Energy StorageStrategy Paper

Presentation Date or name of Presentation team

Energy storage investment in APAC

Future energy and finance 2017

• Camborne Capital Group – privately owned parent company to

Camborne Energy Storage Ltd and Camborne Land Investments Ltd.

• UK Solar PV experience – 200MW financed through to commissioning.

• Energy Storage developing upwards of 400MW of assets in the UK,

looking for increased APAC exposure and development in 2017.

• Land Investments focussed on sustainable rental sector investment of

>£500m.

About Camborne Capital

2

Growth of Renewable Energy Generation (UK)

3

Coal

Oil & other fuels

Gas

Nuclear

Hydro

Wind & Solar

Other renewables

Net imports

Electricity Provided by Fuel Type, 2000

Coal

Oil & other fuels

GasNuclear

Hydro

Wind & Solar

Other renewables

Net imports

Electricity Provided by Fuel Type, 2016 Q1 & Q2

The UK has ambitious targets to meet 15% of its energy needs through

renewable energy generation by 2020. By the end of 2016, there was over

30GW of installed renewable energy generation in operation.

4

• Pumped storage – where we started• <125GW installed globally in 2012

• Compressed air energy storage

• Battery storage• Sodium–sulphur batteries

• Lead–acid batteries

• Nickel batteries

• Lithium ion batteries

• Lithium titanate

• Further technologies – where we are• Flywheel

• Cryogenic energy

• Metal-air batteries

• Hydrogen storage

• Superconducting metals

• Sand

• Chemical mixes

‘Electrical’ Energy Storage

Hohenwarte Pumped Storage Scheme &

Leighton Buzzard Battery Storage Scheme?

• Reduce curtailment.

• Stabilise system frequency.

• Electrification schemes.

• Support peaking power plant mothballing.

• Defer distribution network reinforcement.

• Maximise value through arbitrage.

• Demand profile smoothing.

• Significant environmental benefits.

Energy Storage Benefits

5

Source: Bellona Europa (2015)

Flexibility

UK Ancillary Services Contracts – Commercially Valuable

7

Enhanced Frequency

Response (EFR)

• Grid balancing

service (50htz)

• Four-year contracts

• Sub-second

frequency response

Firm Frequency

Response (FFR)

• Grid balancing

service (50htz)

• Shorter contracts

(1-2 years)

• Response time 2-10

seconds

Capacity Market

• Capacity balancing

service

• Up to 15 year

contracts (for new

capacity)

• Up to 4 hours notice of

stress event

• Potential to participate

in addition to EFR and

FFR contracts

Energy Arbitrage

• Opportunities presented by

volatility in the markets

• Battery energy storage responds

effectively to increasing

instances of intraday price

movements

8

Prices of £1,000 pMWh already

seen in the UK this winter

Storage Facilitating EV Charging

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Increased numbers of EVs on the roads will have repercussions to the energy network:

• Expansion of charging infrastructure to meet demand resulting from increased EV numbers

• Network reinforcement will be required to support the increase in demand for EV charging

• As battery technologies improve, EV capacities increase and quicker charging is enabled, all

requiring higher network capacity

A significant challenge in expanding the EV charging network will be cost, with securing a grid

connection and sufficient capacity being a significant portion of up front capital expenditure.

Co-locating energy storage alongside EV charging infrastructure can alleviate these impacts:

• Improved load management, reducing necessity to reinforce grid infrastructure

• Support greater numbers of EVs charging simultaneously

• Improve the operational expenditure for energy by operating energy storage to avoid peak

power pricing

EV Charging Hubs

Significant increase in fleets of EVs is expected:

• London is set to own Europe’s largest fleet of

electric buses, with two routes, 507 and 521,

becoming all electric.

• APAC experiencing significant growth in vehicle

manufacture, delivery and use – anticipated growth

of EV ownership in the millions over next 5-10

years.

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• UPS spent over £600,000 upgrading energy infrastructure at one of their central London depots, specifically to

ensure their fleet of 16 EVs could be charged. The charging of EVs at peak times was, from an energy perspective,

in direct competition with their sorting machinery, with the local grid unable to deliver sufficient capacity to meet

demand.

Impact of EVs on Battery Prices

Global increase in number of EVs has had a pronounced effect on Li-ion battery prices

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Battery surveys include electric vehicles.

Source: Bloomberg New Energy Finance

• Finance

• High technological cost.

o Getting cheaper with time.

• Investor security – contracts, guaranteed repayment, risk appetite.

• Technology

• Emerging technology.

• Uncertainty surrounding lifespan and degradation issues.

o Manufacturers claim long life and durability.

• Small manufacturing quantities.

• Other

• For some energy storage solutions, such as pumped hydro and

compressed air, there are other barriers, such as geographic

constraints.

• Policy influence.

• Comparative investment.

Challenges

12

The Case for Asian Investment

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• Similar intermittency challenges in terms of renewable and

embedded generation.

• Connecting grids – off grid and electrification.

• A lucrative investment.

• Global support.

• Increased interest.

• The need for diversity.

• Localised resources.

16

L to R: Dan Taylor – Managing Director, Camborne Energy Storage;

Baroness Lucy Neville-Rolfe – Energy Minister; Edward Sargent – Manager,

Tesla UK; Chris Roberts – Managing Director, Poweri

CES’s Battery Energy Storage project, utilising Tesla’s

Powerpack solution, alongside existing Solar PV site.

““We welcome this exciting project from Tesla

and Camborne. Innovation in storage

technologies will help manage our electricity

grid more efficiently, support greater energy

security and, crucially, drive down consumer

bills.

UK Energy Minister, Baroness Neville-Rolfe, 07 December 2016

Dan Taylor

Managing Director

dtaylor@cambornecapital.co.uk

Head Office 48 Dover Street, Mayfair, London, W1S 4FF | T. 020 7151 4122

www.cambornecapital.co.uk