This presentation was presented at the masterclass session during 11th Energy Storage World Forum in 2018, Berlin.
Financing energy storage - Masterclass by Macqurie focuses on energy markets changes and how they affect corporations:
- Adoption of battery storage
- Typical revenue streams
- Frequency response
- DUoS & TRIADs
- Overlooking UK Capacity Market
If you’d like to get a deep industry insights and learn in person from energy storage professionals, join our next masterclass at https://energystorageforum.com/register
Financing energy storage – Masterclass By Green Investment GroupDavide Bonomi
This presentation was presented at the masterclass session during 11th Energy Storage World Forum in 2018, Berlin.
Financing energy storage – Masterclass by Green Investment Group takes a deep look on Grid Connected Battery Storage Systems and improving the revenue streams of this business model:
- Energy infrastructure transition
- Choosing the right business model
- Accessing new revenue streams
- Implementing PPA structure
If you’d like to get a deep industry insights and learn in person from energy storage professionals, join our next masterclass at https://energystorageforum.com/register
Implementing Net Metering in the Developing WorldRuchir Punjabi
Distributed Energy (www.de.energy) is a platform to match investors with renewable energy projects. We are always looking for ways to promote renewable energy growth in developing countries. This Powerpoint was prepared as a case study to promote the implementation of net metering in a particular country and examines its feasibility as an enabling policy and to what extent it is designed to foster private investment in renewable energy and broaden the nation’s energy mix. The case study examines and provides evidence to support the implementation of net metering and puts forward a convincing case from an economic, social and environmental standpoint. Country-specific references further indicate how net metering has helped respective countries achieve their energy targets and facilitated a transition towards clean energy.
DSR: Being Power Responsive, 18th June - Full SlidepackPower Responsive
On 18th June, we brought together senior business leaders, decision makers, policy creators and energy experts to discuss the issues crucial to achieving the business benefits of a more flexible energy system.
Together at the event we collaboratively explored the opportunities for business, the incentives and barriers to growth, and sought solutions to deliver demand side response at scale by 2020.
This slidepack includes all of the presentation material from the conference.
Case study for enabling net metering as a means of broadening a nations energy mix and facilitating increased investment in the renewable energy sector
Financing energy storage – Masterclass By Green Investment GroupDavide Bonomi
This presentation was presented at the masterclass session during 11th Energy Storage World Forum in 2018, Berlin.
Financing energy storage – Masterclass by Green Investment Group takes a deep look on Grid Connected Battery Storage Systems and improving the revenue streams of this business model:
- Energy infrastructure transition
- Choosing the right business model
- Accessing new revenue streams
- Implementing PPA structure
If you’d like to get a deep industry insights and learn in person from energy storage professionals, join our next masterclass at https://energystorageforum.com/register
Implementing Net Metering in the Developing WorldRuchir Punjabi
Distributed Energy (www.de.energy) is a platform to match investors with renewable energy projects. We are always looking for ways to promote renewable energy growth in developing countries. This Powerpoint was prepared as a case study to promote the implementation of net metering in a particular country and examines its feasibility as an enabling policy and to what extent it is designed to foster private investment in renewable energy and broaden the nation’s energy mix. The case study examines and provides evidence to support the implementation of net metering and puts forward a convincing case from an economic, social and environmental standpoint. Country-specific references further indicate how net metering has helped respective countries achieve their energy targets and facilitated a transition towards clean energy.
DSR: Being Power Responsive, 18th June - Full SlidepackPower Responsive
On 18th June, we brought together senior business leaders, decision makers, policy creators and energy experts to discuss the issues crucial to achieving the business benefits of a more flexible energy system.
Together at the event we collaboratively explored the opportunities for business, the incentives and barriers to growth, and sought solutions to deliver demand side response at scale by 2020.
This slidepack includes all of the presentation material from the conference.
Case study for enabling net metering as a means of broadening a nations energy mix and facilitating increased investment in the renewable energy sector
Power Responsive DSR Conference 18th June - Summary PaperPower Responsive
On 18th June, we brought together senior business leaders, decision makers, policy creators and energy experts to discuss the issues crucial to achieving the business benefits of a more flexible energy system.
Together at the event we collaboratively explored the opportunities for business, the incentives and barriers to growth, and sought solutions to deliver demand side response at scale by 2020.
