved policies and
procedures.
Risk closed: building is complete.
Close collaboration with storage device
manufacture to ensure the design meets UK
Power Networks specification and standards
through robust testing (maintenance & training
delivered by storage device manufacture). Carry
out a full set of test to minimise the possibility
failure and affect upon customers.
SWIFT assessment carried out to highlight
areas needing particular focus during design
process.
Fire testing completed and demonstrated
thermal runaway does not occur.
Detailed test specification to be developed
prior to commissioning.
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Risk closed: work completed.
Design approved at Design Review to attempt
to mitigate risk.
Detailed test specification to be developed
prior to commissioning.
Risk closed: procedures approved in SNS
1.10
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REF
NO.
R0008
R0009
R0011
R0012
R0013
RAG
Status
G
-
-
G
G
RISK & IMPACT DESCRIPTION
MITIGATING ACTIONS
UPDATE
A storage battery fails with severe
consequences before the device has
been commissioned. Results in limited
confidence in the equipment and delays
whilst further testing takes place.
Monitor defects and issue reports supplied by the
storage device manufacture for existing installs.
Storage device manufacture reliance on
single factory source, resulting in delays
in delivering of the storage device.
Through the tendering and contractual
negotiations, ensure storage device manufacture
is able to meet the project delivery timelines.
Include penalty clauses within their contact.
Carry out full financial diligence checks in line with
approved standards of practice and the UK Power
Networks procurement procedure(s). Negotiate
the transfer title of the device.
Samsung SDI, who have been appointed as
the new battery cell supplier, have a record of
zero safety recalls in the last 10 years and
have provided information on their quality
management process.
Fire testing completed and demonstrated that
thermal runaway does not occur.
Spare battery trays are being obtained by S&C
to prepare for problems.
Risk closed: all deliveries received.
The storage device manufacture goes out
of business after payment has been made
for the storage device, but has it not been
delivered, leading to project delays and
lost expenditure.
The storage device manufacture goes out
of business after the storage device has
been paid for and delivered; resulting in
lack of continuity and covers should the
unit fail.
A storage battery fails with severe
consequences after the UK Power
Networks device has been commissioned,
resulting in limited confidence in the
device, so it is disconnected until all test
have been completed.
Carry out full financial diligence checks in line with
approved standards of practice and the UK Power
Networks procurement procedure(s). Arrange a
software ESCROW and novation of liabilities to
OEMS.
A full set of quality tests to be completed before
installation, with the design and operation meeting
the UK Power Networks requirements. Ensuring
full confidence in the equipment installed. Monitor
defects and issue reports supplied by storage
device manufacture for existing installs.
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Risk closed: full system delivered.
Parent guarantees included in contract.
This risk has been reduced due to the
selection of alternative suppliers.
Performance bond and design indemnity
included in contract.
Fire testing completed and demonstrated
thermal runaway is not likely.
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REF
NO.
R0014
RAG
Status
R
RISK & IMPACT DESCRIPTION
MITIGATING ACTIONS
The installed storage technology causes
damages to UK Power Networks asset(s),
so needs to be disconnected from the
network whilst issues are resolved
causing delays to the project.
Carry out a full set of tests to minimise the
possibility of failure. Close collaboration with
storage device manufacture to ensure the design
meets UK Power Networks specification and
standards through robust testing (maintenance &
training delivered by storage device manufacture).
Replacement parts are to be made easily
available. With a regular maintenance cycle.
MUS providing temporary CCTV cameras to
monitor site; manned presence not required at this
stage.
Equipment is stolen or vandalised whilst
on site, but not commissioned.
R0015
R0016
R0017
R0018
R0019
R0019.1
G
G
UPDATE
-
-
Security assessment carried out at trial site by
UK Power Networks security team. Hoarding
now erected with secure access implemented.
Morrison Utility Services (MUS) have CCTV
installed during construction phase.
Permanent, monitored CCTV system being
installed as part of works
Equipment is stolen or vandalised after
commissioning, requires repairs, so
reduces the time to realise benefits.
Improve security at the site with a manned
presence.
The storage device is not commissioned
on time causing project delays.
Regular progress meetings/reports to track
progress against the plan.
Risk closed: This event occurred and so was
raised as an issue 10/10/14. Mitigating actions
were taken and commissioning has been
completed.
The storage device does not perform to
specification, so not all benefits are
realised.
Regular design meetings/reports. Key stakeholder
engagement to ensure specification can comply
with UK Power Networks design policies and
procedures.
