1. Stuart Thornton Operations Manager 23th March 2010 East of England the energy region Developing your future in business – The Big Energy Numbers: What it means for our Region?; Why Wind?

2. Who are we… EEEGR is a business led, business driven regional energy industry association. Our vision is simply: “the sustainable production and wise use of energy” Representing over 335 member companies and organisations working across all six counties…

3. Presentation Overview Developing your future in business – The Big Energy Numbers: What it means for our Region?; What it means for you? Key drivers for the immediate future: Climate Change and the Low Carbon Economy The increasing demand for energy from increased economic and social prosperity! Seemingly incompatible or mutually achievable? Part One:The Bigger Energy Picture Part Two:What does this mean for our region? Part Three:Why Wind? Part Four:Conclusions…

4. Part One: The Bigger Energy Picture Where are we now? Top tip No. 1 - www.eia.doe.gov

5. Part One: The Bigger Energy Picture Where we need to be? PJ (UK electricity generation, 80% CO 2 reduction)

6. www.bmreports.com Top Tip No. 2 – By the Minute Reports

7. Part Two: What does this mean for our region?

8. Underground Coal Gasification (UCG)?

9. THE VOICE FOR ENERGY IN THE EAST OF ENGLAND! East of England Is now host to the world’s largest offshore wind market  Region’s first operational project  The UK’s 2 nd offshore wind farm  30 x 2 MW turbines  £80m (including initial 5 years O&M)  Commercially complete - Dec 2004  Formally opened - May 2005 Scroby Sands Thames Estuary Greater Wash  18 regional projects due online prior to 2012  60 - 1,200 MW developments using 2 - 5 MW turbines  In water depths of 2 - 28 metres Why Wind? And then there is Round 3…

10. The Crown Estates Round Three Offshore Wind Allocations 7200 MW Norfolk 4000 MW Hornsea 9000 MW Dogger Bank 7200 MW & most commercially viable 3.6 MW Turbines = 2000 in total Loading capacity approximately 33% = total output of 2,376 MW Maintenance interval of about 500 hours or 21 days with minimum three people per crew Images courtesy of Alan O’Neil

11. The Biggest Offshore Wind Market in the World Development and consent£39,900,000 Wind turbine£758,900,000 Balance of plant£591,200,000 Installation and commissioning£492,600,000 Operations and maintenance£37,500,000 Total£1,919,100,000 However, this is for a 500MW wind farm!!!! Total for East Anglia Bank (7.2GW) £27,635,040,000 Total for all Round 3 (32.2GW) £123,590,040,000

12. OrbisEnergy – O & M Potential Image courtesy of Alan O’Neil We are unlikely at this stage to generate much regional income from a manufacturing supply chain. Our real asset lies in the Operations and Maintenance potential of towns like Lowestoft and GY… However, watch this space… We need to attract world class offshore wind companies to the area…

13. Onshore Wind? Contrary to popular belief, there is no real issues with the technology… Petrol internal combustion engines are only 20% efficient… Economically more commercially viable than offshore wind… Globally more publically accepted than offshore wind… Ideally suited to the UK and this region… NIMBY to IMBY… The rise of NIYBYE and BANANA!!! Offshore may not happen 100%...

14. Why onshore? – ARUP Report Feb 2008

15. On/Offshore Comparison Onshore commercial viability = Approx. £1.1m per MW installed Onshore current cost = Approx. £1.4m per MW installed Offshore commercial viability = Approx. £2.2m per MW installed Offshore current cost = Approx. £3 - 4m per MW installed Other Factors A proportion of the Round 3 allocations conflict with existing and potential gas fields… Economic Factors Realistically can we expect 100% delivery from Offshore Wind? Health and Safety – Onshore is fundamentally safer!!! Conclusion: Both On and Offshore are essential aspects of the energy mix…

16. THE VOICE FOR ENERGY IN THE EAST OF ENGLAND!  An integral part of the region’s energy mix  Bradwell – closed, currently defuelling  Sizewell A – 420MW  Closed Dec 2006  Sizewell B – 1,195MW  Operating until 2035  Sizewell C – 3,200 MW 2018  B + C = 11% of UK power  Employing over 1200 local people directly  Consultation under way on delivery of New Nuclear Build Nuclear … past, present and future

17. Sizewell B + C = 4,395 MW Great Yarmouth (CCGT) = 420 MW Peterborough (CCGT) = 405 MW East Anglia, GG, SS, ScS = 2,665 MW King’s Lynn (CCGT) = 340 MW Thetford, Ely, Eye (Bio) = 90 MW TOTAL = 8,615 MW Approximately 17.2% of total UK power… From approximately 8% of the UK population… East of England Onshore = 300 MW

18. Part Four:Conclusions… PJ The Drivers:

19. The Low Carbon Transition Plan… Page 53: The importance of New Nuclear, Offshore Wind, CCS and electric vehicles Page 73: We’re all DOOMED! Page 103: Gas is an important factor in the transition to a Low Carbon UK

20. In order to meet our future energy needs, the UK will increasingly look towards this region for both a sustainable and low-carbon solution… If there is one industry that has the ability to pull this region out of the current economic recession and ensure a sustainable future, it’s the energy industry… Sustainable Regional Prosperity through Sustainable Regional Energy… Some things we can be sure of: Demand for energy is only going to go up… The price of energy is only going to go up… Energy resources are only ever going to get more political… DON’T MISS THE BOAT!!! A balanced energy mix is essential

21. THE VOICE FOR ENERGY IN THE EAST OF ENGLAND! Contact us: Tel: 01493 446535 Email: st@eeegr.com Web: www.eeegr.com