1. Driving Innovation V2 140508 Localised energy systems- competition scoping workshop Christian Inglis – Lead Technologist, Energy Generation and Supply 25 th June 2013

2. Driving Innovation Technology Strategy Board – Who are we? Energy supply strategy Localised energy systems best current thinking –Enabling novel energy related services –Challenges –Enablers Questions for world cafe discussions

3. Driving Innovation What is the Technology Strategy Board? “The UK’s Innovation Agency” Set up in 2007 to invest in business-led innovation, promoting the application of science & technology £750m over 3 years (plus co-funding of over £300m from RCs, as well as other co-funders) Budget for 2011-12 to 2014-15 > £1bn Working across business, public sector, academia, regional and central government Staffed mainly from the private sector

4. Driving Innovation Innovation The successful exploitation of new ideas.

5. Driving Innovation 5 Our 5 Strategic Focus Areas Accelerating the journey - concept to commercialisation Understanding the non-linear journey and how best to support Connecting the innovation landscape Developing the strategic relationships we need in UK, EU & Int. Turning Government action into business opportunity Where Government procures, regulates, standardises... Investing in theme areas based on global potential Building a synergistic programme based on data driven choices Continuously improving organisational capability Impact assessment, metrics, measures, efficiency, effectiveness..

6. Driving Innovation The problems we are addressing Business investment is too low and too late Constrained by technical and financial risks Innovation disrupts value chains and business models New partnerships are required to build new supply chains Investment and innovation is required at multiple points Longer term trends not visible to all players Impact and opportunities from emerging technologies & policies Innovation infrastructure complex and inefficient Fragmented and difficult to navigate Government does not make best use of its levers Procurement, regulation, standardisation, fiscal incentives

7. Driving Innovation Prioritisation Is there a global market to sell into? Do we have companies in the UK capable of taking the strategy forwards? Is Technology Strategy Board support needed to take it forwards? Is the time to do it now or is it unfortunately too late or perhaps too early?

8. Driving Innovation 8 Thematic Programme Budget

9. Driving Innovation The Toolset Range of Tools with different objectives / characteristics Collaborative R&D Smart Launchpad Innovation Vouchers Feasibility studies Entrepreneur Missions Entrepreneur Missions

10. Driving Innovation V2 140508 Our energy supply strategy Creating business opportunities through addressing the ‘trilemma’ of energy security, affordability and sustainability

11. Driving Innovation What do we do in a nutshell? Create business opportunities through addressing the ‘trilemma’ of energy security, affordability and sustainability Ensure that innovative UK companies understand the opportunities created by the rapidly changing global energy system and have the help needed to develop new products and services to take advantage of those opportunities build energy sector supply chains that drive growth in the UK economy

12. Driving Innovation Grid Balancing, Management and Infrastructure £11.9m Fuel Cells and Hydrogen £29.5m (inc 7m - DECC) Offshore Renewables £25.5m (inc 5.5m - SE/NERC/RDA) Carbon Abatement £19.5m (inc 9m - DECC/RDAs) Oil & Gas £6m Nuclear Power £17m (inc 8m – NDA/DECC/EPSRC) Offshore Renewable Energy Catapult ~ £10m pa core funding (Leverage target of 2:1) Investment portfolio 2007- April 2013

13. Driving Innovation Energy supply strategy Strategy published in October 2012 Covers activities from 2012 – 2015 http://www.innovateuk.org/publications.ashx

14. Driving Innovation

15. Key business opportunity focus 2011-2015: Sustainable energy through affordable and secure sources of supply Integrate future demand and energy supply into a flexible, secure and resilient energy system Reduce emissions at point of use

16. Driving Innovation Definitions One definition of a resilient energy system...... “Resilience is the capacity of an energy system to tolerate disturbance and to continue to deliver affordable energy services to consumers. A resilient energy system can speedily recover from shocks and can provide alternative means of satisfying energy service needs in the event of changed external circumstances.”UKERC, Building a UK resilient energy system – 2009 A resilient energy system needs to deliver energy services reliably and efficiently in the light of predictable outcomes (plant outages, weather variability) also be resilient to larger scale “shocks” (interconnector down, nuclear capacity out, long, cold, still winter spell). should actively take into account the relationship across scales e.g. from smart meter to nuclear plant, to demand side management Three areas of focus to acheive a resilient energy system: diversity of supply and integration of variable supply at large scale; robust physical infrastructure (efficient transmission and distribution). lower levels of imports which imply lower levels of energy demand

17. Driving Innovation In our technology areas of Grid balancing, management and infrastructure, we will; focus on research that will develop products and services across the future grid fund R&D to underpin and build on our other Technology Strategy Board energy- related programmes use our programmes, networks and knowledge transfer activities to build the interdisciplinary collaborations required to ensure a flexible, secure and resilient energy system.

