1. DM 56609 08-2003 Copyright © Tekes Duration: 2003-2007 Funding volume: 50 million euros Contact: Jerri Laine, Tekes Tel: +358 10 521 5874 jerri.laine@tekes.fi Jonas Wolff, Merinova Tel: + 358 9 2517 3175 jonas.wolff@merinova.fi www.tekes.fi/programmes/densy/ DENSY – Distributed Energy Systems Technology programme for the development of distributed energy systems

2. DM 56609 08-2003 Copyright © Tekes Definition of Distributed Energy Systems Real estate-size Block-size Factory-size Production of power, heat and cold Especially renewable energy Independent or connected to power or heat network Mobile, if needed ”Local, small sized systems for energy conversion, production and storage as well as related services”

3. DM 56609 08-2003 Copyright © Tekes Basis and Opportunities Global trends Increasing energy security Addressing environmental values Liberalized energy markets Growing demand for renewables and combined heat and power Commercial opportunities Lower net investments – perhaps lower price per kW and kWh Possibility for modular/serial production – lower costs Independency from power/heat-networks – network failures High price for power/heat transmission due to local monopolies Demand side management of power and heat – larger demand for peak power Future opportunities for power trade on large scale

4. DM 56609 08-2003 Copyright © Tekes Growing Export Markets Markets near Finland in 2007: 11 billion euros Global markets in 2010: 53 billion euros (Source: ABB) 2001 2007 Growth € Billion % Scandinavia (excl Finland) Russia, Baltics, East-Europe Central Europe Total 1 000 50 3 700 4 750 1 800 2 100 7 100 11 000 80 4 100 90 130 (Source: F&S)

5. DM 56609 08-2003 Copyright © Tekes Programme Focus Business models Energy services New business concepts Customer’s decison making tools Financing instruments Integration to local energy sources to local consumption to customer systems to external energy systems DSM System solution Intelligent components Compatibility Modelling and measuring tools IT, automation, control and supervision Standardized solutions Industrial production Mass-production technologies Modularity Design Lean manufacturing Simplicity Standardized solutions Utilizing information technology Platforms, applications, models and simulations for evaluation of functionality and costs Technical services, systems and equipment for providing total service concepts Demonstrations

6. DM 56609 08-2003 Copyright © Tekes Finnish Know-how... Systems and automation (Intelligent automation) Distributed generation (Wärtsilä, 50 %:n of global diesel-markets) Information systems Substations and remote control (ABB 20 %:n market share) Generators and gears (ABB, Metso 30 %:n market share) CHP (world’s largest intensity) Power from bioenergy (largest share in Europe)

7. DM 56609 08-2003 Copyright © Tekes Objectives and Results for 2010 Finnish companies, esp. SMEs, develop and produce products and services on a globalcompetitive market Finnish technology, know-how and industry is widely recongnised in Europe and referred to globally The Finnish innovation environment has reached global excellence Finnish products and services are leaders in several global markets

8. DM 56609 08-2003 Copyright © Tekes Impacts in 2010 Segment turnover grows to 6 billion euros, of which 90% from exports (Today 1.3 billion euros) SME turnover 1.5 billion euros (Today 80 million euros) The sector employs 13 000 people (Today 5 500 people) R&D effort in the industry grows to 500 million euros (today 160 million euros) Number of companies, especially SMEs, in the segment grows to 200 (today 30)

9. DM 56609 08-2003 Copyright © Tekes Situation 2003 22 research projects in five project groups IT and automation Business concepts Heat and CHP-systems Electrical systems Industrial productions 18 research centres and universities more than 40 co-funding companies 25 product development projects

10. DM 56609 08-2003 Copyright © Tekes Project group: ICT and Automation Application of ICT in energy technology Platforms, applications models and simulations for asessment of functionality and costs Technical services, systems and products in a functional full-service concept Scope: Objectives:

11. DM 56609 08-2003 Copyright © Tekes Project group: Electric systems Grid-connection of distributed generation Proven, reliable and cost-efficient technology for power system integration Design tools and economic models for cost optimization Energy storage technology Scope: Objectives:

12. DM 56609 08-2003 Copyright © Tekes Project group: Manufacturing technology Reach cost-efficiency through modular design and mass-production Lean manufacturing for growing with markets New materials and manufacturing technology in the energy industry Design for manufacturing and assembly Scope: Objectives:

13. DM 56609 08-2003 Copyright © Tekes Project group: Heat and CHP New visions for district heating Business from even smaller CHP-systems Cost-efficient energy production as a part of optimized waste management Scope: Objectives:

14. DM 56609 08-2003 Copyright © Tekes Project group: Business concepts Define value chain, business opportunities and customer benefit Commercialisation of new technologies and services Formation of business networks Benefitting from the changing business environment Scope: Objectives: