SSE experience in Marine Energy and Smart Grid

SSE - Who are we?

Generation Electricity and Gas Networks

Renewables SupplyGeneration (UK)

>11,000MW >2,200MW £4.7bn RAV 9.3 million customers

2nd largest largest 2nd largest 2nd largest

440MW operating in Ireland

180k in Ireland

FTSE 100 TOP 50 COMPANY

“Providethe energy people need in a reliableand sustainable way”

Core Objective Renewables Strategy

Carbon intensity halved2006 to 2020

Marine Development

Marine - Site Development

SSE Marine Development Overview• Develop, build, own and operate • Utility scale tidal (inc. barrage) and wave sites• Focusing on Ireland and GB• Diversifying renewable portfolio• Applying offshore wind experience to marine• Dedicated development team

• resource assessment• technology evaluation• site development experience

• Largely technology neutral approach

Focus on Ireland and GB – the best marine resource in Europe

Marine - Site Development

Case study – UK Pentland Firth Round• Launched by Crown Estate - Sept 2008• First commercial marine leasing round in World• Deliver MW’s, socio-eco benefits and technologies• 1.2GW announced 16 March 2010• SSE interest 800MW

• 2 sites technology aligned with partners• OpenHydro• Aquamarine

• 2 sites technology neutral

Going Forward....• Secure commercial technologies • Learn from Pentland• Seek further opportunities in home markets• Partnering

Marine Technology Development

Marine technology development – learning through experience

SSE Experience• Over 7 years experience & £15m invested• Why?

• Demonstrate market pull• Practical experience• Synergies with other SSE activities• Investment return

• Learning points• More money & time required!• Market very fragmented• Installation & maintenance biggest challenge

Case Study – Aquamarine Power’s Oyster• Independent Co (SSE a shareholder)• Deployed Oyster 1 – 325kW – 2009• Accessible – generation on-shore• Survivable – naturally ducks!• High capture factor• Promising power to weight ratio

Lessons so far ?

• Consents & Permissions• Environmental Impact Assessment

• Planning consents• Seabed owner options/leases• Marine Spatial Planning• Deploy and monitor

• Technology• No commercial technology – yet!

• Promising concepts – signs of consensus• Entry of major OEM’s?• Transition from R&D to commercial?

• Government • Government has central role

• Co-operation and partnering key to lowering risk

SSE activities in Smart Grids

SSE Grid NetworkShetland

WESTERNISLES

Skye

ORKNEY

Dounreay Thurs

o

Ullapool

Foyers

Beauly

Keith Peterhe

ad

ABERDEEN

Kintore

Elgin

Fraserburgh

DUNDEE

Tealing

PERTH

Fort William

Oban

Arran

Mull

Tiree

Coll

Islay

Jura

Kirkwall

Shin

Grudie Bridge

Errochty

Campbeltown

F. Augustus

Killin

Dunoon

Inveraray

Bute

Boat of Garten

Dunbeath

Tarland

Macduff

Braco

Port Ann

Carradale

Cassley

Cruachan

Alness

Denny

Windyhill

Afric

Stornoway

Nairn

BlackhillockKnocknag

ael

• Networks upgrades to facilitate move from 1GW – 7GW renewables

• Increased links to islands

• Increased interconnection with UK e.g. Norway

Major Network investment plan focused on facilitation of renewable power

Why Transition to Smart Grids?

Changing demands on grid

• Increased demand for energy

• Increased Renewables

• Increased price volatility

• Increased interconnection

Maintaining existing grid capability

• Reliability and quality

• Stability

• Market efficiency

• Environmental concerns

The challenge is to balance the need for Complex networks vs Security of supply

SSE activities in Smart Grids

• Intelligent Loads – distributed storage

• Electrical Vehicle Pilot Schemes – London, Oxford, Cardiff,

• Smart Metering – 28,000 pilot customers, Onzo meters

• Special Protection Schemes – protecting networks

• Active constraint management

Diverse involvement in Smart Grids

• 6 miles off North-Scotland

• 11,500 customers• Existing generation a mix of wind, wave

and gas

• Limited interconnection to mainland

• High level of wind generation vs demand

• Choice of moratorium on more

renewables or operate grid differently

• 4 year research project between SSE and

University of Strathclyde to develop

scheme to facilitate increased connection

of renewables

SOUTH RONALDSAY

FLOTTAHOY

STROMNESS

BURGARHILL

SHAPINSAY

STRONSAY

EDAY

SANDAY

WESTRAY

KIRKWALLKIRKWALL

Case Study – Active Constraint Management – Orkney

Need to operate Grid differently

• Software and hardware solution for:

• Multiple generators

• Multiple constraints within the network

• Limits on export cables

• Unique features:

• Real time active network management

• Real time measurement and control

• Zonal approach to constraint allocation

• Existing connections unaffected

• Last In First Out (LIFO) access principles

• System installed and live Nov. 09

• Additional generation already being connected

(30% increase over previous maximum)

Project Deliverables

KIRKWALL

SCORRADALE

STROMNESSSTROMNESS

BURGARHILL

Normally Open Point

ST. MARY’S

STRONSAY

SHAPINSAY

SANDAY

EDAY

WESTRAY

ROUSAY

THURSOGRID

FLOTTA

NORTHHOY

LYNESS

Orkney Core

Zone 3

Zone 4

Zone 2

Zone 1

KIRKWALL

SCORRADALE

STROMNESSSTROMNESS

BURGARHILL

Normally Open Point

ST. MARY’S

STRONSAY

SHAPINSAY

SANDAY

EDAY

WESTRAY

ROUSAY

THURSOGRID

FLOTTA

NORTHHOY

LYNESS

Orkney Core

Zone 3

Zone 4

Zone 2

Zone 1

Smarter Grid Solutions Inc created – now part of ventures portfolio!

SSE is committed to making renewables work

• Increasing renewables within own generation portfolio

• Increasing capability of grid to connect and manage renewables

• Developing businesses and technologies which deliver active, smart grid management

Smart Grid is an opportunity to increase renewables and grow new businesses