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SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB

REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

PROJECT PROGRESS REPORT


SIX
REPORTING PERIOD:
JUNE 2013 TO NOVEMBER
2013

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SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Report Title

Six monthly progress report six


Reporting period: June 2013 to
November 2013

Report Status

1.0

Project Ref

Connecting Renewable Energy in


Lincolnshire - Low Carbon Hub

Date

16.12.2013

Document Control

Prepared by:

Name
Philip Bale

Date
16/12/2013

Reviewed by:

Roger Hey

16/12/2013

Approved (WPD):

Phil Swift

16/12/2013

Revision History
Date
28.09.2013

Issue Status
0.1
Draft

Author
Philip Bale

21.11.2013

0.3

Draft

Philip Bale

25.11.2013

0.4

Draft

Philip Bale

16.12.2013

1.0

Final

Philip Bale

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SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Contents
1

Executive Summary ................................................................................................................................. 4

Project Managers Report........................................................................................................................ 6


2.1

Project Background ......................................................................................................................... 6

2.2

Delivery Plan .................................................................................................................................... 7

2.3

Project techniques & Project Progress Highlights ........................................................................... 7

Network enhancements .................................................................................................................. 7

Commercial Arrangements.............................................................................................................. 8

Dynamic AVC ................................................................................................................................. 12

Ring Network ................................................................................................................................. 13

Flexible Alternative Current Transmission system (FACTs) ........................................................... 14

Dynamic line rating (including Telecommunications) ................................................................... 15

Business Case update ............................................................................................................................ 20

Progress against budget ........................................................................................................................ 21

Bank account ......................................................................................................................................... 23

Successful delivery reward criteria (SDRC) ............................................................................................ 24

Learning outcomes ................................................................................................................................ 25

Intellectual Property Rights (IPR) .......................................................................................................... 25

Risk Management .................................................................................................................................. 26

10

Other.................................................................................................................................................. 28

11

Consistency with Full Submission ...................................................................................................... 28

12

Accuracy Assurance Statement ......................................................................................................... 28

Appendices .................................................................................................................................................... 29
Glossary ......................................................................................................................................................... 29

DISCLAIMER
Neither WPD, nor any person acting on its behalf, makes any warranty, express or implied, with respect to the use of any
information, method or process disclosed in this document or that such use may not infringe the rights of any third party or
assumes any liabilities with respect to the use of, or for damage resulting in any way from the use of, any information, apparatus,
method or process disclosed in the document.
Western Power Distribution 2013
No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means
electronic, mechanical, photocopying, recording or otherwise, without the written permission of the Future Networks Manager,
Western Power Distribution, Herald Way, Pegasus Business Park, Castle Donington. DE74 2TU. Telephone +44 (0) 1332 827446. Email WPDInnovation@westernpower.co.uk

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SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Executive Summary
The Lincolnshire Low Carbon Hub (LLCH) has seen significant progress over the last six month period as
the project transitioned from a design phase into a construction phase. The LLCH design stage was
finalised after DNV Kema completed their external project audit in June 2013. A resubmission pack
comprising of the independent audit, design justification report, substation designs and a re-forecasted
project delivery plan was sent to all DNOs for comment.
A formal resubmission was submitted to Ofgem with all supporting evidence in July; this was confirmed in
20th November through the issuing of the new project direction.
The detailed design activities at each substation for the ring network have been completed ready for
construction with all the significant construction activities undergoing a tendering exercise before
awarding the works to a preferred party. The construction activity started at Trusthorpe in July and is
nearing completion, Construction activities have started at Chapel St Leonards in December 2013.
The construction of 10.1km of new OHL has been completed; two network circuits now have 300mm Hard
Drawn Aluminium conductor installed under a specialised construction for long span lengths, 10km of
optical fibre sky wrap has been installed on both new and existing lines. Communication masts and
microwave links have been installed during this period.
WPD have undergone a detailed design phase of the dynamic AVC scheme with Fundamentals, the
addition of new network assets has been scheduled into the work programme during the next reporting
period.
The DStatcom (FACTs device) has passed through the design element; the build of both the DStatcom and
associate step up transformer has been completed. Both units have been installed on site at Trusthorpe
by S&C. The commissioning of these units will occur in January 2014 to coincide with the commissioning
of the new 33kV switchgear.
The design and delivery of the alternative commercial arrangements section of the project has been
completed during this reporting period. Engage Consulting have researched possible constrained
connection methodologies. Working with WPD, we have agreed a methodology, amending our existing
commercial arrangements allowing Distributed Generation customers to select constrained connections
under a LIFO (Last in, First off) scheme. These agreements have been sent out as part of a consultation
finishing on Thursday 14th November.
To support the alternative connection agreements we will be offering DG customers in East Lincolnshire,
we have developed two constrained connections tools in conjunction with TNEI and Smarter Grid
Solutions. The first, a web based tool, allows generation developers to understand the impact their
connection will have on the network and the expected level of constraints. The second, a spreadsheet
tool, allows WPDs primary planners to plan the network with generators operating with constrained
connections.
A greater emphasis has been placed on regular dissemination over the last six months. The project ran a
large dissemination in October, sharing our progress on the whole project and the lessons learnt since
been awarded funding. The event specialised on the creation of alternative commercial arrangements for
DG connections.

