Fortumin puhtaita energiaratkaisujaTeknologiajohtaja Heli Antila

SESKOn kevätseminaari 2016

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Transition towards Solar Economy is ongoing

Fortum – Forerunner in clean energy

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Our current geographical presence

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Nordic countries

Power generation 48.8 TWh

Heat sales 3.1 TWh

Electricity customers 1.3 million

Power generation

Electricity sales

Heat

OAO Fortum Power generation 25.7 TWhHeat sales 25.4 TWh

Russia

PolandPower generation 0.7 TWhHeat sales 3.4 TWh

Baltic countriesPower generation 0.7 TWhHeat sales 1.2 TWh

IndiaPower generation 26 GWh

Key figures 2015Sales EUR 3.5 bnComparable operating profit EUR 0.8 bnBalance sheet EUR 23 bnPersonnel 7,800

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g CO2/kWh electricity, 2014

201564% of Fortum's total power generation CO2-free97% of Fortum’s power generation in the EU CO2-free

Average 313 g/kWh

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Fortum's carbon exposure among the lowest in Europe

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Note: Only European generation except “Fortum total“ which includes Russia.Fortum’s specific emissions of the power generation in 2015 in the EU were 21 g/kWh and in total 166 g/kWh.Source: PWC, Novembre 2015, Changement climatique et Électricité, Fortum

More renewables

Large scale solar and wind power

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• December 2014, Signed Mutual Company NDA 10 MW solar PV plant in Madhya Pradesh commissioned

• June 2013, Fortum acquired a 5 MW solar power plant in the state of Rajasthan in north-western India.

• Fortum is negotiating 70 MW solar PV plant at Bhadla solar park in Rajasthan, India.

• Fortum is shareholder in Blaiken wind power farm in Sweden

• 35 MW wind farm project on-going in Russia Ulyanovsk, which is located 680 km south-east of Moscow and has 620,000 residents.

• In February, 2016 Fortum acquired a 75-megawatt (MW) windfarm project. The Solberg site is fully-permitted and construction-ready. It is located in Västernorrland County in northern Sweden.

Fortum investment program in EuropeMajor bio- and waste-CHP investments in several countries

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Stockholm

JelgavaKlaipeda

Joensuu

JärvenpääEspoo

Częstochowa

JärvenpääBio-CHP

Bristaco-owned

waste-CHP

Värtanco-owned bio-CHP (ongoing)

JelgavaBio-CHP

KlaipedaWaste-CHP

CzestochowaCoal/bio-CHP

Espoosewage water

heat pump

Espooheat recovery from hospital

(ongoing)

Joensuu Pyrolysis oil production in

CHP plant

Naantalico-owned bio-CHP (ongoing)

Espoogeothermal district heat (ongoing)

Wave power – three different technologies • Wave power has potential to cover 10 % of global power

consumption

• Wave power is now in demonstration phase

– Full-scale demonstration project in Sweden in co-operation and using technology by Seabased , power generation to grid begun in January 2016

– 5 year EU Horizon 2020 project with Wello Penguin technology in Great Britain

– AW-Energy has been operating its pilot wave energy power plant in Portugal since 2012 and plans to deploy a full scale commercial power unit utilizing WaveRoller® near shore technology during 2016

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Wello* Penguin

Seabased

AW Energy* Waveroller®

*Fortum is shareholder in the company

Customer solutions, more flexibility

Forms of end consumer flexibility

TRADITIONAL:TIME-OF-USE TARIFF

• Fixed time slots for higher/lower electricity prices

• Incentive for end-user to use less electricity during time of higher price

• Automated heating control via electricity meter

• Heating concentrated on same hours of the day, every day

• Not reflecting today’s needs

NEXT STEP:DYNAMIC TARIFF

• Hourly pricing, based on NordpoolSpot prices

• Incentive for end-user to shift consumption to times of lower prices

• Price signal alone (without automation) rarely strong enough for significant changes in consumption

• Automated heating control with additional technology like Fortum Fiksu

• Not enough to handle imbalance situations in the grid

ADVANCED:EXPLICIT ON-DEMAND FLEXIBILITY

• Participating customers modify their electricity consumption when requested

• The electricity made available can be aggregated and sold on suitable organized markets, e.g. reserves

• Automation required for ease of use and reliability

• End consumers become active participants of the electricity system and enablers of the solar economy on their part

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New Fortum FiksuExcellent user experience

• Automated heating control• Easy follow up via mobile phone• Intuitive and easy to use UI• Presenting valuable information about your

home and heating costs

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In Fortum’s commercial VPP-pilot customer loads are sold to the TSO Fingrid to be used in the Frequency Containment Reserve (N)

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We are building a significant VPP, which will also enable new service offerings for our customers

Virtual Power Plant

New service offerings to customers

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District heating demand response

• Heat consumption can be controlledbased on hourly heat price signal

• Buildings act as heat storages withoutvariation in inside temperatures

• Pilots have been carried out during twoheating season. Larger scaledevelopment project this winter

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HorsePower circular economy concept

• In Finland there are 77 000 horses, in Sweden 360,000, in Poland 300,000 and in UK and in France even 1,000,000

• In Finland the energy content of used bedding material is about 500 GWh; this is more than the annual fuel use of Järvenpääcombined heat and power plant

• The energy content of the used bedding material of three horses corresponds to the heating energy of one house

• Used bedding material can be used in many ways, although new restrictions will be enforced in 2016

• Using it as a fuel for a big CHP plant with over 90% efficiency is the environmentally, commercially and technically best way

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Energy production

End user

Biobedding

Stable Collection

• Easy solution to stables for their bedding and manure management

• Environmentally friendly and economically competitive

• Based on domestic, renewable bedding material

• A regional solution: both bedding and manure transport distances are minimized

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Thank you

Twitter @AntilaHeli