Energy Live 2016

Flexibility = Consumer Control

David Hill, Open Energi

Steffan Eldred, Tarmac

@openenergi

Introduction | Gartner Hype Cycle

Trends | The Need for Flexibility

*Source: National Audit Office

Trends | Cost of Balancing

£0

£100,000,000

£200,000,000

£300,000,000

£400,000,000

£500,000,000

£600,000,000

£700,000,000

£800,000,000

£900,000,000

£1,000,000,000

2007 2008 2009 2010 2011 2012 2013 2014 2015

Reactive Power Commercial Freq Resp

Mandatory Freq Resp Non-Tendered Fast Reserve

Tendered Fast Reserve STOR

Other Black Start

Non-BM Constraint BM Constraints

*Source: BSouS Cost Breakdown

Trends | Peak Prices

Peak prices to increase by 48% over the next 5 years

Market | Complex

Assets | Where to start?

CHPBatteries Back-up Diesel

RefrigerationWater Pumps

Bitumen Tanks

HVAC

Sewage Aeration

Anaerobic digestionSmelting Pots

EV Charging

Technology Simplifies

Market | Market Diagram

Capacity Markets

Dynamic

Frequency Markets

Capacity Market

Demand Charges

TRIAD

DUoS

CM Levy

Arbitrage

N2EX/Nordpool

Imbalance Market

Assets | Merit Order of Flexibility

Assets | Merit Order of Flexibility

Building Value | Flexibility Optimisation

Building Value | Flexibility Optimisation

TOTAL COST = £162.35

Building Value | Flexibility Optimisation

Low Availability

High Availability

TOTAL COST = £137.04

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Optimised Hot Water Demand

Total Cost of Power Pre Optimised Demand Optimised Demand

Building Value | Flexibility Optimisation

TOTAL COST = £76.88

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Optimised Hot Water Demand

Total Cost of Power Imbalance Prices Pre Optimised Demand Optimised Demand

Building Value | Flexibility Optimisation

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Optimised Hot Water Demand

Total Cost of Power Imbalance Prices Pre Optimised Demand Optimised Demand Full Optimisation

Building Value | Flexibility Optimisation

TOTAL COST = £64.07

Constructive thinking - Tarmac video

Our DSR journey

Tarmac involved with Demand Side Response for a number of

years on some larger assets.

Open Energi’s Dynamic Demand technology offered energy and

cost saving opportunities, but:

• was it too good to be true?

• what impact would it have on our operations?

• how much did it cost to install?

We trialled the technology on 3 sites before embarking on a full roll

out to demonstrate it:

• would help us to manage our energy demand more smartly

• would support our delivery of carbon reduction targets

• could be safely installed with minimal disruption to our

operations

Our strategy and approach

Where are we up to now?

• Rollout programme ran through out 2015

and was completed in Spring 2016

• Around 70 asphalt plants across our

portfolio now have Dynamic Demand

installations

• Over 200 individual tank installations

• Delivering significant high availability

• Additional opportunities around tank

control and maintenance

• Minimal operational impact once

installed

What is the future looking like?

• Identifying other equipment

• Aiming to release more

capacity for the grid

• Increase its support for our

carbon and energy targets

• Enabling others to follow suit

and showing proof of market

appetite for demand-side

management via Living Grid

.

UK Head Office

Lincoln House

300 High Holborn

London

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+44 (0)20 3051 0600

www.openenergi.com