Innovate UK energy strategy - Rob Saunders A joint approach - Christian Inglis The energy systems catapult - Nick Smailes Project Presentations
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1 Our changing energy systems: Supporting innovation Innovate UK energy strategy - Rob Saunders A joint approach - Christian Inglis The energy systems catapult - Nick Smailes Project Presentations May 2015
2 Innovate UK Who? The UK Innovation Agency Why? Innovation drives productive growth What? Accelerating UK growth through business-led innovation Fund Connect Support Open Competitions Challenge Competitions Collaboration Research (KTP) Sectors (KTN) Geography (EEN) Growth Investment Expertise
3 Energy is a key priority challenge area Our Energy Strategy: Growing UK businesses by helping them develop and commercialise innovation that will contribute to affordable, secure and sustainable energy supply across the world. Next Generation Supply Reducing Emissions Integrated Energy Systems
4 Supporting your business According to its needs Targeted Competitions Depth Open Competitions Breadth Energy Centres of Expertise Unique Assets Connectivity, Partnerships & Business support And building x-economy partnerships and solutions Transport Satellite Apps Digital Comms & Sensors Built Environment Manufacturing Materials Emerging Tech s AgriTech
5 Needing Causing Drivers Energy Systems: Changing before our eyes } Affordable Sustainable Secure energy systems for the future Energy production changes: - Less flexible generation - More variable output - Mix of central and local Demand Shifts - Changing Use patterns - Government stimulation - Electrification of heat and transport System Concerns - Electricity Capacity margin now <5% - Infrastructure inadequacy Profound shifts in approach: Demand-led control of supply Independent Unidirectional vectors Focus on electricity supply Integrating demand and supply Multidirectional, interdependent vectors Focus on optimising the system
6 Energy Systems Innovation Programme Christian Inglis A Joint approach to Innovation All Energy, 7 th May /06/2015 Energytechstrat
7 Content What do we cover in energy systems? What are the challenges? What does an innovation programme look like? Summary
8 energy systems scope Out of scope: Production Wind, wave, Tidal, PV, solar Power generation CO 2 systems Gas & oil Production, LNG, Fracking Fission / fusion Heat, combustible gases, electricity vectors and networks Integration and interoperability of production and end use technologies Inclusive of system design, communications, data, analytics, digital platforms, machine to machine management systems, demand management, storage integration, power electronics, controls, decision making tools, efficiency, customer engagement tools & services Out of scope: End use Consumer products Lighting, etc Buildings Insulation Electric Vehicles Heat pumps Fuel Cells Integral to Innovate UKs current energy strategy: balancing supply and demand in a secure, resilient and flexible energy system
9 What is the need for a programme? Challenges Innovation not yet business as usual in a regulated, conservative sector Opportunities UK business share of 1.6 trillion market in energy systems globally, and innovation and savings to UK market (DECC TINAs) Public investment from multiple sources with differing processes and drivers Coordinated approach to public investment - share knowledge, support policy and regulation decisions No coordinated technology roadmap for energy systems to give long term direction for investors and public funding A shared road map and reference point, multiple vectors may require similar technology solutions, coordinated industry, government and academia Long timeframe for small businesses to deliver solutions in sector, Fast moving SME base with potential to develop solutions from multiple sectors.g. Energy, ICT, built environment, transport, materials
10 A solution...what can be done? Convene the public investment community and strengthen links with the private sector and knowledge base Develop a long term vision and roadmap giving confidence in the direction of travel for innovation Deliver a multi year investment programme for the public sector
11 Fit with existing UK innovation funding landscape IEIP Dedicated resource to share knowledge, convene public investment community, developing roadmaps, delivering a long term integrated public investment plan across the landscape NIA Devolved Administrations NIC DECC Regulation Ofgem Research Councils ETI Innovate UK Private investment funds Idea to concept From concept to tested technology in simulated environment Electricity & Gas transmission and distribution operators Local authorities & Heat Networks Financial incentives e.g. capacity market, STOR From tested technology to deployment Innovation funnel for integrated energy- Possible timeframe from concept to business as 11 usual years
