NIC to carry out major review of distribution networks

The National Infrastructure Commission (NIC) has been given the go-ahead to carry out an in-depth review of the country’s electricity distribution networks.

Following its work at a transmission level, the government has asked the NIC to refocus its attention on electricity distribution networks.

The review’s main aim is to ensure the “capacity of the local electricity distribution network does not become a barrier to the creation of a net zero electricity system by 2035”.

In full, the review will consider:

• How use of the distribution network will change as new sources of demand, storage and generation are deployed
• Whether the regulatory model, including already proposed future changes, is fit for purpose for identifying and enabling anticipatory investment in the distribution network at the scale required to facilitate the connection of new sources of supply and demand, and how it may need to evolve to deliver this investment at pace
• The role of network and non-network solutions in delivering the capacity needed at lowest cost, and the policy, regulatory and governance changes that could be needed to unlock these solutions
• The role of data and technology in managing the network efficiently
• The role of different parties, including Distribution Network Operators, the Future System Operator and Regional Energy Strategic Planners, in the process of connecting new sources of generation to the network, as well as new sources of demand, including low carbon technologies such as heat pumps and electric vehicle chargers. This includes the scope for standardisation across DNOs
• The interaction with available capacity on the transmission network and how this may be impacting connections to the distribution network, and how these interactions could be best managed
• Whether any changes to the planning system in England could support faster delivery of needed distribution network infrastructure

NIC commissioner Nick Winser said: “Every day businesses and households rely on the distribution network to deliver the electricity they expect when they flick a switch.

“Given the increasing demands being placed on it as we move to a fully electrified economy built on renewable generation, customers will want reassurance the network can continue to provide a dependable supply.

“Looking afresh at how we manage and maintain the whole system will help us better understand where further investment or new policies may be needed to ensure a resilient and flexible electricity network up to 2050 and beyond.”

A government spokesperson said: “The government estimates that there is around 60% spare capacity across the distribution network, but this will vary by area and the amount of available capacity by area is not well understood.

“There are also interactions at the interface between the transmission and distribution network that mean connections to distribution networks can be delayed if there is insufficient transmission capacity to support them.”

They added: “Investment to create additional capacity on the network will be needed in any scenario but the amount of physical capacity needed could be significantly reduced through further application of non-network solutions, such as the use of local flexibility markets, enhanced use of demand side response and improved use of data and digitalisation.

“Failure to ensure sufficient capacity on the distribution network, as well as a straightforward, consistent and timely process for connecting to the network, would constrain the ability of consumers to adopt electric vehicles and heat pumps.

“It would also constrain the ability of business and industry to decarbonise through electrification, as well as restricting the deployment of distribution-connected generation.”

The NIC has been tasked with submitting its final report in around 12 months.