Use proven safe methods of shipping the device
from America and consult with UK Power
Networks Insurance Manager to ensure
appropriate/adequate levels of insurance are in
place.
Ensure supplier is clear on responsibilities for all
shipping duties and customs clearance.
Performance KPIs included in contract.
Issues identified during testing are been
resolved.
-
G
Testing of installed system has identified that
there are some unusual circulating current
issues that could potentially cause damage to
the equipment in the SNS building.
When shipping the storage device from
storage device manufacture to site the
device is damaged beyond repair causing
delays to the project.
Import duty or handling issues cause
delays to delivery on site.
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Risk closed: Batteries and PCS units
delivered and installed.
Risk closed: storage system fully delivered to
site.
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Smarter Network Storage
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REF
NO.
R0020
R0026
R0027
R0029
R0030
RAG
Status
RISK & IMPACT DESCRIPTION
Detailed load studies to understand maximum
demand and future increases.
Estimates of availability to be refreshed on a
regular basis. Ensure ongoing tracking of
demand.
The lack of available technical,
commercial and project resources result
in delays in project delivery.
Resourcing plan completed during resources
within UK Power Networks/Future Networks.
Significant connections activity in the area
puts pressure on SNS business case.
A connections customer prepared to invest a lot,
could pay for the third circuit and transformer
ahead of expected date.
Or there could be pressure on SNS to release the
capacity for connectees.
The project has been scoped to look at multiple
ownership/operational structures, so should be
robust to legislative changes.
A
G
G
UPDATE
Site load growth exceeds expectations,
pushing peak demands beyond the spare
capacity range of the battery.
A
G
MITIGATING ACTIONS
Unfavourable changes in legislation or
market arrangements that restricts on the
usage and reduces the identified benefits.
Resource availability during the life cycle
of the project resulting in delays.
Early resourcing/recruitment
Provide adequate notice when planning meetings,
workshops and events. Resource pooling within
Future Networks.
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Additional storage provision has been included
within the design to allow for capacity to be
increased to 18MWh.
Future connection requests continue to be
monitored.
Evaluation of load profile to be reviewed on
ongoing basis.
Project team mobilised, including appointment
of two external contractors to ensure
deliverables remain on track.
Ongoing resourcing meetings being held to
ensure regular reviews and monitoring of
resource.
Monitor and track connections activity and
materialisation of load growth
Develop action plan for post-security of supply
operation (e.g. as part of ANM).
The project has been scoped to look at
multiple ownership/operational structures, so
should be robust to legislative changes.
Trial demonstrations still possible in
conjunction with National Grid on a
demonstration basis only.
Ongoing resourcing meetings being held to
ensure regular reviews and monitoring of
resource.
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Smarter Network Storage
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REF
NO.
R0032
R0035
R0038
R0039
R0041
R0042
RAG
Status
RISK & IMPACT DESCRIPTION
A
-
-
G
UPDATE
Local opposition to building the storage
facility causes both delivery timescales
being extended and reputational damage.
External stakeholder engagements to be
conducted prior and throughout the project to
ensure concerns are managed appropriately.
Continue to monitor LB Substation mailbox, and
respond with input from the Care team.
There is significant flooding at the site
whilst building works are taking place
causing damage and delays.
Put temporary protection place to stop significant
flooding of the site.
During the project delivery stage the
appropriate UK Power Networks staff do
not engage adequately or in a timely
manner with the Project. Resulting in poor
engagement and delays.
Design and implement a robust internal and
external stakeholder road map to identify all the
key stakeholders.
Step up engagement with control team and
Operational teams as we approach
commissioning.
Strong engagement and collaborative working
with partners. Put in place strong commercial
agreements.
Ensure clear scopes of services and deliverables
from partners defined.
Full continual engagement with partners, with
penalties clauses included for late delivery.
Contingency has been built into well designed
plans.
Tender process was carried out for several
projects aspects and provides alternatives
therefore reduces this risk.
-
-
MITIGATING ACTIONS
Commercial arrangements with Smartest,
National Grid and KiwiPower are not
acceptable to all parties resulting in
delays.
Delay in delivery of hardware or software
from partners and contractors. Delay in
delivery of hardware or software from
partners and contractors.
Key Project partner(s) withdraw their
participation in the SNS project during the
project has started, leading to delays.
