project clocc progress report...

Project CLoCC Progress Report 3 Customer Low Cost Connections

Gas Network Innovation Competition January 2018

Contents

1. Introduction

2. Executive Summary

3. Project Manager’s Report

4. Business Case Update

5. Progress Against Plan

6. Progress Against Budget

7. Project Bank Account

8. Successful Delivery Reward Criteria

9. Data Access Details

10. Learning Outcomes

11. Intellectual Property Rights

12. Risk Management

13. Accuracy Assurance Statement

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Importance of Project CLoCC

“Meeting the challenge of delivering a low carbon economy will require a holistic approach over the coming decades, which recognises the importance of gas in the energy mix and the

value of the UK’s gas infrastructure”

Energy Networks Association – Guide to the UK and Ireland energy

networks (May 2015)

“Stage 3 of the project has already delivered significant progress in many areas including securing key commercial

changes to facilitate the project’s objectives and initiating a pilot customer opportunity. As the end of the project

approaches, there is real excitement about what the project will deliver for customers, particularly the online customer

connections portal. Project CLoCC really is bringing energy to life for our customers.”

Andy Malins - Head of Network Capability and Operations, Gas. National Grid

Gas has an Important Role

Introduction

Project CLoCC is listening to our customers.

We aim to fundamentally challenge every aspect of National Grid’s connection process - providing new connection options for the needs of our changing customer base to

connect onto the National Transmission System.

National Grid (NG) is collaborating with three Small Medium Enterprises (SMEs) to develop new connection options for customers to connect onto the National Transmission System (NTS). As a transmission high pressure gas pipeline operator, historically connections to the NTS were required to support typically large scale entry /exit connections, or to facilitate storage. More recently however, customers are approaching National Grid with a view to connecting smaller projects to the NTS. These are customers such as those developing unconventional gas sources and requirements for these new customers are fundamentally different. Their projects are generally fast to market and the connection cost represents a significant proportion of their total development budget. Currently a typical Minimum Offtake Connection (MOC) at a greenfield site can cost up to £2M and can take up to 3 years to deliver; such connection costs and durations are prohibitive to these new potential customers.

Project CLoCC aims to reduce both the time and cost of connecting to the NTS by challenging every aspect of the current connection process. These objectives will be achieved by focusing on 3 key areas in unison: 1. Creating an Online Connections Platform to facilitate the customer experience. This innovative tool will use geographical data and customer information to enable them to compare and assess suitable options for an NTS connection. 2. Innovative Physical Connection Solutions tailored to the needs of unconventional gas connections at high pressure. This will encompass a global technology watch, concept designs and field trial of the proposed engineering connection solution(s). 3. Optimised Commercial Processes designed to meet the requirements of non-traditional customers. Project CLoCC highlights National Grid’s commitment to delivering innovation that directly supports the developing needs of customers, providing a greater choice of cost effective connection options.

National Grid has partnered with three UK based companies to deliver this project by

October 2018; Premtech Limited, Protech Limited and Aqua Consultants. Premtech Limited are experts in providing engineering consultancy and design management services for onshore pipeline and installation projects of all sizes. UK based, Premtech have vast experience working with almost all the UK major Gas Distribution Network owners/operators. Premtech have also been instrumental in the successful delivery of a number of previous innovation projects for National Grid Gas Transmission.

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Protech Limited is an engineering consultancy with experience of taking engineering projects from the feasibility/conceptual stage through to the detailed design and build. Protech will bring process design experience in unconventional gas field development, gas storage, gas treatment and biogas processing to the project. Aqua Consultants will be developing the web-based customer connections platform in order to facilitate the customer experience. Aqua Consultants, in conjunction with the water utility companies, has been the sole consultant developing the software platforms for the water industry.

Project CLoCC Core Objectives

Aim to reduce the cost of a connection onto the National Transmission System to less than £1M

Aim to reduce the time it takes from initial enquiry to “gas on” date to less than 1 year

Executive Summary

This is the third project progress report for Project CLoCC (Customer Low Cost Connections). Project CLoCC is National Grid Gas Transmission’s successful entry into the

2015 Gas Network Innovation Competition (NIC). This report documents the progress made since the last project progress report, submitted in March 2017, and the key

activities that will take place over the next reporting period.

Project CLoCC was fully mobilised in February 2016 following receipt of its Ofgem Direction in December 2015. The project team successfully completed Stage 2 “Conceptual Design and Change Plan” by the end of April enabling the project to move into Stage 3 “Detailed Design, Build, Test and Business Readiness” on the 1st May 2017.

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Pilot Customer Opportunity On original submission of the project for funding it was not specifically stated where the physical asset solution would be tested. The working assumption has been that it would be installed at a National Grid (NG) testing facility so that commissioning/online tests of the connection module could be completed (SDRC 9.6) in a familiar environment. As the project has progressed during this reporting period it is clear that there is appetite from gas customers to benefit from the outputs of the project at the earliest opportunity. Significant interest has been received for the project to consider collaborating with a pilot customer, an approach the CLoCC team are progressing to prove the concepts being developed as part of our innovation efforts.

Each workstream is now heavily into their respective delivery elements. Detailed designs are going through final technical approval, materials have been ordered to ensure our physical solution build commences on time and industry have been actively supporting a number of modifications to the Uniform Network Code in support of our project objectives. The project is on target to complete by the 29th October 2018.

NOTABLE MILESTONES AND KEY DELIVERABLES Within this reporting period the following notable milestones and significant deliverables have been completed: Stage 3 Initiated On the 1st May 2017 the project successfully moved into stage 3, the project’s last planned stage. In order to achieve this milestone the project required clarity on the direction of a vast number of topics. An example of such topics include; our project position on the potential of a non-ROV exit solution and a decision on the size of physical asset that would be built. The project’s progress on all topics, with recommendations on the best direction forward, were summarised into a Stage 3 Initiation Document which was successfully signed off at the end of Stage 2 by the project’s Steering Committee.

On Budget On Schedule

10% Underspent 51% complete against scheduled

tasks

Executive Summary

An invitation to submit Expressions of Interest (EOI) was issued to industry on the 2nd January 2018 looking for interested parties to submit their proposals. Participants were asked to provide details on their project type and how their endeavour complements the objectives of the CLoCC project. The deadline for proposals is 2nd February 2018. To stay up to date on this opportunity, and for further information, please visit: www.projectclocc.com Challenging the Entire Process Having established through our earlier stakeholder engagement the key blockers our customers currently experience when trying to connect to the NTS this reporting period the project has been in a position to challenge the entire gas connections process for lower flow customers. Initial expectations are that a number of processes will be able to be streamlined following the implementation of Project CLoCC – one notable enabler being the new online gas customer connections platform being developed by the project.

PHYSICAL CONNECTION SOLUTIONS Technical Acceptance – Standardised Designs Suite A total of six detailed design packs have been produced for model design appraisal in accordance with National Grid procedure T/PM/G19 during this reporting period, refining the conceptual designs from Stage 2 of the project. Each design pack focuses on a specific part of the connection process; e.g. minimum connection, telemetry kiosk. The design packs have been split as follows: • Minimum Offtake Modules • Interconnecting Pipework and Simplified

Connection • Telemetry kiosk • Combined Remote Operable Valve (ROV)

and Kiosk (‘Skiosk’) • Filter Skids • Meter Skids Detailed design drawing packs form part of SDRC 9.4 and will be submitted on schedule to Ofgem by the 12th February 2018. Further information is available on page 12.

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ONLINE CUSTOMER CONNECTIONS PLATFORM New Online Gas Customer Connections Platform – Build This reporting period has been significant for the online gas customer connections platform workstream, with much of the software build underway early and now ahead of schedule. This is important because it ensures that there is ample time for testing, stakeholder challenge and review and minor alterations before the portal is due to go “live” from November 2018. There are now three distinct user journeys incorporated into the gas customer connections platform: 1. Standardised Connection Application 2. Bespoke Connection Application 3. Disconnection Application Testing for the gas connections platform commenced on the 29th November 2017. Through robust testing any software bugs will be highlighted so that they can be fixed prior to implementation into business as usual at National Grid by the 31st October 2018. More information on this topic is available on page 11.

Figure 1 – Image of a simplified minimum exit connection at a typical block valve site. Benefits include no ROV and no telemetry kiosk required for this type of connection. CLoCC simplified pipework shown in green.

HAZID/HAZOP Studies During this reporting period a full challenge and review of the technical designs have been carried out in the form of Formal Process Safety Assessments (FPSAs). The FPSAs included Hazard Identification (HAZID), Hazards in Operability (HAZOP) and a Safe Working Design Study (SWDS). These FPSAs were carried out to assess and ensure that the designs presented were compliant with Industry and National Grid specifications, as well as being safe for use by National Gird or other operatives.

http://www.projectclocc.com/


Figure 2 – Image of an 80mm (NB) Skiosk

Executive Summary

The output of the FPSAs were a collection of closeout reports, which accompany the detailed design drawing packs noted overleaf to complete SDRC 9.4 (due for submission 12/02/18). One major design change which came about from the FPSAs was: • Changing the isolation valves on the filter

skids from ball valves to plug valves. This design change has been updated in the project’s design packs. More information on this topic is available on page 12. Material Orders Following the completion of stage 2 of the project it was approved that three module units would be constructed during the project’s final stage. These are: • 80mm Nominal Bore (NB) combined

minimum offtake skid and telemetry kiosk (skiosk)

• 80mm (NB) modular filter skid • 80mm (NB) metering skid The procurement packages have been split into the following categories which combine equipment needed to cover all module designs that will be built: • Filters • Valves • Piping • Metering • Analyser

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Due to developments on this topic within the commercial workstream (pg. 19),the enhanced telemetry kiosk is not being further developed by project CLoCC. The metering of the transferred gas at connection points will continue to be a function of the customer’s site Further detail can be found in chapter 3 - Project Managers Report (page 15).

