Projects
Projects: Projects for Investigator |
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| Reference Number | NIA2_SGN0046 | |
| Title | RTSM - Phase 1 - Methodology Development | |
| Status | Completed | |
| Energy Categories | Fossil Fuels: Oil Gas and Coal(Oil and Gas, Refining, transport and storage of oil and gas) 20%; Other Cross-Cutting Technologies or Research(Energy Economics) 80%; |
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| Research Types | Applied Research and Development 100% | |
| Science and Technology Fields | SOCIAL SCIENCES (Economics and Econometrics) 70%; SOCIAL SCIENCES (Business and Management Studies) 30%; |
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| UKERC Cross Cutting Characterisation | Not Cross-cutting 100% | |
| Principal Investigator |
Project Contact SGN |
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| Award Type | Network Innovation Allowance | |
| Funding Source | Ofgem | |
| Start Date | 01 September 2024 | |
| End Date | 31 May 2025 | |
| Duration | ENA months | |
| Total Grant Value | £414,000 | |
| Industrial Sectors | Energy | |
| Region | South East | |
| Programme | Network Innovation Allowance | |
| Investigators | Principal Investigator | Project Contact , SGN |
| Other Investigator | Project Contact , Northern Gas Network (NGN) North East Project Contact , SGN - Southern England Project Contact , Wales and West Utilities |
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| Industrial Collaborator | Project Contact , Northern Gas Networks Project Contact , SGN Project Contact , Cadent Gas Project Contact , Wales and West Utilities |
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| Web Site | https://smarter.energynetworks.org/projects/NIA2_SGN0046 |
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| Objectives | The Future Billing Methodology (FBM) programme, led by Cadent, provided insightful information regarding the applicability of the existing commercial framework in accommodating increased volumes of low-carbon and unconventional gases injected into the gas grid. The programme analysed viable options to address the challenges of achieving a decarbonised network, conducting a trial to validate and reinforce the results. Key findings revealed that (i) the existing framework is suitable for hydrogen volumes between 0% to 5% and 100% with minimal changes; (ii) a calorific value (CV) modelling system represents the best option for hydrogen volumes between 5% to 20%; and (iii) an embedded zone charging option could benefit biomethane suppliers in regions with an absence of hydrogen. The recommendations of the FBM programme included initiating the feasibility study of the CV modelling system and exploring the option of embedded zone charging options will be used to inform the development of RTSM Phase 1.Recognising the variability of future market changes, RTSM Phase 1 Methodology Development aims to develop an integrated and flexible settlement methodology. The proposed solution(s) will allow flexibility across the UK market structures and connection frameworks by overcoming technical and operational challenges in a free market approach. The commission acknowledges that there are several possible paths for achieving future market changes, which is why the RTSM is expected to promote a fair billing process under a wide variety of CVs. The RTSM will also address existing challenges and multiple uncertainties such as nomination, shrinkage, and unidentified gas. The outcome should deliver the maximum benefit for the minimum outlay. Additionally, this project strives to establish an environment of certainty that fosters a positive market atmosphere. By doing so, it instils confidence in the feasibility of hydrogen and biomethane as a profitable business venture for potential investors and producers.Phase 1 of the RTSM programme will be conducted as a desk-based study with modelling activities. The project will consist of a comprehensive market research study, the development of the Basis of Design of CV modelling solutions that will form the basis of an integrated and flexible settlement methodology that can be used in a multi-gas system, and a comprehensive feasibility study. Phase 1 will also incorporate the roadmap for implementation and roll-out strategy for a demonstration.BIP - Data Quality StatementBIP has extensive experience in collecting, processing, and managing data as well as collaborating with clients to update or replace systems heavy in sensitive data. Operating in the current landscape where data protection and compliance with data regulations are of paramount importance, BIP has in place a robust and comprehensive Data Protection Policy (attached below) to ensure that data is managed with the highest standards and in compliance with the General Data Protection Regulations (GDPR) and the UK Data Protection Act. BIP is strongly committed to protecting Personal Data and conducting our business in accordance with the legislation mentioned and in line with the highest standards of ethical conduct.To ensure that all Data Protection requirements are identified and addressed when