18. Driving Innovation Developing investment in localised energy systems Identified in delivery plan for 2013-2014 Community energy systems: Establish collaborations between businesses working in energy supply and energy demand at the community scale. Collaboration will be vital as community-scale innovations will be highly distributed within the energy system with the potential to significantly disrupt business models and the security and resilience of energy networks Critical to work across TSB innovation programmes as well as other innovation partners (e.g. DECC, Ofgem, ETI, etc.) to deliver a coordinated programme Building on current programmes e.g. Smart meters, smart homes, smart power distribution and demand, power electronics for resilient energy systems, buildings better connected, low carbon vehicle programme, digital

19. Driving Innovation Integrated & intelligent infrastructure services & solutions Drivers decentralised – alternate business models de-carbonised – meet carbon reduction goals improved resilience & flexibility reduce delivery & running costs Building or community scale for heating, cooling, & power generation / storage & trading Buildings Better Connected scope

20. Driving Innovation 49 applications (£1.7M) Applications Scope range: Enabling technology DC power systems Energy harvesting & storage Convenience charging Integrating LCV’s ICT as an enabler Protocol development Digital electricity Management systems Broader energy management

21. Driving Innovation Questions to explore What are the potential novel energy related services, challenges, and enablers across sectors e.g. (energy, buildings, transport and digital) that require public investment to unlock commercial opportunities in localised energy systems? With a potential ~£7-10m pot of Technology Strategy Board + other potential co-funders budget what parts of our toolkit could we deploy to deliver the best chance of overcoming these challenges and creating strong market pull? Where do we need to prioritise now?

22. Driving Innovation Novel energy related services Electric vehicle charging (e.g. Logistics) Demand side management Building management systems Electric heating (e.g. Heat pumps) Local energy trading Micro/mini grids Back up power Resilient systems as a service....other services in transport, energy, digital, built environment

23. Driving Innovation Challenges How to achieve step change solutions by combining technologies and getting to new services through innovation Energy systems development, design, integration, and standardisation Interoperability Consumer engagement Localised energy systems that combine electricity and heat generation and storage through aggregating individual technologies Sensors and communication between individual generation and storage technologies as well as larger scale infrastructure Active control of energy systems through to distribution level Data generation and security Business models that enable technologies and systems to be used effectively in terms of energy trading Linkage to transport and built environment sectors through e.g. electric vehicle charging to the grid, better connected buildings, demand side management, reuse of batteries for localised energy Creating demand for localised energy systems How to bring multiple sectors together (energy, built environment, transport, communications, digital).....Not an exhaustive list

24. Driving Innovation Enablers Business models Integration of distributed generation Network monitoring data Active network management Network monitoring solutions Integration of energy storage DC systems Home hub (e.g. Home area networks) Control – smart appliances, auxillary switching, microgeneration Virtual power plants...other enablers in transport, energy, digital, built environment

25. Driving Innovation This is how we prioritise at TSB Four questions we need to ask ourselves when developing an investment scenario Is there a global market to sell into? Do we have companies in the UK capable of taking the innovation forwards? Is Technology Strategy Board support needed to take it forwards? Is the time to do it now or is it unfortunately too late or perhaps too early?

26. Driving Innovation Questions to help us on competition scoping What novel energy related services can be delivered in your sector? What are the challenges to delivering these systems? (Focus of world cafe discussions) What are the enablers to delivering these systems? What types of partners might be needed? What does a great project look like? e.g. Structure, outputs, timing?

