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Can big utilities survive in a decentralised energy market? November 2008

Only if they think differently

Challenges

• • • •

Reducing carbon emissions Replacing ageing assets Fuel supplies Making prices affordable

The solutions will involve… • Cleaner energy production • Smarter energy consumption Both of these will need… • New technology to be applied • New business models to be devised

Nuclear

Onshore wind Offshore wind

Carbon Capture

Geo-thermal

Cleaner energy production

Wave

Tidal

Solar Multi-fuel plants

Co-firing



Onshore wind

Nuclear Carbon Capture

 

Geo-thermal



Solar

Cleaner energy production

 

Offshore wind

Wave



Tidal





Multi-fuel plants



Co-firing

Demand Side Management

Dynamic Pricing Control and optimisation

Distributed Generation

Localised Storage

Smarter Energy Consumption

Real time metering

Active Grid Management

Electric Vehicles Intelligent Buildings

Energy efficiency



Demand Side Management

  



Dynamic Pricing

Distributed Generation

Localised Storage

Smarter Energy Consumption

Electric Vehicles

Intelligent Buildings



Energy efficiency

  

Control and optimisation

Real time metering

Active Grid Management

How does a utility respond given that… • Up until recently we spent little on R&D

• Our business model has been largely unchanged for 100 years

Innovate Mainstream activities and investments

Portfolio of venture investments \ partnerships • SSE Ventures set up 18 months ago • Minority stakes in emerging technology and business • Money and… – – – –

Engineering Routes to market Procurement Management support

• Both direct and indirect stakes • Investing in Energy Networks

SSE Ventures – Existing Direct Investments

12

SSE Ventures – Existing In-direct Investments

13

Can big utilities survive in a decentralised energy market?

Utilities need to • Clean up energy production techniques • Improve \ Introduce new ways to reduce consumption • Innovative mainstream activities • Portfolio of venture investments and partnerships • Balanced generation portfolio • We need a range of solutions 14

Can big utilities survive in a decentralised energy market?

We believe

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