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SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Risks
The project continues to record and manage risks through the project risk register. A summary
of the project risks in Recruitment, Procurement, and installation have been summarised
below.
Recruitment risks
There are no specific recruitment risks at this point; the project has people assigned to all roles
for the delivery of the Lincolnshire Low Carbon Hub.
Procurement risks
The on-going risk that long lead time items delays the delivery of the project has been reduced
by procuring all long lead time items early, reducing the overall risk of the project.
Installation risks
As the project is now in an installation phase, a greater emphasis has been placed on good
communication between all parties during installation, especially where installation activities
involve new companies working together.
Other risks
National Grid restrictions could prevent further generation from connecting. The addition of
NG constraints has been considered with the alternative connection agreements and can be
mitigated if occur.
Local opposition to new generation developments remains an on-going risk that cannot be
mitigated. The project will continue to engage with the local authority and generators to
explain the purpose of the project, including the development of the most suitable generation
in suitable locations.
Learning
During the last reporting period the project has disseminated the learning from the project
through reports and presentations.
The project is systematically capturing learning relating to the design, development and build
phases. Learning is being disseminated internally through monthly project meetings and a
project newsletter.
The project has recruited an additional resource to support the capturing and dissemination of
learning.
The learning generated through the design and installation phases of the project has been
disseminated to all UK DNOs. As the project continues to generate new learning, this will
disseminated through the project website and an event being planned for June 2014.

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Project
team

SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Business Case
The number of distributed generation connections continues to be high; an increasing number
of areas within the WPD licence areas are showing there is a limitation in the ability to cost
effectively to connect distributed generation passively without significant conventional
network reinforcement. Throughout ED1, DNOs will be incentivised to ensure reinforcement
costs are efficient. Innovation will play a large part in facilitating cost effective connections.
WPD are already planning their second demonstration of the Low Carbon Hub principles, likely
to be in the South West.

Project Managers Report


1.1 Project Background
The Low Carbon Hub for East Lincolnshire has been designed to test a variety of new and innovative
techniques for integrating significant amounts of low carbon generation on to electricity networks, in an
effort to avoid the costs that would normally be associated with more conventional methods.
The project received 3m of funding from Ofgems Low Carbon Networks Fund Tier 2. In this project, we
are seeking to explore how the existing electricity network can be developed ahead of need and thus
deliver low carbon electricity to customers at a significantly reduced cost in comparison to conventional
reinforcement.
Lincolnshire, being on the east coast makes it suitable for a wide range of renewable generation types,
these include onshore and offshore wind farms, large scale solar Photo Voltaic (PV) and energy from bio
crops. Many generators cannot connect to the distribution network closest to them due to the effects the
connection would have on the network operation. These connections tend to result in installing new
underground cable to areas closer to Skegness where the effect on the network is less, meaning it could
operate within its design and operation limits. This can be very expensive and prevent generation
connections. We have received a high volume of connection enquiries from developers which made the
location ideal for this project.

Dynamic Line
Rating

Network
Enhancements

Commercial
Agreements

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FACTs

Dynamic
Voltage
Control

33kV Active
Ring

SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

1.2 Delivery Plan


The Project Progress Report 5, December 2012 through to May 2013, detailed the requirement for a
formal change request. This was submitted to Ofgem on 19th July 2013 with a modified delivery plan. The
change request was accepted 18th November 2013. All progress detailed in this report have been
reported against the accepted change request.

1.3 Project techniques & Project Progress Highlights


The Low Carbon Hub has six main techniques to allow more generation to connect to an existing network.
Network enhancements, Commercial agreements, Dynamic voltage control, 33kV active network ring,
Flexible AC Transmission System (FACTs) Device and Dynamic system ratings.
These six techniques are being developed and will be used together in the Low Carbon Hub; however we
intend to demonstrate how the techniques could be used in different permeations in other network
areas, allowing the connection of additional distributed generators to the existing network.
These techniques when used together should increase the networks thermal capacity, improve voltage
control and ensure the network security is maintained.

1.3.1 Network enhancements


When network assets are being replaced based on condition or load reasons DNOs replace assets with the
minimum cost scheme. This project will test if additional functionality should be either designed or built,
recording the increase in cost and further functionality these assets could provide in the future. This
increased functionality will include installing assets with a larger capacity rating that have the provision
for fibre communications to be installed.
In this project, sections of our existing 33kV network are being replaced due to poor condition. These
circuits will be upgraded to increase capacity and have fibre installed for the first time. This work is in
addition to investment already funded through the current distribution price control (DPCR5) settlement.
The standard design when replacing rural 33kV Overhead lines is to install 150mm2 Aluminium Conductor
Steal Reinforced (ACSR), the circuits being replaced in the LLCH area will have 300mm2 Hard Drawn
Aluminium (HDA) installed with the provision for optical fibre both at the construction phase and as a
retrofit activity.
Progress in the last reporting period
The rebuilding of 10.1km of overhead line was scheduled to coincide with the crop harvests. The Alford
to Trusthorpe circuit rebuild with 300mm HDA commenced in September and was completed in
November. The Chapel St Leonards to Trusthorpe circuit rebuild commenced in November and was
completed in December. Both Overhead lines have been incorporated into the WPD network and the
existing lines dismantled. These OHLs have been designed to allow optical fibre to be retrofitted to the
circuits post construction.
This section of the project will be complete during December 2013.

