The Energy Systems Catapult. Tim German Stakeholder Manager

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1 The Energy Systems Catapult Tim German Stakeholder Manager

2 What is a Catapult? Part of a world-leading network of technology and innovation centres Bridge the gap between businesses, academia, research and government A long-term investment to transform the UK s ability to create new products and services Open up global opportunities for the UK and generate sustained economic growth for the future Established and overseen by the Innovate UK 11 Catapults 1.6bn Private and public sector investment 2013 first Catapults up and running 2017 Energy Systems Catapult

3 Energy Systems Catapult What are Catapults? World leading technology and innovation centres Government business innovation intervention Energy Sector Challenge & Opportunities Aims: Generate sustainable economic growth Transform UK s ability to create new products & services Open up global opportunities for the UK Our Response Decarbonisation Security of supply New technologies Ageing infrastructure Consumer needs Whole System Analysis Innovation & Commercialisation Test & Demonstration Radical change is upon us, the future could be: multi-vector whole system distributed flexible smart up to 46bn of UK GDP impact* up to 27bn in efficiency savings* ESC will convene stakeholders and develop and apply modelling and analytical capabilities to help the UK make strategic choices in collaboration with industry, Gov t and academia Innovation Demonstration *Sources: Low Carbon Innovation Coordination Group (LCICG) TINA (Technology Innovation Needs Assessment) Reports, NIC 2016 report Smart Power Knowledge Exchange & Collaboration Consumer Insights Targeted SME Support 2017 Energy Systems Catapult

4 Our energy system is changing Policy & Regulation Electricity or multi-vector? National / Local? Which Direction? Communities, Data, People, Society, Information Top Down or Bottom Up? The status quo is: safe stressed cheap ageing 2017 Energy Systems Catapult But, change is upon us: climate change act society technology digital And, the future could be: multi-vector whole system distributed flexible smart

5 The sector challenges have shaped the Catapult response Whole System Analysis Innovation & Commercialisation Test & Demonstration Platform Convene stakeholders and develop and apply modelling and analytical capabilities to help the UK make strategic choices in collaboration with industry, Government and academia Whole systems architectures; systems integration frameworks; consumer insights; energy knowledge exchange ; collaboration; targeted support for SMEs Whole systems; support technical development; alliances for multivector capabilities; enable value capture form new business models; mitigate risk and reduce time to market; realistic pricing of risk; consumer insights 2017 Energy Systems Catapult.

6 Outcomes: potential case studies Short Term Medium Term Long Term (5 years) Capability for local energy planning FPSA next phase SME collaboration platform Test facility access for SMEs Energy Knowledge Exchange Consolidated whole systems modelling capability: one stop shop EPN delivers Local Area Energy Strategies Heat networks displacing legacy systems Multi-Vector Systems Architecture developed Consensus on innovation priorities SSH demo. Low carbon heat services delivered to 000s homes Multi-Vector Architecture Model deployed; Catapult kitemark supports first new technology 2017 Energy Systems Catapult

7 And we are getting clearer about what is needed.. Now Generation Providing Control (All transmission connected) Large generating units in frequency control mode Distribution Network Automatic Controls (Voltage Regulation Devices) 10,000 devices Smart Cities & Smart Communities (GB Future Cities) None These are now emerging and developments are international National Regional Commercial Local Communities 2030 Generation Providing Control (Transmission & Distribution connected) 600,000 If 10% of small units using waste, hydro & PV are assisting frequency control Distribution Network Automatic Controls (Voltage Regulation Devices Plus Smart Innovation) 900,000 devices Smart Cities & Smart Communities (GB Future Cities) 60+ smart cities A forecast based on the 30 City Council projects active today in Britain Decarbonisation of electricity: too slow to allow heat and transport to transfer wholesale. Multi-vector low carbon heat, cold and transport solutions. Energy efficiency: improve quickly. Energy storage and smart grids: really important. Domestic energy heat: the biggest challenge. Customers: the heart of new markets for new energy services. Solutions: differ by location. Insights into consumer response and behaviour Automatic Controls in Homes (Home Energy Management) None In broad terms, all demand is positive Homes Automatic Controls in Homes (Home Energy Management) 15 million If half the smart meters link with energy management devices Information sharing and trust: key issues. Real time variation of multi-vector solutions. Continual system integration required Energy Systems Catapult

8 ETI s Smart Systems and Heat Programme Creating future-proof and economic local heating solutions for the UK Connecting together the understanding of consumer needs and behaviour with the development and integration of technologies and new business models into Delivering enhanced knowledge amongst industry and public sector ETI members Resulting in industry and investor confidence to implement from 2020 which enables a UK heat transition The Energy Systems Catapult will deliver Phase One of the SSH programme as a supplier to the ETI following the transition of the SSH programme team to the Catapult. From 2017 the Catapult will be responsible for delivery of Phase Two of the programme independently of the ETI.

