OREANDA-NEWS. December 20, 2012. Scottish Hydro Electric Power Distribution (SHEPD), the company that owns and operates the power distribution system in the North of Scotland, is to identify zones where it could introduce a new ‘smart grid’ system.

Following the success of its Active Network Management scheme in Orkney, which has allowed many small and medium sized generators to connect to the island’s busy power network, the Perth-based company will be assessing every region in the north of Scotland to decide which zones could benefit from a similar scheme.

Active Network Management (ANM) schemes work by using advanced IT systems to balance energy flows, which allows more capacity to be freed up in areas where the grid has no permanent spare capacity. This means there is more opportunity for small and medium sized electricity generators to connect to the electrical network.

Generators who secure connections in an ANM zone will be able to connect their developments to the distribution network more quickly and potentially at lower cost. Their connection, which would be based on those successfully introduced in Orkney, would differ from ‘traditional’ connections in that it would be ‘managed’ meaning that at times when the grid is particularly busy, they would be prevented from generating.

SHEPD anticipate that their work to identify suitable zones, which will be undertaken transparently and in consultation with stakeholders, will take several months. The company hopes to announce the potential ANM zones in early summer 2013. SHEPD will also work to introduce arrangements for ensuring there is a simple and fair process for generators to secure a managed connection to the ANM.

The suitability of an area to be an ANM zone depends on a number of factors, including the nature of energy flows on the existing network, the availability of a suitable telecoms link and the percentage of time when the generators could export electricity to the network.

SHEPD Director of Distribution Stuart Hogarth said:

“Identifying the first zones suitable for Scotland’s first ‘business as usual’ ANM schemes is another step towards us being able to provide generators in the north of Scotland with quick, lower cost connections to the distribution network. That’s important for both the communities aiming to develop green energy schemes, and for our country’s carbon reduction targets.”