1. Driving Innovation V2 140508 Local Energy Systems: Fantastic Opportunity, Fantastic Challenge. Rob Saunders Head of Energy Technology Strategy Board

2. Driving Innovation 1.Develop affordable and secure sources of energy supply that also reduce GHG emissions 2.Integration of future demand and energy supply into a flexible, secure and resilient energy system 3.Reduce GHG emissions at point of use And working with our partners across the Low Carbon Innovation Coordination Group (LCICG) in delivery 2012 Energy Strategy: 3 Pillars of Activity

3. Driving Innovation 20 th Century Energy.... Electricity Heat Transport

4. Driving Innovation 21 st Century Energy.... Electricity Heat Transport

5. Driving Innovation Energy Systems: £bn Markets Technology Innovation Needs Assessments £1.6 trillion International opportunity in energy systems transformation by 2050 £34bn GVA + £19bn savings in UK electricity networks, and £12bn GVA + £66bn savings heat pumps, heat networks & heat storage via technology innovation Up to $200bn electricity network digital intelligence market globally by 2015 with 18% CAGR to 2020- Pike Research CISCO estimates ‘global communications for energy network transformation $20bn pa 2017. 5

6. Driving Innovation Why ‘local’? Security ScaleMixed end-use Engagement Immediacy National benefit Local Energy Systems

7. Driving Innovation So what’s holding us back? Uncertainty Scale & complexity Timing Behaviour Collaboration Markets Local Energy Systems

8. Driving Innovation Our Energy Systems activity ramping up... Scaling up activity through to 2015/16 –New Energy Systems Innovation Platform including; Roadmapping & Coordination RD&D funding and linkage to other schemes (eg LCNF, ETI, DECC) Working in partnership with Energy Systems Catapult First CR&D competition: “Localised Energy Systems” closed last week –Collaborative with Transport, Digital, Buildings and energy teams, EPSRC. –Our most popular energy competition ever!

9. Driving Innovation Energy Systems Catapult Timeline Sept ’13: Vince Cable announcement; Independent Advisory Group set up Oct ‘13 – Feb ’14Sector consultation - Representatives >250 Companies, Unis & Public bodies - 1 to 1’s, workshops, questionnaires, Dinners Mar ’14Evidence based Business Case, Apr ’14TSB Board decision ⇨ Next phase Apr - Oct ‘14 Recruit Chair / Board / CEO / Interim delivery team, detailed 5 yr Business Plan Dec ‘14TSB Governing Board Approve 5yr Business Plan Apr ‘15Catapult launch and operating under HMT approved 5 yr funding Funding Allocation: £10m pa from Apr ’15

10. Driving Innovation Finally, some thoughts on today ChallengeToday’s Opportunity Energy Systems: a multi- dimensional issue... Stimulating talks from multiple viewpoints Only have a piece of the puzzle.... Find another piece to join onto Complexity of energy systems Listen well, contribute fully Route to market needs collaboration Everyone here is your potential partner

11. Driving Innovation Thank You