• Instrumentation • Module steelwork • Skiosk (including internal fit-out, electrical

and control equipment)

To date, the filter (08/11/17) and metering packages (16/01/18) have been ordered as these have the longest lead items with more than 20 weeks delivery time. Most other items have a 10 week delivery time. Further information available on page 13. Technical Guidance Documentation The development of technical guidance documents has been progressing in this period. The deliverables from this work will include a NTS Connection Technical Guidance Document covering both entry and exit connections, this document will cover both National Grid and the customer’s aspects of a connection plus minimum functional specifications for the developed designs. The project is hopeful that such new and comprehensive documentation covering the various aspects of the connections process will support new customers who wish to approach National Grid for a connection. Telemetry Kiosk Solution During this reporting period the project has been investigating the development of an enhanced telemetry kiosk, to be located within NG’s facility, and which would support the offering of enhancement services to customers.

Gas Quality Monitoring Arrangements One of the challenges faced by the project during the last reporting period which continues into stage 3 was the development of a cost saving solution to allow National Grid to demonstrate compliance with its obligation for Gas Safety Management Regulations GS(M)R gas quality monitoring and control.

The current method employed by National Grid to confirm compliance at entry connections is via a sample point located at a distance of 20 diameters (20D) downstream and upstream (depending on flow direction) of the comingling point in accordance with National Grid policy T/SP/GQ/9. This method accounts for a significant portion of the overall costs for a standard design entry connection. The project is investigating the possibility of using historical data, network modelled flows and average gas compositions in the NTS to determine a suitable ratio for inferred compliance. Gas network modelling tools are being considered as a method for providing the required accuracy of modelled flow and gas quality. This period has also seen the production of a guide for connecting customers to help them understand the requirements of the National Grid document T/SP/GQ/8 - Management Procedure for Assessing the Requirement for Gas Quality, Calorific Value and Flow Measurement Systems. The aim of this document is to provide information to the potential connecting party to give an early indication of the impacts and risks associated with the gas composition of unconventional gas at a connection point, allowing the customer to make informed choices of the gas clean up technologies required for their process. This document will be disseminated once reviewed and accepted by the project team. Further information on this subject can be found on page 16.

Executive Summary

Commercial Topic Next Steps Working Status

Licence (Methodology) Modification

Direction to be clarified with Ofgem AMBER

UNC modifications Modification 0627s implementation 17th January 2018. Modifications 0628s and 0629s – In progress GREEN

A20 fee Work ongoing to finalise costings and progress UNC modification AMBER

A20 Contracts Initial review completed. Currently being supported by NG legal GREEN

Methodology statements

Initial review complete. Direction needs clarification AMBER

Oxygen Spec GTYS published GREEN

PARCA (inc. Fee)

Work ongoing to finalise costings and progress UNC modification AMBER

Charging arrangements

Spend profile being developed for phased payments - supported by EOI opportunity GREEN

Enhancements Direction clear for CLoCC Work underway to established any future direction for NG post-CLoCC

GREEN

COMMERCIAL WORKSTREAM The commercial workstream has seen intense activity during this reporting period. With notable successes made in consideration of the oxygen specification as set out in the National Grid Gas Ten Year Statement and implementation of UNC modification 0627s which occurred on the 17th January 2018.

Table 1: Commercial workstream progress summary Green – On track. Amber – On track (with identified risks under mitigation). Red – Off track

These developments respectively support biomethane customers by removing the absolute blocker for their consideration of the NTS for a gas connection, and the compulsory added costs associated with absolutely requiring a Remotely Operable Valve (ROV) at NTS exit connection sites. A high-level summary of items which continue to be progressed by the commercial workstream is shown below (table 1).

The project’s update to the GTYS looked to include a statement on considering requests for oxygen content up to the GS(M)R specification of 2000ppm. The GTYS specification for oxygen was 10ppm which stakeholders had told us was restrictive and an absolute blocker to potential new biomethane customers approaching the National Transmission System. This update to the GTYS went live on 30th November 2017. https://www.nationalgrid.com/uk/publications/gas-ten-year-statement-gtys

Opening up the Network for Biomethane Customers In response to feedback from Project CLoCC stakeholders, and in particular biomethane customers, during this reporting period we have been reviewing the opportunity to update the National Grid Gas Ten Year Statement (GTYS), specifically the section on Customer Connections & Capacity information (GTYS - Appendix 2). The GTYS is a document published annually to provide our customers and stakeholders with a better understanding of how we intend to operate and plan for the NTS over the next ten years.

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https://www.nationalgrid.com/uk/publications/gas-ten-year-statement-gtys











Executive Summary

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1. MOD 627s – Removal of absolute

requirement to include a Remotely Operable Valve (ROV) installation for all new NTS exit connections

2. MOD 628s – Standard Design Connections: PARCA process

3. MOD 629s – Standard Design Connections: A2O connection process modification

Please find further information on page 18 (Chapter 3 - Project Managers Report).

Reduced Application Fees Since our last progress report we have been assessing the time and effort required to support the application to offer element of the new gas connections journey being developed by the project. We have also been investigating the opportunity for an accelerated route through the PARCA process for standard design customers within a given gas flow range. Our assessments are close to concluding and once complete we will have improved information as to the potential new fees which will be proposed by the project. We are looking at the option to have new fees fixed for both Connection and PARCA applications which are currently being explored and discussed with industry through UNC Modifications 0628s and 0629s. A change to the Connection Charging Statement will be required via consultation to add the proposed new fees for both Connection Applications and PARCA applications. UNC Modification Progress During this reporting period we have raised 3 UNC modifications (MOD) to amend the Uniform Network Code to enable CLoCC standard designs to be delivered into the commercial environment. These modifications are being progressed by the Transmission Workgroup which includes representation from across industry:

Enhancements During the last reporting period it was identified that some stakeholders felt that there may be some benefit to Project CLoCC continuing to investigate the opportunity for National Grid to offer both metering and filtering enhancements to customers, elements in addition to being offered a Minimum Offtake Connection alone. The options which have been considered by the project are summarised in table 2 (page 9). • Option 1 has been discounted on the basis that under our current regulatory framework this

could be considered restrictive to competition if National Grid was to own and maintain the asset on a National Grid site.

• Options 2/3 are being further considered by the project as potential future options which could

be taken forward if this was aligned with National Grid future strategy.

• Option 4 is being taken forward by Project CLoCC for two main reasons; the offering of free-issue designs was noted during previous stakeholder engagement as being of value to customers and under our current regulatory framework the project can feasibly progress and deliver against this option without restricting industry competition.

Figure 3 – Image of a 200mm (NB) filter module

Executive Summary

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Table 2: Summary of enhancement options considered

Option Adv antages + Disadv antages -

1. Full enhancement

service – National

Grid owned on

National Grid site.

• Provides turnkey service for customers

• Could utilise enhanced kiosk design which CLoCC technical workstream would develop

• Potentially restricts competition • Potentially perceived as bundling • Resourcing review required

• True demand for service unknown • Cost v benefit

2. National Grid

procure – National

Grid install on

customer’s site.

Customer owned

• Customer can utilise NG procurement and installation expertise

• Customers supported by NG for

metering/filtering requirements more than at

present • Potential new NG revenue stream

• Does not restrict competition

• Resourcing review required

• Not core NGGT business • True demand for service unknown

• Liabilities experienced in

customer delivery • Cost v benefit

3. Maintain metering

on customer site

• Customer can utilise NG maintenance experience

• Potential NG revenue stream

• Does not restrict competition

• Resourcing review required • Not core NGGT business • True demand for service unknown

• Access/call –out arrangements

required

• If NG did not install meter this option may be undesirable

4. CLoCC designs

free-issued and full

dissemination of

learning

• Supports new customers by ensuring any

learning/best practice gained by project CLoCC is shared fully with customers

• Option is an improvement on current customer

offering • Proven designs shared - ready to be used

• Designs free issued to industry - NIC funded

• Customer may have a

requirement to reach for additional support/expertise to support their

developments

Capacity Since we last reported we have been further developing the capacity indicator functionality of the online customer connections platform to allow customers to obtain an indication of capacity availability for their site location during their indicative quote. If this indicator shows green it is hoped that a customer may then be able to follow an accelerated route through the PARCA process to reserve firm capacity.

Licence Change National Grid and Ofgem have been in discussions regarding changing the process of entering a new point into the Gas Transmission licence. This is a requirement for any new connection made to the gas network requiring a Licence modification. Currently this process takes 6-9 months, a significant issue for the project. If the current process remains unchanged the “standard design connection” option as developed by Project CLoCC is highly likely to exceed our 12 month core project objective. National Grid has made a proposal to Ofgem which is under discussion to allow for new connections with zero baselines to be held on a table outside of the Licence. In order to update and improve this process a change will either be required to the Exit/Entry Capacity Release Methodology and/or the Gas Transmission Licence via consultation to facilitate this change. Plans now need to be agreed with Ofgem to ensure that this change can be co-ordinated and delivered in time to meet Project CLoCC’s scheduled delivery of 29th October 2018.

We have been successfully progressing through Stage 3 “Detailed Design, Build, Test and Business Readiness” during this period, our third and final project stage. Our tangible

outputs as a project are beginning to be released into the industry and we have instigated the search for a collaborative pilot customer to join us for the final furlongs of

our innovation journey.

