This report provides information on how National Grid, in its role as System Operator (SO), undertakes its long-term electricity market and network constraint modelling. In 2016 the SO transitioned from using a tool developed in-house, named ELSI (Electricity Scenario Illustrator), to a model procured externally, for developing long-term constraint forecasts of the network, which informs continuing investment decisions. This new model is called BID3.
As part of the Integrated Transmission Planning and Regulation Project (ITPR), the SO is required to provide significantly greater in depth economic analysis of the electricity network and capacity developments. In addition we are also obliged to undertake independent cost benefit assessments of network reinforcement options as part of the ‘Needs Cases for Strategic Wider Works’ submissions to Ofgem led by different transmission owners and on a GB wide basis as part of the new licence obligation regarding production of the Network Options Assessment(NOA).
The NOA’s purpose is to make recommendations to the Transmission Owners (TOs) across Great Britain as to which projects to proceed with to meet the future network requirements as defined in the Electricity Ten Year Statement (ETYS). Further to ITPR, we have existing obligations under Electricity Market Reform (EMR) to undertake analysis and reporting to HM Government’s Department for Business, Energy and Industrial Strategy (BEIS) on de-rating
This report explains: