The Northern Ireland Intelligent Energy Proposition

Beyond the Sustainable Energy Horizon Panel

Report

Energy Storage Solutions for an Intelligent Future

22nd November 2013

Garry Staunton

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Matrix mission: • To provide advice to NI government on maximising the economic impact of

R&D, science and innovation. • Represent the voice of high tech industry • Champion the role of Science and Technology. • To identify future high tech market opportunities for NI

Backdrop: • Northern Ireland must move to an economy based on new high-tech, high

value-added industries • Develop world class capabilities in high technology and high-level scientific

skills to capture market share • Overcome the perceived disadvantages of a SME based economy

Vision: • Supporting NI’s economy based on a Science &

Technology Exploitation System which is: • Led by business • Inspired by Academia • Facilitated by Government

Study underpinned by: • Technology Capability Mapping Study • Review/identification of global market opportunities • Identification of barriers

Backdrop highlights NI challenges for sustainable energy: • 40% renewable energy target by 2020 – large. • Most capacity will be from relatively cheap onshore wind. • Existing grid system not designed to handle this. • Resulting in curtailment of wind farms. • Present solution is to spend £100’s m on grid upgrades...

which adds cost and delay to project development, and increases electricity bills.

Resultant opportunity for NI: • To make better use of the existing grid system through....

Increased interconnection (N/S and E/W) Energy Storage Demand Side Management

…. all working as part of an intelligent energy system......

Sustainable Energy Horizon Study

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Intelligent Energy Systems are a clear opportunity

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• ‘Intelligent’ and grid integrated renewable generation solutions

• Energy storage – development and demonstration of efficient storage systems at medium and small scales

• Enabling technologies such as automated control systems

• ITC – e.g. the development of ‘open source protocols’ for intelligent control systems

• New business models – that enable distributed generation and storage to work cost effectively.

Vision: NI as an internationally recognised reference site for the demonstration of commercially viable integrated energy solutions that have relevance for global

applications and markets .

Innovative market mechanisms and business models

Large scale generation

Consumers DG

Storage DSM

Commercial DG

Storage

Commercial DG

Storage

Consumers DG

Storage DSM

Consumers DG

Storage DSM

INTELLIGENT SYSTEM

Centralised supply One - way data flow

Transmission

High voltage distribution

Low voltage distribution

Consumers

Power Data & controls

HISTORIC SYSTEM

Why NI is well placed

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The Benefits for Northern Ireland

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• Facilitates realisation of renewable electricity, renewable heat and energy efficiency targets

• Optimise potential for commercial deployment of regional technology e.g. bioenergy, wind, micro renewables and energy storage

• Underpins creation of regional supply chains in key technology areas

• Raises the profile of the region as an international leader in sustainable energy

• Additional environmental benefits, e.g. avoidance of waste disposal & nutrient recycling

• Empower consumers to become participants in the energy system

• Creates exportable capital in terms of know-how and IP

£400 bn

2010-2020

Intelligent Energy Systems

£600 bn

2020-2030

Grid scale energy storage

in 2020

0.8 GW

Forecast global investment

Grid integration of distributed renewable integration forecast to grow globally from £2.5 bn in 2012 to £8 bn in 2018 – the

majority associated with energy storage and micro grids (Pike

Research, 2012)

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SEHP Recommendations

Forward Implementation Plan

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Key first step

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• New Intelligent Energy System Group to be set up under revised Terms of Reference – overview, guidance and monitoring

• Drive forward FIP.

• Ministerial level representation

• Recruitment of dynamic and commercially orientated IESNI Delivery Team for day to day management of FIP – strongly linked to stakeholders in business, academia and Government

1. Immediate Execution of MATRIX FIP

‘Maintain momentum’

IESNI will have to take a visible leadership role in the commercial validation of IES solutions and accelerate their ‘coming to market’

This entity will: • Have a visible, dynamic and influential leader with a strong business background. • Actively leverage the integrated capabilities of NI business and academia • Specify and develop a ‘reference site’ • Provide a ‘shop window’ and single contact point/voice for NI IES community • Work with NIE, regulatory bodies and technology companies to develop a common

understanding of the impact of an IES on gas and electricity grids • Identify the specific components of an IES • Map this on to what NI companies can provide (products and services) • Identify the gaps/opportunities for NI companies to respond • Develop approaches to establishing the costs and benefits of an IES • Support the integrated development of micro-grid & community energy systems • Act as a bridge to related activities in other countries

– seek synergies, improvements (made in NI) and market export opportunities IESNI will need to work closely with a strong and influential counterpart within Government

The Collaborative Network is a critical interim step in establishing and resourcing IESNI

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Questions?

