1. SSE experience in Marine Energy and Smart Grid

2. SSE - Who are we? FTSE 100 TOP 50 COMPANY Electricity and Gas Networks Renewables Supply Generation (UK) Generation

3. Core Objective Renewables Strategy Carbon intensity halved 2006 to 2020 “Provide the energy people need in a reliable and sustainable way”

6. Utility scale tidal (inc. barrage) and wave sites

7. Focusing on Ireland and GB

8. Diversifying renewable portfolio

9. Applying offshore wind experience to marine

10. Dedicated development team

11. resource assessment

12. technology evaluation

13. site development experience

14. Largely technology neutral approachFocus on Ireland and GB – the best marine resource in Europe

16. First commercial marine leasing round in World

17. Deliver MW’s, socio-eco benefits and technologies

18. 1.2GW announced 16 March 2010

19. SSE interest 800MW

20. 2 sites technology aligned with partners

21. OpenHydro

22. Aquamarine

24. Learn from Pentland

25. Seek further opportunities in home markets

27. Why?

28. Demonstrate market pull

29. Practical experience

30. Synergies with other SSE activities

31. Investment return

32. Learning points

33. More money & time required!

34. Market very fragmented

36. Deployed Oyster 1 – 325kW – 2009

37. Accessible – generation on-shore

38. Survivable – naturally ducks!

39. High capture factor

40. Promising power to weight ratioMarine technology development – learning through experience

42. Planning consents

43. Seabed owner options/leases

44. Marine Spatial Planning

46. Promising concepts – signs of consensus

47. Entry of major OEM’s?

51. Increased links to islands

52. Increased interconnection with UK e.g. NorwayMajor Network investment plan focused on facilitation of renewable power

54. Stability

55. Market efficiency

57. 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

59. 11,500 customers

60. Existing generation a mix of wind, wave and gas

61. Limited interconnection to mainland

62. High level of wind generation vs demand

63. Choice of moratorium on more renewables or operate grid differently

64. 4 year research project between SSE and University of Strathclyde to develop scheme to facilitate increased connection of renewablesNeed to operate Grid differently

66. Multiple generators

67. Multiple constraints within the network

68. Limits on export cables

69. Unique features:

70. Real time active network management

71. Real time measurement and control

72. Zonal approach to constraint allocation

73. Existing connections unaffected

74. Last In First Out (LIFO) access principles

75. System installed and live Nov. 09

76. Additional generation already being connected (30% increase over previous maximum)Smarter Grid Solutions Inc created – now part of ventures portfolio!

77. 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