SSE Research, Development and Demonstration A partnership approach

Marta Smart Head of Partnership Funding

SSE – 33rd largest company in the FTSE 100* – £14.64bn market capitalisation* – Around 19,500 employees – UK’s broadest-based energy company – Electricity generation, transmission, distribution, supply and services – Gas production, storage, distribution, supply and services – Telecoms networks and data storage – Ireland’s fastest-growing energy company – Electricity generation – Electricity and gas supply – Street lighting maintenance

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* Correct as at 18/04/14

Our business explained

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Business segmentation Wholesale – Production and storage of gas, generation of electricity and energy portfolio management – One of the UK’s largest generators with 13,000MW of electricity generation capacity in total

(UK and Ireland), largest generator from renewable sources – Operating one of the world’s biggest offshore wind farms - Greater Gabbard

Networks – 130,000km of overhead lines and under ground cables – Transmitting and distributing electricity to 3.7 million homes, offices and businesses – Regulated asset value of £3.9bn

Retail – Over 9 million energy and home services customers in GB and Ireland, – 2nd largest supplier in GB – Frequently ranked number 1 for customers service and customer satisfaction

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Technology readiness levels

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Peterhead Carbon Capture and Storage (CCS) – World-first initiative – full-scale gas CCS project led by Shell, with our support – Approved for Front End Engineering and Design funding by DECC in February – 385 Mwe post combustion retrofit, aim is to capture around 90% of CO2 from one turbine at

the existing gas fired plant – c.1mn tonnes p.a., with initial period of 10 years – CO2 will be captured, treated, dried and compressed at Peterhead, then exported via subsea

pipeline to Shell’s depleted Goldeneye gas reservoir 2.5km beneath the North Sea

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The carbon capture, compression and conditioning process

Offshore wind turbine test facility – UK’s first live offshore wind turbine testing

site – Built on-shore at Hunterston to facilitate

access for testing and trial maintenance activities, but with similar wind conditions to those found offshore

– 3 turbine test bays • Siemens SWT-6.0-154 6MW wind

turbine, installed and generating first power

• Mitsubishi SeaAngel 7MW wind turbine, foundations being prepared

• 3rd bay leased to Scottish Enterprise for a 3rd turbine supplier

– Supported by Scottish Enterprise, the Department for Energy and Climate Change (DECC) and the Department of Business, Innovations and Skills (BIS)

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Thames Valley Vision – £30 million project funded by Ofgem’s Low Carbon Network Fund – Southern Electric Power Distribution (SEPD) project in partnership with other local,

national and international businesses – Seeking to identify more cost effective, and less disruptive solutions than traditional

network reinforcement – 5 year project on the low voltage network with three goals:

• Understand consumption behaviour to determine potential network performance issues

• Anticipate future changes to identify new network management requirements

• Support the necessary changes to network management through new technology and commercial solutions

– Now also part of EU project DISCERN

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– EU’s largest integrated renewable hydrogen project, £19m investment in the city of Aberdeen

– Utilising Scotland’s abundance of wind energy, the project will both allow the greater development of renewable energy (by easing grid constraints) and the fuelling of Europe’s largest fleet of hydrogen fuel cell buses

– The project will deliver a renewable hydrogen infrastructure in 2014, including: • Production of hydrogen from a 1MW electrolyser • Establishing a state-of-the-art hydrogen refuelling station, Scotland's first

commercial-scale hydrogen refuelling station that will include hydrogen production through electrolysis

• Deployment of a fleet of 10 hydrogen buses, to be operated by FirstGroup and Stagecoach

• Development of a hydrogen safe maintenance facility. Within an operational fleet maintenance depot

– Funding from Europe, the UK Government and the Scottish Government

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Zero Carbon Homes

– 10 Zero Carbon Homes built in 2010 – Electrical power from solar PV tiles which cover

the entire roof – Heating and hot water is supplied from an

innovative low temperature, low heat loss, district heating system powered by: • Ground source heat pumps • Air source heat pumps • Solar thermal technology • A biomass boiler

– Staff from SSE, staff from Slough Borough Council and local families live in the homes

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Partnerships with Universities Ways we work with universities: – Supporting academic projects (e.g. future power consortium) – Doctorate students (EngD and PhD), ~ 10 currently – Knowledge transfer partnership (KTP) studentships – Contract directly for research (e.g. Reading on TVV) – Partner with academics on funded projects – Co-Chair of Energy Research Partnership

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Technology and Innovation Centre (TIC) – Founded by the University of

Strathclyde, SSE, Scottish Power and Technip

– Intention to add further industry partners

– Undertaking collaborative research on low carbon, power and energy

– Current focus on 3 areas: 1. Offshore structural foundations

and associated installations 2. Asset management 3. Electrical networks

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Challenges for the future

– Building trust with customers – Driving down the costs of offshore wind in an age where affordability is fore – Responding to the ‘smart’ world e.g. demand side management, health monitoring – Managing consumer behaviour – increasing energy efficiency – Responding to localised / community energy production and usage – Developing cleaner, sustainable fuels and smarter networks

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Thank you

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