Additional Slides

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An Intelligent Energy System (IES) • Supports the real time monitoring and control required in order to

continuously balance generation and load on the lower voltage grid network • Is a key enabler of grid connected renewables especially those forming part

of a community energy system • i.e. wind , PV, AD and hydro

• Must provide increased robustness and resilience • New products and services will have to be tested at an appropriate scale,

under real operational conditions before scale adoption

In principle NI is ideally suited to be such a test bed • From which NI will be able to be exported to (the many) other regions and

countries that face similar grid upgrade challenges

The IES Vision for NI: • Within 10 years Northern Ireland will be an internationally recognised

exporter of global solutions forged from the development of the lowest cost, sustainable energy infrastructure in Europe: Created by thriving, indigenous businesses; Exploiting the regions natural, intellectual and entrepreneurial capital.

Intelligent Energy System

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Industrial Capacity

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• Distribution reflects the general level of maturity of the segment, and regional resource potential.

• In addition, significant no of companies ‘poised for action’

• Significant diversification potential from the existing industrial base.

• Vast majority micro SMEs (< 10 employees).

• Relatively few high profile corporates, especially OEMs.

• No activity in large scale solar PV, fuel cells or hydrogen.

Approx 500 companies active in one or more segment; 77 % within wind, marine, bioenergy and micro renewables.

185

119

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61 55 50

22 17 14 12 6 3 2 00

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mber

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Regional Strengths

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Resources and Geography

• Significant availability of natural resources: wind and marine – up to a quarter of the offshore turbines (2,500) fall within 150 nautical miles of Belfast. Also significant oil and gas reserves.

• Mild and wet climate – uniquely placed for biomass production (including ‘value added’ products); highest yields in Europe. Strong knowledge-base amongst farmers.

• Well educated population.

• Strategic positioning – ‘bridgehead’ between Ireland and rest of UK (able to access natural resources, complementary know-how and end user markets).

• Expertise/know-how in operating within ‘Island of Ireland’ and a Single Electricity Market.

Infrastructure

• Devolved administration has flexibility to develop bespoke regional policy.

• Unique infrastructure relative to rest of Europe: highly dispersed and constrained grid infrastructure, under developed gas network, significant off grid, fuel poor population, and aging housing stock.

• ‘The island of Ireland is effectively a live laboratory of Smart Grid evolution’.

• Highest deployment of wind in the world for a non interconnected region; recent announcements for offshore concessions will provide an additional focal point.

• Excellent digital infrastructure.

• Depth of expertise in community/farm scale projects, in particular biomass.

Regional Strengths

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Academic Base

• Academic excellence at QUB and UU in specific areas of:

Marine – early demo (Seagen is world’s largest generating tidal device); impact assessment;

Energy Efficiency – adv. glazing; pcms;

Micro-renewables – adv. heat pumps; Energy infrastructure – power

stabilisation; • Good international connectivity. • Leading know-how on use of SCR

Willow for biomass at AFBI; and development of alternative feedstock for AD at SWC.

• Strong applied research/demonstration and skills provision via the regional colleges. Proven successful industrial collaboration via InnoTech model.

Industrial Capability

• Nascent, and well connected, wind supply chains with cross over know-how and expertise of relevance to other segments such as Marine & Bioenergy.

• Proven capability around technology adaptation, demonstration and system integration – track record of importing and adapting technology.

• Diversification potential within manufacturing and engineering base – precision engineering and metal fabrication, machining of components, power take off, prototype manufacture.

• Important anchor industrial players including DONG (big success in attracting into the region), Bombardier, Glen Dimplex, Kingspan, Copeland, McLaughlin & Harvey, FG Wilson & WIS.

• Key infrastructure assets.

• Can do/will do culture amongst the rural workforce.

Forward Implementation Plan

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• Secure resources & launch.

• Identify priorities for ‘quick wins’.

• Put in place detailed plans.

• Gather intelligence to underpin plans.

• Active drive for commercial exploitation and export of proven solutions.

• Leading international reference site and exporter of Intelligent Energy Systems and professional services.

• Identify and select options for next generation projects, and ‘value adds’ to existing projects

• Exploit related commercial opportunities.

• Scale up and increased sophistication of commercial demonstrations.

• Scale up of supply chains and manufacture of solutions for export markets

CORE

Review Delivery Plan

2013 20232018

ENABLING

Detailed 3 Year Delivery Plan

Feasibility studies for large scale

integrated projects

Scale Up/Next Generation Commercial Reference Sites

Integrated Buildings

Reference Site

Develop related Service Offerings, e.g. O&M and Call

Centres

Develop Market Intelligence and ‘warm up’

early export marketsBroaden scope of market intelligence and

relationships with additional export markets

Commercial demonstration of fully integrated and inter connected

network

Business Plan

Develop commercial models for export

marketsDevelop logistical capability for volume export markets

Review Delivery Plan

Review Delivery Plan

Review and Revise Innovation and Skills Provision (Capacity Building)

Map out potential prototyping

/manufacturing capability

Integrated Sustainable

Energy Reference Site

Build Global Networks