9 Smart Systems and Heat This critical enabling first phase of the SSH programme is funded by the Energy Technologies Institute 2017 Energy Systems Catapult

10 SSH Team In Nov 2015 the ETI SSH team transferred to ESC Now c50 ESC team working on SSH in innovation, project management & business development ETI SSH Phase 1 funded work: Energy Path Networks; Consumer Research HEMS development; Business Model development; EnergyPath Operations, Retrofit Projects and Integrated Electric Heat Modelling toolkit SSH Phase 2 Development : overseen by a Steering Group chaired by BEIS involving Energy Systems Catapult, OFGEM, 3 x LAs and Welsh Government, plus ETI members EDF Energy and Hitachi. Plans include placement of Field Trial development officers in LAs in 2017 Phase 3 demonstration environment follow on 2017 Energy Technologies Institute LLP

11 Decarbonising domestic energy is a very complex systems integration challenge Change supply Change vector Change appliances Change delivery Change heat losses Biomass boiler Natural Gas Biomass Coal Gas boiler Gas Combined Heat & Power Reformation Gasification Electrolysis CCS Hot water Hydrogen Smart Meter Smart Meter Heat network interface unit Gas boilers Solar Thermal Solar PV Hot water storage Electric heaters Wet pipe radiators Electric showers Loft insulation Mechanical venting and heat recovery Air tightness External solid wall insulation Wind Power Solar Power Nuclear Power Gas-CCS Power Coal-CCS Pwr Gasification Delivery by road Natural gas & bio-methane Electricity Bio-mass Smart Meter Electric air source heat pumps Electric ground source heat pumps Biomass boilers Battery storage Internal solid wall insulation Double or triple glazing & coatings Draught proofing (for illustration not exhaustive) 2017 Energy Technologies Institute LLP

12 Consumers have little interest in that complexity they care about the experiences energy affords Pleasant air quality Feeling in control Quiet, especially at night No damp build-up Minimum use of space in the home Quick heat-up on-demand Foreseeable running costs Resilient to wear-and-tear Pleasant aesthetics Home cool when/ where wanted Home warm when / where wanted Avoiding exposure to energy price volatility Minimise upfront capital outlay 2017 Energy Technologies Institute LLP

13 People don t want their comfort in bits or components! Whilst there is a niche that loves tinkering. Everyone else just wants the experience and to trust promises will be delivered Top Features, for illustrative reference: Active Park Assist - Let the computer parallel park for you Reverse sensing - Helps you not back into things MyKey - Parents can limit the vehicle s top speed and audio volume Capless fuel-filler - Just open door and insert nozzle Also Leather, moonroof, navigation, heated front seats 2017 Energy Technologies Institute LLP

14 The big idea is turning energy retail into an experiential service, not billing for units of commodity consumed This would create major benefits: More focus on customer value, to understand it, shape it and deliver it Retailers earn customers trust to be able to promise performance for low carbon heat Revealed consumers preferences can drive evolution of the whole energy value chain Opens a new option to deliver low carbon, setting long-term technology-neutral limits Retailers compete through long-term innovation & supply chain investment to find the best path to low carbon Opens a new option to reduce fuel poverty, via performance contracts with public sector 2017 Energy Technologies Institute LLP

15 There are few actors today providing the integration to help people achieve the experiences they value Social housing New build Private rent & owner-occupier Local Authorities and Housing Associations Housing Developers? 2017 Energy Technologies Institute LLP

16 Threshold ESC is creating an ecosystem to make a customer-led energy market really work Home Energy Management System Service Providers Two-way dialogue to set expectations Customers Empowered customers driving the market Customerled local planning Customerled supply Customerled supply chain chain Stable, technology-agnostic CO 2 policy Customer 1 Customer 2 Customer n Portfolio Avg. CO 2 Near-zero CO2 permissible by 2050 Regulatory threshold 2050 EnergyPath is the registered trade mark of Energy Technologies Institute LLP