2. Industrial Strategy
• 2 off the 10 pillars, upgrading infrastructure
and Delivering affordable clean energy and
growth
• 3rd pillar driving growth across the whole
country
Energy Storage Group – CST, UU
www.investni.com
3. 4
Technology and market changes support a smart
& flexible energy system
• Opportunities for
storage in delivering new
EFR
• Potential to go further
through multiservice
contracts
• Power Responsive
campaign outcomes
• Diverse business models
are emerging:
• colocation of storage
with renewables
• domestic consumer
offerings through
aggregators
• Dramatic cost reduction
of Li-ion technology –
around 14% pa from
2007-2014 and likely to
reduce further.
Comparable with drop in
solar costs
Smarter Network Storage facility,
Leighton Buzzard
4. 5
Key Enablers
BE
• Removing policy & regulatory barriers – “levelling the
playing field”.
• Using innovation to help drive down costs & optimise
performance.
• Developing supply chains.
5. 6
Enablers - Policy & Regulation: BEIS/Ofgem
Call for Evidence on Smart Energy
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/576367/Smart_Flexibility_Energy_-
_Call_for_Evidence1.pdf
•Clarify role of aggregators,
•explore the need for policy intervention and regulatory oversight,
•evaluate and address barriers to ownership and utilisation of storage
Removing barriers to
storage and DSR
•Consider ways in which we can encourage and reward consumers to offer their flexibility
(e.g. half hourly settlement, smart appliances, etc)Improving price signals
•Ensuring HMG’s innovation funding supports those areas critical to the development of a
smart energy system, including evaluating the public sector’s role in supporting smart.Catalysing innovation
• Considering what institutional and market frameworks may be required in a future
smart energy system to maximise benefits while managing the risks; and how roles
and responsibilities may need to change in light of these (e.g. from DNO to DSO).
Assessing changes to roles
& responsibilities
•Considering the costs and benefits in more detail; how much flexibility might be ‘least
regrets’; and identifying evidence gaps more broadly in this area.
Developing our analysis
and evidence base
6. 7
Enablers - Innovation
BEIS Innovation Programme:
• BEIS Innovation Programme:
Further details below. (https://www.gov.uk/guidance/funding-for-innovative-
smart-energy-systems )
Innovate UK:
• Infrastructure Competition and Catalyst Competitions;
European – H2020 funding:
• HMT has indicated that it will underwrite H2020 funding offers in place before
Brexit;
Ofgem:
• Network Infrastructure Competition & Allowance – projects led by network
operators; also plans (set out in the CfE) to introduce “innovation spaces for
experimentation”.
7. 8
Enablers - Industrial Strategy
BE
Focus on:
• R&D and Innovation, specifically including ‘Smart Energy’ – including
energy storage and smart grid technologies;
• Industrial Strategy Challenge Fund announced;
• Including £246m over 4 years for the ‘Faraday Challenge’ – “to help UK
businesses seize the opportunities presented by the transition to a low
carbon economy, to ensure the UK leads the world in the design,
development and manufacture of batteries for the electrification of
vehicles”.
More information:
https://www.gov.uk/government/news/developing-a-modern-industrial-strategy
8. 9
BEIS Energy Innovation Funding
BE
- £500m budget overall for Energy Innovation;
- Overall Energy Innovation Programme will include innovation support for the
following areas:
- Nuclear;
- Smart Energy (Government has committed at least £50m for Smart Energy
innovation over the next 4-5 years; further details of the Smart Energy
Innovation Programme overleaf),
- Built Environment;
- Industrial Efficiency (e.g. Industrial Energy Efficiency Accelerator);
- Renewables (e.g. ERANET Cofunds for OSW and Bioenergy); and
- Cross-Cutting (e.g. Energy Entrepreneurs Fund).
11. Innovate UK Infrastructure
Systems – the ‘must haves’
To be in scope, a project must clearly demonstrate step change
innovation(s) in one or more of the following areas:
• smart infrastructure
• energy
• connected transport
• urban living
You must show how your project will enable a step change in business
growth, productivity and/or drive export opportunities for at least one UK
SME involved in the project.
Projects will range in size from total project costs of £25,000 to £5 million
and must last between 3 months and 3 years.