Within this reporting period the project has progressed both on schedule and within budget. The project team successfully completed Stage 2 “Conceptual design and change plan” by the end of April enabling the project to move into Stage 3 “Detailed Design, Build, Test and Business Readiness” on the 1st May 2017. Each workstream is now heavily into their respective delivery elements: • Detailed designs are going through final

technical approval • Materials have been ordered to ensure our

physical solution build commences on time • Industry has been actively supporting a

number of modifications to the Uniform Network Code in support of our project objectives

The project is on target to complete by the 31st October 2018.

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NOTABLE MILESTONES AND KEY DELIVERABLES Within this reporting period the following notable milestones and significant deliverables have been completed: Stage 3 Initiated On the 1st May 2017 the project successfully moved into stage 3, the project’s last planned stage. In order to achieve this milestone the project required clarity on the direction of a vast number of topics. An example of such topics include; our project position on the potential of a non-ROV exit solution, certainty on which enhancements we were to progress into detailed design, a decision on the size of physical asset that would be built and tested by the team and how best to test our outputs ready for incorporation into business as usual. The projects progress on all topics, with recommendations on the best direction forward, were summarised into a Stage 3 Initiation document which was successfully signed off at the end of Stage 2 by the projects steering committee enabling the team to continue progressing with their work programmes as originally planned.

Pilot Customer Opportunity On original submission of the project for funding it was not specifically stated where the physical asset solution would be tested. The working assumption has been that it would be installed at a NG testing facility so that commissioning/online tests of the connection module could be completed (SDRC 9.6) in a familiar environment. As the project has progressed during this reporting period it is clear that there is appetite from gas customers to benefit from the outputs of the project at the earliest opportunity. Significant interest was received for the project to consider collaborating with a pilot customer, an approach the CLoCC team are progressing to prove the concepts being developing as part of our innovation efforts. Such collaboration will further enhance our testing of the project in terms of potential customer experience, offering us the opportunity to refine and improve our outputs prior to project completion. An Expression of Interest was issued to industry on the 2nd January 2018 looking for interested parties to submit their proposals. Participants were asked to provide details on their project type and how their endeavour complemented the objectives of the CLoCC project. The deadline for proposals is 2nd February 2018. Further information can be found at www.projectclocc.com

Figure 4 – Email communication was sent to stakeholders regarding the opportunity to become the project’s pilot customer

Project Manager’s Report



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These technical criteria relate to the Minimum Offtake Connection designs that have been created within the project’s technical workstream (pg. 12) and which sit within the platforms internal databases. If a customer’s technical values are outside of the acceptable ranges for a standardised connection a customer will instead be able to apply for a bespoke connection through the connections platform. Note that this option does not include the Indicative Quote Functionality as no calculation algorithms exist for the Bespoke Connection Application journey. Improving the experience of applying for a gas connection to the NTS has required careful design of the platform to provide a positive customer experience whilst ensuring that safety is not compromised. Some notable functionality to support customers are listed below: Customer Registration • Customer account functionality enables

customers to have a central point of contact with National Grid in support of their application

• Platform stores incomplete applications allowing customers to work on them over a longer period of time. Stored incomplete applications can be modified freely before finally being submitted by the customer

Step Wizard • Clear and concise process information

illustrated

Challenging the Entire Connection Process Having established through our earlier stakeholder engagement* the key blockers our customers currently experience, and then using this information to tailor the direction of the project through Stage 2 and into Stage 3, this reporting period the project has been in a position to challenge the entire gas connections process for lower flow customers. Ensuring a smooth transition of our work into National Grid’s business as usual is paramount to our success as a project, so engaging with key stakeholders early has been essential. To support this effort the project held two full days of “CLoCC journey” workshops with one main objective – how can we best utilise the outputs of each CLoCC workstream. Putting our potential customers at the centre of our work has enabled the project to look at where time and cost savings can be made in the overall process, in addition to the savings made from the new outputs of Project CLoCC. For example, we are looking to streamline the procurement process to reduce lead times for items such as valves and pipework *http://projectclocc.com/news/progress-report-march-2017

ONLINE CUSTOMER CONNECTIONS PLATFORM New Online Gas Customer Connections Platform – Build This reporting period has been significant for the online gas customer connections platform workstream, with much of the software build underway early and now ahead of schedule. This is important because it ensures that there is ample time for testing and minor alterations before the portal is due to go “live” from November 2018. Incorporating feedback from our stakeholder discussion day held in Stage 2 has greatly influenced the direction of the portal build. Potential customers highlighted their preference for one central location where they could initiate a number of application types. Based on this feedback rather than the connections platform only supporting lower flow customers, the platform has been designed to support all gas connection customers, irrespective of their size. There are now three distinct user journeys incorporated into the gas connections platform: • Standardised Connection Application • Bespoke Connection Application • Disconnection Application Only connections that fall within a flow/offtake rate of between 0-229.294 scm/hr and meet a delivery/offtake pressure of between 38-94 bar will be able to qualify for a Standardised Connection Application (option 1 above).

Interactive Map • NTS pipeline shown on the interactive map

during the indicative quote and application process

• Platform calculates closest point from a customer’s site location to an NTS Above Ground Installation (AGI) or NTS pipeline – information instantly shown on map

• Entering a postcode will run a geocoding algorithm to produce an equivalent latitude and longitude

Form Validation • Supports a customer in appropriately

completing their application form prior to submission

Document Upload/Download • Platform provides central location for

document upload and later retrieval. Pre-population • Applications are automatically pre-populated

with information provided during the Indicative Quote stage

• For entry connections gas quality information may be copied into multiple years if appropriate

Instant Quote Refresh The testing and minor changes phase for the gas connections platform commenced on the 29th November 2017. Through robust testing any discrepancies will be highlighted so that they can be fixed prior to implementation into business as usual at National Grid when project CLoCC closes.

The ‘Skiosk’ design is only available as an 80mm connection size due to the physical size of larger pipework, exerting greater stresses and bending moments on the kiosk structure. To ensure all connection scenarios were covered by the technical designs it was necessary to create three extra Minimum Offtake Modules for use on exit connections. Despite the project successfully challenging for the removal of the ROV, there are some National Grid NTS sites with only one connection point which would negate the use of the simplified connection. Therefore, it was necessary to design a Locally Operated Valve (LOV) Module for use on these single connection point sites for the simple purpose of being able to provide the customer with a bypass facility, for maintenance of the critical isolation valve.

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HAZID/HAZOP Studies During this reporting period a full challenge and review of the technical designs have been carried out in the form of Formal Process Safety Assessments (FPSAs). The FPSAs included Hazard Identification (HAZID), Hazards in Operability (HAZOP) and a Safe Working Design Study (SWDS). These FPSAs were carried out to assess and ensure that the designs presented were compliant with Industry and National Grid specifications, as well as being safe for use by National Gird or other operatives. The output of the FPSAs were a collection of closeout reports, which complete SDRC 9.4, these will be included as part of the design suites. Designers will be able to utilise these during the site-specific detailed design as a basis for their own FPSAs. For future connections the design of the customers’ connection is now able to be stream-lined as the attention of the FPSA process will only need to focus on site-specific issues. The only major design change that came about from the FPSAs was : Changing the isolation valves on the filter

skids from ball valves to plug valves: • A concern was raised that utilising ball

valves as the isolation valves on the filter module would make it difficult to purge the filters of air after maintenance procedures. Keeping the ball valves would require utilising a temporary bridle across the ball valves to purge the air from the filter.

PHYSICAL CONNECTION SOLUTIONS Technical Acceptance – Standardised Designs Suite A total of six detailed design packs have been produced for model design appraisal in accordance with National Grid procedure T/PM/G19 during this reporting period, refining the conceptual designs from Stage 2 of the project. To ensure the designs are compliant with Industry and National Grid specifications; as well as safe to operate, all designs were subject to challenge and review during both the technical approval and appraisal process and a suite of Formal Process Safety Assessments (FPSAs). Each design pack focuses on a specific part of the connection process; i.e. minimum connection, telemetry kiosk etc. The design packs have been split as follows: • Minimum Offtake Module • Interconnecting Pipework and Simplified

Connection • Telemetry kiosk • Combined ROV and Kiosk (‘Skiosk’) • Filter Modules • Meter Modules Separating out the packs in this way will allow the web portal to issue customer specific design packs that meet their projects requirements i.e. if a customer wants an entry connection with no enhancements; then they would receive the Minimum Offtake Module, Interconnecting Pipework and Simplified Connection and Telemetry kiosk packs.

The most innovative design produced by the project during this reporting period has been the combined ROV and kiosk, what the project now refers to as the ‘Skiosk’ design (Fig.5). This design combines the standard CLoCC telemetry unit and ROV pipework into one transportable module. This unique design offers customers significant advantages to the Minimum Offtake Module designs. By combining the pipework and kiosk into one module the overall footprint of the design is much reduced when compared to a connection that would need an ROV Module and telemetry kiosk. This means that the ‘Skiosk’ can be used on sites with less available space.

Figure 5 – Image showing a Minimum Offtake Module


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Table 3: Procurement update, January 2018

The limited amount of design challenges raised or changes instigated from the FPSAs demonstrates that the preparation work and close engagement carried out with key stakeholders prior to the design process completing produced already technically sound designs. The design change found through completing the mentioned FPSAs has now been updated in the project’s design packs. Material Orders Following stage 2 close-out, it was agreed that three module units would be constructed which are: • 80mm combined minimum offtake module and telemetry kiosk (skiosk) • 80mm modular filter module • 80mm metering module The components required for the construction of these modules have been split into procurement packages based on Material Take Off (MTO) documents which are an output from the design process. These procurement packages contain all the information required for technical / commercial review, approval and order placement. The procurement packages have been split into the following categories which combine equipment needed to cover all module designs that will be built: • Filters • Valves • Piping • Metering • Analyser • Instrumentation • Skid steelwork • Skiosk (including internal fit-out, electrical and control equipment) To date, the filter (08/11/17) and metering packages (16/01/18) have been ordered as these have the longest lead items with more than 20 weeks delivery time. Most of the other items have a 10 week delivery time. Full status of procurement is shown in table 3 (right).

