SIF R3 Discovery - Blueprint (Partner)

The solutions of interest include novel, collaborative connection methodologies and approaches to accelerate infrastructure development.

Innovation Justification

The state of the art is ESO's HND processes, which represent a step forward in network planning, see Appendix_Q3-Figure_1. However, the delivery of the HNDs comes with commercial, regulatory, and technical risks. Without Blueprint, the counterfactual is that each infrastructure developer (TO and OWF developer) would face addressing these risks themselves, without collaborative, innovative solutions being developed.

The key innovation in the Discovery Phase is to provide a collaborative platform for the key parties (TOs, ESO, OWF developers) to explore the problem and seek innovative solutions that add granularity and specific solutions that mitigate the risks of delivering HND. This collaborative approach is itself an ambitious innovative approach, uncommon in BAU due to the traditional structure of the industry, and reflects the recommendations of the Electricity Network Commission Report (ENCR) 2023.

In Discovery, the following innovative solutions shall be considered in the context of SSEN-T's network in the Northeast of Scotland, see Appendix_Q3-Figure_2:

- collaborative planning and design processes and tools
- collaborative development processes, including collaborative community engagements and consenting, and co-development of generation and demand
- data sharing (spatial, environmental, economic, social, technical, commercial)
- flexible connection agreements for generation/demand/storage (including hydrogen)
- developing accounting for active network management, improved locational signals, changes to TNUoS forecasts
- novel approaches to ownership/operation

The Discovery Phase naturally lends itself to bringing the key stakeholders together to take a strategic, non-BAU view. The innovative, risky solutions prioritised in Discovery, will then be developed in one or more Alpha projects and implemented in Beta. This will be done using the SSEN-T network and its associated OWF pipeline as a case study for de-risking transmission and generation asset rollout in constrained areas. Based on this Alpha case study, we will define "blueprint" methodologies, that can be used to inform ESO, Ofgem, UK Government, Scottish Government, other TOs, and other OWF developers to evidence improved strategic infrastructure development initiatives (ESO's Strategic Spatial Energy Plan (SSEP) and Centralised Strategic Network Plan (CSNP); Ofgem's Accelerating Strategic Transmission Investment (ASTI); UK Gov's Connections Action Plan; TO projects; OWF developer projects; and ENCR's 2023 report).

This work has few progression pathways in the price control or BAU, and a new focussed platform to gather this cross-industry consortium and conduct this collaborative, innovative exercise is highly beneficial.

Regarding IRL, CRL, and TRL, these will vary for the various solutions identified and will be specified in Discovery.

Appendix Q3 - Blueprint.pdf (opens in a new window)
(/application/10102926/form/question/36550/forminput/99615/file/630446/download).

Impacts and Benefits

Financial - future reductions in the cost of operating the network.

- Baseline: delays in HND development will delay OWF connections. The delays in providing capacity could discourage investment in projects leading to delayed decarbonisation of energy.
- Qualitative benefits: reduction in time to connect OWFs whilst minimising constraints, reduction in cost for system operation.
- Metrics: time to connect OWFs whilst minimising constraints, reduction in the amount of transmission infrastructure required to connect same OWF capacity, cost to GB ESO.

Financial - cost savings per annum on energy bills for consumers.

- Baseline: delays in HND development will increase the costs of financing for OWFs if there is investor uncertainty in connection time, and delay value-formoney offshore wind power being provided to consumers.
- Qualitative benefits: reduction in time to connect OWFs, possible reduction in cost and time for transmission assets required to connect same OWF capacity, reduction in cost of energy
- Metrics: time to connect OWFs whilst minimising constraints, reduction in the cost of transmission infrastructure, cost to GB consumer

Financial - cost savings per annum for users of network services.

- Baseline: the long connection queue times for OWFs in the SSEN area under the HND risks increasing the cost of finance for OWFs. Other countries with lower OWF capacities do not have such long connection queues, and so may attract cheaper finance (this is an international market). Further, there is a risk that inflation will push up prices for OWF development. Delays to OWFs projects due to HND delays/risks could push up prices for OWF developers (Capex and Devex).
- Qualitative benefits: reduction in time to connect OWFs, reduction in Capex and Devex for OWFs
- Metrics: time to connect OWFs, cost of OWFs

Environmental -- carbon reduction -- direct CO2 savings per annum.

- Baseline: delays to the HND network development will delay OWFs replacing fossil fuel generators on the GB system
- Qualitative benefits: OWFs displacing fossil fuel generators more quickly, reduction in CO2 for GB energy system
- Metrics: time to connect OWFs whilst minimising constraints, CO2 / MWh for GB energy system

New to market -- processes

- Baseline: bilateral discussions between ESO and OWF developers.
- Qualitative benefits: new processes developed for efficient, collaborative design, planning, and development work.
- Metrics: one or more new "blueprint" processes for use in accelerating OWF connection in constrained areas.

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