Energy Systems Catapult

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1 Energy Systems Catapult Whole Systems Approaches for UK Energy Sector Transformation Nick Winser - Chairman

2 The Energy Systems Catapult launched in April Vision: 1 st April Enable Britain to be a global leader in new products and services for energy systems by exploiting the opportunity created by the transformation of Britain s Energy Systems Scope: Heat, Combustible Gases and Electricity Networks; Integration, Interoperability System design, Communications, Data, Analytics, Digital, Cyber security, M2M, Power electronics, Decision tools, Efficiency, Customer engagement; Business models, Market mechanisms Target: Stimulate UK economic growth. > 6billion value & 9,000 new jobs across the UK energy sector by 2030 Target: 9,000 new jobs

3 Developing expertise, making it available via themed programmes and projects Catapult Expertise Whole Systems Approaches Systems Integration Customers SMEs, New entrants Operators, T1 T2 Supply chain Community programmes Local authorities, Energy suppliers, ESCo s, Government, Investors, Other Catapults Themed Programmes Heat Localised Energy Systems (TBC) DSR (TBC) Integrated Storage (TBC) Advanced Controls (TBC) Services / Projects Feasibility, Market planning, Datasets, Modelling, Simulation Test, Prototyping, Demonstrators Standards, Convening Projects

4 Demand for whole systems approaches Multiple UK energy innovation projects but few new products and services coming to market Transformation programmes stuttering, false starts, changing views for solving the energy trilemma UK has a complex energy system Decision makers lack comprehensive evidence based understanding of how UK energy system can transform.

5 The Outlook Credit: National Grid

6 Technologies for making the transition TRL 8 CLUSTER A NUCLEAR CLUSTER B WIND HEAT CCS P.V. INTERCONNECTORS LOW CARBON TRANSPORT SMART GRIDS COLD PASSIVE HOMES SMART HOMES ENERGY EFFICIENCY HYDROGEN ENERGY STORAGE CUSTOMER BEHAVIOURS TRL

7 Cluster A Cluster B Higher TRLs Lower TRLs Able to be deployed by incumbents High political attention Very large, lumpy costs New players needed Lower political attention Distributed, incremental spend pattern Politically contentious Potential to reduce bills Raise customers bills No track record for deployment Track record of slow progress Required for Cluster A to work Hitting targets looks unlikely Less risk Cannot work as an integrated system without Cluster B More short term impact potential Need both A and B to deliver succession goals

8 Robust whole systems evidence required to inform decision makers and stimulate change Others Hydrogen - Addressable market Passive - - Addressable Routes Homes to market - Achievable price Smart - - Addressable Routes to market market - - Routes Achievable point to market price Heat - Addressable - and point Technology Cold market - Achievable price roadmap Energy Addressable Routes - Storage to market Technology Investment market point roadmap Addressable - Routes Achievable Investment requirement to market price - Technology roadmap - - Routes Achievable point - - Investment requirement Skills to market and price training - - Achievable - point Technology roadmap - requirement Skills Contingencies and price training and - - point Investment - - Technology Skills Contingencies relationship roadmap requirement and training and - - Technology Investment - - Contingencies relationship Business roadmap case - Skills and training and - Investment - - requirement Contingencies relationship Business case - requirement Skills and training and - relationship Business case - - Skills Contingencies and training and - - Contingencies relationship Business case & - relationship Business case - Business case Security of Supply and Direction of Travel World class UK analysis and modeling but fragmented, sub scale and confusing Catapult will encourage sector collaboration and consolidation

9 Whatever the Direction of Travel, systems integration is fundamental to success Introducing new technology based solutions requires complex, multi layered systems integration (SI) SI includes market mechanisms, business models, consumer engagement and operations. The Catapult is developing a flexible SI architecture to support rapid, complex, efficient and cost saving change

10 UK energy transformation Systems Integration architecture straw man. USERS Consumers Buildings Cities Communities Commercial Industry Products Services Network Model Operations Transactions Comms Data Security Integration Framework MARKETS Heat Networks Advanced Control Solutions Integrated Storage Solution Electrical Storage Heat Storage Data Analytics DSR Decision Supp Sys Heat Network Management Asset Mgmt Power Flow Management SCADA EV Station Sensors Community Energy Solution Network and Solution Applications Technology Management Applications Gas Networks BUSINESS Control Architectures Correlation Services International Interface Business Interface Electricity Networks Heat Sources Central Generation Distributed Generation Alternative Fuels Storage Carbon Abatement Demands Transport RESOURCES Regulation Policy

11 The Catapult s initial themed programme is focused on Heat... 1 st April Opportunity: Space and water heating in UK homes is much greater than total electricity consumption. Peak demand for energy delivered by gas is 6x s peak electricity demand Heat networks and electrification of heat present technical solution The target: >20% reduction in 350bn DECC estimate to decarbonise UK local heating by 2050 Working closely with the Energy Technologies Institute s (ETI) Smart System and Heat Programme Phase 1: Develop tools enabling Local Authorities to design / implement low carbon energy systems Phase 2: Validate with up to 3 large scale trials (1,000 s of buildings): Manchester, Newcastle, Bridgend Target: 9,000 new jobs

12 Energy Systems Catapult over the next 12 months Work with experts in whole systems approaches across academia, industry, Government and research organisation to enable a consolidated evidence base to inform a direction of travel for UK energy systems transformation SI Architecture validation via sector consultation Focus on Heat, working closely with the ETI s Smart Systems and Heat Programme. Analysis and sector consultation to identify Themes and develop Programme engagement model. Developing Capability: Whole Systems Approaches Systems Integration Architecture Themed Programmes: Heat Integration of Storage, DSR, Local Energy Systems, Advanced Controls (?)

13 Transforming Energy Systems Nick Winser, Chairman