1. Matrix Sustainable Energy Horizon Panel Report By David Surplus Chairman Matrix SEHP 25 th June 2013

2. The challenge for Northern Ireland 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!

3. How do we achieve this? MATRIX: Northern Ireland Science Industry Panel Established in 2006 due to 4 main issues 14 members (majority from tech based industry) Sub panels to provide expert advice in specific sectors Focus is not on business sectors or technologies but on MARKET OPPORTUNITIES

4. MATRIX Mission: 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

5. Industry Government Academia MATRIX Guiding Vision Northern Ireland’s economy based on a Science & Technology Exploitation System which is: Led by business Inspired by Academia Facilitated by Govt

6. Sustainable Energy Horizon Study Technology Capability Mapping Study Identification of future global market opportunities Identification of any barriers Recommendations for business, government and academic stakeholders

7. Key challenge for sustainable energy in NI: 1.40% renewable energy target by 2020 – large. 2.Most capacity will be from relatively cheap wind. 3.Existing grid system not designed to handle this. 4.Resulting in curtailment of wind farms. 5.Present solution is to spend £m100s in grid upgrades... 6.which adds cost and delay to project development, and 7. increases electricity bills.

8. Resultant opportunity for NI: 1. Increased interconnection (N/S and E/W) 2. Energy Storage 3. Demand Side Management 4. All working as part of an intelligent energy system...... Better use can be made of the existing grid system through....

9. Intelligent Energy Systems (IES) The real time monitoring and control system required to balance generation and load on the lower voltage grid network has been described by the panel as an “Intelligent Energy System” This became the core opportunity identified by the panel and its development is expected to benefit all grid connected renewables in NI, i.e. wind, PV, AD and hydro - especially those forming part of a community energy system New products and services deployed in NI can then be exported to other regions and countries that encounter similar grid problems – and there will be many

10. IES Project Business plan Identification of the specific components of an IES What NI companies can provide (identified products and services) What are the gaps and can NI companies gear themselves up to provide this? What assistance might they need? Ultimate cost of an IES? Cost / benefit analysis Renewable energy technology review & impact on grid Micro-grid & community energy systems Investigation of micro-grids in other countries – synergies, improvements (made in NI) and market export opportunities

11. Community Energy Systems A Community Energy System (CES) is a system involving the generation, distribution, storage and use of energy at or below the ‘community sub-station’ - KTN definition In Northern Ireland (and the ROI) Community Energy Systems can be promoted through a ready made mechanism within the Single Electricity Market Regulations called “Demand Side Units”

14. 212 x 33kV “community” sub-stations More than 70 in rural locations

15. Lecale DSU 33kV sub-station (Community Sub-station) Farm scale AD ICAES “Lecale” Aggregated DSU for 11kV circuits ICAES is buffer for DSU trading Waste heat from AD gives 100% RT efficiency 500kW AD can support 2 to 3MW of ICAES (i.e. heat in for 24hrs and heat out for 4 hrs) More than 70 x rural 33kV sub-stations in NI 150 farm scale AD’s needed for farm waste... So each DSU can easily have integral AD Storage at 33kV benefits higher voltages too Lecale DSU intending to apply to future TSB Community Energy Systems fund 250kW wind turbines Solar PV Additional AD 2 nd life traction battery charging

16. Northern Ireland Energy Gap Delay in delivering the planned second North-South interconnector due to planning issues. Earliest commissioning 2017 Withdrawal of some generation capacity at Ballylumford and restrictions on generation at Kilroot for compliance with EU emissions directives from 2016 Continued reduced capacity of Moyle interconnector until 2017 Whilst there is a surplus of generation in the ROI, current interconnector limitations restrict the amount of generation that can be transferred to NI. This limitation results in the security of supply to NI being at risk from 2016. - Utility Regulator and DETI There are 3 compounding factors...

17. Northern Ireland Energy Gap The Utility Regulator and DETI information paper called “Security of Electricity Supply in Northern Ireland” dated 12 June 2013 permits consideration of... how additional generation in NI could help fill the energy gap, and... how energy efficiency or demand side management measures might contribute to improving security of electricity provision. In addressing these issues at home MATRIX, with the assistance of its members, will effectively be charting out the “route to market” for Northern Ireland based companies wishing to exploit the international export opportunities in other regions and countries where this growing problem exists.

18. Wind Farm Curtailment 404 + 595 + 636 + 600 = 2235MW 600 MW Offshore wind

19. NI Electricity Demand 2011

20. We need a lot of controllable loads... Battery energy storage Compressed air energy storage Water heating Space heating H 2 production through electrolysis Anhydrous ammonia fertiliser production Compressed liquid ammonia gas for vehicle fuel Electric arc furnaces Refrigeration Water pumping Electric vehicle charging

21. Thank you for your attention By David Surplus Chairman Matrix SEHP 25 th June 2013