designing new systems or processes and/or when reviewing or expanding existing systems or processes, we will conduct a Data Protection Impact Assessment (DPIA),in cooperation with the relevant client functions.For the Purposes of this project, we do not foresee the processing of any customer data, however, we have the experience and the necessary processes in place in case the collection, processing, or managing of data becomes a necessity.Data collection processes will be standardised and validated to ensure accuracy, completeness, and consistency. Data validation checks will be performed at the point of entry to identify and rectify any errors or inconsistencies.All data collected and processed will be encrypted using industry-standard encryption protocols to protect against unauthorised access and data breaches. Access controls (based on the principle of least privilege) and user authentication mechanisms will be implemented to restrict access to sensitive data.The approach to data collection, processing, and storage will comply with the General Data Protection Regulations (GDPR) and the UK Data Protection Act to ensure data privacy and security. Personal data will be anonymised or pseudonymised wherever possible to minimize privacy risks (Data masking and anonymisation).Data retention policies will be established to determine the appropriate retention periods for different types of data collected during the demonstration. Data that is no longer required will be securely disposed of in accordance with established data disposal procedures.We will maintain transparency and accountability in our data management practices by providing clear and accessible information to stakeholders about how their data is being collected, processed, and used. Data privacy notes and consent forms will be provided to participants to ensure informed consent.Correla - Measurement Quality and Data Quality StatementsAll instruments and equipment used are calibrated to industry standards and regularly maintained to uphold accuracy and reliability.The integrity and reliability of the data collected, processed, and reported are paramount to the success of this project. We implement rigorous data quality control measures to safeguard against inaccuracies and inconsistencies. Our approach encompasses comprehensive data validation checks (ideally fully automated), at data collection, entry, processing, and analysis stages, including cross-referencing against established benchmarks and protocols, to verify the accuracy and completeness of the data. Data cleansing using may be undertaken to remove outliers, address missing values and using normalisation procedures to ensure data consistency across different data sources.We intend to leverage advanced data management tools and technologies to facilitate efficient data processing and analysis while maintaining data integrity.Additionally, our team undergoes regular training and performance evaluation to uphold the highest standards of data quality. By prioritising data quality at every stage, we ensure that our findings and conclusions are based on reliable and trustworthy data, thereby maximising the projects impact and value. All processed data will be independently peer reviewed and / or sample checked by the Senior Data Modeller or Project Lead, with sampling levels decided by the level of processing and volume of data, to minimise human error and ensure quality.We will assess data against the following quality dimensions, with examples of the questions to be answered in our statement:Data sourceRelevance to the RTSM designTimeliness of dataAccuracy and reliabilityDependencies for interpretationAvailability for reuseCorrela maintains robust Data security measures, ensuring that data we hold is protected from unauthorised access, loss, or corruption. Data collected for this project will be securely stored on ring-fenced, UK-hosted Cloud infrastructure with restricted access to maintain integrity and security.We will maintain comprehensive documentation to record processes, validations, and training records to ensure traceability and transparency of our data management practices.Correla has adopted the Unified Controls Framework (UCF) and we can integrate the proposed solution into our Unified Control Framework, currently in effect for key systems that Correla develops, manages, and maintains. The UCF facilitates measurement via maturity scale and aligns with industry standards such as ISO, NIST, CIS, and OWASP.Correla conducts frequent audits for data quality to maintain our high standards. The audits assist in maintaining compliance with the Accuracy principle of the UK GDPR, which is defined in our Data Protection Policy. Data is also protected through our Secure software development standard, Information Security Testing Standard, Information Management Policy, and Confidential Data Masking policy (Where and if applicable).We maintain a robust Record of Processing in line with Article 30 obligations, conduct Personal Data Assessments against all processes in which personal data is processed and where medium or high-risk activities are to be undertaken, we conduct