Distribution Network Options Assessment (DNOA) Methodology Consultation

The Distribution Network Options Assessment (DNOA) methodology is part of our DSO Strategic Network Planning approach to network investment which aims to provide the capacity needed to deliver Net Zero by 2050 while retaining a clear focus on safety and reliability.

We are committed to annually review our DNOA process and to consult stakeholders on the proposed methodology. Our DNOA methodology aims to enhance industry transparency by outlining our decisions to meet future capacity needs across our licence areas. The methodology encompasses:

• Ensuring transparency: our approach to providing transparency and visibility of our decisions to our stakeholders, while adopting clear operational separation between our DSO and DNO functions.
• Forecasting through DFES: our investment decisions are informed by the Distribution Future Energy Scenarios (DFES), offering a forward-looking perspective to stakeholders.
• Long-term strategic view: we go beyond the industry standard 5-10 year view of network needs provided in network development plans, considering future system needs up to 2050.
• Cost-benefit analysis: our proposed method involves using various tools to compare the costs and benefits of strategic investment options. This includes considering the socio-economic benefits of connecting customers earlier than required without delays, in tandem with the use of flexibility.

The DNOA methodology establishes an open and transparent decision-making process, signalling opportunity for Distributed Energy Resources (DER) and other flexibility providers to meet our forecast needs. This process ensures that decisions are made that optimise stakeholder value and emphasises energy efficiency. This iterative process is subject to annual renewal. We will be incorporating stakeholder feedback and lessons learned from conflict resolution. We remain vigilant in monitoring the industry’s maturity, drawing insights from other DSOs and the National Energy System Operator (NESO).

To accompany this consultation, we are also hosting a webinar on 26th February 10:00 - 11:00.  Registration is via this link.