12 Summary Energy systems transformation is underway and creates opportunities for innovation Challenges in coordinating public funding sources, developing combined technology roadmap and delivering an integrated programme Proposed solution is a specific energy systems innovation programme with focus on delivering long term coordinated public investment Facilitating innovation for our transforming UK energy systems Generating UK wealth and jobs from global opportunities Delivering benefits to energy customers Next steps over 6 month timeframe Scoping workshops, set up steering group, develop business case
13 The Energy Systems Catapult Nick Smailes Interim CEO 2013 First Catapults up and running 1bn Private & public sector investment
14 Catapults: A new force for innovation & growth Government business innovation intervention World leading technology and innovation centres Aim: 9 Catapults 2013 First Catapults up and running Generate sustainable economic growth Transform UK s ability to create new products and service Open up global opportunities for the UK Address gap between research and commercialisation 1bn Private & public sector investment
15 What do Catapult centres Provide? World leading capability made available to business to solve their technical challenges Access to specialist technology, expertise and skills (particularly multidisciplinary) for SMEs, supply chain and tier one companies E.g. high-value capital equipment, facilities, infrastructure, data, models too risky or inaccessible for individual companies Reach into the knowledge/science base Capability to enable and undertake: collaborative R&D projects, contract research large-scale, long-term technology, market mechanism and/or business model demonstrators Technology/sector leadership, independent repository of knowledge, critical mass of activity Skills development
16 Catapult Locations. Energy Systems and Precision Medicine launched in April 2015.
17 1/3 rd s Business Model to deliver Impact Total revenue ~ 30m pa (or greater) equates to staff 10m pa core funding via Innovate UK 10m contract research 10m from CR&D Must not compete with industry Industry contract R&D CR&D Innovation in collaborations Access to unique facilities, expertise and knowledge Easy access for SMEs Core Projects Maintain and evolve capability Bring together customers, SME s & blue-chip companies Partners in Projects (UK & EU) Expertise at unlocking funding Industry & research advisory groups Demonstration projects Disseminate to industry
18 Energy Systems Catapult Core funding 1st April 15 Vision: o Enable Britain to be a global leader in new products and services for energy systems o by exploiting the opportunity created by the transformation of Britain s Energy Systems Target: o > 6billion growth & >9,000 new jobs for UK by 2030
19 Integrated Energy Scope Out of scope: Production Wind, wave, Tidal, PV, solar Power generation CO 2 systems Gas & oil Production, LNG, Fracking Fission / fusion Heat, combustible gases, electricity Vectors; Networks; Integration and interoperability of production and end use technologies Inclusive of system design communications, data, analytics, digital platforms, machine to machine management systems, demand management, storage integration, power electronics, controls, decision making tools, efficiency, customer engagement tools & services Out of scope: End use Consumer products Lighting, etc Buildings Insulation Electric Vehicles Heat pumps Fuel Cells
20 Catapult Offering Catapult Core Capabilities Whole Systems Approaches and Systems Integration Initial Catapult Programmes Localised Energy Systems Demand control Storage Integration Heat networks Advance Control Systems Catapult Services Feasibility Data access Modelling /Simulation Test design Prototyping Market adoption Test /demonstrator support & access Integration expertise Standards Potential Customers SMEs Network Operators Supply chain companies New entrants Community programmes Local authorities Energy suppliers Government ESCo.s Investors Other Catapults
21 What will the Catapult look like? Single physical centre Birmingham Hub & spoke for test and demonstrators Team < 5 years Builds a critical mass of expertise/tools Centralises national knowledge Dynamic hub Supports the sector in tests and demonstrators across UK 100 technical - 70% engineers - 30% political, social, economic 30 project managers 20 leadership and admin
22 12 Month Plan Catapult set-up Offices in Birmingham Recruitment: Nick Winser, Board, CEO, team Capability development together with third parties ETI s Smart Systems and Heat programme Aim Phase 1: tools development Phase 2: demonstrator validation: Local Authorities Bridgend, Manchester, Newcastle, Phase 3: Scale up to open multi billion new market Project pipeline Landscape Mapping SMEs, Supply Chain Companies, Operators Demonstrators at scale
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