Data Protection Impact Assessments.Our dedicated Data Governance team manage and continually improves our Data Protection framework in line with new ICO guidance or changes in the data protection landscape. Phase 1 of the RTSM programme will be delivered through the completion of five comprehensive Work Packages (WPs) each addressing a critical aspect of the project scope. The five WPs are as follows:WP1 Market Research:This work package encompasses conducting a comprehensive market research study to identify various solutions that are available globally and that have been developed to tackle billing and settlement in multi-energy systems with varying CVs.This work package will collect publicly available data (e.g., reports, academic publications) as well as engaging directly with their existing gas industry network and reaching out to key stakeholders. Countries that have multi-energy gas systems and how the UK is positioned in relation to these countries will be assessed in terms of its transitional stage and outlook. Within these countries, the modelling options adopted by gas networks to bill across multi-CVs will be assessed and segmented in terms of appropriateness to the UK. A fit-for-purpose analysis will be undertaken and a summary report will be produced outlining the recommendation as to what option(s), if any, are suitable for the UK and should be taken forward into WP2 for further development.WP2 Modelling Solution Development:This work package will involve the development of a fit-for-purpose modelling solution(s) that addresses the requirement for application according to the input of the Central Data Service Provider (CDSP) (XoServe) while enabling flexibility for confluence migration between them.An overview of the Basis of Design will be given that describes the required amendments in the market structures and connection frameworks, the basic architecture of new systems proposed considering key essential provisions such aschanges in the Uniform Network Code and the interlink between solutions for a fluid and uncomplicated process for transition. Key steps in the initial set-up of the modelling activities include:Stack ranking: the likely stakeholders, systems, processes, and codes impacted by each of the stated outcomes desired of the RTSM model would be catalogued and stack ranked by the likely scale of the impact on each. The likely scale of benefit of each desired RTSM outcome will then be stack ranked on each over the above.Solution hypotheses: a series of solution hypotheses will then be constructed, and the service provider will logically model how well each would answer the design themes, engaging with relevant stakeholders to test assumptions, and ranking them for their potential suitability.Data inputs assessment and data visualisation: the quality, availability and relevance of datasets will be assessed including understanding where data is sourced from, general availability and data limitations. Cloud hosted tools will be used for analysis and visualisation.Efforts within this Work Package will primarily centre on solution design, encompassing the identification of high-level dependencies and interactions with other industry systems to comprehensively address all implementation tasks.The service provider will collaborate with the team responsible for delivering Work Package 3 to identify the inputs required to evaluate the proposed solutions within the feasibility model. Building upon the design themes established in the early stages of Work Package 2 delivery, a framework for describing the proposed solutions will be established. This framework will ensure that the output is presented in a format relevant to further delivery in Work Package 3 and facilitates discussions with stakeholders as part of ongoing engagement throughout the program.WP3 Feasibility Study and RTSM Roadmap:This work package will conduct a comprehensive feasibility study that evaluates the viability of each proposed solution by assessing all factors critical to its success e.g., regulatory, technical, economic, scheduling, and operational aspects. This will facilitate the subsequent development of a comprehensive roadmap in the second part of this WP to inform the strategic implementation of the proposed solution across the UK considering all key aspects and paving the way for successful implementation with the least disruption.A report will detail all the information generated through the stages ofdefining objectives and scope andgathering of background information including background information about the gas industry, industry trends, regulatory environment, market dynamics, existing gas settlement practices, and key stakeholders along with the insights gathered into their needs and preferences. Additional information to be outlined in reports includes the factors considered in the feasibility study covering technical, economic, operational, legal, regulatory, and risk assessment, providing a comprehensive justification for their consideration and demonstrating how they contribute to the overall feasibility of the project.All the key aspects of the solution implementation will