Materials Progress update

Filter procurement package:

o Approv ed by NG o Procured 08/11/17

o 24 week deliv ery

Valv e procurement package:

o Currently being updated post-HAZOP o Forecast order date 26/01/18

Piping procurement package:

o Final check of MTO o Forecast order date 26/01/18

Meter procurement package

o Technical bid ev aluation complete o Procured 16/01/18

o 20 week deliv ery

Analy ser procurement package

o Technical bid ev aluation underway o Forecast order date 19/01/18

Instrumentation procurement package

o Procurement pack issue date 26/01/18 o Forecast Procurement date 02/02/18

Skid steelwork procurement pack

o Awaiting f inal design documents

Skiosk procurement package

o Commenced discussions with shipping container vendors including site v isits

o Skiosk container forecast procurement date 02/02/18


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Technical Guidance Documentation The development of the technical guidance documents has been progressing in this period. This has involved; tailoring the draft entry and exit specifications produced in stage 2 into documents which can be adopted and used by National Grid and its customers, supplementing the connection portal and progressing discussions with the gas industry body IGEM to aid dissemination of standard designs and best practices across the industry. The deliverables will be a NTS Connection Technical Guidance Document. This will cover both entry and exit connections and both National Grid and the Customer’s aspects of a connection plus minimum functional specifications for the developed designs. To ensure the documents delivered the project aims ,and do not duplicate or potentially contradict existing National Grid or industry recognised specifications or procedures a gap analysis was carried out on the current applicable standard. Gap analysis conclusions were: • Only one National Grid standard is specific

to offtake connections. This is the commissioning procedure T/PM/TR/47.

• National Grid have a number of applicable standards covering the design and installation of general pipework systems.

• It is currently up to National Grid and their designers to identify and comply with the relevant parts of these specifications.

• The distribution networks have produced guidance documents covering entry connections.

• National Grid have one technical guidance document focusing on 3rd party requirements at a connection site.

• The CLoCC designs and technical changes need to be captured in one place.

Early on within this reporting period the project engaged with the relevant policy departments within National Grid to ensure the newly proposed documentation have been aligned with existing structure and management of engineering standards. The technical guidance documentation is currently under review by the project team. The main sections of the guidance document includes: • Responsibilities – of each party involved in

the gas connection process • Typical Connections – describing the

configuration of the typical connection solutions for entry and exit connections

• Standard designs – introducing the various standardised and approved / appraised designs produced by Project CLoCC

• Available Guidance Documentation – introducing the various design guidance and typical layouts to assist with site specific designs

• Connection Steps – summarising the technical element of the various stages of a connection.

The project is hopeful that such new and comprehensive documentation covering the various aspects of the connections process will support new customers who wish to approach the NTS for a connection.


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.

Telemetry Kiosk Solution During this reporting period the project had also been investigating the development of an enhanced telemetry kiosk, to be located within NG’s facility, which would support the offering of enhancement services such as metering and filtration. Due to developments on this topic within the commercial workstream (page 19) the enhanced telemetry kiosk is not being further developed by CLoCC. The metering of the transferred gas at connection points will continue to be a function of the customer’s site. The project is aiming to make the following approved design solutions available: • Design of a standard telemetry kiosk solution for installation at minimum connection sites

requiring a remote operable valve • Assessment of options for metering information communication routes and the associated site

savings • The telemetry kiosk will be delivered as a hard wired solution with the ability to accommodate

renewable energy features when they have been fully tested – future proofing the design for renewable functionality

• Cost effective and environmentally friendly kiosk build solution • Combining the telemetry and isolation valve modules into an integrated single unit The telemetry system is designed with the ability to receive the customers metering and gas quality information and communicate this to the Gas National Control Centre. Where no remotely operable valve is deemed necessary, a 3rd party telemetry system can be utilised on the customers site which overcomes the need for NGGT site telemetry and the associated power supply and communication links. It has now been found that due to the high current demands from new software equipment needed for increased cyber security at National Grid locations the renewable telemetry kiosk is no longer a viable option at this stage of the project.

Figure 6 – Image showing proposed internal layout of the newly designed telemetry kiosk

The unsuitability of the renewable telemetry kiosk was highlighted during recent testing. Note that this risk was documented in our previous progress report and has been monitored. This development has been mitigated through re-designing the solution and adjusting the relevant work programmes through prioritisation. A feature of the new kiosk re-design will be functionality that enables a stored energy supply for both the telemetry and the isolation valve actuator in the event of a grid power outage. The fabric and structure of the kiosk has been reviewed to assess its recyclability, security, transportability and energy efficiency. The resulting design is a cost effective and environmentally friendly solution. The structure utilises a modified mass produced steel container, efficiently insulated and ventilated by a passive system with heat recovery to eliminate the current practice of installing an electric heater and door louvers. The CLoCC design solution has combined two separate modules into an integrated single unit; the Skiosk. The Skiosk is a combination of the 80mm remotely operable valve unit and associated telemetry unit. An integrated single unit maximises factory acceptance testing and reduces both transport costs and site footprint.


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Gas Quality monitoring arrangements One of the challenges faced by the project during the last reporting period and into stage 3 was the development of a cost saving solution to allow National Grid to demonstrate compliance with its obligation for GS(M)R gas quality monitoring and control. The current method employed by National Grid to confirm compliance at entry connections is via a sample point located at a distance of 20 diameters (20D) downstream and upstream (depending on flow direction) of the comingling point in accordance with National Grid policy T/SP/GQ/9. This method accounts for a significant portion of the overall costs for a standard design entry connection. The alternative methods investigated during this period were: • A requirement for the customer to shut off

supply if out of specification gas is detected by the customer’s analysers with a “suitably reliable” safety system.

• Determine the gas flow and quality of both the NTS and customer and calculate the resultant blended gas quality.

• Investigate how accurate the network modelling data is and the possibilities of using this to infer the NTS gas flow and quality at an entry point to facilitate a blending ratio solution.

• Develop guidance on the application of National Grid Procedure T/PM/GQ/8 for assessing the requirement for gas quality, CV and flow measurement systems.

To quantify what a “suitably reliable” safety system is, a study was held in July 2017 to establish the level of reliability or target failure frequency that the third parties gas quality control and shut off systems must be designed to, to give National Grid assurance that out of specification gas cannot enter the NTS. Whilst trying to determine the target failure frequency, it became clear that achieving a generic consequence category would be unrealistic as many factors including flow rate, deviation and location on the network all contribute to the severity of the identified scenario and would result in onerous target frequencies being set for most customer scenarios. However, requiring the customer system to shut off its supply should out of specification gas be detected, or if a failure was detected to an analyser system, would encourage the customer to install a reliable system to maintain export flow. This option however includes the residual risk of managing a slug of gas that could pass the shut off valve during the time it takes the analyser to sample and further close the shut off valve. Management of a trapped amount of non-compliant gas complicates this option. The project is now investigating the possibility of using known volumes of injected out of specification gas, network modelled flows and average gas compositions in the NTS to determine a suitable ratio for inferred compliance.

Gas network modelling tools are being considered as a method for providing the required accuracy of modelled gas flow and gas quality. The final part of developments on this topic during this reporting period is the production of a guide for connecting customers on the T/SP/GQ/8 Management Procedure for Assessing the Requirement for Gas Quality, Calorific Value and Flow Measurement Systems. The aim of this document is to provide information to the potential connecting party to give an early indication of the impacts and risks associated with the gas composition of unconventional gas at a connection point, allowing the customer to make informed choices of the gas clean up technologies required for their process. This document will be disseminated once reviewed and accepted by the project team.

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COMMERCIAL WORKSTREAM Opening up the network for Biomethane Customers In response to feedback from Project CLoCC stakeholders, and in particular biomethane customers, during this reporting period we have been reviewing the opportunity to update the National Grid Gas Ten Year Statement (GTYS), specifically the section on Customer Connections & Capacity information (GTYS- Appendix 2). The GTYS is a document published annually to provide our customers and stakeholders with a better understanding of how we intend to operate and plan for the gas National Transmission System (NTS) over the next ten years. The project’s update to the GTYS looked to include a statement on considering requests for oxygen content up to the GS(M)R specification of 2000ppm. The GTYS specification for oxygen was 10ppm which stakeholders had told us was restrictive and an absolute blocker to potential new biomethane customers approaching the National Transmission System. This update in oxygen specification and update to the GTYS went live on 30th November 2017. https://www.nationalgrid.com/uk/publications/gas-ten-year-statement-gtys

Furthermore, National Grid have also undertaken a gas quality consultation and are currently reviewing the results of this to develop the future strategy for gas quality in the NTS. Industry is being engaged on this subject via the Transmission workgroup. Project CLoCC is one of the drivers for this consultation so that we can consider how we enable new connections in the future by being flexible, consistent and transparent in the process of considering gas quality requirements, whilst maintaining compliance with our safety case and other contractual obligations

“We want to make the NTS more accessible to these new gas sources,

and are addressing this challenge through Project CLoCC”

National Grid, Gas Ten Year Statement

2017












Reduced Application Fees Since our last progress report we have been assessing the time and effort required to support the Application to Offer element of the new gas connections journey being developed by the project. We have also been investigating the opportunity for an accelerated route through the PARCA process for standard design customers within a given gas flow range. Our assessments are close to concluding and once complete we will have improved information as to the potential new fees which will be proposed by the project. We are looking at the option to have new fees fixed for both Connection and PARCA applications which are currently being explored and discussed with industry through UNC Mods 0628s and 0629s. A change to the Connection Charging Statement will be required via consultation to add the proposed new fees for both Connection Applications and PARCA applications. UNC Modifications Progress During this reporting period we have raised 3 UNC modifications (MOD) to amend the Uniform Network Code to enable CLoCC standard designs to be delivered into the commercial environment. These modifications are being progressed by the Transmission Workgroup which includes representation from across industry.