This document is a summary paper of the event
On 18th June, we brought together senior business leaders, decision makers, policy creators and energy experts to discuss the issues crucial to achieving the business benefits of a more flexible energy system.
Together at the event we collaboratively explored the opportunities for business, the incentives and barriers to growth, and sought solutions to deliver demand side response at scale by 2020.
This document gives a summary of the roundtable discussions that took place at the launch event.
Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA
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A Power Purchase Agreement (PPA) often refers to a long-term electricity supply agreement between two parties, usually between a power producer and a customer (an electricity consumer or trader). The PPA defines the conditions of the agreement, such as the amount of electricity to be supplied, negotiated prices, accounting, and penalties for non-compliance.
Since it is a bilateral agreement, a PPA can take many forms and is usually tailored to the specific application. Electricity can be supplied physically or on a balancing sheet. PPAs can be used to reduce market price risks, which is why they are frequently implemented by large electricity consumers to help reduce investment costs associated with planning or operating renewable energy plants.
Unlocking the appropriate quantity and quality of capital for the Region's sustainable energy needs is the focus on this presentation. Delivered by Tessa Williams Robertson, Head, Renewable Energy/ Energy Efficiency Unit, CDB at the Fifth Caribbean Sustainable Energy Forum in the Bahamas from January 23-25, 2017.
Winning Renewable Energy Investment Strategies for Fortune 1000 FirmsICF
ICF International explores how the combination of rapid declines in capital costs, a proliferation of financing options, and growing interest in sustainability make renewable energy an attractive investment for many firms. Whether the customer is deploying its own capital or pursuing projects through power purchase agreements, these projects often carry underappreciated financial risks that impact this win.
Additional discussion topics include examples of on-site solar and off-site wind and solar projects to demonstrate how ICF evaluates project value and helps clients mitigate risks and navigate renewable energy investment strategies.
Many remote areas and islands (RAI) are deploying renewable energy (RE), some with ambitious plans to meet 100% of their electricity or even final energy needs with renewables. For most of them, roof-top PV systems offer clear advantages but most of their deployment potential still remains largely untapped. The setup of consistent prosumer policies can provide a means to achieve the islands’ objectives faster and with lower costs to society.
This report provides guidance to policy makers on the drivers, opportunities, challenges and implementation strategies of PV prosumer policies that can be considered within a comprehensive renewable energy strategy for RAI. It is based on the frameworks and methodologies developed on the IEA-RETD publications RE-PROSUMERS (2014) and REMOTE (2012).
The preliminary results were presented at the IRENA Island conference in Martinique in July 2015, see presentation slides.
Power Responsive DSR Conference 18th June - Summary PaperPower Responsive
On 18th June, we brought together senior business leaders, decision makers, policy creators and energy experts to discuss the issues crucial to achieving the business benefits of a more flexible energy system.
Together at the event we collaboratively explored the opportunities for business, the incentives and barriers to growth, and sought solutions to deliver demand side response at scale by 2020.
This document is a summary paper of the event
On 18th June, we brought together senior business leaders, decision makers, policy creators and energy experts to discuss the issues crucial to achieving the business benefits of a more flexible energy system.
Together at the event we collaboratively explored the opportunities for business, the incentives and barriers to growth, and sought solutions to deliver demand side response at scale by 2020.
This document gives a summary of the roundtable discussions that took place at the launch event.
Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA Power Purchase Agreement PPA
What is a PPA (Power Purchase Agreement) ?
A Power Purchase Agreement (PPA) often refers to a long-term electricity supply agreement between two parties, usually between a power producer and a customer (an electricity consumer or trader). The PPA defines the conditions of the agreement, such as the amount of electricity to be supplied, negotiated prices, accounting, and penalties for non-compliance.
Since it is a bilateral agreement, a PPA can take many forms and is usually tailored to the specific application. Electricity can be supplied physically or on a balancing sheet. PPAs can be used to reduce market price risks, which is why they are frequently implemented by large electricity consumers to help reduce investment costs associated with planning or operating renewable energy plants.
Unlocking the appropriate quantity and quality of capital for the Region's sustainable energy needs is the focus on this presentation. Delivered by Tessa Williams Robertson, Head, Renewable Energy/ Energy Efficiency Unit, CDB at the Fifth Caribbean Sustainable Energy Forum in the Bahamas from January 23-25, 2017.
