Network Options Assessment (NOA)
The NOA has an important role in the developing an efficient, coordinated, and economic system of electricity transmission.
- Learn about options that transmission owners have provided to meet capability requirements on Britain's electricity transmission network.
- Read about options the system operator recommends to the transmission owners to further develop for this investment year.
- Discover options that meet Ofgem's criteria for onshore competition.
- Interconnection analysis.
What NOA does
- Recommends which options and when the TOs should invest in them, so their transmission networks can manage risk in an uncertain world.
- Recommends whether TOs should delay or continue current projects to make sure they are completed at a time that will deliver the most benefit.
- Can indicate the optimum level of interconnection to other European electricity grids to maximise socio-economic welfare, based on market-driven analysis.
NOA methodology 2017/18
We have now submitted our 2017/18 NOA Methodology to Ofgem. We reviewed the fundamentals of how we perform the economic analysis of NOA which has influenced changes in this year’s methodology. These changes are covered in the 2017/18 NOA Methodology.
Long-term market and network constraint modelling
Since 2016, we have used BID3 to model European wholesale electricity markets and the GB balancing mechanism. BID3 replaced our previous market modelling tool, ELSI in order to allow us to perform our enhanced SO role in the following ways:
- More sophisticated and accurate modelling of European wholesale electricity markets, and the related market dispatch, including interconnector operations
- More sophisticated and accurate modelling of balancing mechanism and related market re-dispatch.
BID3 is retailed by Pöyry Management Consulting (www.poyry.co.uk), who have enhanced BID3 to include a Balancing Mechanism re-dispatch for Great Britain, thus allowing users to model the impact of GB transmission networks and calculate constraint costs, which we do for the purpose of Cost-Benefit Analysis in the NOA.
A report that explains why we needed to move from ELSI to a new model, why we chose BID3, what we will use the model for and how we ensured the model is the most economic and efficient solution for current and future work.
In order to improve transparency, the SO is pleased to provide an updated version of our former optimisation model ELSI. This is populated with updated scenario data. As such the user can gain valuable insight into the rationale behind investment decisions made by the SO in the data used for SO analysis. For reference, a user guide is also provided here.
Please send any comments or questions on the release of this model to [email protected].
Independent reviewer report
BID3 has been extensively benchmarked against ELSI. Two independent reviewers (Professor Keith Bell, University of Strathclyde and Dr Iain Staffell, Imperial College London) were appointed to review our development work, BID3 configuration and benchmarking.
We have also performed a backcasting exercise on the GB balancing mechanism to assure our stakeholders that BID3 can accurately depict GB balancing costs for our long term constraint forecasting. A report on this exercise can be found below which includes detailed analysis of how accurately BID3 can replicate 2015 balancing mechanism costs.
Network Development Policy 2017
As the NOA is derived from the Network Development Policy (NDP), the two methodologies are similar. We have reviewed the NDP to ensure alignment with the NOA. Having consulted on the NDP, we submitted it to Ofgem at the end of August. Aside from formally recognising the NOA delivers part of the NDP output there are no fundamental changes to the NDP.
Offshore wider works
As offshore wind projects become larger, more complex, and a greater distance from shore, there is an opportunity to improve coordination and integration of offshore transmission infrastructure. This methodology sets out a route for such projects to be taken forward. Find out more from this document.
The Methodology for the Network Options Assessment for Interconnectors (NOA IC) has been reviewed following the consultation in July 2017. Download to find out more.