Page 18 - Gi February 2022
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Executive summary
                 Timelines
                 The first timeline the project created was a target driven
                                                                                   throughout 2022 and 2023 to deliver the change
                                                  timeline, the project also created a second timeline called
                 timeline related to the date set-out in the 2020 BEIS Energy
                 White Paper to enable hydrogen blending by 2023.    In contrast to the target driven nature of the target 2023   industry engagement and collaboration taking place
                                                  Sustained Progress. This timeline shows steady progress
                                                                                   required.
                 The ‘Target 2023’ timeline showcases that whilst there    with pre-work still being undertaken but highlights how
                 are uncertainties and unknowns, with the right level of    the uncertainties related to certain change activities could   Both timelines and the details related to each change
                 collaboration, engagement, and coordination it would    extend timelines. The Sustained Progress timeline still results   activity can be found within the full report.
                 be possible to enact gas market change at an accelerated   in all the market frameworks being updated by the end of
                 pace to meet the 2023 target. It is important to highlight   2024 to enable blending, with residual system change
                 special delivery: britain’s hydrogen blending delivery plan
                                                  being completed in 2025. This timeline still showcases
                 that this timeline is driven by the government target and
                 there is uncertainty regarding the volume of physical
                 hydrogen production that will be available to be
                 connected to the networks in 2023.
                 on the most suitable parts of the   TARGET 2023 MARKET PILLAR TIMELINE
                                                  Target 2023 Market Pillar Timeline
                 network, considering a number of
                 A key reason why the 2023 target could be met was the
                 potential factors, including where   Pillar         2021          2022                2023
                 concept of undertaking informal pre-work before a final
                 policy decision is taken on whether to go forward with
                 would maximise hydrogen blending                  Q3   Q4   Q1  Q2   Q3   Q4   Q1   Q2  Q3   Q4
                 network blending. This final policy decision is expected
                 volumes and where on the network   Primary Legislation  Legislative Position (inc. CBA)
                 from BEIS in 2023. The Market Pillar timeline below
                 would allow efficient control and
                 shows how the interaction between the informal and
                 formal processes could deliver accelerated change to
                 operation of blends.              Regulation (Billing)     Informal        Formal
                 meet the government target. The pre-work would need
                 to be undertaken in a collaborative way to build industry
                   Free Market Approach
                 consensus to expedite formal process timescales. It should   Licence  Informal           Formal
                 also be noted that the pre-work shown would have to be
                 The Free Market Approach mimics the
                 completed ‘at risk’ (i.e. before the formal policy decision
                 existing arrangements for connections   Code (UNC)  Informal                       Formal
                 is taken).This risk could reduce the willingness of industry
                 to the gas networks and would let the
                 parties to engage.
                 market decide where to inject hydrogen   Safety (GS(M)R)            Formal
                 into the network, with the hydrogen
                 capacity being made available on a
                 “first come, first served” basis.  the end of 2024 to enable blending,   that change is undertaken in parallel
                                                  with residual system change being   and there is clear communication
                 6   ENA | GAS GOES GREEN  | BRITAIN’S HYDROGEN BLENDING DELIVERY PL AN
                 TIMELINES                        completed in 2025. This timeline still   across the different work streams.
                 The first timeline the project created   showcases industry engagement and
                 was a target-driven timeline related   collaboration taking place throughout   Need for industry collaboration
                 to the date set out in the 2020 BEIS   2022 and 2023 to deliver the change  4  and engagement before final policy
                 Energy White Paper to enable hydrogen   required. Both timelines and the details   decision is made. If the industry waits
                 blending by 2023. The Target 2023   related to each change activity can be   until a formal policy decision is made
                 timeline showcases that whilst there are   found within the full report.  before starting to try and answer some
                 uncertainties and unknowns, with the                              of the outstanding questions related to
                 right level of collaboration, engagement,   It is important to highlight   blending, it will delay the implementation
                 and coordination it would be possible   that this timeline is driven by   of network blending. It is vital that those
                 to enact gas market change at an                                  parties who are responsible for leading
                 accelerated pace to meet the 2023 target.  the government target and   market change activities undertake
                   It is important to highlight that this   there is uncertainty regarding   collaborative pre-work to ensure the
                 timeline is driven by the government   the volume of physical     relevant market changes are completed
                 target and there is uncertainty regarding                         in a clear and ordered way.
                 the volume of physical hydrogen   hydrogen production that will
                 production that will be available to be   be available to be connected   Implement quick-win system
                 connected to the networks in 2023. A key   to the networks in 2023  5  solutions first. Central IT systems
                 reason why the 2023 target could be met                           cannot be a barrier to innovation
                 was the concept of undertaking informal                           and change. Engaging with service
                 pre-work before a final policy decision   CONCLUSIONS             providers at the earliest opportunity
                 is taken on whether to go forward with   The key project conclusions are   and implementing the quick wins in the
                 network blending.                summed up below and the complete   first instance would reduce the potential
                   This final policy decision is expected   suite of recommendations can be found   risk of IT system change delaying the
                 from BEIS in 2023. The Market Pillar   within the full report.    rollout of hydrogen network blending.
                 timeline shows how the interaction   2023 is an ambitious yet achievable   The impacts on third party systems also
                 between the informal and formal   1target. The Target 2023 timeline   need to be considered when developing
                 processes could deliver accelerated   showcases how the 2023 date for   quick-win system solutions to ensure
                 change to meet the government    market framework change can be met,   the industry has time to complete their
                 target. The pre-work would need to be   through a route of minimum viable   necessary changes.
                 undertaken in a collaborative way to   change to deliver blending.
                 build industry consensus to expedite                                Stakeholders’ views are very important
                 formal process timescales. It should also   Early policy clarity can accelerate   to the Gas Goes Green programme as
                 be noted that the pre-work shown would  2  change. With minimal infrastructure   they can help shape and enhance future
                 have to be completed ‘at risk’ (i.e., before   changes required to enable blending the   deliverables. If you would like to discuss
                 the formal policy decision is taken).   earlier policy clarity can be provided,   any aspect of this project or find out how
                 This risk could reduce the willingness of   the more it de-risks industry parties, the   you can get involved in the wider Gas Goes
                 industry parties to engage.      more it will drive up engagement and   Green programme, please contact ENA at
                   In contrast to the target driven   collaboration and the quicker formal   gasgoesgreen@energynetworks.org. Read
                 nature of the Target 2023 timeline,   change processes can commence.   the full report at www.energynetworks.org.
                 the project also created a second
                 timeline called Sustained Progress.   Delivery of the timeline requires
                 This timeline shows steady progress  3  centralised coordination of change
                 with pre-work still being undertaken,   plans. Robust coordination from a
                 but highlights how the uncertainties   centralised body of change plans from
                 related to certain change activities   across the blending value stream would
                 could extend timelines. The Sustained   remove the risk of piecemeal change
                 Progress timeline still results in all the   and ensure the change is delivered in a
                 market frameworks being updated by   coherent and structured way. It is vital
                                                                                               BRITAIN’S HYDROGEN
                                                                                                BLENDING
                                                                                               DELIVERY PLAN
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