Stuart Duncan

Flexibility Business Development Manager

REALISING THE VALUE OF FLEXIBILITY

Global leaders in

renewable generation,

supporting

sustainability needs of

UK business

Supporting across the

entire energy strategy Key focus Flexibility

Gas

Electricity

Trading Solutions

Flexibility

Sustainability

DONG Energy – at a glance

Cost Volatility Sustainability and

CSR

3

Market trends and challenges facing large energy users

Gas

Electricity

Trading Solutions

Flexibility

Sustainability

Affordability

Sustainability

Security of supply

The industry must innovate to

maintain system balance

Sustainable generation is

replacing aged coal plants

Generation is more

intermittent, making output

less predictable

System margins are

coming down as power

stations come offline

The importance of flexibility

5

Manage demand

and reduce commodity costs

Unlock your flexibility

and generate new revenue

EMEX, 19TH NOVEMBER 2016

The benefits are two-fold

6

Energy Vision & Site Optimisation

Identifying and understanding flexibility

SHARP FOCUS ON INTELLIGENT PLANNING

CUTS ENERGY COSTS FOR KODAK ALARIS

When I heard about Site Optimisation at a seminar, it

was a real ‘light bulb’ moment. It’s unique – I’d never

come across anything like it before, but it was the

perfect fit for our needs.

David Jeans, Energy Manager, Kodak Alaris

How flexibility helped

Kodak Alaris cut energy costs

Complex on-site generation set up

Operational run schedules produced manually each day

Calculations based on broad averages, rather than accurate

Day Ahead market information

Generation and consumption assets not being used in the

most cost efficient way

The challenge for Kodak Alaris

1. INPUT: MARKET &

PLANT DATA

Day Ahead half-hourly

market information is

gathered and Kodak

enters plant information

on the web portal

3. OUTPUT:

OPTIMISED RUN

SCHEDULES

Optimum daily run

schedules produced,

which are printed out

and handed to

operational staff

2. ANALYSIS

Sophisticated

algorithms analyse

changing market

data in relation to

operating

constraints and

asset availability

Site Optimisation defines the

most cost efficient way to:

1. Operate equipment

2. Schedule production

3. Generate electricity on-site

4. Export to the grid

The result: Kodak has an

operating plan that now changes

from hour to hour. Previously this

would have been a plan built for

the week, based entirely on

averages.

The solution

By following Site

Optimisation’s

recommendations to

within 3%, energy

costs were reduced by

11%, whilst maintaining

operational output 11%

The result

11

Manage demand

and reduce commodity costs

Unlock your flexibility

and generate new revenue

The benefits are two-fold

The global leader in offshore wind and we have a large generation

portfolio to balance.

By using the flexibility within customer portfolios we can reduce consumption

during times of low system margin, reducing our imbalance costs. Customers

receive a share of the savings on delivery of flexible consumption.

Simple to set-up and use:

generate revenue at times that suit you

commitment free – no penalties for not delivering

no minimum volume requirements for participation

12

Renewable Balancing Reserve

13

1 2 3 5 4

Renewable Balancing Reserve – how it works

Transparent electricity

contracts

Range of flexibility

solutions

Renewable electricity at no premium

14

Gas

Electricity

Trading Solutions

Flexibility

Sustainability

DONG Energy innovation

OVERVIEW

Q&A

15

Thank you

OVERVIEW 16

Stuart Duncan

Flexibility Business Development Manager

studu@dongenergy.co.uk

07500 089 668