UK Power Networks (Operations) Limited. Registered in England and Wales. Registered No. 3870728. Registered Office: Newington House, 237 Southwark Bridge Road, London, SE1 6NP
Risk closed: Public consultation exercise was
carried out to gauge concerns and reflected in
changes to the planning application where
these were possible.
Newsletters and communications have been
distributed as part of early construction
activities.
Continued monitoring of customer enquiries
regarding the site. Of the few to date, none
have required significant remedial action.
Risk closed: Building works complete.
Efforts to integrate with Network control
system and SCADA continue to be intensive.
Ongoing internal communication activities and
training to be completed in next project phase.
Risk closed: Agreements with Smartest
signed by UK Power Networks and in the
process of been signed by Smartest. KiWi
agreement signed.
Risk closed: Hardware been delivered by CGI
and AMT in progress of installing the software.
Partner forums continue to be held to ensure
good engagement in project work.
Page 52 of 54
Smarter Network Storage
Progress Report December 2014
REF
NO.
R0043
R0044
R0045
R0046
R0051
R0053
RAG
Status
RISK & IMPACT DESCRIPTION
MITIGATING ACTIONS
UPDATE
Partner resources not available to
complete work, attend meeting etc.
Resulting in project delays and issue with
quality of work.
All partners are to provide multiple names as
contacts, with deputies of the same standing. Also
partners are to provide an escalation path should
any issues be identified.
Lack of clear scope/requirements for
Partners result in scope creep and delays.
During scoping/design phase ensure all elements
of work are captured through engagement & 'sign
off' from key internal stakeholders.
All partners have provided multiple names as
contacts, with deputies of the same standing.
Also partners have provided an escalation path
should any issues be identified.
Acquisition of AMT-SYBEX by Capita and
change of resource at KiwiPower raised as
separate risks.
Poyry notified of a resource change in October
2014 but working contact remains engaged.
Some Product Descriptions to be completed
and approved for partner-led work and reports,
however 50% of project work is now complete.
Partners do not have a clear delivery plan,
which will result in delivery delays and
missing milestones.
Partners are involved in producing a project plan
and monthly reports to track progress. Payment
for any works will be linked to its completion on
time to cost and quality.
Ensure close collaboration between storage
supplier and Capital Programme directorate to
ensure planning app reflects requirements.
Partners are involved in producing a project
plan and monthly reports to track progress.
Payment for any works will be linked to its
completion on time to cost and quality.
Some overspend has occurred, within project
contingency.
Partner spend is higher than anticipated.
Overspend on project studies or services.
Partners may have concerns about the
level of resource they need to dedicate to
the project. The risk is that partners
withdraw involvement, leading to delays
or additional costs to mitigate.
Make contingency available for additional partner
costs.
Provide update to partners in forums on expected
upcoming resource needs.
Monthly account reconciliations and forecast
undertaken to understand financial reporting.
Any deviations on forecast or unexpected
elements will be reported or escalated as
necessary.
Remain sensitive to time draw on partners
where there is no funding
Resource forecasts have been provided to
project partners for improved forward visibility.
G
G
G
G
Building redesigns mean overspend on
WS 1.
G
G
UK Power Networks (Operations) Limited. Registered in England and Wales. Registered No. 3870728. Registered Office: Newington House, 237 Southwark Bridge Road, London, SE1 6NP
Page 53 of 54
Smarter Network Storage
Progress Report December 2014
REF
NO.
R0057
R0059
RAG
Status
G
RISK & IMPACT DESCRIPTION
MITIGATING ACTIONS
UPDATE
Budget restrictions mean that the design
process is not as comprehensive or
exhaustive as it could be, leading to
issues or delays later in the lifecycle.
Ensure good engagement with subject-matter
experts, keep well documented design
discussions and conclusions, attempt bestpractice within the constraints of our budget.
There is a risk that political/civil disruption
in South Korea prevents manufacturing of
the battery cells by Samsung. This could
cause delays to the installation and
commissioning.
Samsung’s primary manufacturing facility is in
South Korea, however a second plant is under
construction in Germany, providing for some
contingency in the event of issues.
UK Power Networks (Operations) Limited. Registered in England and Wales. Registered No. 3870728. Registered Office: Newington House, 237 Southwark Bridge Road, London, SE1 6NP
Design Assurance sign off achieved 30
September 2013 as part of SDRC 9.1. Subject
matter experts will continue to assist through
commissioning.
Budget restrictions did not materialise but
some time restrictions did
Risk closed: Samsung battery cells delivered.
Page 54 of 54