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SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Figure 1- Project plan for network enhancements

1.3.2 Commercial Arrangements


The majority of the generation connection offers made are non-firm (teed connections) which operated
with a fixed power factor. These typically have very little communications between the DNO and the
generation customer, the only communications with the generator is the recovery of high level generation
outputs through SCADA.
Generation connections made under a fit and forget arrangement must be modelled for the most onerous
credible scenarios that could occur on the network. This connection philosophy will ensure under normal
operating conditions the generation will be unconstrained. This can lead to significant amounts of spare
capacity in the system for periods where the worst possible scenarios do not occur.
Fit and forget networks are modelled for the worst credible scenarios:

Connected DG are all simultaneously operating at their full outputs


Whilst the distribution network is at minimum demand
Whilst the distribution network is operating the upper voltage bandwidth

The commercial agreements being developed through the Low Carbon Hub will allow customers to
choose an alternative connection using the LCH innovative techniques. They will to have a much greater
participation in the active network management which could lead to quicker and cheaper connections to
the network.
Progress in the last reporting period
The alternative commercial arrangements section of the project has been conducted within this reporting
period in conjunction with Engage, TNEI and Smarter Grid Solutions.
Engage have built upon the UKPNs research through the LCNF Flexible Plug and Play project. The merits
of all constrained connection methodologies were considered and a review of the lessons already learnt
though distribution and transmission networks globally have been conducted. A workshop with
distributed generators concluded that a Last In, First Off LIFO constraints methodology was the most
appropriate and fairest solution for customers wanting to connect to the Lincolnshire Low Carbon Hub.
The charging methodology for the Lincolnshire Low Carbon Hub is based upon the customer only funding
the constraint scheme, not any upstream reinforcement. A limitation of this is that overall constraints on
the network remains unfunded, ultimately limiting the number of connection that can be made on the
distribution network before constraints become uneconomical.

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SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

The Workstream 6 knowledge dissemination event focussing on alternative / innovative / smart /


interruptible / non-firm .. generation contracts defined the requirement for common definitions. As
such, WPD have discussed their alternative commercial arrangements with other DNOs and have taken an
action to record all DNOs definitions for alternative commercial wording. Following legal advice we are
recommending the following definitions be adopted:
Adjusted Export Capacity:

the Company shall be entitled to issue an Instruction to:(a) specify a level of import and export
capacity which shall not be less than the level of the Protected Import & Export Capacity and / or;
Specify a particular Power Factor, or a particular range of Power Factors, for any flow of electricity
from / to the Distribution System to the Customers Installation.

Protected Export and Import Capacity:

The Import / Export capacity the user is entitled to subject to National Terms of Connections
(NTCs) which will not be intentionally interrupted for Active Network Management (ANM)
purposes

Curtail / Curtailment means:

to limit from time to time the maximum amount of electricity that may flow to / from the
Distribution System through the Connection Point; or
in respect of the flow of electricity to / from the Companys Distribution System to the Customers
Installation to require this to be at a particular Power Factor or to be within a particular range of
Power Factors.

Subsequent Owners

The Customer covenants that it shall not dispose of any interest in the Premises, the Customers
Installation or the Customers Generating Equipment unless the Customer has obtained from the
proposed transferee of such interest a deed of covenant in a form acceptable to the Company in
its sole discretion binding the proposed transferee to this Connection Agreement and provided
such deed to the Company.

WPDs Generation connection offer letter and Connection Arrangements have been amended to create
an alternative connection offer for constrained contracts. This will be offered to generation developers
in the Low Carbon Hub zone alongside WPDs standard connection offer. The alternative connection
documentation was disseminated as a mini consultation and will shortly being sent to DG developers
requesting constrained connections to the Skegness Grid substation at all voltage levels and other select
WPD areas. Customers have the ability to opt out of receiving a conventional connection agreement;
however the ENA G59 formal connection application must be submitted.
The methodology for offering constrained connections was published on the Low Carbon Hub website.
www.westernpowerinnovation.co.uk/Lincolnshire-Low-Carbon-Hub.aspx.

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SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Alternative connection enquiries have been received following the Lincolnshire Low Carbon Hub
methodology
Number
of
additional Number
of Alternative Connections Number of additional
Connection Enquiries received additional MW
accepted
MW
10
77.8
0
0

The designed and development of two Active Network Management connection tools has been created to
further support the connection of DG under constrained connections.
Online tool
The online tool allows generation developers to estimate the level of constraints across the Skegness
Network area for different generation types and size in different locations. This information is intended
to help developers to determine the impact of their development on the network and potential viability
of a scheme.
The online tool www.lincolnshirelowcarbonhub.co.uk allows developers to register their details and
estimate the level of constraints.

Figure 2 WPD online constraints tool

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SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

WPD tool
The Spreadsheet provides enhanced features WPD primary planners can use to ensure connections
comply with WPDs policies, whilst also providing a more detailed level of constraints based on the
existing network operation, and network operation with the LCH smart grid innovations, with todays
demands and with a reduction in demand over a 25 year period.

Figure 3 WPD Spread sheet tool screen shot

A tender for Active Network Management was issued in September 2013, with 3 responses received.
Smarter Grid Solutions was selected to install their Active Network Management system for the Low
Carbon Hub; the planned installation date is 31st March 2014.
A second Active Network Management scheme will be procured, and developed in parallel with the
Lincolnshire Low Carbon Hub network. This will provide a dual source for ANM technologies.

Figure 4- Project Plan for commercial arrangements


This section of the project is now complete.

