Presentation in the Flexible Power Zone at EMEX, The Energy Management Exhibition on 22 November 2017

1. Managing flexible assets to
stay ahead in the changing
energy landscape
James Graham,
Head of Asset Optimisation Sales

2. Old electricity system New electricity system

3. 3
Rising costs as new renewable projects are commissioned
Feed-in Tariff Contracts for Difference (CFD) Renewable Obligation (RO)

4. 4
Capacity Market rates forecast to increase

5. 5
Wholesale price volatility

6. 6
Turning risks into opportunities

7. 7
Maximise revenue on the wholesale market – 31st October 2016
12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30 18:00 18:30 19:00 19:30 20:00 20:30 21:00 21:30 22:00
Spot Price £/MWh 46.1 47.5 46.94 48.57 52.6 61.43 103.52 118.11 102.95 442.03 777.09 792.21 673.76 520.44 182.99 61.19 62.86 51.36 51.15 46.76 46.56
Turn Down Value £/MWh 71 73 72 74 78 86 129 143 128 467 877 892 774 620 283 161 88 76 76 72 72
Min Turn Down Value £/MWh 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Flexible MW 1 1 1 1 1 1 1 1 1 0 0 0 0 0 1 1 1 1 1 1 1
0
0.2
0.4
0.6
0.8
1
1.2
0
100
200
300
400
500
600
700
800
900
1000
Customer example:
1MW flexible
capacity
A locked
energy price of
£60/MWh
Turn down
value agreed
>£300/MWh

8. 8
Impact of market volatility over three winter months (October-December 2016)
0
100
200
300
400
500
600
700
800
900
1000
Spot Price £/MWh Turn Down Value £/MWh Min Turn Down Value £/MWh
October 2016 November 2016 December 2016

9. 9
Capacity
Market
£20,000
STOR
£22,000
Dynamic
FFR
£140,000
Static
FFR
£23,000
Demand
Turn up
£13,000
Fast
Reserve
£65,000

10. 10
What market is right for your asset?
Furnaces - Metal manufacturing &
Casting
Markets: static FFR, Fast Reserve,
STOR, Capacity Market, Wholesale
Diesel back-up generator - Hospitals
& offices
Markets: Fast Reserve, STOR,
Capacity Market, Wholesale
Waste Water Pumps - Utilities
Markets: Dynamic FFR, Fast Reserve,
Capacity Market, Wholesale
HVAC - Offices, Supermarkets,
Warehouses
Markets: Dynamic FFR, Static FFR,
Capacity Market, Wholesale
CHP generator – Hospitals & waste
water
Markets: Capacity Market, Demand
Turn-up, Wholesale
Battery – Datacentres & banks
Markets: Dynamic FFR, Static FFR,
Fast Reserve, STOR, Capacity
Market, Demand Turn-up, Wholesale

11. 11
Revenue Stacking*
Value
*Charts are for illustrative purposes only
Multi-site manufacturer - DSR
Energy
Market
Capacity Market
(Full deployment)
Capacity Market
(Proof of concept)
Triad
(wider roll out)
Triad
(Proof of concept)
Peak avoidance
Large industrial business - back-
up generation
New services
e.g. STOR, DTU
Capacity
Market
Increase output to
max. intra-day
prices
Maximise value
of power export
Commercial developer - battery
project
New services
e.g. FR, STOR
Energy
Market
Capacity
Market
FFR

12. 12
Identify
your flexible
capability
Outline your
operational
parameters
What market
is right for your
asset?
Four step guide to participating in DSR
Stack revenues
to maximise
return

13. 13
Work with a partner that has a holistic view of your energy strategy
and can help your business navigate the changing landscape
Unlock maximum value
Entering your asset into
different markets to stack
revenues
Future-proof your strategy
Market leading technology
and commercial
expertise
New opportunities
Introducing new markets and
communicating policy and
regulatory change
A next generation energy company

14. 14
Any questions?

15. Visit us on stand B30 to discuss the
DSR opportunities for your business
Thank you
James Graham,
Head of Sales, Asset Optimisation
Email: flexibility@smartestenergy.com