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.

• For further details please visit: https://www.gasgovernance.co.uk/0627

MOD 628s – Standard Design Connections:

PARCA Process • This modification facilitates changes

required to implement an accelerated route through the existing Planning & Advanced Reservation of Capacity Agreement (PARCA) process by utilising the additional functionality added to the online connections portal which provides a capacity indicator for a customer within the indicative quote. The objective is to reduce the time and the application fee required.

MOD 627s – Removal of absolute requirement to include a Remotely Operable Valve (ROV) installation for all new NTS exit Connections.

• This modification facilitates the use of the CLoCC non-ROV design at exit points (Figure 7), where deemed appropriate by a National Grid risk assessment. The customer savings are approximately £100k-£200k (depending on connection size).

• This modification has been under development since October 2017 and was approved for implementation on 17th January 2018. By delivering this modification early, National Grid can begin to utilise this potential benefit for customers 9 months ahead of Project CLoCC completion.

• This modification has been under development since November 2017. The scheduled completion report to Panel for a decision is in June 2018. This allows time for a consultation of the Connection Charging Statement to enable the required fees to be added or modified for an October 2018 implementation to align with the close of Project CLoCC.


MOD 629s – Standard Design Connections:

A2O connection process modification • This modification facilitates changes

required to implement standard design connections delivered by Project CLoCC to the Application To Offer process in UNC. The objective is to reduce the time and the application fee required.

• This modification has been under development since November 2017. The scheduled completion report to Panel for a decision is in June 2018. This allows time for a consultation of the Connection Charging Statement to enable the required fees to be added or modified for an October 2018 implementation to align with the close of Project CLoCC.


Figure 7 – Image showing a non-ROV exit connection solution


https://www.gasgovernance.co.uk/0627



Enhancements During the last reporting period it was identified that some stakeholders felt that there may be some benefit to Project CLoCC continuing to investigate the opportunity for National Grid to offer both metering and filtering enhancements to customers, elements further to being offered a Minimum Offtake Connection (MOC) alone. In this reporting period Project CLoCC has been further assessing a number of options in relation to offering a service for both metering and filtering enhancements. The options which have been considered by the project are summarised in table 4 (right). Due to the likely regulatory blockers (as noted under our current regulatory framework) of Option 1 this option has been discounted on the basis that this could be restrictive to competition if National Grid was to own and maintain the asset on a National Grid site. Options 2 and 3 are being further considered by the project as potential future options which could be taken forward if this was aligned with National Grid future strategy. Although initial stakeholder feedback highlighted that filter and meter enhancements could potentially be beneficial to customers there were some mixed views. Further tangible information is required on the demand for these services and the project is hopeful for further customer feedback on this topic through our EOI process. As previously reported* the main areas of we believe to be of value to our customers fell into 3 main categories:

• the offering of standard approved designs • the ownership and operation of enhancements by NG • the added installation of chosen enhancements by NG

These are the 3 offerings we have further considered (table 4). Project CLoCC is taking forward option 4 from table 4 (right). This is one of the delivery options stakeholders indicated was of potential value (as noted above). This option utilises the designs created by project CloCC for standard meter and filter skids and will be proven through build and testing of them during Stage 3 of the project. The designs will be supplemented through the provision of minimum functional specifications and guidance documentation, within which learning gained by the project will be shared. *http://projectclocc.com/news/progress-report-march-2017

These designs will be able to be issued freely for connecting customers to use when installing their own meter and filter solutions. This will benefit customers by having a pre-approved and pre-appraised designs ready to go, saving both time and money in the customers own design phase. We have concluded that this is the most feasible delivery of enhancement by the project for the value of our stakeholders. This solution ensures that the project remains within the commercial and regulatory regime that National Grid Transmission operate within as NTS System Operator.

Table 4: Summary of enhancement options considered

Option Adv antages + Disadv antages -

1. Full enhancement

service – National

Grid owned on

National Grid site.

• Provides most complete service for customers

• Could utilise enhanced kiosk design which CLoCC technical workstream would develop

• Potentially restricts competition • Potentially perceived as bundling • Resourcing review required

• True demand for service unknown • Cost v benefit

2. National Grid

procure – National

Grid install on

customer’s site.

Customer owned

• Customer can utilise NG procurement and installation expertise

• Customers supported by NG for

metering/filtering requirements more than

currently • Potential new NG revenue stream • Does not restrict competition

• Resourcing review required • Not core NGGT business • Liabilities experienced in

customer delivery • Cost v benefit

3. Maintain metering

on customer site

• Customer can utilise NG maintenance experience

• Potential NG revenue stream • Does not restrict competition

• Resourcing review required • Not core NGGT business

• Access/call –out arrangements

required

• If NG did not install meter this option may be undesirable

4. CLoCC designs

free-issued and full

dissemination of

learning

• Supports new customers by ensuring any

learning/best practice gained by project CLoCC is shared fully with customers

• Option is an improvement on current customer

offering • Proven designs shared - ready to be used • Designs free issued to industry - NIC funded

• Customer may have a

requirement to reach of for additional support/expertise to

support their developments

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Licence change National Grid and Ofgem have been in discussions regarding changing the process of entering a new point into the Gas Transmission licence. This is a requirement for any new connection made to the gas network and involves a full Licence consultation. Currently this process takes 6-9 months, a significant issue for the project. If the current process remains unchanged the “standard design connection” option as developed by Project CLoCC is highly likely to exceed our 12 month core project objective. National Grid has made a proposal to Ofgem which is under discussion to allow for new connections with zero baselines to be held on a table outside of the Licence. In order to update and improve this process a change will either be required to the Exit/Entry Capacity Release Methodology or the Gas Transmission Licence via consultation. Plans now need to be agreed with Ofgem to ensure that this change can be co-ordinated and delivered in time to meet Project CLoCC’s scheduled delivery of October 2018. 20

Application To Offer (A2O) In addition to the development of UNC Modification 0628s a number of other areas are being developed to support the implementation of the standard design customer journey. These include: • Connection contracts are being revised

including reviewing the phasing of payments to allow closer alignment to the actual spend profile of a standard design connection.

• Supporting documentation and customer

facing help documents are being prepared, feedback from stakeholders will be sought during development.

• Connection Charging Statement has been

reviewed and will be consulted upon for an update so that the new fees being considered by the project may be implemented.

Capacity Since we last reported we have been further developing the capacity indicator functionality of the online customer connections platform to allow customers to obtain an indication of capacity availability for their site location during their indicative quote. If this indicator shows green it is hoped that a customer may then be able to follow an accelerated route through the PARCA process to reserve firm capacity. We have compared this to a traffic light system – green = proceed, amber = more investigation required, and red = capacity is not easily available and a full PARCA assessment is required. This development is based on stakeholder feedback gained by the project which indicated an appetite for greater alignment between the timescales for offering a PARCA phase 1 with the connection offer for a standard design. The National Grid network analysis data model that feeds the online platform’s capacity indicator is now significantly developed and we are heading into a phase of testing. We have been working on our processes to streamline as much as possible the PARCA Phase 1 process. This topic forms part of the UNC Modification 0628s development with industry (page 18).


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FUTURE FOCUS Within the next reporting period we will see the completion of Project CLoCC and handover

of project outputs to National Grid Gas Transmission for implementation into business as usual. The new gas customer connections platform will go live, our suite of standardised

designs will be ready for use and through our project’s build and testing phase we will achieve greater clarity as to the new costs and timelines for standardised design gas

connections moving forward.

PHYSICAL CONNECTION SOLUTIONS Technical Designs and Documentation During the projects next reporting period the technical workstream will have completed all detailed design drawing packs. These designs will be subject to a generic (T/PM/G/19) design approval and appraisal process which will be completed before October 2018. Construction designs will be issued to Protech to enable them to fabricate the 80mm Skiosk and the 80mm filter and meter modules as part of the project build phase. The technical guidance document will be completed to assist and inform National Grid and new customers of the technical requirements associated with a new connection and how the standard designs fit into and simplify the design and build of a new connection. This guidance document will be supplemented by some typical site layout drawings and the minimum functional specifications for the filter and meter module standard designs. Site specific detailed design will be carried out for the selected connection site to support our potential pilot customer opportunity. Stakeholders will be given the opportunity to discuss the technical outputs of the project with our technical team.

ONLINE PORTAL With the project in its closing stages, the online connections platform development is in an excellent position assisted through use of agile management methods. Functionality and hosting of the platform will be completed in the next 2 month which then allows the team to focus more closely on customer support and additional features to the customer experience. A review will be held prior to “go live” to ensure we have included all customer support requirements. The main deliverables that will be achieved before project close are: Development of customer and

administration portals • Finalise capacity functionality • Upload templates for application offer

pack s • Update database data – cost & capacity • Finalise application customer journeys • Finalise branding • Finalise administration interface All testing – UAT, end-to-end testing,

submission of testing scripts

The Build As already noted earlier in this chapter, all materials required to support the fabrication of the project’s test MOC solution will be procured and ordered ready for factory build commencing April 2018. Factory acceptance testing as part of our stage three technical deliverables will first occur at the fabrication facility in order to demonstrate that the MOC solution operates in line with design requirements. After factory testing, the MOC will be transported to a National Grid training facility where commissioning of the system will occur including end-to-end testing of the communications systems. Following this, and pending a successful pilot customer connection offer being made, the fully constructed connection module will then be transported to the pilot customer’s facility. All learning gained from this process will be documented in order to ensure valuable cost and time data is retained in support of project close.

