IDNO benefits for new electric vehicle charging hubs
In this short interview Stewart Dawson, Managing Director of Vattenfall IDNO, explains how working with an IDNO for new and upgraded grid connections can benefit owners of new ev fleet charging hubs.
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Please see the transcript of the video below:
What is an IDNO?
An IDNO is an Independent Distribution Network Operator (IDNO). A number of years ago, the government brought in more competition within the distribution business, and they formed Independent Distribution Network Operators. What we can do is, the local DNO works within its geographical area (read more about DNO areas), the Independent Distribution Network Operator can operate across the whole of the UK, so it's to bring in greater competition. So you as a customer, when you go to get a new connection or a new supply for your house or your building or your property, you don't have to just go to the local DNO which is historically what would have happened, you can actually go out to the marketplace and you can get a better value for your network.
Normally when people would go to their local DNO, they would get a design and a price for doing the work etc. but now they've got an option. They don't have to just go to their local DNO, they can go out to the marketplace, to a number of IDNOs and get a value back for the assets.
What is an Asset Adoption Value payment?
Well, that's the mechanism that the IDNOs use to buy the network. So typically, you would go to the local DNO who would do a design and a cost for that network and you would pay them. They would build it, they would own and operate it. You come out to the independent network operators, they can help by being involved right from the very start getting involved with the design, and then build the network, and how the asset adoption value is generated is through the use of the system. So the IDNO, just like the DNOs, have to submit their charging methodology statements to the regulator, Ofgem, to be approved. Once those are approved, that's the mechanism we use to calculate what we call an asset adoption value, and that's the value that we will pay to take ownership and operate those assets going forward. So you would pay your local DNO or you come out to the IDNO market, and the IDNO will actually give you money back. So you get cash back for the IDNO taking on the ownership of those assets. The IDNO is regulated, and it has the same responsibilities to you as a customer as keeping your lights on, keeping the supply, making sure the network is up to standard, and making sure that you've got the right capacity for your electric vehicle charging hub network.
When in the development process is the Asset Adoption Value paid back to the developer or the owner of a new electric vehicle charging hub?
Well, the asset adoption value is once the network's been built, and one of the things we do is we make sure we go out to check that the network has been built to our standards. And then you've got a supplier, the metres are installed. Once the site's energised, we then pay you the asset adoption value that we've agreed at the start of the project. So it's upon energisation.
So an Asset Adoption Value payment can help subsidise the cost of a new development, which involves a large grid connection?
Yes. But as I said, we like to be involved right at the very start, because we want to make sure that when you design the network or you appoint a designer, the design is fit for purpose now, ie. you're going to put in ten rapid vehicle charging points, but your plan is for two, three, four years down the line to double that. Well, we want to be involved right at the start to make sure that the network you want for the future aligns with your strategy. Because what you don't want to do is put in a network now and three or four years down the line, you have to upgrade that network. So working with you as your partner, we can look at your strategy, look at your network requirements now, look at your network requirements in the future, and then make sure the design of the network is capable of delivering what you want now and in the future. It's about working together and delivering the right value for the clients.