Winning Renewable Energy Investment Strategies for Fortune 1000 FirmsICF
ICF International explores how the combination of rapid declines in capital costs, a proliferation of financing options, and growing interest in sustainability make renewable energy an attractive investment for many firms. Whether the customer is deploying its own capital or pursuing projects through power purchase agreements, these projects often carry underappreciated financial risks that impact this win.
Additional discussion topics include examples of on-site solar and off-site wind and solar projects to demonstrate how ICF evaluates project value and helps clients mitigate risks and navigate renewable energy investment strategies.
Many remote areas and islands (RAI) are deploying renewable energy (RE), some with ambitious plans to meet 100% of their electricity or even final energy needs with renewables. For most of them, roof-top PV systems offer clear advantages but most of their deployment potential still remains largely untapped. The setup of consistent prosumer policies can provide a means to achieve the islands’ objectives faster and with lower costs to society.
This report provides guidance to policy makers on the drivers, opportunities, challenges and implementation strategies of PV prosumer policies that can be considered within a comprehensive renewable energy strategy for RAI. It is based on the frameworks and methodologies developed on the IEA-RETD publications RE-PROSUMERS (2014) and REMOTE (2012).
The preliminary results were presented at the IRENA Island conference in Martinique in July 2015, see presentation slides.
Power Conservation Technology Integration WebinarLegend Power
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This presentation by Brian MOTHERWAY, Head of Energy Efficiency Division (International Energy Agency) was made during the discussion “Radical innovation in the electricity sector” held at the 63rd meeting of the OECD Working Party No. 2 on Competition and Regulation on 19 June 2017. More papers and presentations on the topic can be found out at oe.cd/1ZW.
Five actions fit for 55: streamlining energy savings calculationsLeonardo ENERGY
During the first year of the H2020 project streamSAVE, multiple activities were organized to support countries in developing savings estimations under Art.3 and Art.7 of the Energy Efficiency Directive (EED).
A fascinating output of the project so far is the “Guidance on Standardized saving methodologies (energy, CO2 and costs)” for a first round of five so-called Priority Actions. This Guidance will assist EU member states in more accurately calculating savings for a set of new energy efficiency actions.
This webinar presents this Guidance and other project findings to the broader community, including industry and markets.
AGENDA
14:00 Introduction to streamSAVE
(Nele Renders, Project Coordinator)
14:10 Views from the EU Commission and the link with Fit-for-55 (Anne-Katherina Weidenbach, DG ENER)
14:20 The streamSAVE guidance and its platform illustrated (Elisabeth Böck, AEA)
14:55 A view from industry: What is the added value of streamSAVE (standardized) methods in frame of the EED (Conor Molloy, AEMS ECOfleet)
14:55 Country experiences: the added value of standardized methods (Elena Allegrini, ENEA, Italy)
The recordings of the webinar can be found on https://youtu.be/eUht10cUK1o
Case Study: Blockchain as the Foundation of Alectra's Grid Exchange Transacti...Jill Kirkpatrick
Alectra Utilities is leveraging blockchain technologies to develop GridExchange, a platform for transactive energy that allows its users to create new energy markets, as well as bidding into existing ones.
Behavior changes are set based on homeowner preferences for use of their distributed energy resources. The platform also creates statistics on customer energy usage and validates participation in these energy markets, confirming settlement when compensation for energy services has been paid.
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Anglian Water and Connected Energy worked together on a project to understand how to maximise the potential of renewable energy projects and offer grid services support by integrating E-STOR energy storage systems on sites.
Anglian Water's aim was to make the most of storing energy generated from their renewable sources, like the solar panels they plan to install across the region. Integrating batteries into these projects would ensure more of the renewable power is used onsite.
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Solwatt is a comprehensive programme designed by Solvay to implement an energy management system on large energy-intensive industrial sites.
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The behavioural and management stream, aiming at fostering a lasting culture of energy management and savings on the site, with a detailed structure of KPIs and KAIs and a managerial action plan.
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Financing energy storage - Masterclass By MACQUARIE
1. MACQUARIE 2018
Energy Storage World Forum
Berlin, 15th May 2018
Financing energy storage - Masterclass
Jim Lee
Puneet Sharma
2. Macquarie at a glance
All figures at 31 March 2018 throughout presentation, unless otherwise stated. Billions are rounded to the nearest whole number. 1. At 31 March 2018.