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SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

1.3.3 Dynamic AVC


Building on the principles of one of our previous Innovation Funding Incentive (IFI) projects, the voltage
on the network will be actively varied. This technique, known as dynamic voltage control, will be carried
out in real time using measurements coming from demand and generation sources. Dynamic voltage
control should allow us to further increase the capacity of the network whilst maintaining the system
voltage within the statutory limits.
The primary network voltage is regulated through the Automatic Voltage Control (AVC) relays at
Skegness. The AVC relays ensure the network voltage remains within statutory limits at all times. As
networks are increasingly no longer just supporting demand, the connection of generation makes the
process of regulating voltage with a static AVC set point increasingly more difficult.
Progress in the last reporting period
Fundamentals Ltd have been contracted to design and deliver the dynamic AVC section of the project in
conjunction with WPD. The advanced control of the Skegness AVC scheme will be based on centralised
control whilst the network communications are healthy and a local control scheme during
communications outages.
The design has been finalised during this reporting period. This includes, how additional voltage
transducers will be established on the network, how the AVCs will be remotely controlled through WPDs
corporate communications network, how the reduction in voltage will be calculated based on the
network parameters, how this will be communicated to the AVC relay and how the network voltage
control will be made fail safe.
Next Steps
Fundamentals are demonstrating how an AVC scheme can be used to generate a pseudo 33kV Voltage
transducer using features in their enhanced AVC control as an alternative to a traditional 33kV VT. This
has been scheduled for installation at Horncastle during the first quarter of 2014.
The Skegness AVC will be converted to accept DNP3 communications signals in Quarter 1 2014, the AVC
will be configured to accept a reduction in the standard voltage settings. Remote communications will use
the secure AVC communications channels already available for Distribution code compliance. The risk of
this technique is further reduced by the use of hard wired limits with the AVC preventing voltage
excursions.
An algorithm to determine the 33kV voltage parameters will be incorporated within POWERON first
quarter 2014. This will use a range of available parameters to improve voltage profile, reducing the target
settings within the AVC relay.
The installation of the enhanced AVC at Skegness has also been configured for first quarter 2014. The
design, installation and operation of this technique will be documented and disseminated in the next six
monthly report.

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SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Figure 5 Project Plan for Dynamic Voltage Control

A internal minor change has been approved for the re forecasting of the Dynamic AVC delivery
programme

1.3.4 Ring Network


Creation of the active network ring involves installing additional switchgear, disconnectors, new
telecommunication links and new protection relays. Once complete, the network will run as a closed ring
with greater controllability enabled by increased visibility of power flows and voltage profiles. This
arrangement will allow us to reconfigure the system based on the real time status of the network. It also
requires a more complex power system protection scheme to protect the system from damage in the
event of a variety of different fault scenarios.
Progress in the last reporting period
The primary substation detailed civil and electrical designs for Trusthorpe, Bambers Wind Farm,
Ingoldmells and Chapel St Leonards have been finalised and issued. The civil construction at Chapel St
Leonards has been tendered and awarded to Murphy. The civil construction for Alford and Ingoldmells
have been tendered and contracts are due to be awarded in early January
Work started at Trusthorpe Substation 10th June 2013, the 33kV switch room has been constructed, 33kV
switchgear, protection panels and ancillary equipment procured and installed. The site preparation work
stated at Chapel St Leonards Substation has started in December 2013
All long lead time items including switchgear, disconnectors, structures, VTs, CTs and protection panels
have been ordered during this reporting period to reduce delivery risk.

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SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Figure 6 Project Plan for Ring Network

An internal minor change has been approved for the re forecasting of the delivery programme.

1.3.5 Flexible Alternative Current Transmission system (FACTs)


In creating an active network with multiple in feeds from generation, a high degree of variability (both in
terms of demand and generation) can result in unwanted voltage fluctuations and harmonics on the
electricity network. A Flexible AC Transmission (FACTs) system device can rectify these issues
automatically. FACTs technology is not normally deployed on distribution networks. In this instance, the
FACTs device, also referred to as a DStatcom, will be connected in parallel with the electricity network at
Trusthorpe and will operate as a controllable current source (an arrangement often referred to as shunt
compensation). This allows reactive power to be generated or absorbed by altering the capacitance or
inductance and is a means of controlling power factor or voltage. In addition, if required filters can be
used to remove unwanted harmonics. The solution will be designed in such a way to maximise the
amount of generation that can be connected.
Progress in the last reporting period
The S&C 3.75MVAr PureWave DStatcom and associated step up transformer have been designed, built,
tested, delivered to site and installed. The unit will be commissioned during January 2013 to coordinate
with the switchgear commissioning, planned for December 2013.
The DStatcom will be remotely controlled with basic monitored capabilities through WPDs network
management software POWERON.
The DStatcoms performance and status can be remotely monitored by Western Power Distribution, with
WPDs control engineers having the ability to remotely operate the unit. Significant discussions and
modification to the unit have been undertaken over 4 months to ensure the unit conformed can confirm
with WPDs security requirements. The unit can now be remotely and interrogated, securely without any
compromised to WPDs operational security.

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SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

The design, installation and operation of this technique will be documented and disseminated in the next
six monthly report.

