Energy & business

Buy better & use

less

Presented by

Martyn Sheridan, Sales Manager, Energy SolutionsSian Magee – Key Account Manager, Energy Solutions

Buying your Energy betterPresented by Sian Magee, Key Account Manager, Energy Solutions

“ Why is the cost of energy going up when the wholesale market is coming

down?”

3

4

Brexit, Groningen & Rough all happen

within weeks of each other.

Russia made several

military incursions into

Ukrainian territory

Has the wholesale market gone down?

Glut of oil in market

Forest fires in Canada.

Rebel attacks in Nigeria.

5

Politics

2016 Price Drivers

FX Markets

Oil

Stock Markets Emerging Markets

Global LNG

Gas & Power Prices

WeatherGas System

What can affect the market price?

6

Why have my costs gone up?

Energy 49%Energy 68%

DUOS 22%

DUOS 19%RO 14%

RO 6%

TUOS 6%

TUOS 9%

FIT 5% EMR 1%

What can I do to manage the 49% ?

7

I can’t manage a flex contract

9

• Expert portfolio advice - so energy can be bought at a time that’s right for the business

• Market intelligence reports - published daily and weekly, to help keep track of movements in the energy markets

• Live market monitoring - set triggers and limits, based on movements in the wholesale market to drive decision making.

• Bespoke conference calls - for unique insight into market developments that are relevant to each business.

• Risk management workshops - to develop a strong risk management strategy to manage the energy contract and purchasing.

There are experts who can help

Using less Energy –becoming more efficientPresented by Martyn Sheridan, Sales Manager, Energy Solutions

The Energy Pyramid

Looking at how your use your energy in a holistic and integrated way

Reduce energy consumption Generate energy efficiently Monetize flexibility

Energy Efficiency On-Site Generation Flexibility & VPP

The Threes Pillars of Energy Sustainability

Understanding your energy usage

• Data transparency and data

analytics

• Remote control and optimization

of assets at customer facilities

• Efficiency investment projects –

with and without funding

• Under-writing of projects –

promised savings

• Identify, aggregate and market

flexibility embedded in:

• On-site generation assets

• Energy-consuming equipment

• Storage systems

• On-site supply of heat, steam,

cooling and pressurized air from:

• CHPs/CHCPs (0.25-10 MW)

• Gas-turbines (1-200 MW)

• Heat pumps, boilers, PV

• Design, installation, financing

• Remote operation & maintenance

= 20-25% savings

• Site assessments

Security of supply and long

term savings£30-40k per MwH

• Develop holistic energy concepts • Implement integrated solutions

Design, build, fund, control, operate,

and maintain energy assets at customers’ facilities.

Energy Efficiency within the B2B environment

14

60w T8 fluorescent tube 25 W LED tube

Up to 60%

400W High Bay Luminaire 180W LED High Bay

Up to 60%

96W Fluorescent Recessed Luminaire 40W LED panel

Up to 60%

LED Replacements: Large savings can now be made

across all commercial/industrial product types

Source: Carbon Trust, 2011

Typical commercial luminaires Typical LED replacements

Expect to save an extra 30-50% (on top of LED savings) with lighting controls (e.g. dimming)

• Gas Engines

• Gas / steam turbines

• Boilers

• PV

• Chillers

• BEMS

• Lighting systems

• HVAC systems

• Compressors

• Electrical motors

• Air handling units

• …

Energy assets ECT levers

Optimising energy-consuming and energy-generating assets

that are installed at your facilities.

Retail stores

Office buildings

Data centers

Production facilities

Hospitals

Operating efficiency

Strategic focus

Cost efficiency

Technical efficiency

Capital efficiency

Customer facilities (Examples)

Distribution centers

On-site generation

15

Flexibility

SourcesControl and

Aggregation

Accessible

Value Pools

On site generation (e.g. CHP, diesel generators, wind, PV)

Controllable loads (e.g. industrial processes, HVAC, pumps)

Energy storage (e.g. heat & cold storage,compressed gas, batteries)

16

Flexibility sources controlled by a central control system in which aggregate operationis optimized to access value pools

Selling energy and/or capacity in wholesale energy markets

Providing reserveand balancing services to TNOs/DNOs/Retailers/ Generators

Helping TNOs/DNOs to avoid or delay infrastructure investment

Demand Side Response Introduction

Three elements combine to create a Virtual Power Plant

What next?

Batteries & storage

Vehicle charging points

Solar back on the agenda…..

Fuel cells

Next phase of LED lighting

……….

Financing and underwriting

18

General Business Model Across EE, OSG/EEP and Flexibility

Historical

energy

cost

Projected

energy cost

Customer share of savings

£

TimeContract

duration

E.ON share of cost

savings

We reduce cost and take a share of the savings generated to fund

the design, installation and operation of our solution

Customer benefits from

guaranteed savings levels

Customer does not need to

fund energy conservation

measures

Customer incurs OPEX only

if E.ON achieves promised

savings

E.ON analyses savings

potential and designs energy

conservation measures

E.ON implements energy

conservation measures and

provides funding

E.ON guarantees customer

a minimum savings level

E.ON takes initial share of

savings achieved

E.ON may participate in

upside above guarantee level

E.ON Energy Solutions at a glance

E.ON Connecting Energies (ECT) established in July

2012

Matrix Solutions acquired in 2013

Other solutions/companies acquired throughout 2014 &

2015. Will be in an acquisitional stage in 2016

Over €300 million annual sales and more that 400 MW

of Assets under Management

More than 750 employees

15 offices across Germany, UK, Italy, France, Sweden

Belgium and Russia

Serving B2B and public-sector customers

International provider of energy as a managed service and solution

1 I.e. cash income from customer projects accounted for as finance leases under IAS.

Newham

What customers does E.ON Energy Solutions serve?

Manufacturing TMT FMCG Chemicals

Financial services Healthcare Retailing Public sector

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Why partner with E.ON

Energy Solutions?

• Fully-integrated managed energy service provider

• Technology-agnostic & vendor-independent

• “SMART” – IT-based & data analytics led solutions

• Guaranteed results for the customer & fully E.ON funded

• International footprint and delivery capabilities

• Reliable partner with substantial track record

• Full Key Account Management - fully managed with one point of contact throughout process

For further information contact;Sian Magee, Key Account Manager, Energy Solutions

sian.magee@eonenergy.com - +44 (0) 7809 585456

or

Martyn Sheridan, Sales Manager, Energy Solutions

martyn.sheridan@eonenergy.com +44(0) 7772 03301