1. Combined Heat
and Power
How it can benefit your business
Stephen Newman - Head of On-Site Generation Sales

2. Agenda
1. Our energy solutions
2. Combined Heat and Power (CHP) – What is it and how does it work?
3. Applications

3. At E.ON we specialise in integrated energy
solutions for customers in business and industry, as
well as in the public sector.
We offer tailor-made solutions in the areas of
energy efficiency, decentralised energy generation,
flexibility, virtual power plants and battery storage.
Annual sales [in million] > €360
Employees [FTE] > 740
Offices across France,
Germany, Italy, UK and Russia
21
One provider for all energy
services

4. Our energy solutions

5. Energy efficiency and well being:
• Remote control and optimisation
of site assets for efficiency and
comfort
• Data transparency and data
analytics
• E.ON propriety products for
lighting with integrated intelligent
controls
• Integration of building’s primary
systems such as fire, security
and access
Flexibility and resilience:
• Cost avoidance utilising onsite
generation assets
• Income generation through
participation in demand side
response mechanisms utilising all
assets
Generation:
• Heating and cooling
• Remote operation and maintenance
• Design, installation and financing
options
• Electricity supply backed by
Renewable Energy Guarantee of
Origin (REGO)
Operation and maintenance:
• 25 year O&M contract
• Performance guarantees
• Retrofit latest technology 5-10
years following construction
What an E.ON approach can look like

6. Industries
Chemicals
Fast moving consumer goods
Financial services
Goods
Healthcare
Manufacturing
Public sector
Pulp and paper industry
Retailing
Technology, media and telecommunications
Our customers

7. Guaranteed
savings and
financing
Track record
and reliability
Intelligent
solutions
Independence International
presence
We underwrite
identified energy
savings potential.
We’ll finance the
investments
necessary to make
our solutions
happen.
We’re a system
integrator –
technology agnostic
and not affiliated to
any OEM.
We leverage
cutting-edge
technology in order
to develop the best
solution, always
focusing on our
customers’
individual business
case.
We can serve our
customers’ facilities
internationally.
We have a track
record of delivering
on our promises,
and are a strong
partner being part
of a major
international energy
company.
Why customers choose us

8. Combined Heat and
Power (CHP)

9. • Electricity costs are rising.
• The graph shows the
commodity costs (blue)
and the non-commodity
costs.
• The non-commodity costs
are driving up all costs.
• Generation on-site can
avoid these costs.
• CHP is a form of on-site
generation that provides
these electricity cost
saving benefits while also
providing heat for your
business.
Why would you be interested in CHP ?

10. Industry
forecast for an
accelerating
power to gas
price Spark
Gap
Gas supply
More robust supply network – was
sized to deliver a larger capacity.
Limited non-commodity cost.
Increased local supply.
Government approval of Fracking
beginning of October 2016.
Increase in import infrastructure –
Ineos first ‘New Fleet’ shipment
arrived in Grangemouth.
Electricity supply
UK Energy Market reform.
Under investment in the power
grid and an acceleration of
de-carbonisation.
Material increase in the power
supply non-commodity cost.
Risk of supply continuity –
generation capacity.
Time of day pricing driven by
demand.
What are the drivers?

11. Typical 10-20% savings if the
demand profile represents a good
match.
Co-generation

12. No mechanical generator.
Chemical reaction produces
electricity.
Output range from 0.4MW to
3.7MW.
Can produce low temperature
hot water (LTHW) or steam.
An absorption chiller can also
use generated heat in cooling
applications such as air
conditioning and water chilling.
Fuel Cell

13. We deliver lifetime energy and operating cost savings to our customers.
Our business model – how does it work?

14. Item E.ON Customer Comment
Asset installation  Design, select and build replacement equipment
Project capital investment  E.ON self-funded. No SPV required
Asset ownership  Technology risk and title of assets
Energy Centre 
Client grant E.ON a license or lease for the plant area (co-
terminus with contract term)
Lifecycle and all
maintenance/service costs

Including for replacement engines, major overhaul, boilers,
manufacturers service regime etc.
Price  Fixed output related fee in p/kWh – long term certainty
Accounting treatment 
Determination of off or on balance sheet (to be confirmed and
approved by customer auditor)
Revenue streams  Manage, reconcile and collect all revenue streams
Price indexation  None on output but 2% on O&M
Cost saving guarantee 
E.ON compensates if agreed savings are not achieved – gain
share in case of over performance
Commercial proposal – key components