Figure 7 DStatcom Installation

Figure 8 Project Plan for FACTS device

1.3.6 Dynamic line rating


The Skegness Registered Power Zone (RPZ) delivered cheaper connections to offshore wind farms by
giving Western Power Distribution a facility to adopt dynamic ratings for overhead lines. This method,
which has already been widely disseminated within the industry will be further developed to test new
techniques for calculating plant and equipment ratings and the subsequent operating limits based on real
time data.
The GE dynamic rating Plug in has been installed within POWERON to allow assets to be dynamically
rated.
Progress in the last reporting period
The design principles for the Low Carbon Hub Dynamic line ratings have been established. Incorporating
the design principles into POWERON to use the output from wind farms. This will be demonstrated when
further wind connections are made to the network.
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SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

1.3.7 Telecommunications
The detailed telecommunications design showing the interface to protection relays has been completed,
as shown in appendix 1. A significant number of the communications links has been constructed during
this reporting period.
Wireless Communications
The use of wood poles as an alternative to swan lattice towers has been investigated, the use of wood
poles have been discounted due to the unacceptable movement and the narrow microwave beam. It was
considered an unacceptable risk with traditional microwave communication links.
The microwave tower foundations were installed in Trusthorpe, the swan lattice tower to be installed in
December 2013
The microwave tower foundations installed in Ingoldmells, the swan lattice tower to be installed in
January 2014
The microwave tower foundations installed in Chapel St Leonards, the swan lattice tower to be installed
after the civil installation in April 2015.
The communications will provide the ability to support:
SCADA,
Current differential protection traffic,
AVC transducer communications,
FACTs communication traffic,
Active Network Management Traffic

Fibre Communications
Issues associated with additional midpoint sag have been solved. WPDs standard design tools have not
required the addition of weight to a pre tensioned line. Working with fibre subcontractors it has been
possible to better calculate the effects of adding fibre to a pre-existing line. This was actual increase in
sag has fallen within the design parameters.
Optical fibre wrap has been designed for both new and existing circuits. Design decisions for earthing,
splicing, applying of temporary earths and fibre at ABSDs have been occurred.
Optical fibres have been wrapped on the Alford - Trusthorpe circuits by AFL during October and
November 2013. The 600m underground ducts and fibre section between Skegness and the Skegness,
Alford and Chapel St Leonards has been installed.

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SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Figure 9 Overhead line fibre wrap

The installation of fibre to the Skegness Alford lines will be completed during 2014 after vertical and
horizontal clearances issues have been rectified. All telecoms links will be commissioned in line with the
electrical equipment commissioning at each site in 2014.

Figure 10 Project Plan Telecoms Delivery

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SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Dissemination events
Between June and December 2013 the Low Carbon Hub has increased its dissemination activity. Below is
a summary of the progress.
An alternative connections workshop was held. This was hosted by WPD with Engage Consulting on 13th
June 2013 at Pegasus Business Park. A selection of people from the DG community was invited. These
included key stakeholders from DG trade associations, DG developers with recent connections in the East
Midlands and DG developers that expressed an interest in alternative commercial connections at our
Business plan workshops. 10 people from eight companies attended.
We introduced the Low Carbon Hub, explained how DNOs planned networks with DG connections under
the fit and forget methodology and how if DNOs could offer alternative connections it could allow
developers to select an alternative connection over a traditional connection.
The options for alternative connections including offering reactive power support, constrained outputs
and trading constraints were discussed. The feedback supported the on-going development of the
alternative commercial arrangement we will offer as part of the LLCH. Alternative connections would
require a DG developer to accept a non-firm connection to the grid, the amount of interventions required
by a DG site will be dependent on where they connect to the network and the number and location of
other connections. The amount of information a DG developer would require when accepting
constrained connection instead of traditional network reinforcement.
The feedback from the event has helped to shape the commercial arrangements being developed for the
Low Carbon Hub. The key outputs and findings from the workshop were disseminated to the parties that
attended the workshop and be made available on the project website.
On 6th June 2013 the project was presented to over 90 local authority planners across the East Midlands
region at the request of the Head of the Central Lincolnshire Joint Planning Unit. The presentation
included details of the Lincolnshire Low Carbon hub as well as the challenges and opportunities that
Western Power experience.
A press release was released in September 2013 disseminating the updates on the progress for the
Lincolnshire LLCH to the wider industry. The intention was to target trade magazines to also encourage
further connections to the LLCH to further test the methods being demonstrated.
A dissemination event on Thursday 3rd October at the East Midlands Hilton provided a general overview of
the Low Carbon Hub techniques and the progress of each technique. The detailed aspects of alternative
commercial arrangements and constraints estimation have been disseminated to a wide ranging
audience. The event was attended by 70 people including DNOs, suppliers, manufacturers, trade bodies
and generation developers.
The Low Carbon Hub techniques were presented on at the Solar Trade Event on 8th October 2013 to over
150 developers. The aim of the event was to share how DNOs are trialling new ways to increase the
utilisation of the network.
The development of the LLCH was disseminated on at the LCNF conference in Brighton in November 2013
under the integration of DG into the network and the installation and operation of Active Network
Management schemes.
WPD Public affairs continue to ensure effective engagement of local MPs and elected officials of the
project with relevant members of parliament MPs.
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SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Outlook to next period


1. Network enhancements
The installation of the telecoms system will be completed. This includes wrapping the final OHLs,
the installation of telecommunications equipment within LCH substations.
2. Commercial agreements
The Alternative commercial agreements will continue to be offered to DG customers, DG
customers will be installed using an Active Network Management scheme installed by 31st March
2014.
3. Dynamic voltage control
This technique will be tested during the next reporting period. A short report containing the
learning from the design, installation and early learning associated with this technique.
4. Flexible AC Transmission System (FACTs) Device
A 3.75MVAr PureWave DStatcom will be commissioned and operational data will be recovered. A
short report containing the learning from the design, installation and early learning associated
with this technique.
5. Dynamic system ratings
Real time ratings will be enacted after commissioning of the associated communication at DG
sites.

