1. SPACE AND WATER HEATING SYSTEM SMART RENEWABLE ENERGY STORAGE NEIL STEWART MANAGING DIRECTOR DIMPLEX RENEWABLES

2. COMPANY BACKGROUND Founded in 1973 The worlds largest electrical heating business Holds significant market positions in the domestic appliance markets Operates through 33 autonomous businesses throughout the world Employs c10,000 people Annual turnover $2bn Privately owned – finances expansion from its own resources Investment in brand building and constant product innovation are cornerstones of the Groups success

3. INVESTMENT IN LOW CARBON TECHNOLOGY PORTADOWN Smart Grid Enabled Thermal Energy Store Manufacturing R&D Laboratory focused on integrated solar thermal, water heating and space heating solutions NEWRY State of the art heat pump manufacturing facility DUNLEER R&D Laboratory for heat pumps, solar PV, SmartRad and HEM solutions SmartRad Manufacturing facility

4. Transport, Industry, Other, 50% Domestic and Service Sector Buildings, 50% 36% of all primary energy is used for space and water heating in buildings Source: DECC/UK National Statistics 56% 29% 15% Water Heating Lighting and Appliances Space Heating PRIMARY ENERGY CONSUMPTION UK 2010

5. ELECTRIC HEATING ON THE GRID UK Grid on 7 December 2010 Electric Thermal Storage consumes more than 20% of all UK electricity today Making this 13GW connected load flexible provides substantial grid benefits Increased Renewable Energy Penetration Frequency response Ramping Intra-day load shifting Avoidance of grid and standby generation investment Actual - With electric thermal storageEstimated - Without electric thermal storage

6. DECARBONISATION OF ELECTRICITY RENEWABLE PENETRATION IS GROWING All-Ireland-November 2011 Non-Wind Generation Wind Generation MW Share Non-Wind % Wind % Time 5000 4000 3000 2000 1000 0 100% 75% 50% 25% 0 50% Limit On grid Source: Eirgrid 24% wind in November

7. EXPECTED RENEWABLES GENERATION 2020 Sources: DUKES (DECC, 2012), UK Renewable Energy Roadmap (DECC, 2009), UK National Renewable Energy Action Plan (2009)

8. GLEN DIMPLEX LOW CARBON SOLUTIONS Solar Thermal Water Heating Solar PV Electricity Generation Ground source, air source and water source heat pumps Low temperature Smart Radiators Mechanical Ventilation and Heat Recovery Systems Thermal storage space and water heaters Automated Home Energy Management Systems

9. DIMPLEX HEAT PUMPS Essential Requirements: High efficiency products Properly specified systems Fully trained installers Can Deliver Today: Running costs @ 50% of oil heating equivalent Carbon reduction of 60% compared to oil heating Ongoing Development: Storage of energy to avoid electricity peak demand periods (DECC funded R&D project) Integration with micro-generation of renewables including PV and wind to provide integrated on- site heating and cooling solutions

10. HEAT PUMP ENERGY TRANSFER Renewable Generation Conventional Generation 30% + 70% = 100% GRID AIR, GROUND OR WATER 80% + Renewable

11. SMART SPACE AND WATER HEATING Enhanced User Control and Comfort Increased efficiency and reduced heating bills Future proofed for new ToU tariffs when introduced Allows Demand Side Management and Smart Grid interoperability

12. QUANTUM ENERGY TRANSFER Renewable Generation Conventional Generation GRID 70% + Renewable Quantum is programmed to take its energy at off-peak times and when renewable penetration is high. Much lower energy carbon intensity than grid average

13. COMPARISON OF STATIC STORAGE HEATER AND QUANTUM RADIATOR 20% + reduction in overall energy consumption Highly insulated core reduces static losses By more than 70% Verified 22% energy saving 27% running cost reduction by using more off-peak energy

14. RENEWABLE ENERGY STORAGE SYSTEM GenerationTransmission and Distribution SupplyDistributed Generation and Energy Storage System Operator Ancillary Services Market Wholesale Electricity Market Energy Efficiency Fuel Poverty Carbon Reduction

15. GREEN WAY PROJECT - DUBLIN System Configuration Quantum Hubs Up to 32 Appliances / Hub RF @ 868MHz Dimplex Server Quantum Heaters GPRS Apartment 1 Quantum Heaters Apartment 2 Quantum Heaters Apartment 3 150 Apartments with 360 Quantum Heaters Installed In association with Eirgrid, Electric Ireland, SSE, SEAI and local government

16. GREEN WAY PROJECT - DUBLIN Remote Control & Monitoringwww.dimplexquantum.com Full remote two-way communications in place Can alter charge patterns by selected groups of appliances Evaluating grid service capabilities of Quantum System Will feed into market mechanisms to reward energy storage

17. DIMPLEX QUANTUM ENERGY SYSTEM Key Features - Consumer High efficiency energy store – low losses Accurate electronic time and temperature control Up to 25% reduction in energy bills Advanced apps for user interaction and information Key Features – Electricity Industry Charging controlled remotely by grid operator or aggregator Facilitates Demand Side Management Provides ancillary services to grid Allows greater penetration of intermittent renewables Facilitates grid decarbonisation

18. THE NEXT PHASE Ongoing collaboration with Eirgrid/SONI, ESB/NIE, SSE/Airtricity and Intel Major distributed energy deployment in Ireland in 2014 – NI and RoI Full simulation and demonstration of benefits Seeking Horizon 2020 funding for a £10m project Objectives Real consumers with real bills and savings Put a value on the system services Demonstrate potential from energy arbitrage “Big data”

19. DISTRIBUTED ENERGY IN THE FUTURE ENERGY MIX £1500/annum/house = £40bn for UK Benefit Value per Home per Year Energy Efficiency £350 System Services £400 Carbon2.5 tonnes The “Crude” Past The “Smart” Future Delivers: A sustainable energy future Reduced consumer bills National Energy security Jobs and economic growth