27. Driving Innovation V2 140508 Closing remarks and current opportunities

28. Driving Innovation Draft timeline Competition (subject to internal approval) opening December 2013/January 2014, – Briefing and collaboration building events November 2013 –Scoping workshops June 25 th, Belfast July 8 th, Glasgow July 17 th, London Decisions on scope and toolset, end of July for internal TSB process Parallel _connect community development and scoping input when new platform launches Consortium building events in November, watch the _connect space Start of a programme, not going to fix everything with this competition

29. Driving Innovation V2 140508 Current opportunities

30. Entrepreneur Missions partnered by TSB and UKTI Investment and strategic partnership opportunities FOCUSING ON Customer, partner and supplier opportunities

31. Benefits to Mission Companies ACCELERATE AMBITION AND ABILITY TO DO BUSINESS OVERSEAS CONNECTIONS & PROFILE Customer Partners & Suppliers Government Leading Conference Investors Press & PR Trade Organisations CONNECTIONS & PROFILE Customer Partners & Suppliers Government Leading Conference Investors Press & PR Trade Organisations MARKET-LED KNOW-HOW Major Corporates Disruptors and Challengers Incubators and Accelerators Expert Support Academic Pioneers MARKET-LED KNOW-HOW Major Corporates Disruptors and Challengers Incubators and Accelerators Expert Support Academic Pioneers INSIGHT & INSPIRATION Mission VIPS Innovation Immersion Ecosystem Innovators Entrepreneurs Networks INSIGHT & INSPIRATION Mission VIPS Innovation Immersion Ecosystem Innovators Entrepreneurs Networks

32. We’re looking for 20 early stage UK companies for each mission offering innovative solutions in:- Water and waste water Solid Waste Bioenergy, wind & solar Buildings Future Cities Agriculture & Forestry Smart Grid Energy Storage System Integration Buildings Transport Solar & Wind

33. www.cleanandcoolmission.com @cleanandcool Mission Dates: Oct 30 to Nov 7 Competition Opens : 3 June Competition Closes: 31July Mission Dates: Nov 30 to Oct 7 Competition Opens : 20 May Competition Closes: 1 July

34. Driving Innovation TSB energy strategy Energy underpins every aspect of our lives The energy system needs major change to address the energy trilemma This leads to a focus on: –Decarbonising electricity generation and supply –Integrating future demand and energy supply into a secure and resilient energy system –Reducing emissions at point of use We believe that responding to this provides opportunities for UK business Secure Affordable Sustainable

35. Driving Innovation Emerging Energy Technologies Aim is to support companies developing technologies that could transform the UK energy sector –Preference for technologies that currently fall outside core TSB energy programme activities Technologies must have reached ‘proof of principle/TRL3 –Viability shown via numerical simulation or laboratory test –Not yet reached prototype or early production stage. Must fall within one of the focus areas –Integration of energy storage into energy system –Novel low-carbon heat technologies –Novel thermodynamic cycles –Innovations that deliver a step change in cost/performance

36. Driving Innovation Summer 2013 Competition Up to £3m of funding is available for feasibility studies –RCUK Energy Programme is providing up £1m co-funding Projects must be led by a company –May be from a single company or a collaboration –No more than 50% of the funding for an individual project will go to partners from academic research organisations Typical total project size likely to be £100 - £200k. Feasibility studies can attract up to 75% funding. –Projects must be prior to industrial research Maximum project duration: 12 months. Open for application now, registration deadline 17 th July

37. Community Energy Call for Evidence The Department of Energy and Climate Change (DECC) is developing a Community Energy Strategy To inform the strategy, DECC has launched a Call for Evidence The Call for Evidence runs from 6 June until 1 August 2013 DECC is seeking evidence from any organisation with an interest in community energy on a range of topics e.g. the technical potential, the benefits for communities and business models for community-led energy projects https://www.gov.uk/government/consultations/community-energy-call-for-evidence

38. Driving Innovation Christian Inglis Background –Business: Johnson Matthey Ceramics, Rio Tinto Minerals – 2000 to 2007 –Joined materials team at TSB in 2007, joined energy team in 2012 –Academic: BEng,Materials Science and Engineering at Surrey University – 2000 Responsibilities –Grid balancing, management and infrastructure –next generation solar –localised energy systems Contact details: e: christian.inglis@tsb.gov.ukchristian.inglis@tsb.gov.uk m: 07824599792 Twitter: @energytechstrat