The Headroom: Whole Systems Thinking Project

Project Summary :  

Across the UK distribution network (0.4 – 132 kV), the volume of renewable generators connecting to the grid is increasing. To accommodate this growth and avoid long queue times and vast amounts of costly reinforcement, network operators utilise non-firm connection agreements whereby generators can be told to turn down should insufficient network capacity be available.

The Headroom: Whole Systems Thinking Project explored whether increasing distribution network capacity to allow more generators to be firmly connected to the grid has financial and environmental value for the whole energy system. This value comes from unlocking the benefits of low-cost, low-carbon generation that could positively impact the overall energy perspective.

Our Role:  

Working with National Grid Electricity Distribution and Baringa, EA Technology conducted a comprehensive analysis, to understand the volumes of generation-based capacity breaches on the LV – 132 kV electricity networks in 2023, 2028 and 2034. Based on these volumes, the impact on the wholesale cost and carbon prices, and the balancing market costs of increasing hosting capacity on the distribution network for distributed generation to prevent renewable curtailment was assessed.

Project Findings:  

Our ‘Best View’ scenario found that increasing network capacity to reduce curtailment of low carbon generators on the distribution network gave a potential for the whole system cost reduction of £2.5bn, incorporating wholesale system costs, emission costs and ancillary services. Our integrated approach provided valuable insights into how distribution networks must evolve to accommodate low carbon technologies (LCTs) and optimise system – wide benefits.

Combined technical and economic modelling is essential in guiding investment decisions to help support a successful and cost-effective energy transition.