Stakeholder preview session Hosting on NG network Stage completion report

Example images of the connections platform can be found in Appendix C.

Figure 8 – Image showing an example of how a customers application summary page may look

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This risk is being mitigated in the following ways: • The project is not committed to pursuing the

pilot customer opportunity until a construction contract is in place between customer and National Grid. This ensures that the opportunity only progresses if realistic for both parties

• Project build, test and commissioning will be completed at a National Grid facility prior to installation at a customer’s site. This ensures that the requirements of SDRC 9.6 may be successfully fulfilled by the project team and the pilot customer does not form part of our critical path to meeting this obligation

Additional design work – potential for our technical workstream schedule to be strained due to providing additions designs for customers beyond original scope. The project team are looking at providing customers with meter system technical designs that support the development of their own facility. This is as a result of the findings this reporting period that the current regulatory framework is a significant obstacle for the project to overcome in order to provide enhancement services to customers within a National Grid owned site. These additional designs would be made available to customers, who then have the option to utilise them or produce their own designs. Utilising the CLoCC produced designs has the benefit that the system design has been proven during testing.

COMMERCIAL WORKSTREAM During the remainder of the project, the commercial workstream will be focussing on the following areas: • UNC Modifications – Approval and

implementation of UNC Mods 0628s for PARCA and 0629s for A2O processes by October 2018. Planned currently for June 2018.

• Licence - Adding new points to the licence. Modification plans to be agreed with Ofgem during January 2018 for implementation by October 2018. Consultations with industry as required to support this.

• Fees - Connection Charging Statement consultation to update the fees for PARCA and A2O standard designs by October 2018 following UNC Modifications.

• Connection Contracts - conclude review and update of connection contracts for standard designs ahead of October 2018.

• Engagement - ongoing consultation with stakeholders, including other networks, via the Transmission Workgroup, ENA and other appropriate means identified.

• CLoCC Pilot - Commercial arrangements for CLoCC pilot customer to be in place in order to agree a contract in March 2018, if a suitable customer is able to meet selection criteria.

This risk is being mitigated in the following ways: • The project is carefully considering the

knock-on effect of agreeing to this addition to project scope

• Technical work programme review to ascertain whether through deliverable re-organisation additional resource time can be found

Business as Usual Readiness – potential risk that National Grid may not have sufficient information to be appropriately sized (over- resourced or under-resourced) to support connection activity once CLoCC is implemented into business as usual from November 2018. Currently National Grid experiences on average 4 connection applications per year (looking at data between Aug 2013 – Jan 2018). By reducing the application fee and reducing the connection costs and timelines, a risk naturally exists that there is uncertainty as to the appetite of connecting to the NTS post CLoCC implementation. This risk is being mitigated by: • Close internal engagement and

development of business as usual strategy

• Seeking supporting data as to the appetite for customers approaching the NTS following the close of this project (e.g. EOI responses)

IDENTIFIED RISKS Licence Process – There is a risk that due to the limited time left to agree and expedite a change to the Licence Process for adding new sites that this will not be completed in time for October 2018 if a full Licence Consultation is required. A Licence consultation takes on average 6-9 months to complete. If this were not completed within Project CLoCC, this would have to roll into business as usual for completion and could impact on customer connection timeframes for early applicants. We are working with Ofgem to agree a way forward and plan for delivery. Pilot customer risk to schedule – project CLoCC is able to fulfil its funding obligations without the addition of a pilot customer opportunity. This is an additional activity. However, there is potential for the projects core schedule to be affected by this significant additional piece of work. The programmes for each workstream have been carefully considered and appropriately adjusted prior to announcement of our Expression of Interest pilot customer opportunity however a risk to the project schedule remains and must be closely monitored during the coming months.


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Extended Scope – This risk was identified in our previous progress report and remains a live risk. Due to the nature of project CLoCC primarily challenging every aspect of the connections process, several of the work streams may experience scope creep pressure. This risk is being mitigated through “cost/schedule Vs benefit” considerations being carried out prior to any extension of scope being agreed by the project leads of each workstream Clarity over GS(M)R gas quality monitoring and control – This risk was identified in our previous progress report and remains a live risk. Further information can be found on page 16. GS(M)R Gas Quality - This risk was identified in our previous progress report and has been mitigated during this reporting period through an update to the Gas Ten Year Statement as detailed further in the commercial workstream section of this chapter (pg. 17). Wider work is being carried out in this area by industry with the Gas Quality Consultation responses and next steps presented at the January 2018 Transmission Workgroup: https://www.gasgovernance.co.uk/sites/default/files/ggf/book/2017-12/Tx%20WG%20December%202017.pdf

Renewable telemetry kiosk unsuitability – This risk was identified in our previous progress report and has come to realisation. During the previous reporting period this item was highlighted as a risk for the following reason: • Unsuitability of the renewable telemetry

kiosk during testing would create further work and risk to the project schedule and project customer achieved benefits.

Further information and mitigation points are highlighted earlier in this chapter (pg.15)

Government Policy - This risk was identified in our previous progress report and remains a live risk. Expected government announcements have been identified as having a potential knock on affect to the solutions being developed in support of the CLoCC core objectives. Two examples of such policy announcements include: • The European Commission intention to

make the CEN (Comité Européen de Normalisation) standard (which currently excludes Wobbe Index) legally binding on Member States via an amendment to the EU Interoperability Network Code. Currently no clarity exists as to when or how this will actually be achieved. The UK’s vote to leave the EU adds further uncertainty about its future application.

• In order to meeting the 2050 carbon targets many sources have documented the requirements for the conversion of portions of the gas network system to hydrogen. This development could potentially increase the number of customers for which a CLoCC solution may benefit and ensure that we are able to support the potential connection demand is a consideration.


https://www.gasgovernance.co.uk/sites/default/files/ggf/book/2017-12/Tx WG December 2017.pdf




Business Case Update

Confirmation that all technical designs will be free-issued to the energy sector following project close, further supporting the sharing of project knowledge.

Additional meter system technical designs are expected to be created to further support customers in the development of their own facility which we hope may save customers further costs.

The project continues to support knowledge sharing surrounding the future of gas. We believe that gas will continue to play an important role in supplying the UK’s energy needs to 2050 and beyond. By aligning with other projects, such as the National Grid Future of Gas (FOG) Project, CLoCC is assisting in these wider industry conversations. More information on FOG can be found at www.futureofgas.uk

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The overall business case for carrying out this project has further strengthened during this reporting period by: The project striving, through our pilot

customer opportunity, to connect a new gas customer within our timelines. This has enabled us to:

• Further support the development to a low carbon energy sector and deliver environmental benefits through supporting new gas sectors, such as anaerobic digestion, in considering a connection to the NTS. At the time of writing, two biomethane projects have submitted applications to become the CLoCC pilot customer. Furthermore, National Grid is experiencing an increase of interest from the gas in transport sector, a sector who have actively supported the developments of our project.

• Provide a cost saving new opportunity for customers by applying to become the CLoCC customer pilot project. A consultation closed on the 2nd February 2018 which looked to secure a zero cost application fee for the CLoCC pilot customer. All responses to the consultation were in favour and we anticipate a positive outcome.

• Further collaboration between the project and the energy supply chain through the opportunity to work more closely with a potential new customer to the NTS.

Project CLoCC aims to reduce the cost of a connection to less than £1M and reduce the timeline of connecting to the NTS to less than 1 year. Approximately 14 connections have been made to the NTS since 2006 and on average the cost of a connection was £2.2M with a timeline for connecting of up to 3 years. As our suite of standardised connection designs are close to completion and we continue to progress into our build and testing phase greater information as to the potential cost savings expected from the project will be quantified. Currently we believe our smallest and most simple standardised design, an 80mm non-ROV exit connection MOC, will cost the customer approximately £380,000*. This figure includes the costs for; materials, factory/on-site construction . As previously stated, another significant benefit of Project CLoCC is the increased viability of connecting various sources of unconventional gas to the National Transmission System. This element of the project’s business case has already been strengthened in light of recent publications, such as the 2017 National Grid Future Energy Scenarios (FES) publication and the Energy Networks Associated (ENA) report by KPMG which is also looking at potential energy scenarios in 2050.

*Prices are estimated +/- 30%, as per current National Grid contractual terms.

Decarbonisation of the transport sector will also require the development of infrastructure to support refuelling stations for Natural Gas Vehicles. This is another area where the cost and time savings delivered by the project will be beneficial to potential customers.

“Project CLoCC could be a key

facilitator to supporting the growth of gas in transport in the UK, as it would

offer customers quicker and more affordable connections to our network” Future of Gas Progress Report July 2017 http://futureofgas.uk/wp-content/uploads/2017/07/The-Future-of-Gas-Progress-Report-130717.pdf

“Continuing to use the gas network offers significant savings versus

alternative heating sources - Gas is a relatively inexpensive and efficient

source of energy particularly for heating which makes up the bulk of our domestic

energy requirements.”

