Groceries and Energy Projects

CEBC 3rd Annual MENA Clean Energy Forum

Rajan PhakeyPartner, Dentons1 December 2014

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Agenda

• UK energy initiatives and sustainability projects• A supermarket's perspective

• Examples of projects

• Case Study• Waste to Energy Project in 2014

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About Dentons

• Dentons is a global law firm with over 70 offices in over 50 countries

• 50 years on the ground in the Middle East; 45 years in Dubai

• 8 offices in the Middle East• Abu Dhabi, Beirut, Cairo, Doha, Dubai, Muscat, Riyadh, Amman

• Further expansion in the future…

• Full service• Regional and international clients

• International and local law advice: one-stop shop

• Bilingual Arabic and English-speaking lawyers

• Transactional and regulatory advice

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Sustainability Projects

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A Supermarket's Perspective

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Sainsbury's

• One of the UK's largest chain of supermarkets

• Over 1250 supermarkets and convenience stores in the UK

• Listed on London Stock Exchange (USD 37bn turnover in 2014)

• Other businesses include:• Sainsbury's Energy - retail electricity and gas supply

• Petrol stations

• Bank - offering financial products

• Mobile phones - virtual network

• Pharmacies

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Sainsbury's Energy Projects

• 20x20 Sustainability Plan• Better food and health

• sourcing with integrity

• respect for the environment

• making a positive difference to the community

• Series of UK "industry first energy projects" over the past 15 years• First 'on-site' commercial wind turbine (2001)

• First direct purchasing from a large wind farm generator (2008)

• Largest rooftop solar panel operator in Europe (2012)

• Pioneering demand response programme (2012)

• First retail store powered entirely by waste (2014)

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Examples of Energy ProjectsDirect Purchasing From Wind Farms

• UK's first direct purchasing from a large wind farm generator (2008)

• Number of legal/regulatory hurdles successfully navigated

• Model subsequently adopted by many other large corporates

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Examples of Energy ProjectsDirect Purchasing From Wind Farms

• UK's first direct purchasing from a large wind farm generator (2008)

• Number of legal/regulatory hurdles successfully navigated

• Model subsequently adopted by many other large corporates

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Examples of Energy ProjectsEurope's largest solar panel operator

• In 2012, Sainsbury's had installed 69,500 new PV solar panels across 169 stores in the UK (16MW capacity)

• In 2013, Sainsbury's had installed 100,000 panels across 210 of its stores (22MW capacity)

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• Sainsbury’s will have installed 170,000 panels above stores and distribution centres by spring 2015 (40MW capacity).

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Examples of Energy ProjectsDemand Side Response Initiatives

• 10 year contract with Open Energi to commercially optimise heating and ventilation systems (HVAC) across 200 stores (2011)• Turns the HVAC equipment into smart devices which can respond to

fluctuations in electricity supply and demand, and help National Grid to keep power supplies flowing

• reduces energy costs, cut dependence on fossil fuels, and reduces CO2 emissions

• Separate contract with KiWi Power to pilot a pioneering demand side response programme

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Examples of Energy ProjectsDemand Side Response Projects

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Sainsbury'sWaste to Energy Project

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Anaerobic Digesters

New Power Distribution Cable

Sainsbury's Cannock Store

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Example challenges and risks

Challenges

• Land rights and cable design/procurement

• Commercial and legal terms for power supply

• Disruption to supply

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• Planning consents, easements and building contracts

• Negotiation of PPA with Biffa

• Standby-generation at store / negotiation of back-up supplies

Mitigation

• AD switchgear shift to national grid input and routed to store.

• Standby generation at store

• Supply routed through switching to grid supply.

Risks

• AD or power generation failure

• Cable inadvertently damaged

• Long-term disruption to supply

Dentons & Co.

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Burj Khalifa District

PO Box 1756, Dubai

United Arab Emirates

Thank you

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