Page 19 of 31

SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Business Case update


The Business case continues to be strong. This is strengthened by the increases in renewable generation
and the limitations for the network to connect generation passively without conventional network
reinforcement.
Western Power Distribution has continued to receive increasing number of connection enquiries and
subsequent DG connections to the EHV and HV network across all four licence areas. In an increasing
number of WPD network areas, especially focussed around the South West, the same network constraints
are being exhibited as seen in the Lincolnshire network.
WPDs existing policies have meant DG connections could only be made with a passive connection.
Connecting increasing numbers of generation connections to rural networks results in extensive
conventional network reinforcement due to voltage rise under minimum load conditions. WPD is taking
the learning from projects as it is available, and will use this to offer alternative connections across the
WPD areas. The Hub 2, a project taking many of the same principles as the Lincolnshire Low Carbon Hub,
will commence to the design stage. See section 12.
Three of the techniques being developed through the LLCH will help manage voltage rise. These include
using a Distribution Statcom, dynamically targeting a lower network voltage at the Grid Supply Point and
developing a, connect and manage methodology for generation. These are equally appropriate to most
network locations, especially the areas of Cornwall and Devon exhibiting voltage related network
constraints.
We are expecting the amount of generation being connected to continue to increase as the UK transitions
to a Lower Carbon Economy. The number of generation connections will also be influenced by external
factors including support from the local community and local authority. The estimated direct benefits for
the connection of DG to the Lincolnshire Low Carbon Hub assumed some of the connection enquiries
would lead to connections.
However a number of sites have not progressed due to external factors. WPD have released press articles
as well as maintaining contact with previous connection enquiries to stimulate interest in DG connections.
It is expected that future DG connections are likely to be from diverse sources due to the planning
restrictions
DIRECT BENEFIT FORECAST - REVISED

TOTAL

DG Incentive Value - including the OAM allowance

480,000

Total Direct Benefits

480,000

Page 20 of 31

SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Progress against budget


The overall project is on budget. The project re submission has forecasted the spend profile in line with
the current delivery programme. The project is not requesting any additional funds.

Total
Budget
k
Box 6 - Labour
WPD Project Management
Create a 33kV active network ring Skegness
Create a 33kV active network ring Alford
Create a 33kV active network ring Ingoldmells
Create a 33kV active network ring Chapel St Leonards
Create a 33kV active network ring Trusthorpe
Create a 33kV active network ring Bambers
Box 7 - Equipment
Dynamic Voltage Control - Development
+ Maintain of ENMAC and SCADA
systems, Voltage control algorithm
including Training and site AVC
modifications
Flexible Alternating Current
Transmission system (FACTs) procurement of Devices
Create a 33kV active network ring Skegness
includes: new CT's, Protection, 33kV
cable and small wiring
Create a 33kV active network ring Alford
includes: new CT's, protection, 1250A
busbar, voltage transformer, 36kV
Breaker, 33kV cable & small wiring
Create a 33kV active network ring Ingoldmells
includes: new CT's, protection, Voltage
Transformer, earth electrode, 36kV
Breaker, 1250a busbar, 3ph insulators,
33kV cable & small wiring

Expected
spend to
date Nov
2013 K

Actual
Spend
to date
k

Variance
k over
period

Variance
% over
period

235

154

144

10

-6%1

17

17

17

-100%1

36

29

29

-100%1

83

37

37

-100%1

91

-3

100%2

82

52

60

-8

15%2

0%

42

42

42

-100%3

575

575

114

461

-80%3

48

48

48

-100%3

102

82

82

-100%3

236

106

106

-100%3

Page 21 of 31

SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Create a 33kV active network ring Chapel St Leonards


includes: new CT's, protection, Voltage
Transformer, RMU, 1250a busbar, 33kV
cable & small wiring
Create a 33kV active network ring Trusthorpe
includes: new CT's, protection, Incoming
Transformer, 3/7 new switchboard,
earth electrode, 33kV cable & small
wiring
Create a 33kV active network ring Bambers
includes: new CT's, protection & small
wiring
Box 8 - Contractors
Engineering Design & Surveys
Enhancing planned network alterations
- 33kV OHL asset rebuilds as 300HDA
instead of 150 ASCR
Innovative Commercial Arrangements Workshop, Lawyers, data flows,
network configuring with generators
Development + Maintain of ENMAC and
SCADA systems, Voltage control
algorithm including Training and site
AVC modifications
Dynamic Systems Ratings - Future
Design standard 1) fibre over existing
lines
Dynamic Systems Ratings - Future
Design standard 2) fibre over new lines
Dynamic Systems Ratings - Future
Design standard 3) Radio or Microwave
links
Flexible Alternating Current
Transmission system (FACTs) - Provision
of Foundations
Box 10 - IT & Contingency
IT Costs (inc Telecommunications)
Contingency