KPMG – 2050 Energy Scenarios – The UK Gas Networks role in a 2050 whole energy system

(July 2016)

http://futureofgas.uk/wp-content/uploads/2017/07/The-Future-of-Gas-Progress-Report-130717.pdf
















Business Case Update

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Additionally, within the Consumer Power energy scenario it is estimated that 54% of gas demand could be met from alternative sources such as shale, biomethane, bio-substitute natural gas, and hydrogen from electricity to gas schemes by 2040. The project has this reporting period experienced interest in using our outputs by both the natural gas vehicle and shale sectors, tangible interest supported by the release of our pilot customer Expression of Interest. The Energy Networks Association report contains four forward looking scenarios for the energy system in GB in 2050. Whilst some of their scenarios indicate that the use of gas in future could be reduced from current levels, they note that the incremental costs and practical obstacles to achieve these scenarios could prove prohibitive. They conclude that the Evolution of Gas scenario which supports wide scale development of alternative sources of gas (including the decarbonisation of domestic heating by conversion to hydrogen) to meet the required 2050 targets is their lowest cost/least obstacle scenario. The project’s business case therefore directly supports such developments in the energy environment.

Should new gas sources, including shale gas and biogas, be developed and utilised economically and safely in the UK, Project CLoCC is a key enabler in allowing this gas to connect to the NTS.

Future of Gas Progress Report July 2017

http://futureofgas.uk/wp-content/uploads/2017/07/The-Future-of-

Gas-Progress-Report-130717.pdf

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Progress Against Plan

26

Currently the project is progressing as expected and on schedule against the project plan. We are currently 51% complete against our scheduled tasks, with forecasted progress by this point in the project’s work programme being 57%. The difference is attributed to altering the timing for our planned customer engagement for this stage, with more beneficial engagement planned when outputs are further progressed (e.g. fully built connections portal which stakeholders will be able to then preview). Following both National Grid sponsor and steering committee signoff the project began stage three on the 1st May 2017. Prior to this start date the project team reviewed and updated their stage three work programmes, ensuring that these incorporated the developments made during this reporting period. Such updates included: • Allocating time within the technical workstream programme to support a pilot customer if this opportunity successfully progresses, this includes additional construction and site work at an additional

location. • Additional project deliverable items, beyond original project scope, were incorporated into the relevant workstream programmes. An example includes; updates to the existing site database to account

for additional designs and the additional incorporation of multi-junction analysis, minimal functional specification documents, metering system technical designs, additional stage 3 stakeholder preview/review sessions.

A high level overview of our stage three work programme is available as Appendix A.

On Schedule

51% complete against scheduled tasks

Total Project Update: Currently the project is forecasting to complete 10% under budget. Stage 3 Update: Currently stage 3 is running 21% under budget when comparing the forecast for this point in the project against actual spend to date (financial reporting accurate as of end Dec 2017). This spend variance is primarily caused by late partner invoicing and a lag in financial system reporting of a key work programme item for the technical workstream, “placing material orders”. If appropriately corrected for stage 3 would be reporting as running 10% under budget for this time in the schedule. The current total project end forecast is £5.27M. Financial modelling will continue to be updated throughout the project life . A breakdown of project spend during stage three is summarised in the table below and further described overleaf. 27

Progress Against Budget

On Budget

10% Underspent

28

Below shows a table of project spend against forecast spend and allocated budget (as per Ofgem direction document). The variances below are explained as follows: • NG Labour – Spend against National Grid Labour is 66% lower than forecast by this time in the projects programme. This is mainly attributed to NGGT staff costs being initially planned as a straight line

over the duration of the project timeframe. This projection pattern was inappropriate as resourcing levels were found to be much lower during the earlier stages of the project with periodic increases experienced to support events such as our stakeholder discussion day and pilot customer EOI preparations. A significant ramp up in activity is expected to support handover of project outputs to NGGT and preparations for business as usual.

• Contractors – There is currently a 22% underspend against this category which is almost entirely as a result of late invoicing and a lag in financial system reporting by our technical workstream in relation to the purchase of materials (see Chapter 3, pg.13). This variance is expected to align by the end of March 2018.

• Travel & Expenses – There is a 55% underspend in this category. The project team has endeavoured to attend project meetings, conferences and events in a cost-effective manner, as such duplication of attendance is avoided where possible in order to keep costs down. It is expected that this activity will increase during the closing months of the project when the team will be aiming to widely disseminate results and learning.

Project Budget (OFGEM Direction) Stage 3

Forecast

Stage 3 Actual

Spend

Total project

forecast spend

to date

Total Project

Spend To Date Variance

Cost Category Amount

Labour £1,333,000.32 £994,695.32 £179,811.50 £1,671,887.96 £564,901.42 -66%

Equipment £1,297,000.18 £0.00 £0.00 £0.00 £0.00

Contractors £2,518,000.01 £2,419,762.89 £595,274.57 £2,106,944.68 £1,651,507.96 -22%

IT/IS £0.00 £0.00 £0.00 £0.00 £0.00

IPR Costs £0.00 £0.00 £0.00 £0.00 £0.00

Travel & Expenses £143,000.14 £35,821.41 £5,250.00 £53,456.01 £24,259.59 -55%

Payments to Users £0.00 £0.00 £0.00 £0.00 £0.00

Contingency £142,000.18 £0.00 £0.00 £0.00 £0.00

Decommissioning £0.00 £0.00 £0.00 £0.00 £0.00

Other £0.00 £0.00 £0.00 £0.00 £0.00

Original Total Budget £5,433,000.83 £3,450,279.62 £780,336.07 £3,832,288.65 £2,240,668.97 -42%

Total Project Forecast

Spend £5,269,838.89

Table 5: Project budget spend summary

Progress Against Budget

Bank Account

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Bank statements have been provided to Ofgem (Appendix B). Due to the confidential nature of the project’s bank statements they have not been included in this report.

In line with the projects agreed Successful Delivery Reward Criteria (SDRC) no submissions were scheduled to be completed within this reporting period. SDRC 9.4 is the projects next scheduled submission due by the 12th February 2018. The team is on target to deliver this criteria on time. An overview of the current status of our SDRCs can be seen in table below:

Table 6: SDRC status summary

Successful Delivery Reward Criteria

SDRC Description Due Date Evidence Status

SDRC submissions already completed:

9.1 Knowledge, Learning and Dissemination Strategy:

- Deliver Project Website 01/04/2016

Project website created with facility to register interest and comments implemented and actively being used by interested stakeholders.

100% Complete

- Facility to register interest in website implemented 01/04/2016 100%

Complete

- Deliver Project Communications Plan 01/04/2016

Project communications plan submitted on time with communications strategy actively being followed by the project team.

100% Complete

9.2 Production and release of internal and external process change documentation

- Deficiencies and Limitation with transmission Legislation/Standards/Codes and specifications identified and documented

30/09/2016

Documentaiton submitted: 1 - Project process change report 2 - Project process change background information document

100% Complete

- Deficiencies and Limitations with distribution Legislation/Standards/Codes and specifications identified and documented

30/09/2016 100% Complete

- Production of a full report identifying commercial and regulatory impacts to the project and proposed changes to processes

30/09/2016 100% Complete

9.3 Visual online portal prototype avilable for test

- Existing site as-built data classifed and pegged with supplementary data - Visual online portal prototype tested

12/12/2016

Portal prototype "live" for challenge and review from 12th Dec 2016. External stakeholder challenge and review carried out during stakeholder discussion day (22/02/17)

100% Complete

SDRC Description Due Date Evidence Status

SDRC submissions due in next reporting period:

9.4 Completion of detailed connection solution designs

- Buildability and maintainability study complete for three standard designs - Detailed drawing pack issued

12/02/2018

9.5 Live customer online portal available

- End to end functionality testing complete - User functionality testing complete - Live customer online portal available

17/07/2018

9.6 Online tests of connection solution complete

- Factory acceptance testing of connection skid equipment complete - Connection skid transported to designated test site - Construction and installation of connection skid complete - Commissioning/online tests of connection skid complete

01/08/2018

9.7 Full connections handover pack issued to NG

- As-built drawings and health & safety file complete and returned to NG - Stage 3 completion report issued - Final stakeholder challenge and review - Full final Project CLoCC application pack issued to NGG NTS for implementation into business as usual

29/10/2018

9.8 Project evaluation and final report

- Production of a detailed final report to close down the project - this will include project findings knowledge and learning generated for distribution as per the dissemination strategy SDRC 9.11

29/10/2018

30

Data Access Details

31

National Grid has a data sharing policy in relation to NIA/NIC projects. The purpose of this data sharing policy is to make clear how such network or consumption data can be requested by interested parties, and the terms on which such data will be made available by National Grid. It can be found in the documents section of the Project CLoCC website and here: https://www.nationalgrid.com/sites/default/files/documents/National%20Grid%20NIC%20and%20NIC%20Data%20Sharing%20Policy%20September%202017.pdf

https://www.nationalgrid.com/sites/default/files/documents/National Grid NIC and NIC Data Sharing Policy September 2017.pdf




Learning Outcomes

32

Project CLoCC has a responsibility to share learning and experiences gained throughout the project lifecycle by its core team. The objectives of project CLoCC when achieved have the potential to greatly improve the connections process for all NTS customers; as such the project’s benefits are wide reaching. During this reporting period the project has actively incorporated into our updated work programmes lessons learnt from our stakeholder day held on the 22nd February 2017. Learning from this event was comprehensively outlined in our previous progress report with more information available at www.project.com. A summary of resulting actions which are being developed by the project team are detailed in table 7.

During this reporting period Project CLoCC has been keeping our customers at the heart of our efforts. We have been working hard to ensure customers benefit from our outputs

at the earliest opportunity whilst striving to excel against our core objectives.