15. Commercial proposal – key components
Item E.ON Customer Comment
Operating Regime, optimisation and
maintenance
 Remote and field based engineers (E.ON in-house)
Output  Produce output (power and LTHW) to meet agreed volumes
Minimum annual consumption for
site
 Baseline consumption of power – ‘take or pay’
Export Revenue n/a n/a No export forecasted
Balance of site energy requirements 
All other energy over and above that generated by E.ON
procured by customer
Contract  15 year term. Direct with E.ON
Input fuel 
Gas procured by client at best market value
E.ON can help secure long-term supply contracts to lock down
costs

16. This is an output-based contract.
We’ll design, build, fund and operate the assets.
The assets are owned and controlled by us.
Client will pay for power production – no production, no pay.
First phase of the engagement.
Contract summary

17. The priority stack
Are you able to commit to a long term contract? Not everyone can/will.
Off/on balance sheet – how does this need to work and what are the principle
hurdles? We can help structure the contract to enable compliance.
Existing asset value. Implications to profit and loss.
Budgets or accruals for replacement plant.
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Client considerations

18. Cost reductions and future costs avoided (e.g. maintenance and engine
replacement).
Increased protection from future electricity cost fluctuation – generating own power
equates to forward-cost certainty.
Reduction in reliance on power supplied by the grid (energy security).
Increase in LTHW resilience.
E.ON provide funding. Client retain capital to invest in core business.
Energy partnership – work together on energy optimisation beyond that of the
current scheme (battery, PV and other energy solutions).
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Project benefits

19. Applications

20. Our customer
International flexible packaging company, head-quartered in
Italy, with 14 sites worldwide; energy cost account for over
5% of annual sales.
Our solution
At Goglio’s Daverio plant, we built, own and operate:
A 4.4 MW gas-fired CHP
A 1.6 MW absorption cooler
A heat recovery steam generator (1.5 MW)
Two auxiliary boilers (10 MW and 15MW)
We generate 30 GWh power, 60 GWh heat and cooling
annually.
We guarantee availability and provide 24/7 remote operation
and maintenance from our RCC. 20.04.2017 20
Annual CO2
savings of 6,300 t
25% reduction of
energy cost1
1 Saving refers to total
annual energy cost of the
Daverio plant
Goglio

21. Our customer
Italian leading player in the Food & Beverage industry and the
largest Italian-owned agro-industrial group, with 13 production
plants in Italy, two in France, one in Chile, two in Brazil and
one in New Zealand.
Our solution
14 MW of CHP fully managed by us:
We bought out the existing CHP portfolio operating in four
production sites and optimise energy-consuming and
energy-generating equipment and systems.
We additionally built, own and operate a 3.3 MW CHP at
Usmate Velate plant in Northern Italy.
20.04.2017 21
This outsourcing
model enables
Granarolo to fully
focus on its core
business – whilst
we take care of
installing,
operating and
optimising the
energy assets.
Granarolo

22. Our customer
International retailing company METRO is working
systematically to use less energy and enhance energy
efficiency across its business.
Our solution
We design, finance, install as well as operate and maintain
gas fired combined heat and power plants.
Containerized installation of 2 x 250 kWel CHP units.
Heat storage to decouple power from heat.
Full Service Contract incl. operation, maintenance and 24 x7
x 52 remote control.
20.04.2017 22
Annual CO2
savings of 800 t
15% reduction of
energy cost
METRO Cash & Carry

23. Our customer
Multinational producer of healthcare & hygiene products was
looking for an energy partner to reduce energy costs for
several sites worldwide.
Our solution
“Build, Own, Operate Model”, taking full responsibility of the
investment and management of the power plant, ensuring
power and steam supply for the operations of the
manufacturing site.
Outdoor installation of an 1.4 MW CHP unit.
Installation of a new auxiliary boiler (3 MWth).
20.04.2017 23
Annual CO2
savings of 4,300 t
20% reduction of
energy cost
Reckitt Benckiser

24. Find out more at eonenergy.com/solutions or call 0330 400 1102
or find us on LinkedIn
Thank you