©2010 Energy Technologies Institute LLPThe information in this document is the property of Energy Technologies Institute LLP and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Energy Technologies Institute LLP.This information is given in good faith based upon the latest information available to Energy Technologies Institute LLP, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon Energy Technologies Institute LLP or any of its subsidiary or associated companies.

UK priorities for the development of UK priorities for the development of sustainable energy technologiessustainable energy technologies

www.energytechnologies.co.uk

David ClarkeDavid Clarke Chief ExecutiveChief Executive

September 20September 20thth 2010 2010

2©2010 Energy Technologies Institute LLP Subject to notes on page 1

Affordability

Security

(£40/tonne)

-80%

Sustainability

fossil fuel baseline

DUKES data

Addressing the UK’s energy challengesAddressing the UK’s energy challenges

3©2010 Energy Technologies Institute LLP Subject to notes on page 1

Addressing the UK’s 2020 and 2050 energy challenges requires ....Addressing the UK’s 2020 and 2050 energy challenges requires ....

Setting a strategic direction Creating commercial confidence

Viable commercial operation

Which energy technologies do we need and when? Innovative technologies and sub-systems

Full system demonstrationReducing risk

Increasing investor confidence

Bringing together new supply-chains

4©2010 Energy Technologies Institute LLP Subject to notes on page 1

ETI Delivery of engineering demonstrations of innovative low carbon energy systems

Viable commercial operation

Setting a strategic direction Creating commercial confidence

Innovative technologies and sub-systemsWhich energy technologies do

we need and when?

World-class ETI capability in energy system modelling

and strategic analysis

The ETI - Addressing the UK’s 2020 and 2050 energy challenges by ....The ETI - Addressing the UK’s 2020 and 2050 energy challenges by ....

Focused on the integrated UK energy system – power, heat, transport and

associated infrastructure

13

Probability of

deployment

Average deployment

Probability of

deployment

Average deployment

43% 9 TWh

65%

16 TWh

Technology analysis – tidal streamTechnology analysis – tidal stream

30 35 40 45 50 55 60 65 70 75

Cost of Electricity 2050 (£/MWh)

Pro

bab

ility

Initial cost estimate

Revised cost estimate

Initial Deployment Revised Deployment

Impact of reducing uncertainty over future costs

13

Probability of

deployment

Average deployment

Probability of

deployment

Average deployment

43% 9 TWh

65%

16 TWh

Technology analysis – tidal streamTechnology analysis – tidal stream

30 35 40 45 50 55 60 65 70 75

Cost of Electricity 2050 (£/MWh)

Pro

bab

ility

Initial cost estimate

Revised cost estimate

Initial Deployment Revised Deployment

Impact of reducing uncertainty over future costs

5©2010 Energy Technologies Institute LLP Subject to notes on page 1

The ETI’s UK Energy System ModelThe ETI’s UK Energy System Model

PC based mathematical model identifying and evaluating options for design of the future UK Energy system

Generation and Demand

Power, Heat, Transport and Infrastructure

Enables decision making on investment and prioritisation

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Portfolio analysis

14

Possible Portfolios (ranked by cost)

Mitig

ation C

ost

90% CO2 reduction

80% CO2 reduction

60% CO2 reduction

Portfolio analysis – powerPortfolio analysis – power

Portfolio costs for different 2050 CO2 targets

Indication of probability of meeting target at or below a given cost

14

Possible Portfolios (ranked by cost)

Mitig

ation C

ost

90% CO2 reduction

80% CO2 reduction

60% CO2 reduction

Portfolio analysis – powerPortfolio analysis – power

Portfolio costs for different 2050 CO2 targets

Indication of probability of meeting target at or below a given cost

The ETI Energy System Modelling Environment - informing technology choicesThe ETI Energy System Modelling Environment - informing technology choices

Example outputs

Energy System ModelEnergy System Model

PowerPower

HeatHeat

TransportTransport

InfrastructureInfrastructure

Probabilistic modellingenvironment Macro assumptionsMacro assumptions

Constraints/Dependencies

Technology Roadmaps

7©2010 Energy Technologies Institute LLP Subject to notes on page 1

ETI 2010 portfolio - addressing key energy challenges ETI 2010 portfolio - addressing key energy challenges Wind

Offshore specific system design and engineering

Marine Tidal Stream and Wave

Distributed Energy (DE) Combined Heat and Power (CHP), demand

management, efficiency

Buildings Retrofit of new technologies and systems

Energy Storage and Distribution Infrastructure, heat and energy storage, fault

management, smart networks

Carbon Capture, handling and Storage (CCS) Storage modelling, capture technologies, network

design

Transport Electric vehicle infrastructure, heavy duty vehicle

efficiency

BioEnergy Soil chemistry and agronomy, value chains, energy

conversion

Energy Systems Modelling (ESM)

ETI technology strategy 2010

Offshore Offshore WindWind

MarineMarine

Distributed Distributed EnergyEnergy

BuildingsBuildings

Energy Storage Energy Storage and Distributionand Distribution

CCSCCS

TransportTransport

BioEnergyBioEnergyESMESM

8©2010 Energy Technologies Institute LLP Subject to notes on page 1

£62m of major projects underway>£100m of further projects in developmentCCS, DE, offshore wind, energy storage, smart systems, transport

£62m of major projects underway>£100m of further projects in developmentCCS, DE, offshore wind, energy storage, smart systems, transport

£62m of projects announced

Organisations working on ETI projects – July 2010

SMEs

Large corporates

ETI Members

Universities and Research Institutes

9©2010 Energy Technologies Institute LLP Subject to notes on page 1

Northern Ireland

North West

East

South West

Wales

East Midlands

ScotlandOutside the UK

North East

Yorkshire

London

West Midlands

ETI Project delivery partners – June 2010

South East

ETI Project partnersETI Project partners

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Major challenges for the UK energy system

2010-2050

Major challenges for the UK energy system

2010-2050

11©2010 Energy Technologies Institute LLP Subject to notes on page 1

3 enabling priorities ….

Large-scale deployment through major industries

Innovation pulled through from smaller enterprises and academia

Sustained support for long-term incentives, skills development and regulatory frameworks

©2010 Energy Technologies Institute LLP Subject to notes on page 1

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©2010 Energy Technologies Institute LLP Subject to notes on page 1

www.energytechnologies.co.uk

Building PartnershipsBuilding Partnerships

Delivering InnovationDelivering Innovation

Sharing riskSharing risk

Informing PolicyInforming Policy

Demonstrating Affordable systemsDemonstrating Affordable systems

for Secure, Low Carbon Energyfor Secure, Low Carbon Energy

©2010 Energy Technologies Institute LLP Subject to notes on page 1

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Addressing the challenges of climate change and low carbon energy

Improving energy usage, efficiency, supply and generation

Demonstrating systems and technologies

Developing knowledge, skills and supply-chains

Informing development of policy, regulation and standards

Enabling deployment of affordable, secure, low carbon energy systems

Energy Technologies InstituteEnergy Technologies Institute

ETI Programme Associates

ETI Project Partners

Public Sector