Industry News

Plans for Britain’s biggest 'smart-grid project' launched

North East and Yorkshire providing route map for UK's low carbon future - plans for around 14,000 homes and businesses to be involved in £54 million project.

Plans for Britain's biggest 'smart-grid project' which will involve 14,000 homes and businesses, test the impact of new low carbon technologies such as electric cars and solar panels on the electricity grid and extend the learnings to whole of the UK using data from over 160,000 smart meters, have been unveiled today.

The project, a partnership between CE Electric UK, British Gas, Durham University and EA Technology, aims to lay the foundations for helping British homes and businesses cut their carbon footprint, reduce their energy use and save money on a mass scale. If successful, the knowledge gained from the project could speed up the installation of low carbon technology, potentially saving homes and businesses across the UK around £8 billion in energy costs and 43 million tonnes of CO2 emissions.

Today's electricity grid was not designed to cope with widespread use of technology like solar photovoltaic (PV) panels, where households can sell excess electricity back to the grid, or electric cars which consume large amounts of electricity. With these technologies set to grow in popularity and solar panel sales hitting record numbers, it is vital that the electricity grid can evolve to withstand these extra demands. The project will trial innovative technical and commercial solutions to improve the capability of the electricity grid.

The plans will focus primarily on the North East and Yorkshire putting the region and major cities like Durham, Leeds, Newcastle and Sheffield, at the forefront of the UK's transition to a low carbon society.

Smart meters, which enable households to monitor their energy usage, will be installed in homes and businesses participating in the project to gather the data. British Gas is leading the roll-out of smart meters across the UK which means that findings from the North East and Yorkshire can be tested in other parts of the country as part of the project.

The total project is valued at £54 million with CE Electric UK and its partners seeking £28 million from Ofgem's Low Carbon Networks Fund. If successful in obtaining funding from Ofgem, the project team plan to work with household names to test new technology on the electricity grid. Companies in discussion with the project consortium include GE, Panasonic and Nissan. Nissan, the manufacturer of the UK's first all-electric vehicle, has based manufacture of the Nissan Leaf - the all-electric family hatchback - at its Sunderland plant.

A range of technology will be installed as part of the project. It is expected that around 14,000 homes will have smart meters installed with approximately 800 also installing solar PV panels, 150 with electric cars and up to 1500 with either ground-source or air-source heat pumps. Some homes will also install combined heat and power boilers - boilers which create renewable electricity whilst they heat the home.

If Ofgem agrees to contribute to the project, work would begin in early 2011 with the technology installed later that year.

CE Electric UK, the power network operator for Yorkshire and the North East, will be leading the project. It will bring its experience of dealing with early adopters of low carbon technologies within its region and will be responsible for the trials of new network technology.

Phil Jones, President and Chief Operating Officer of CE Electric UK, said:

"This is an exciting partnership of low carbon thought leaders in the energy sector. As for CE Electric UK, we have helped spearhead the integration of local generation onto the grid for a number of years and British Gas has led the way in adopting and embracing the new technology of smart meters for its customers. This combination of expertise and technology will offer real opportunities and choices to customers in the way they use their energy and in the most cost effective way.

"In our partnership we are looking to blend our know-how on networks with British Gas' links with the customers to create a solution that creates a better outcome for everyone. Our region was the leader in the very early days of the energy industry. We want it to continue to be in the leading pack as we enter a new era of smart energy grids and low carbon technology."

As the UK's largest energy supplier, British Gas will be responsible for recruiting and supporting customers involved in the trial. It will install smart meters in customers' homes to capture the data from the trial and will install other technologies such as solar panels and heat pumps.

Phil Bentley, Managing Director of British Gas, said:

"With tough climate targets to meet, and volatile wholesale energy markets, it is vital that Britain makes the transition to a low carbon economy - and no single company has all the answers. British Gas is leading the way in smart meters in smart homes, but now we're teaming up with a unique set of partners who will help deliver the largest smart grid project the UK has seen.

"As a Yorkshireman, I'm proud that Yorkshire and the North East will be a beacon to other areas across the country on how to adapt to a low carbon future - bringing British homes and businesses lower energy bills and a reduced carbon footprint."

Durham University will play a dual role in the project by providing energy research, via the Durham Energy Institute, and as a participant in the planned trials.

Professor Phil Taylor, Durham Energy Institute, Durham University said:

"Durham University carries out internationally leading multidisciplinary energy research across 12 departments and also has an ambitious University sustainability strategy.

"This project presents a unique opportunity for the University to work with leading industry partners to translate cutting edge research into high impact outcomes for the UK energy sector and to transform the University campus into a low carbon networks demonstrator of international importance."

EA Technology's role will be as technical lead in the deployment of new technology onto the distribution network, and in the transfer of successfully trialled solutions into business-as-usual for CE Electric and other similar organisations.

Mike Lees, Technical Director of EA Technology Ltd said:

"The UK energy sector of today is significantly different to when the likes of the Economy 7 tariff was first introduced, but using better tariff structures to reward customers for changing behaviour is even more relevant now. Through this project, we are hoping to demonstrate that in using innovative commercial and technical solutions between network operators, energy suppliers and customers, low carbon energy can be delivered in a more cost effective manner."

ENDS

Note to Editors

1. The Low Carbon Network Fund is a £500 million fund to support smart grid projects. The fund is managed by Ofgem.

2. Plans for the project were submitted on September 3 2010. A decision from Ofgem on contributing £28million to the project is expected by the end of the year.

3. According to Ofgem and the Energy Saving Trust, figures show that a record number of homeowners had solar panels installed in August 2010. http://www.energysavingtrust.org.uk/Resources/Energy-saving-news/Product/Solar-panel-installations-reach-record-numbers

About CE Electric UK

CE Electric UK is the electricity distribution business for North East England, Yorkshire and northern Lincolnshire. The company is responsible for delivering power safely and reliably to the 3.8 million electricity domestic and business customers in this area and operates through its subsidiaries, NEDL and YEDL. Information on CE Electric UK, NEDL and YEDL is available at http://www.ce-electricuk.com/.

About British Gas

British Gas, the biggest energy supplier in the country and part of the Centrica group of companies, has the lowest carbon intensity of any of the major UK energy suppliers in terms of tonnes of CO2 emitted per megawatt hour of electricity supplied to customers.

British Gas is leading the roll-out of smart meters in the UK and is aiming to have installed 2 million meters in customers' homes and business premises by the end of 2012.

About Durham Energy Institute

From Anthropology to Physics, Durham Energy Institute covers the spectrum of energy research. The areas in which it excels are those which lie at the boundaries between the traditional technical disciplines and the social sciences and humanities.

About EA Technology

EA Technology has evolved from the Electricity Council's Research and Development Centre in the mid-1960s focussing on distribution and use of electricity, to its present position as an independent, employee owned, limited company. The company has a broad international client base delivering technical consultancy, services and instruments in the electricity, energy, infra-structural and associated sectors. More information is available at: http://www.eatechnology.com/.

Contact

Elliott Grady, British Gas Media Relations

0800 1077015 / 07789 579114