Global financial group
Headquartered and listed in Australia
Top 10 Australian company
~€22 billion market capitalisation
14,469 employees in 25 countries1
€309.9 billion assets under management1
Genuine expertise creates market leading
positions across five business groups
Diverse business mix
Outcome-focused culture
Opportunity for clients, communities and staff
Accountability for outcomes
Integrity in everything we do
49 years of unbroken profitability
26 years MBL S&P ‘A’ credit rating
Strong funding and capital position
Long-term orientation
2
3. 25 countries14,469 people in
Offices
Regional head offices
At 31 March 2018. Includes staff employed at MIRA-managed fund assets and assets MacCap has invested in.
Pie charts based on net operating income for the year ended 31 March 2018, excluding earnings on capital and other corporate items. 3
27%
of total income
People
2,598
Americas
Assets under management
€159.2 million
employing 29,000+ people
29%
of total income
People
1,766
Europe,
Middle East
and Africa
Assets under management
€57.4 billion
employing 40,000+ people
People
6,67733%
of total income
Australia and
New Zealand
Assets under management
€61.1 billion
employing 4,500+ people
11%
of total income
People
3,428
Asia
Assets under management
€32.3 billion
employing 40,000+ people
Global financial group
4. PAGE 4
Complexity – the latest technologies allow
businesses to produce, store, actively manage
and use energy more efficiently
We make energy work harder for your business with bespoke
energy solutions
We make the upfront investment to unlock long-term benefits for
your business
Opportunity – the best technologies give greater
certainty and control over energy costs, increase
resilience and cut carbon emissions
By working with us you gain a trusted, expert partner and our
interest are aligned
Decentralisation of energy is creating the need for an energy partner to deliver
holistic solutions
Energy Markets: what is changing?
Traditional Centralised Energy Infrastructure
Large-Scale
Generation
21st Century Distributed Energy Infrastructure
Transmission Distribution
Consumer
Energy
efficiency
Rooftop
solar
Distributed
storage
Smart
grid
District
heat
Energy Infrastructure Transition
Impact on corporates A dedicated partner for your Energy Solutions
Low carbon
transport
5. PAGE 5
Adoption of battery storage
Factors for scalability of battery storage
Apparent Opportunity
• Battery cell prices continue to decline due to the uptake of electric vehicles
• Renewable energy is introducing intermittency onto the grid
• Transmission operators are reducing baseload thermal generation
• Overall power usage is flat or increasing, but price volatility has significantly increased
Battery Opportunities
• Front of the meter : Batteries connected directly to the grid operating for their account
• Colocation: Batteries located alongside existing renewables projects to increase absorption
• Behind the meter: Batteries connected on the site of an end user (domestic or non domestic)
Crystallising the Opportunities
• A battery which is installed behind the meter can generate value through several means:
• Reducing system maintenance costs
• Reducing system balancing costs
• Reducing energy costs for the end user and market participants
6. PAGE 6
Revenue
Stream
Revenue
Payer
Revenue
received by
Revenue
Proportion
(% p.a.)
Contract
Tenure
Pricing
Method
Unit Pricing Description
Frequency
Regulation
TSO
Demand
Aggregator
25%- 35%
Depends on
jurisdiction
Auction £ / MW
TSOs use batteries to track and respond to
grid frequency in order to maintain 50 /
60Hz,depending on the region. The payment is
made on an availability rather than utilisation
basis.
Avoided
transmissio
n costs
Energy
Supplier
Customer 25%-30% 12 mths
Usually
published
Annually
£ / kW
Regulators allocate the cost of grid
maintenance onto power users, some of this
can be offset by utilising batteries at the right
time.
Avoided
distribution
costs
Energy
Supplier
Customer 8% -12% 1 mth
Published
1-3 years
£ / MWh
DNOs allocate the cost of network
maintenance onto power users based on time
periods
Capacity
Market
Subject to
jurisdiction
Customer /
Aggregator
2%-4% 1 - 15 years Auction £ / kw / year
Mechanism to ensure long term reserve
capacity. Fixed contracts for a wide variety of
technologies.
