Energy & business Buy better & use less Presented by - PowerPoint PPT Presentation

Energy & business Buy better & use less Presented by Martyn Sheridan, Sales Manager, Energy Solutions Sian Magee – Key Account Manager, Energy Solutions

Buying your Energy better Presented by Sian Magee, Key Account Manager, Energy Solutions

“ Why is the cost of energy going up when the wholesale market is coming down?” 3

Has the wholesale market gone down? Russia made several military incursions into Ukrainian territory Brexit, Groningen & Rough all happen within weeks of each other. Forest fires in Canada. Rebel attacks in Nigeria. Glut of oil in market 4

What can affect the market price? 2016 Price Drivers FX Markets Politics Stock Markets Emerging Markets Gas & Power Prices 5 Global LNG Oil Gas System Weather

Why have my costs gone up? EMR 1% FIT 5% TUOS 6% RO 6% TUOS 9% DUOS 19% RO 14% Energy 49% Energy 68% DUOS 22% 6

What can I do to manage the 49% ? 7

I can’t manage a flex contract There are experts who can help • Expert portfolio advice - so energy can be bought at a time that’s right for the business • Market intelligence reports - published daily and weekly, to help keep track of movements in the energy markets • Live market monitoring - set triggers and limits, based on movements in the wholesale market to drive decision making. • Bespoke conference calls - for unique insight into market developments that are relevant to each business. • Risk management workshops - to develop a strong risk management strategy to manage the energy contract and purchasing. 9

Using less Energy – becoming more efficient Presented by Martyn Sheridan, Sales Manager, Energy Solutions

The Energy Pyramid

The Threes Pillars of Energy Sustainability Understanding your energy usage Looking at how your use your energy in a holistic and integrated way • • • Site assessments Develop holistic energy concepts Implement integrated solutions Energy Efficiency On-Site Generation Flexibility & VPP Reduce energy consumption Generate energy efficiently Monetize flexibility • • • Data transparency and data On-site supply of heat, steam, Identify, aggregate and market analytics cooling and pressurized air from: flexibility embedded in: • • • Remote control and optimization CHPs/CHCPs (0.25-10 MW) On-site generation assets • • of assets at customer facilities Gas-turbines (1-200 MW) Energy-consuming equipment • • • Efficiency investment projects – Heat pumps, boilers, PV Storage systems with and without funding • Design, installation, financing • Under-writing of projects – • Remote operation & maintenance promised savings Security of supply and long = 20-25% savings £30-40k per MwH term savings Design, build, fund, control, operate, and maintain energy assets at customers ’ facilities.

Energy Efficiency within the B2B environment

LED Replacements: Large savings can now be made across all commercial/industrial product types Typical commercial luminaires Typical LED replacements Up to 60% 400W High Bay 180W LED High Bay Luminaire Up to 60% 60w T8 fluorescent 25 W LED tube tube Up to 60% 96W Fluorescent 40W LED panel Recessed Luminaire Expect to save an extra 30-50% (on top of LED savings) with lighting controls (e.g. dimming) Source: Carbon Trust, 2011 14

On-site generation Optimising energy-consuming and energy-generating assets that are installed at your facilities. Customer facilities (Examples) Energy assets ECT levers • Gas Engines Retail stores Distribution centers Operating efficiency • Gas / steam turbines • Boilers • PV Cost efficiency Office buildings Production facilities • Chillers • BEMS Technical efficiency • Lighting systems • HVAC systems • Compressors Capital efficiency Hospitals Data centers • Electrical motors • Air handling units Strategic focus • … 15

Demand Side Response Introduction Three elements combine to create a Virtual Power Plant Flexibility Control and Accessible Sources Aggregation Value Pools  On site generation   Selling energy Flexibility sources (e.g. CHP, diesel and/or capacity in wholesale controlled by a central generators, wind, PV) control system in which energy markets  Controllable loads  aggregate operation Providing reserve (e.g. industrial processes, and balancing services to is optimized to access HVAC, pumps) TNOs/DNOs/Retailers/ value pools  Energy storage Generators (e.g. heat & cold storage,  Helping TNOs/DNOs to avoid compressed gas, batteries) or delay infrastructure investment 16

What next?  Batteries & storage  Vehicle charging points  Solar back on the agenda…..  Fuel cells  Next phase of LED lighting  ……….

Financing and underwriting  Customer benefits from General Business Model Across EE, OSG/EEP and Flexibility guaranteed savings levels  Customer does not need to £ fund energy conservation Projected measures energy cost  Customer incurs OPEX only if E.ON achieves promised savings  E.ON analyses savings Customer share of savings potential and designs energy conservation measures  E.ON implements energy Historical E.ON share of cost conservation measures and energy provides funding savings cost  E.ON guarantees customer a minimum savings level  E.ON takes initial share of savings achieved  E.ON may participate in Time Contract upside above guarantee level duration We reduce cost and take a share of the savings generated to fund the design, installation and operation of our solution 18

E.ON Energy Solutions at a glance International provider of energy as a managed service and solution  E.ON Connecting Energies (ECT) established in July 2012  Matrix Solutions acquired in 2013  Other solutions/companies acquired throughout 2014 & 2015. Will be in an acquisitional stage in 2016  Over € 300 million annual sales and more that 400 MW of Assets under Management  More than 750 employees  15 offices across Germany, UK, Italy, France, Sweden Belgium and Russia  Serving B2B and public-sector customers 1 I.e. cash income from customer projects accounted for as finance leases under IAS.

What customers does E.ON Energy Solutions serve? Manufacturing TMT FMCG Chemicals Financial services Healthcare Retailing Public sector Newham 20

Why partner with E.ON Energy Solutions? • Full Key Account Management - fully managed with one point of contact throughout process • Fully-integrated managed energy service provider • Technology-agnostic & vendor-independent • “SMART” – IT-based & data analytics led solutions • Guaranteed results for the customer & fully E.ON funded • International footprint and delivery capabilities • Reliable partner with substantial track record

For further information contact; Sian Magee, Key Account Manager, Energy Solutions sian.magee@eonenergy.com - +44 (0) 7809 585456 or Martyn Sheridan, Sales Manager, Energy Solutions martyn.sheridan@eonenergy.com +44(0) 7772 03301