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Reference Number NIA_NGN_414
Title HVT Legislative and Regulatory Analysis
Status Completed
Energy Categories Hydrogen and Fuel Cells (Hydrogen, Hydrogen transport and distribution) 100%;
Research Types Applied Research and Development 100%
Science and Technology Fields ENGINEERING AND TECHNOLOGY (Mechanical, Aeronautical and Manufacturing Engineering) 100%
UKERC Cross Cutting Characterisation Not Cross-cutting 50%;
Sociological economical and environmental impact of energy 50%;
Principal Investigator Project Contact
No email address given
Northern Gas Networks
Award Type Network Innovation Allowance
Funding Source Ofgem
Start Date 01 August 2022
End Date 31 March 2023
Duration ENA months
Total Grant Value £500,000
Industrial Sectors Energy
Region Yorkshire & Humberside
Programme Network Innovation Allowance
 
Investigators Principal Investigator Project Contact , Northern Gas Networks (99.998%)
  Other Investigator Project Contact , Wales and West Utilities (0.001%)
Project Contact , Northern Gas Network (NGN) North East (0.001%)
  Industrial Collaborator Project Contact , Wales and West Utilities (0.000%)
Project Contact , Northern Gas Networks (0.000%)
Web Site https://smarter.energynetworks.org/projects/NIA_NGN_414
Objectives Appointment of Element Energy to support the development of the commercial and regulatory framework for HVT. Helping to provided effective management of the project through dedicated PMO and industry experience. Together with the set up of a dedicated workstream to review the commercial and regulator impacts of transitioning the existing methane gas network to hydrogen. Made up of representatives from all DNs Xoserve and its service provider Correla the group will assess the impacts of the trial on existing central systems and regulatory frameworks, its role to develop potential solutions and make recommendation for change to prevailing industry codes. Review of progress and key developments since the Phase 1 study Review progress on H100 Review other relevant publications Discuss with key stakeholders Document key developments and their implications Review the Phase 1 proposals and identify areas for further development Line by line review of proposals to assess impact of developments since P1 Discuss with key stakeholders to establish and agree priority areas Develop more detailed project plan based on priorities and anticipated resource requirements Develop options for scalable solutions and the village trial a: Develop options for structural or process changes Develop options for framework design to enable supply of hydrogen in the HVT and assess scalability to town/city scale. This will focus on key structural and process changes required, for example considering issues such as settlement & billing, metering, energy balancing and security of supply. Develop market framework assumptions to underpin commercial/regulatory solutions in consultation with BEIS/Ofgem and other senior stakeholders Assess H100 approach for suitability Identify options for scalable solution with implementation implications and pros/cons Propose scalable solution or, if not feasible, identify further work required to establish preferred approach Assess feasibility of adopting a scalable solution to village trial. Identify alternative options for village trial b: Assess impacts of options on industry codes and legislation Assess the implications of the framework design options for the industry codes, GS(M)R, licence conditions and other legislation. We will also assess the impact on the consumer. Working with the GDNs legal advisors, we will identify changes to the codes, licences and other legislation required to facilitate the proposed solutions. Identify necessary modifications and any derogations required to enable the option to operate for the HVT (i.e. supply of hydrogen in 2025). Consultation on options and recommended approach Consult stakeholders on alternatives Establish preferred approach based on feedback received Document preferred approach Produce final project outputs Production of Interim and Final Deliverables as required by the GDNs and BEIS / Ofgem The outputs from the project will further inform modification to existing codes (UNC/ REC & SEC) legal support and drafting is anticipated to be procured via Dentons. The object of this project is to assess the commercial and regulatory impact of transitioning circa 2,500 customers in Redcar over to hydrogen as a source for heat. Impacts on the existing industry codes (UNC/ REC/SEC), systems and operating procedures will be assessed and alternative solutions developed/ proposed to overcome challenges identified. The outputs from this project are expected to be scalable to support future phases of town, city and whole system roll out should government give the go ahead for hydrogen as a source for heat.
Abstract This project will define the commercial and regulatory model for supply of hydrogen via the gas network, as part of Stage 2 of the detailed design of the Hydrogen Village Trial (HVT). The work will build on the HyNet Homes WP4 Commercial & Regulatory study for Cadent, undertaken by Element Energy and Simon Griew Consulting. HVT is a trial designed to develop a greater understanding of both the operational and commercial impacts of converting from Methane to Hydrogen as an alternative energy source for heat. HVT is one of several incremental phased trials, the approach is intended to be scalable and its output intended to inform future Town and City trials.
Publications (none)
Final Report (none)
Added to Database 01/11/23