12
12. Infrastructure Systems Energy
systems strand
• Innovations that allow to flexibly match changing energy supply and demand
profiles of the future
– must create or demonstrate smart system solutions that integrate energy generation
and demand at local, regional or national scales
– might include time-shifting methods such as storage or advanced management and
optimisation of multiple energy supply and/or demand sources to boost use and
efficiency
• not limited to electricity
• solutions that optimise across energy vectors are encouraged
The outcome should be significant improvements in value proposition, energy
affordability, security and reduced carbon emissions
Out of scope: - energy innovation that solely develops a single-generation
technology (except for offshore wind or nuclear fission)
- energy end-use efficiency, for example, in buildings, domestic appliances,
industrial processes or vehicles 13
13. Infrastructure System Event
• 6th July, Flowerfield Arts Centre, Portstewart
• Competition opens 10th July and closes 13th
Sept
• https://myini.investni.com/events/event-
details/?id=fc9bcc04-8a4a-e711-80ca-
00155d019403
Energy Storage Group – CST, UU
www.investni.com
14. InvestNI R&D support
• Identify the most appropriate funding scheme for
your project idea and research needs
• Provide advice on UK and EU funding rules,
regulations and eligibility criteria
• Assist you to find partners through KTN or EEN
• Signpost you to further specialist events and advice
• Provide product definition support for full proposal
preparation
• Provide impartial feedback on applications to other
funders
Energy Storage Group – CST, UU
www.investni.com
15. Project Definition
• Up to £15k grant, up to 50% to apply for specific competition
• Guide - 5-10% of estimated main project costs
• Internal staff time
• Consultancy
• Travel & Accommodation
• Intellectual Property, preparation of collaborative agreements
Energy Storage Group – CST, UU
www.investni.com
16. Thank you
• Richard Pelan
• 02890698632
• 07780003603
• richard.pelan@investni.com
Energy Storage Group – CST, UU
www.investni.com
Notas do Editor
Focusing for a moment on where the market is now for flexibility and storage in particular – we’re already seeing rapid changes in response to the opportunities to deliver storage from the NG EFR tender and their commitment to review multiservice contracts and with DNO seeing connection requests in excess of 19GW we are seeing a diverse range of business models coming forward, battery production at scale and a virtuous cycle with falling technology costs.
And we’re seeing a diverse range of business modesl for storage at different scales from distribution level through to models for aggregated dispatch of fleets of Evs.
And much of the recent interest has been spurred in part by dramatic cost reductions in battery technology in recent years – estimates will vary but the reductions are significant. Looking ahead, with the further scaling up of battery production for electric vehicles and in-home usage, battery costs are expected to continue to decline.
We saw some fascinating figures from Aurora on Tuesday suggesting that costs of £100/KWH for Li-ion by 2020 were not unreasonable
DECC published “Toward a Smart Energy System” on 17 December 2015 – this slide is taken from it, and sets out and starts to quantify the benefits of a smart energy system – Storage, together with the other technologies which deliver flexibility will help us to realise there potential savings.
BEIS and Ofgem are committed to energy policy that works for households and businesses. A smarter and more flexible system offers significant benefits for consumers; done right, the system will be more secure, more affordable and easier to decarbonise.
The forthcoming Call for Evidence will set out our approach to delivering these benefits and will invite views and evidence in response to our proposed approach.
Price Signals: Elective half-hourly settlements are expected for consumers from early 2017;
Government and Ofgem will consider the need for and consult further on mandatory options for half-hourly settlement.
Roles: (FPGA) Future Power Generation Architect analysis of functions (IET and Energy Systems Catapult)
Set against this market context I’d like to go through what Government is doing now – we’re working closely with Ofgem and will shortly be publishing our Call for Evidence on Smart Energy.
Our focus has been embedding smart as a key tool for ensuring security of supply and to enable and ease our transition to a low carbon system.
We want to ensure that new and existing technologies can compete on a level playing field and facilitate effective competition – whether that’s through network charging or in the arrangements for ownership of network assets.
We’re also focusing on putting the right enablers in place to allow developers to take up and realise the flexibility which could be on offer through the system via the introduction of wide spread half hourly settlements.
Alongside this focus on the markets we’re working to develop our evidence base and support innovation and research.
But central to all of this, as David made clear, is that we can’t do without partnering with industry to deliver change of this scale and at the pace required.
Not interested in small incremental solutions and innovations which have a limited commercialisation potential