The current net-zero landscape for I&C customers

1. CF PATHWAYS
The decentralisation of the energy system is creating opportunities
and challenges for I&C customers on the pathway to Net Zero
Digital platforms will be critical to deliver on customers’ needs in a decentralised power market
Historical centralised grid Today’s decentralised grid
Increased demand
for behind- and
front-of-meter
balancing
Future neural network
Energy storage and
EV charging
infrastructure as
growth segments
C&I as major
growth segment
Renewable
s
Blockcha
in
Storage
Big Data
and AI
EV Charging
Stations
Electric
Buses
Machine
Learnin
g
Flexible
Generatio
n
Demand
response
EV
Smart
Meters
Growing deand to
balance
intermittent power
flows
Increase in renewables
and volatility
Pressures to meet Net
Zero targets
Rising cost of carbon

2. CF PATHWAYS
Increased intermittency and power system needs for flexibility creates an imperative
for tech-enabled suppliers to match consumer demand with grid profiles
Low renewable out
High renewable output
• Tuesday April 21st 2020
• Sunny and windy weather
• Friday 8th January 2021
• Cold weather and high demand
Opportunity to
increase consumption
Opportunity to decrease
consumption
<£0
MWh
£4000
MWh
Demand profiles can
be optimised using
real-time market and
asset data
Tech-Enabled
Supplier
Increase in renewables
and volatility
Growing demand to
balance power flows
Demand for real-
time data &
transparency
Pressures to meet Net
Zero targets
Rising cost of carbon
High-Voltage EV Charger
Major Refrigeration Unit

3. CF PATHWAYS
0
10
20
30
40
50
60
70
80
90
100
110
2016 2018 2020 2022 2024 2026 2028 2030
As industrial groups are pressured to meet CO2 compliance standards, the fully-
loaded price of energy will increase and create more demand to offset emissions
Size of Global Carbon Markets (€bn) Historical and Forecast European Union Allowance (EUA) Price (€/tonne)
2020:
€229bn
2
26
201
11
39
2015:
€50bn
Source: Bloomberg; BNEF; ICE; Carbon Pulse
Phase 4 introduces a cap which
will decrease each year by 2.2%
with CO2 prices expected to rise
materially as a result
EU to cut total
emissions by
55% compared
to 1990 levels
The EU Emissions Trading Scheme (ETS) will be the policy
tool used to drive decarbonisation
BNEF
projections
Pressures to meet Net
Zero targets
Rising cost of
carbon
Demand for real-time
data & transparency
Increase in renewables
and volatility
Growing demand to
balance power flows
Rising cost of
carbon

4. Market shifts have
created more complex
procurement, with
more acute focus &
direction from the
Board of Directors
I&C customers’ energy procurement strategies and decision-making have
been elevated from Treasury to the Board of Directors

5. In today’s fragmented market, few participants have full capabilities to manage the
range of commercial customer needs

6. CF PATHWAYS 6
Increase in renewables
and volatility
Growing demand to
balance power flows
Demand for real-
time data &
transparency
Pressures to meet Net
Zero targets
Rising cost of carbon
…which can deliver
I&C customer-centric
physical & financial
net zero solutions
Ancillary
Services &
Capacity
Markets
Financial
hedging
solutions
Physical
hedging
solutions
Energy
Supply
PPAs
Imbalance
management
Customer portal
with market access
Carbon solutions
Digital
platform
Stay tuned: we are beginning to see technology-enabled solutions
platforms…