Demand
Trading
Energy
Supplier
Customer 10%-30%
15 - 30
mins
Market £ / kWh Opportunistically buy/sell energy
Balancing
Mechanism
Energy
Supplier
Customer 0 – 30% < 30 mins Market £ / kWh
Opportunistically bid / offer energy to help
balance the grid
Typical revenue streams
Characteristics of each revenue stream
7. PAGE 7
Frequency response is used by NG for real time
control of demand & supply
Frequency response is split into two categories
1. Mandatory frequency response – for existing
generators
2. Commercial frequency response – consisting of
FFR & others
At the moment, storage projects are only eligible to
participate in Commercial frequency response
projects
Frequency Response (both Mandatory &
Commercial) can be subdivided into three main
types:
1. Primary response – from 10s to 30s following
loss of 0.8Hz
2. Secondary response – from 30s to 30m – loss
of 0.5Hz
3. High response – 10s onwards – decrease in
generation
Frequency Response
Frequency services are a significant part of the project revenues
Dynamic
Frequency
Response
(DFFR)
continuousl
y regulates
frequency
Static
Frequency
Response
(SFFR)
contains &
recovers
frequency
after a fault
DFFR SFFR
Type Pre-fault Post-fault
Operation Continuously responds to
small deviations
Only activated on
deviation from normal
range
Requirements - Response <2s
- Maintain for 30m
Primary: Full output in 10s,
sustain for 30s.
Secondary: Full output in
30s sustain for 30m.
Frequency Constant Approx. 8x–12x / year
8. PAGE 8
NG uses “TRIADS” as a methodology to
calculate transmission charges
DNOs have time based tariffs based on
demand on their system
C&I consumers pay TNUoS & DUoS based
on their consumption pattern
On-Site generation reduces electricity
import thereby reducing overall electricity
costs – including TNUoS & DUoS charges
Additionally the battery provides peak-
shifting capability charging when prices are
low & discharging when high
DUoS & TRIADs
Storage reduces consumption – avoiding DUoS & TNUoS for consumers
9. PAGE 9
Introduced to encourage investment in new
generation.
15 year contract for new build (3 year
refurbished, 1 year existing)
Under the Capacity Mechanism the plant is free
to provide other balancing services
During the term of the contract the battery may
be called upon to provide capacity service –
giving a notice of 4hours
The results of the 2016 T-4 Capacity Market
Auction are as follows:
— 3.2GW of storage projects were awarded a
capacity market contract
— The Aggregate Bidding Capacity is
52.42GW, 75.13% of the participants
received a capacity agreement for delivery in
2020/21
UK Capacity Market
UK CM will form a small part of the project revenues
Source: Aurora Energy Research
12. PAGE 11
Introducing Green Investment Group
Among Europe’s
largest team
of green infrastructure
investors
38+
green infrastructure
investment
specialists
30+
structuring, technical,
asset management and
green reporting
specialists
Led over
£15bn
of investment into
UK green
infrastructure
Established
track record
Established
global brands
In-house operational,
technical and policy
expertise
Deep relationships
with infrastructure
focused investors
Strong relationships
with policy makers and
governments in UK
and internationally
…creating a clear market leader in green energy
investment
13. PAGE 12
Energy Solutions is an expert team specialising in developing, funding
and delivering distributed energy infrastructure
Energy Solutions
Keep energy assets off your balance
sheet, by investing through our
proprietary Energy Services Agreement
(ESA)
Deliver low cost, additional, green
energy corporate PPAs leveraging our
unique position in the value chain
Finance and install battery storage
and reduce peak time energy costs
through our proprietary PPA
Attributes Products
01
02
03
Ongoing monitor and report on the
green impacts of the measures you
take, drawing on pioneering methodology
End-to-end technical and funding
solution from project development to
construction
Flexible, tailored finance solutions to
meet your corporate objectives
Energy
Solutions
Making energy
work harder
for you
14. PAGE 13
Off balance sheet “pay as you save” funding solution
Our returns are directly linked to the energy savings achieved
Energy Services Agreement (ESA)
Plan
Deliver
Design
• Understand your energy needs and aspirations.
• Analyse energy data, walk sites & formulate a proposal.
• Engage key decision-makers & teams across the business.
• Finalise contracts & begin design & construction of project.
• Customer payments based on savings achieved.
• Measurement & verification of savings achieved.
• Investment Grade Audit to formalise the proposal.
• Agree legal heads of terms and commercial assumptions.
• Detailed ESA proposal, that we are prepared to stand behind.