Stakeholder comments Project CLoCC action

NTS connections take too long & too expensive Deliver connections within 12 months & less that £1m

We’d like more predictable costs Develop a suite of standardised connections designs that will be

pre-approved and pre-appraised

We would like to be offered more services than just a Minimum Offtake Connection

Look to make filtration and metering options available

Why do I need an ROV on my connection? Review the ROV requirement for exit connections that meet our risk assessment criteria. Non-ROV solution now approved

Why is the application fee so large? Develop options for making applications through the

connections portal cheaper

More payment flexibility would be very useful Introduce the ability to phase payments

We’d like to have more information on our connection progress

Incorporate customer “status” updates into our new online customer connections platform

We need capacity and connection application processes better aligned

Incorporate the capacity process application into the new online customer connections platform

The oxygen specification for connections to the NTS is prohibitive for biomethane entry projects

Look to allow the current specification for oxygen to be assessed on a case by case basis

Table 7: Summary table of project actions taken forward following our February 2017 stakeholder event

http://www.project.com/

33

Learning Project learning is documented monthly by each workstream in their respective project manager monthly reports. This information is then actively recorded by the project manager in the format of a “lessons learnt” log which is updated monthly. Learning points highlighted will help to improve and develop the way the organisation implements further innovation. An example of recent learning by the project team is shown below:

Workstream Situation Learning Gained

Online Connections Portal

Discrepancy noted between differing mapping tools due to differing segmentation of data.

When combining mapping data from differing sources it is essential to: a) firstly ensure correct geospatial corrections are applied and, b) ensure data resolutions are consistent (e.g. frequency of point data)

Online Connections Portal

Existing site database update required at the start of stage 3

Creation of the existing site database was originally completed within stage 2 of the project, however not all project design options were fully known at this time. This item therefore required updating at the start of stage 3. Future work programmes require greater flexibility and an increased number of programme review milestones.

Technical Workstream

Industry available flow metering devices

As part of the investigation of available flow metering devices which would meet the industry standard IGEM/GM/4 requirements the project engaged with vendors to obtain product details and sizes to suit the selected flow and pressure range for a low cost connections. The technical work stream contacted four meter vendors who are on the National Grid vendor list. The lesson the project learnt from this exercise is that there are no suitable high pressure metering products for the lowest flows considered by the project, equivalent to <50mm diameter. The project therefore did not progress a 25mm metering system design for biomethane entry connections. Biomethane entry customers can learn from this by selecting their metering devices for low pressure systems prior to gas compression to NTS pressures, where there are products available.

Technical Workstream

Currently valve fabricated can involve significant transportation of items – at increased cost and time to customers.

Some valve suppliers have confirmed that welding pups to valves by the fabricator is acceptable with no impact to warranties. National Grid are considering a welding deviation which will save a significant amount of time in the fabrication process.

Commercial Workstream

Engagement essential to the success of our innovation work

Support for the direction of project CLoCC continues as noted through continuing engagement with the ENA Biomethane Network and Transmission Workgroup.


Feedback from customers on oxygen specification blocker

Project CLoCC have fed this learning back into the business resulting in project CLoCC being one of the drivers for National Grid Gas Quality Consultation which is forming future strategy.


UNC implementation Separating out UNC Modifications to achieve earlier implementation was worthwhile to ensure that customers can benefit from the non-ROV design. Solution as early as possible.

Table 8: Example of recent project learning

Learning Outcomes

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• The project is working with IGEM’s technical services department to discuss the potential of IGEM adopting CLoCC’s minimum functional specifications to make them relevant to both transmission and distribution networks. This would standardise connection designs across all network types and potentially mean a reduction in both cost and time for a customers’ gas connection to either network.

Low Carbon Networks & Innovations Conference • Exhibited at the LCNI conference for two days on 6th and 7th December • The project manager delivered a presentation to delegates on 7th December on the project

successes and learnings so far. Shale World UK Event • The project could not attend Shale World 2017 as it was cancelled. May 2018 is currently

advertised for the next Shale World event which the project aims to attend. Additional events attended • Project CLoCC presented at the EUA Network Engineering & Equipment Group meeting about

our aims, timelines and technical aspects of the project on 5th October 2017. • The project continues to attend Transmission Workgroup on a monthly basis to meet with

shippers, industry consultants and Ofgem. • ENA Biomethane Networks Meetings are attended by the project on a quarterly basis to enable

progress updates with the Distribution Networks. • The project also presented to the Gas Storage Group meeting in September 2017

Dissemination conducted by the project during this period focussed on both internal dissemination within National Grid and external with prospect customers to raise awareness widely within the industry. Dissemination carried out included:

Industry events and conferences: IGEM section events: • The project presented to over 150 IGEM members at their conference ‘Decarbonising the Gas

Network’ on 4th July 2017. • Nick Martin, part of the CLoCC team at Premtech Ltd, entered the IGEM Young Person’s Paper

Competition and was awarded first runner-up. He presented his paper about the project to IGEM members as part of the submission process.

Some members of Project CLoCC team LCNI – Dec 2017

Anne-Marie Liszczyk, Project Manager, speaking at LCNI 2017

"Collaboration is a key part of every innovation project at National Grid

and, with CLoCC, we’ve been regularly meeting and listening to

customers and stakeholders“

Anne-Marie Liszczyk, Project Manager, Project CLoCC. http://nationalgridconnecting.com/connections-simplified-project-clocc/

During this reporting period Project CLoCC has been listening and sharing knowledge with customers, ensuring that the project’s development and direction are regularly

updated to support the UK’s future unconventional gas producers.

Robert Earl, Technical Lead, presents to IGEM members at their July conference

Learning Outcomes

http://nationalgridconnecting.com/connections-simplified-project-clocc/








National Grid Internal Dissemination • Informal meetings were held and the project

presented to all the main National Grid Gas Transmission departments.

• We continue to hold monthly commercial strategy group meetings, monthly technical strategy group meetings and regular meetings with the telemetry and capacity workgroups.

• Regular articles to disseminate information about the project have featured in internal National Grid staff newsletters.

• The project is featured on the Bringing Energy to Life website, supported by a podcast being broadcast to staff

• The project developed an article for the National Grid Connecting website http://nationalgridconnecting.com/connections-simplified-project-clocc/

Specific publications which the project targeted: Gi Magazine – IGEM Gi August 2017 edition featured a significant article on Nick Martin’s IGEM Young Person’s Paper. PE (Professional Engineering) Magazine –

IMECHE We will be targeting this publication as the end of the project approaches to share information about successes and learnings with its readers Pipeline and Gas journal We will be targeting this publication as the end of the project approaches to share information about successes and learnings with its readers 35

Web-based Sharing Techniques www.projectclocc.com 836 users have visited the Project CLoCC website since 1st January 2017, generating an average of 1,200 sessions, lasting an average of 2 minutes and 39 seconds. Sources of visitors: • 40% of visitors type the web address directly

into a browser • 30% of visitors use Google to find the page • 11% find the website through links in email

newsletters • Remaining visitors find our site through

other referrals e.g. links from ng.com Over the past year, there have been several spikes in website visits, generally triggered by specific activity such as: • Stakeholder event in February 2017 • CLoCC email newsletter in May, July and

August 2017 to share project updates • Pilot customer information and invitation for

Expressions of Interest email and website update December 2017 and January 2018

• November 23rd also spiked for unknown reasons – possibly the build up to LCNI

Upcoming Dissemination CLoCC Stakeholder event We are currently planning our next stakeholder event to showcase the online customer connections platform and engage in feedback from stakeholders

Figure 9 - Google Analytics summary of the projectclocc.com website from January 2017 – January 2018 showing number of users

National Grid Operational Forums We will be attending at least one Operational Forum over the next period, to ensure information dissemination to this group of stakeholders Industry events We are liaising with industry groups for dissemination opportunities at their 2018 events International Transmission Networks Gas Transmission Benchmarking Initiative (GTBI) We have approached this group for an opportunity at their next meeting and are awaiting confirmation of our attendance. We intend to share our learnings with this influential international audience of transmission owners.

Learning Outcomes










Risk Management

36

At this stage no IP has been registered for the project and no IP is expected to be registered within the next reporting period.

The project’s risk management strategy revolves around the maintenance of a live risk register which lists the significant threats that may have an impact on the successful delivery of the project as well as identifying threat mitigation control measures. The risk register is updated when required, reviewed informally at each monthly project meeting and reviewed formally at quarterly risk management workshops. In order to help prioritise response measures each risk identified is given a score determined by the probability of occurrence multiplied by the potential severity of the impact. Scores are given for both the impact to the project’s schedule and commercial health. Mitigation actions are created for each risk and a risk owner is identified who will be responsible for monitoring the risk and implementing the mitigating actions. Project CLoCC’s steering committee have a standing arrangement to meet quarterly in order to discuss project progress against budget/work programme and project risks/issues.

Additionally, the steering committee may also be called to meet in order to support the project team with key deliverables. Escalation of project risks/issues/disputes are made to the steering committee who hold authority to aid in resolving such items. The top 3 project risks are currently: 1. Licence Process – potential risk that due

to the limited time left to agree and expedite a change to the Licence Process this will not be completed by project close.

2. Pilot customer risk to schedule – potential for the projects core schedule to be affected by the significant additional piece of work of supporting a customer pilot project.

3. Business as Usual Readiness – potential risk that National Grid may not have sufficient information to be appropriately sized (over- resourced or under-resourced) to support connection activity once CLoCC is implemented into business as usual from November 2018.

Note: The risks stated above are further elaborated within chapter 3 (Project Manager’s Report, page 22) along with other identified risks.

A comprehensive, live risk register has been established and is regularly reviewed in order to identify and monitor technical, commercial and project management risks.

Intellectual Property Rights

Accuracy Assurance Statement

37

We hereby confirm that this report represents a true, complete and accurate statement on the progress of Project CLoCC in the period 17 March 2017 – 31 January 2018 and an accurate understanding of our activities for the next reporting period.

project clocc progress report...

Documents