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Projects: Projects for Investigator
Reference Number	NIA2_NGESO039
Title	Future of the Transmission Network Charging Methodology
Status	Completed
Energy Categories	Other Power and Storage Technologies(Electricity transmission and distribution) 100%;
Research Types	Applied Research and Development 100%
Science and Technology Fields	ENGINEERING AND TECHNOLOGY (Electrical and Electronic Engineering) 100%
UKERC Cross Cutting Characterisation	Not Cross-cutting 100%
Principal Investigator	Project Contact No email address given National Grid plc
Award Type	Network Innovation Allowance
Funding Source	Ofgem
Start Date	01 January 2023
End Date	31 March 2023
Duration	ENA months
Total Grant Value	£500,000
Industrial Sectors	Power
Region	London
Programme	Network Innovation Allowance
Investigators	Principal Investigator	Project Contact , National Grid plc (100.000%)
	Industrial Collaborator	Project Contact , National Grid plc (0.000%)
Web Site	https://smarter.energynetworks.org/projects/NIA2_NGESO039
Objectives	"This project will be delivered using a multiphase approach and will involve conceptual assessment, solution identification (design at both a high and detailed level necessary to allow a meaningful conceptual and quantitative analysis to be undertaken), and assessment of a range of potential reforms and implications of reform (likely to include aspects of qualitative (conceptual) and quantitative analysis). The collective outputs of the extensive modelling will allow industry to infer the direction and broad magnitude of the impact of different charging reforms on the absolute levels and relativities of charges, as well as their stability. The production of recommendations from this project will feed into a wider collaborative industry project looking at changes to transmission network charging, the Transmission Network Use of Systems Charges Task Force. The project itself will be broken down into 4 key workstreams: Workstream 1 - Planning: development and delivery of a workplan for shortlisted areas for investigation and high-level analysis scope agreed. Workstream 2 - Analytical Assessment: delivery of analytical assessment and conceptual assessment of shortlisted areas. Assessment will cover the solution identification/design; quantitative analysis and testing of alternate solutions; analysis to support assessment of solutions/recommendations (implications & impacts); analysis findings, options/draft recommendations and emerging conclusions to be provided to the ESO and wider industry. Workstream 3 - Industry Engagement: outputs, including solution options and recommendations to be presented to the industry Task Force and wider industry via a series of workshops, as well as industry webinars. Workstream 4 - Recommendation Report: summary reports delivered for each workstream will then feed into and support the wider industry Task Force in their production of a final recommendation report to be submitted to Ofgem, with content agreed for publication. Risk Assessment: In line with the ENAs ENIP document, the risk rating is scored Low. TRL Steps = 1 (TRL change 1)Cost = 1 (£500k) Suppliers = 1 (1 Supplier) Data Assumptions = 1 " The scope of this project is to undertake research and carry out modelling to explore the feasibility and impacts of future options for change to the transmission network charging methodology, specifically in relation to cost reflectivity and predictability of the locational signals required by network users to make future long-term investment decisions with the aim of supporting least cost decarbonisation in GB. "To assess options for reforms (via the use of qualitative and quantitative analysis) to the transmission network charging methodology.Deliver a recommendation report outlining potential solutions (and associated implications & impacts), which will feed into a wider collaborative industry project looking at future changes to transmission network charging arrangements. "
Abstract	"Transmission Network Use of System charges recover the annual cost of provision, maintenance, and upgrade of the electricity transmission system, levied on generators (c.£800m) and demand users (c.£2.7bn). Stakeholders have expressed concerns about these charges, in terms of cost reflectivity and unpredictability. This uncertainty is considered to hamper investment (renewables and emerging technologies), specifically in the context of the changing energy landscape and achieving decarbonisation goals in GB.This project will explore the feasibility and impacts of future options for change to the transmission network charging methodology, so it sends meaningful long-term signals. This will allow users to make future investment decisions, to improve security of supply and facilitate the transition to Net Zero with benefits to consumers, local communities, and the environment. "
Publications	(none)
Final Report	(none)
Added to Database	01/11/23