Heating and cooling Lighting and services
Controls and systems Building envelope
Resilience and flexibility Power generation
The ESA offer Harnessing multiple technologies
15. PAGE 14
Businesses benefit from upfront savings and improved margins
How the ESA payment worksHow electricity is paid for today
How the ESA works for you
10,000,000
kWh/yr
consumed
Utility Company Billed
£1,000,000
paid to
Utility
Supplier
Paid at
10p/kWh
ESA Payment
5,000,000
kWh/yr
consumed
£500,000
paid
to Utility
Supplier
Paid at
10p/kWh
5,000,000
kWh/yr
saved
Paid
under ESA
Business see a
significant net
cost reduction
Paid at
discount
Customer Benefit
How the business benefits
Savings over 15 years project life
Cash flow and EBITDA benefits
from year one
Off Balance Sheet services
agreement (IFRS 16 compliant)
Full alignment between GIG
and Customer
Illustrative example only
16. PAGE 15
Asset replacement,
risk transfer and
security of supply
Gain a trusted partner
A simple solution to
procure
Energy manager
ESA Benefits
Positive P&L impact
without negative
balance sheet impact
Retain capital to
invest in core
operations
Reduce energy and
maintenance costs
Accelerate the
savings
CFO
Unlocks critical project
investment using third
party funding
Increase the resilience
of facilities and
operations
CEO
Better working
environment
Staff
Accelerate reduction
in CO2 emissions
Access our market-
leading green
certification and
reporting capability of
the Green Investment
Group
Environment
17. PAGE 16
Commercial structure
Off balance sheet funding for energy saving projects
ESA Structure
Installation, Operation and
Maintenance Agreement
Energy Services
Agreement
Independent verification of the
achieved energy savings for
benefit of finance and Host
Equipment Purchase Agreement
& Service Agreements
OEM & Subcontractors
Green SPV
Construction &
Operations (ESCO)
Measurement &
Verification
Host Site (Offtaker)
Finance (GIG)
Investment &
ownership
We will fund and own
the distributed
energy assets
We will enter into
contracts to design,
install, operate and
maintain the assets
We will guarantee
service levels and be
paid for energy
savings actually
delivered which will be
measured and verified
19. PAGE 18
What is GridSecure?
A turn-key battery solution where the benefits of storage are shared
We install a battery and
start to receive a Service
Payment
We trade the battery’s
capacity to maximise
cashflows
In year 7, the Service
Payment steps down
c.80%
Revenues Generated Revenues Shared
Net Customer Share
Net GridSecure Share
Service Payment
Off-site
Revenues
On-site Savings
What is the Service Payment?
The Service Payment covers:
- The fixed cost of operating
and maintaining the battery
- 7 year financing from
Macquarie
The cashflows cover
the Service Payment
and are then shared
From year 10, the
Customer keeps all
the cashflows
20. PAGE 19
Our Partners and Customers
Constant Power Consumers
Businesses which cannot easily adjust demand
during peak periods
The Key players
1
Material Energy Consumers
Sectors such as manufacturing, data centres, retail
2
3
Sensitivity to Power Outages
Businesses currently stuck with inefficient back-up
generation
Batteries can enable a business to shift demand
to off-peak periods
Batteries can make a big difference to the
bottom line
Batteries can provide rapid back-up power
during brown outs
GridSecure
GridSecure is a framework between Upside Energy, BYD and Macquarie.
Each party offers a margin reduction in exchange for a savings share.
1) The Service Payment becomes low and affordable for the Customer
2) The Customer and GridSecure both have equity in the project
3) Our trading activities will be transparent to the Customer
Targeted Customers
21. PAGE 20
Contract structure
End Customer
Installer
ManufacturerFunder Operator
Managed Services
Agreement
The contract structure is built around simplicity for the Customer
o The Customer signs:
i. Installation
Agreement
ii. Managed Services
Agreement.
o Managed Services
Agreement comprises
financing, procurement and
operation of the battery
o Installation Agreement
covers design and install of
the battery and external
maintenance (where
appropriate)
Key Roles
- Provision of
funding
- Billing and
Invoicing
- Revenue Share
Settlement
Key Roles
- Generation of 3rd
party revenue
streams
- Customer
interface
- Reporting and
Monitoring
Key Roles
- Delivery of
battery to site
- Commissioning
- Provision of
warranty
- Annual checks
- Battery Systems
maintenance
Key Roles
- Installation of
battery
- Civils work
- Commissioning
- External Civils
maintenance
Installation
Agreement