be outlined in a comprehensive roadmap to provide a key reference for wider industry and to help inform the requirements for required changes. Key factors that will be assessed as part of the roadmap development include:Assessment and PlanningTechnology SelectionDesign and DevelopmentRegulatory ComplianceDeploymentMonitoring and OptimisationTraining and Change ManagementContinuous Evaluation and AdaptationA summary report will be created to demarcate the feasibility study and roadmaps findings, analysis and recommendations and a webinar hosted to present the findings of WP3 to relevant stakeholders.WP4 Rollout Strategy for a Demonstration:This Work Package will see the development of a Rollout Strategy for a potential demonstration of the solution developed in WP2 in subsequent phases of the RTSM programme. Using the outputs of WP1, WP2 and WP3, the most effective approach to demonstrate the solution will be selected. The criteria used to design and evaluate the models in the preceding work packages will inform the key considerations in designing the Rollout strategy and the demonstration will be designed to showcase how effectively the proposed solution addresses the challenges outlined by the selection criteria. Additionally, the assumptions and assessments made during the feasibility study in WP3 will be validated. Key considerations in the rollout strategy will include the following:Asset and Infrastructure UtilisationSite SelectionRisk MitigationData RequirementsGas SupplyDigital Twin approachMonitoring and ValidationAdherence to Regulation/Regulatory Change RequirementsStakeholder CommunicationSafety MeasuresAlignment with Government Strategy and PolicyCost EstimationCustomer EngagementTime will be allocated for stakeholder engagement with key industry stakeholders ensuring that all eligibility criteria for RTSM demonstration site(s) selection are thoroughly reviewed and endorsed by all relevant parties. An iterative feedback loop strategy will also be implemented to factor in any design optimisation opportunities that are highlighted through the demonstration.WP5 Dissemination Process:The dissemination process will ensure that all project learnings are successfully shared will all impacted stakeholders across the energy industry. This WP will produce the final report which will be the product of an iterative process in which SGN and the partners will discuss the findings and results from all work packages to be tailored into a detailed technical account that describes the works methods, analysis, and findings. The aim of RTSM Phase 1 is to develop a comprehensive, flexible, and fit-for-purpose modelling solution to enable the settlement and billing of gas across a multi-gas grid. To do this, the objectives are to:Undertake a comprehensive market research review to assess solutions that have been developed globally to undertake billing and settlement in multi-gas systems with varying CVs and examine the applicability and replicability of these solutions to the UK gas grid.Utilizing the global learnings, develop a modelling system that can accurately define CVs and apply these to a new or altered billing and settlement framework that will bill customers based on their actual energy usage. The solution must be able to account for flexibility across the grid and be responsive to changing market conditions.Determine the feasibility of the proposed solution(s) by undertaking a thorough feasibility study taking into consideration key factors that will influence the solutions technical, regulatory, and operational applicability. Using these learnings, develop a roadmap to ensure seamless integration of the solution(s) across the UK network.Assess the requirements for a rollout strategy for a potential demonstration followingRTSM Phase 1 Methodology Development.The overall aim of the project is to define a methodology that will enable the fair and equitable billing of gas consumers in a multi-CV gas grid and in turn facilitate the increased injection of green gasses into the UKs gas grid for decarbonisation purposes. | |
| Abstract | This project aims to develop an integrated solution for the processes of characterising, settling, and billing gas in a multi-gas energy system ahead of the introduction of green gases such as hydrogen and unpropanated biomethane to help decarbonise the UKs gas grid.Beginning with market research, existing methodologies used in global networks with varying calorific values will be assessed. Using this information as a baseline, a tailored modelling solution will be created to meet UK industry requirements. Afterwards, a comprehensive feasibility study will identify the most optimal modelled solutions which will be consolidated into a new flexible settlement and billing approach. A roadmap will outline necessary implementation changes. Lastly, the requirements for a 12-month demonstration will be assessed to inform the programmes next phases. | |
| Data | No related datasets |
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| Publications | No related publications |
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| Added to Database | 09/04/25 | |
