CPDe Event The Changing Value in Flexibility 19th April 2018

FLEXITRICITY OVERVIEW 1st, largest and most diverse demand response aggregator > 8,900 demand response events 24-hour operations <1s to 30m response Capacity Market obligations 2016 – 2036 1st to develop Negative Reserve service 100 % Capacity Market DSR tests 370 MW Connected Capacity Commercial, Industrial, Public & Developer clients 60 100 % Service delivery of frequency since 2013 10 Years DSR delivery 100 % TRIAD avoidance since 2008

DIVERSE PORTFOLIO OF FLEXIBILITY DISTRICT HEATING HORTICULTURE UTILITIES PUBLIC SECTOR DISTRIBUTION MANUFACTURING DATA CENTRE REFIGERATION

SYSTEM WIDE VIEW RESERVE FREQUENCY RENEWABLES SECURITY TRADING CONSTRAINTS NEW DEMAND VOLTAGE PEAK HEAT

FLEXIBILITY? ……..WHAT FLEXIBILITY? Flexible hardware Flexible operation CHP FUEL HEAT POWER DEMAND Heat loads vary Therefore every CHP should be flexible Heat storage/inertia Multiple prime movers Biogas stores Alternative heat sources Heat dumps Open goals Time-shifting Price-following Reserve and response Source-shifting Comfort levels “Day Job” Reduce / Fix Energy Costs Increase Efficiency Lower Carbon

ADDITIONAL REVENUE SOURCES CAPACITY MARKET Capacity Payment Underpinning UK energy security 1-15 Years contracts Does not need export ANCILLARY SERVICES Positive Reserve STOR Negative Reserve DTU TRADING Wholesale Supply Day ahead N2EX trading Post gate closure trading

CHANGING VALUE IN FLEXIBILITY Increasing value in real-time energy trades Ancillary services market over-subscribed Energy suppliers entering DSR market Value moves around and Flexitricity optimises it Experience, expertise and deep industry engagement is critical for success

TRADING IN THE BALANCING MECHANISM Gate Closure – Trading Stops Settlement Period 30 mins 60 Minutes Forward Curve Trading Wholesale Market Day Ahead N2EX Balancing Mechanism Only NG able to make trades >3000 trade per day Bid / Offer

SUPPLY WITH BALANCING MECHANISM PARTICIPATION Opportunity the first energy supplier to give customers access to the Balancing Mechanism through instructable BMUs Choice of BM participation level based on asset type, consumption profile, location and site constraints Forward Planning to fix energy costs through curve trades Optimising Flexibility by monitoring changes in daily consumption, understanding operational parameters Delivery – Flexitricity’s 24 hour operations will optimise these opportunities and deliver a single view financial statement on supply and revenue earned

WORKING WITH US An approach that’s grounded in reality – we only promise what can be delivered. Once we’ve established realistic opportunities for your site, our engagement process is very straightforward.

Flexitricity operates the first, largest and most advanced demand-response portfolio in Britain. Join us today. Call 0131 221 8100.