Real Value H 2020 Overview Real Value project

Real. Value H 2020 Overview • • • Real. Value project funded under H 2020 LCE 8 – 2014: Local / small-scale storage Commenced 1 st June 2015 (duration 36 months) EU Grant € 12 million • 1250 homes installed with the Quantum Smart Electric Thermal System in Ireland, Germany and Latvia • Glen Dimplex acting as a coordinator • Consortium of 13 partners in 5 member states • Focus on Northern Europe

Real. Value Consortium

Quantum Smart Electric Thermal Storage (SETS) Key Features Consumer Power System • High efficiency energy store – low losses • Accurate electronic time and temperature control • Up to 25% reduction in energy bills • Advanced apps for user interaction and information • Overall Demand Reduction • Reduction of demand during peak periods • Increased System Flexibility • Provision of Ancillary Services • Facilitation of increased renewable electricity generation

DSM using Smart Electric Thermal Storage • DSM controls the consumption, not the heat • Consumers remain in complete control of their heating and hot water at all times. • The SETS technology allows us to be smart and intelligent in how the energy is consumed to deliver this heat and hot water. • We start with their requirements – the level of heat and hot water they want and when they want it. • This reveals how much energy is required and our smart technology optimizes the best time to deliver it, based on energy prices, and renewable energy generation.

Real. Value - Impact across the electricity value chain

Bridge initiative 32 projects BRIDGE is a European Commission initiative which unites Horizon 2020 Smart Grid and Energy Storage Projects to create a structured view of cross-cutting issues which are encountered in the demonstration projects and may constitute an obstacle to innovation. 31 countries 379 Individual organisations The EC contribution to all projects is € 337 million 8 new projects joined in January 2017

1. Scarcity Pricing • ESBN – SERVO system (‘traffic light’ system / ‘permissive construct’) • Will provide a 24 hour look ahead to the aggregator re network constraints • Aggregator will do a confirmation before dispatch

2. Prosumers/consumers to react to prices through implicit Demand Side Response • Currently in Ireland - locational scarcity pricing does NOT interact with wholesale or balancing markets • View from the Irish DSO (ESBN) – avoid locational scarcity through the use of their SERVO system • Link between DSO and aggregator – ideally scarcity should be fed in to the aggregator as a constraint (current limitations on aggregator platform also ie doesn’t know location of the load) • TSO / DSO interaction – (Ireland) race to see who should lead in this area – may come down to EU / national legislation

3. Market framework for explicit DSR • • Real. Value – Smart Electric Thermal Storage (SETS) – distributed, aggregated, controllable domestic heat load (explicit DSR) Grid services – frequency control, congestion management, voltage control, arbitrage, capacity value Procurement and activation theoretically through SERVO but currently being activated based on signals from the TSO to the aggregator – no commercial procurement taking place as it’s a project environment and market conditions not suitable yet in Ireland Measurement of delivery of flexibility – in the future this should correlate with the meter – in RV can measure locally (software being developed by Intel)

4. Non-discriminatory access to all markets • • • Appliances / IOT Gateway / platform (IOTivity /open connectivity foundation) SERVO system (common API) interoperability / scalability!