260

13

-13

100%2

233

147

206

59

40%2

14

0%

106

106

141

-35

33%4

80

32

32

-100%1

70

70

52

18

-25%3

21

21

21

-100%3

10

0%

10

0%

10

0%

50

50

126

-76

153%4

872
129

765
0

138
27

627
-27

-82%1
100%

Variance due to delays in the project transitioning from Design to construction


Variance due to work starting / being completed ahead of the plan
3
Variance as invoices have not yet been received
4
Variance due to poor ground conditions
2

Page 22 of 31

SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Bank account
The LCN Fund Governance Document requires DNOs to:
3.80. The DNOs auditors must review the systems and processes that the DNO is proposing to use to
conform to the requirements set out in this section and provide a signed statement to Ofgem that the
systems and processes are fit for purpose, before the Project is initiated and any funds are spent.
The following table summarises the memorandum account with all costs within this reporting period to
30th November 2013. To date, total project spend is 355843.50
MONTH

INCOME

EXPENDITURE

balance brought forward

BALANCE
2,636,550.73

Jun-13

-601,369.82

2,035,180.91

Jul-13

-384,256.69

1,650,924.22

Aug-13

-222,472.62

1,428,451.60

Sep-13

-466,147.35

962,304.25

Oct-13

-222,414.54

739,889.71

Nov-13

-384,046.21

355,843.50

Balance at end of Nov 2013

355,843.50

Assumptions

Purchase order costs will be paid at the end of the following month after goods receipt.
Salaries will be paid on 26th of the month.
Income will be transferred on the 28th of the month.
Time sheet costs will be allocated to the 26th.
Stores and material issues, date of issue is date of payment.
Interest rate of 0% applied to balance in line with existing business current account rate.

Page 23 of 31

SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Successful delivery reward criteria (SDRC)


SDRC
Status
6.1 Generation Workshop
Activity Completed Feb 2011
For more information please see Dec 2010 to June 2011 report.
6.2
Develop
UK
technical Activity Completed May 2011
recommendations
for
communications infrastructure
For more information please see Dec 2010 to June 2011 report.
6.3 Apply dynamic line rating to GE Activity Completed November 2012
PowerOn Fusion
For more information please see June 2012 to Dec 2012 report.
6.4 Develop stronger relationships Target Date Jan 2011- Feb 2015
with DG developers
Combined with the workshop and survey, we have been working with a number of DG
developers to explore the opportunities associated with a connection to the hub.
During this reporting period we have engaged with a number of developers at a number of
events, registering developers interest in the Low Carbon Hub.
6.5 Capture information to determine Target Date Feb 2015
business case for 33kV active ring
operation
This objective forms part of the project closure process and there has been no specific
progress to date.
6.6 Disseminate knowledge and Target Date Feb 2015
evaluate the potential for similar
projects throughout the UK
In addition to conference and workshops we have presented at and ran, our external
innovation website has been further developed as a platform for learning. Further information
on the LCNF and IFI programme can be found at www.westernpowerinnovation.co.uk.
This objective will be ultimately completed through the project closure report, which will
summarise all the findings associated with the Low Carbon Hub

Page 24 of 31

Progress

SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Learning outcomes
Knowledge capture and dissemination is a significant aspect of LCNF projects. With this in mind, an
additional project member has joined WPD to do systematic capture of knowledge being generated and
to increase the frequency of the information being disseminated to other DNO and interested parties.
The process of the ring network redesign has allowed us to methodically capture learning encountered
during the design phase of the project. A summary of the key issues discovered, options analysed and the
selection of the final design have been included in the Design Justification report. The project is now
performing in line with the revised project plan.
Network Enhancements - the project has concluded that:
Financial cost of adding additional functionality of fibre wrap additional 80 - 100mm sag on an existing
and new OHL whilst still complying with WPDs policies

Intellectual Property Rights (IPR)


No Intellectual Property Rights have been generated or registered during this period.
It is not anticipated that any IPR will be registered over the next reporting period.

Page 25 of 31

SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Risk Management
The project continues to record and mange risks through the project risk register. The table below details
an update on the project risks identified during the bid stage and noteworthy project risks detailed in the
project risk register.
Risks Identified at the bid stage and detailed in the Pro-forma.
1. THE PROJECT CANNOT BE DELIVERED FOR THE AMOUNT OF FUNDING
REQUESTED
The design of the project has been sufficiently detailed to ensure that the amount
requested is sufficient to deliver the Low Carbon Hub; contingency built in where
appropriate has created the confidence to request the default arrangements for cost
overrun protection.
November 2013 Update - This is still an active risk assigned to the Project manager, this
risk is currently lower than the risk identified during the bid as the LLCH has been
redesigned to a much higher detail, the costs for this design have been resubmitted. The
project is forecasted to be delivered within the project budget.
2. SIGNIFICANT ADDITIONAL NETWORK EXPENDITURE IS REQUIRED DUE
TO UNFORESEEN NETWORK SCENARIOS
The processes for obtaining wayleaves and gaining planning consent are naturally
uncertain in terms of duration and outcome. Both could result in increased expenditure if
the proposed design, routes or locations are not permitted. The overall project design of
the Low Carbon Hub is such that it could still demonstrate the majority of the project aims
if the required planning consents or wayleaves were not granted in the way anticipated.
This would however change the scale of the project; we are working closely with East
Lindsey District Council to mitigate this risk.
November 2013 Update This risk has been well documented in previous six monthly
reports as it became an issue as the project could not secure the necessary permissions to
build a new 5km interconnector. The project is in the delivery phase, this risk will continue
to be managed throughout the project.
3. THERE ARE EXTENSIVE PLANNING DELAYS INVOLVED FOR EITHER LOW
CARBON HUB ACTIVITIES OR GENERATORS CONSTRUCTION
This risk has been mitigated, we have all required permissions and a number of
generation developers are making applications for planning permission.
4. EXPERIMENTAL ASPECTS OF THE TRIAL DO NOT FULLY REALISE THE
PLANNED BENEFITS
The experimental sections of the Low Carbon Hub have been demonstrated at a lower
Technology Readiness Level (TRL) and through the IFI mechanism. This has given Western
Power Distribution the confidence to develop the functions implementing them together
in the Low Carbon Hub. Western Power Distribution will be partnering with experts in
these sections to reduce the risk. The safe operation of the distribution network will not
Page 26 of 31

SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

depend on any of the experimental features. November 2013 update - This is still an
active risk assigned to the Project manager, this risk is lower than the risk identified
during the bid as the LLCH.
5. GENERATORS CHOOSE NOT TO CONNECT TO THE NETWORK AS THEY
ARE TARGETING OTHER LOCATIONS
One of the reasons the location of the Low Carbon Hub will be in Lincolnshire is due to the
high number of connection enquiries and the high cost of connection preventing
generators connecting. Nine of the distributed generators that have made connection
enquiries have been contacted; all are interested in the project and would like to know
more about costs, areas and network constraint. The workshop for generator developers
will publicise the potential of the hub to a wider audience to increase the likelihood of
connection applications.
November 2013 Update This risk is lower than previously identified. The project has
continued to engage with DG customers and has 77.8MW of generation requesting
constrained connections in the LLCH area,
6. GENERATORS CHOOSE TO GENERATE IN NEW LOCATIONS WITHIN EAST LINCOLNSHIRE
AND REQUEST DIFFERENT POINTS OF CONNECTIONS.
This risk has been mitigated; we are registering a wide range of interest from a number of
different generators and different generation technologies.
SIGNIFICANT RISKS CURRENTLY BEING MANAGED
R012 - Delivery of goods and services do not meet the agreed timescales for the project.
This risk is reduced, as long lead time items have been procured and stored.
R020 - Project construction could be delayed due to constraints around the operational outage
plan.
A significant amount of work is being carried out over the next 12 months; late delivery at all sites
is still a risk to project delivery. Multiple departments are being coordinated to schedule work
accordingly.
R021 National Grid activity could constrain outage or generation opportunities.
National Grid restrictions could prevent further generation from connecting. The addition of NG
constraints has been considered with the alternative connection agreements.
R024 Delivery will be unachievable if key project delivery staffs are unavailable either through
long term absence / change or role.
The accelerated timescales means the project is reliant on several key members of staff. This is
being mitigated by on-going engagement with senior management.
R026 The project is currently being delivered is not in accordance with the full submission.
The project plan has been accepted, the project is now being delivered in line with the full
submission and project direction.

Page 27 of 31

SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

R036 Significant levels of generation triggers traditional network reinforcement.


The Low Carbon Hub is estimated to facilitate an additional 42MW of distributed generation,
further connection enquiries may lead to further network reinforcement to facilitate more than
42MW of DG connections.

Other
Western Power Distribution is exploring plans for an additional hub, based on the techniques
demonstrated in the Lincolnshire Low Carbon Hub, to be installed in an area of the South West with
significant DG connection enquiries. Western Power Distribution continues to work with GE to develop
an alternative form of Active Network Management for use with this project.

Consistency with Full Submission


Following the acceptance of the project change request, the project is being delivered in accordance with
the full submission and project direction.

Accuracy Assurance Statement


This report has been prepared by Philip Bale (Project Manager of the Lincolnshire Low Carbon Hub),
reviewed by Roger Hey (Future Networks Manager), and approved by Phil Swift (Operations Director).

Page 28 of 31

SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Appendices
Appendix 1 - Detailed communications - LCH
Figures
Figure 1 Project Plan for Network Enhancements
Figure 2 WPD online Constraints tool
Figure 3 WPD Spread sheet tool Screen shot
Figure 4 Project Plan for innovative commercial arrangements
Figure 5 Project plan for Dynamic Voltage control scheme
Figure 6 Project Plan for Ring Network
Figure 7 DStatcom
Figure 8 Project Plan for FACTS delivery
Figure 9 Overhead line fibre wrap
Figure 10 Project Plan for telecoms delivery

Glossary
ABBREVIATION TERM
ACSR
AVC
DG
DPCR5
EHV
FACTs
HDA
HV
LCNF
LDC
LLCH
OHL
POWERON GEs
PV
SCADA
SGS
Statcom

Aluminium Conductor Steel Reinforcement


Automatic Voltage Control
Distributed Generator
Distribution Price Control Review Period 5
Extra High Voltage
Flexible AC Transmission system
Hard Drawn Aluminium
High Voltage
Low Carbon Networks Fund
Line Drop Compensation
Lincolnshire Low Carbon Hub
Overhead Line
Network Management Software
Photo Voltaic
Supervisory control and data acquisition
Smarter Grid Solutions
Static compensator

Page 29 of 31

SIX MONTHLY PROGRESS REPORT: LOW CARBON HUB


REPORTING PERIOD: JUNE 2013 TO NOVEMBER 2013

Appendix 1 - Detailed communications - LCH

Page 30 of 31

SIX MONTHLY PR
REPORTING PER

Page 31 of 31