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‘DOING THE DEAL’ ...The role of the developer

Brendan McGrath

C.E.O of Gaelectric

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• Irish company

• Renewable energy and energy storage

• Active in; Ireland – North and South USA – Montana

• Leading proponent of Energy Storage - CAES, Gas Storage & Flywheel

• Significant development work being undertaken in the EU & US

• Raised €35m to date – August 08 €25m funding round valued business at €133m

Gaelectric Holdings Plc

Gaelectric

Irish Onshore

Wind

US Onshore Wind

Irish OffShore

Wind

Energy Storage

Business Structure

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Irish Operations

•Northern Ireland pipeline of 200MW 87MW with planning by Q3 2010

•Republic of Ireland pipeline of 70MW – 56MW with planning and Gate 2 or Gate 3 positions

•Will be connected to the grid in accordance with government schedule

Montana Portfolio - largest owner of wind resource

Harlowton

Frenchman’s Ridge

Roy

Tiger Ridge

Geyser

Kelly Hills

Coutts Liberty

Chinook

MSTI

MATL

Colstrip 500kV

Lennep

Green Line

Gaelectric sites

Good Wind

Excellent Wind

Transmission line

• Transmission solutions focus on optionality

• Wind measurement program

• Targeting 1,600MW “shovel ready” by 2013

• 1,000MW with transmission

• Capacity factors +40%

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Six Elephants in the Energy BusinessStory

State

Utility

Finance

Transmission

Regulator

Turbine Supplier

‘Gaelectric’s View of The Energy Market’

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…Harmony in

the Forest

The fable of

the mouse

and the

elephant

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Elephants

Arrival

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Elephants

Create

Havoc

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CEO

Elephant

Meets

CEO

Mouse

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Elephants

Abide

by new

Protocol

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Hunters

Arrive

‘New

Market

Entrants’

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Elephants

Snared

in Red

Tape

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Mice

Come To

The

Rescue

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Elephant

Agrees

Future

Co-

operation

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Lessons Learned

• Throwing your weight around wins you few friends

• Cooperation brings unexpected rewards

• Big is good, but quick is better

• Recognise the skills of others

• When the pressure is on adaptability is invaluable

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Compressed Air Energy Storage – what is it?

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C. A. E. S – Why?

• Need for flexible and carbon efficient plant to integrate renewables

• CAES - a proven storage technology with two plants currently in operation

• Major advances in the efficiency of the technology

• Recent international studies confirm tangible system benefits

• Major demonstration funding available in the US and emerging in Europe

• Unique geology in the Larne area could be utilised to develop a CAES plant

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C. A. E. S – How and When? • G.E.S utilised the All-Island Grid Study model and associated assumptions

• Identified key technical/economical relationships between CAES and Renewable penetration levels Portfolio mix System Operation

• Work completed with RISOE and considered leading edge assessment

• Demonstrated CAES to reduce emissions, system costs and curtailment

• CAES shown to be economically viable earliest in Island Grid (2015)

• This approach can be internationalised

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Offshore Energy

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Offshore Energy Survey Area

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Demonstration & Site Development Potential

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A bridge into Europe

C.A.E.S IrelandAn Island Grid provides a demonstration laboratory of how energy storage compliments and assists high levels of renewables in the new SMART GRID

DEEPWATER/OFFSHORE WINDSupporting Ireland’s renewable targets and exporting our abundance of renewable energy to Europe

DEMONSTRATION PROJECTSThese can be supported by European research and development funds &Supported by the European Investment Bank

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The

Luck

of the

Irish

To do any deal the essential ingredient is

‘LUCK’

As it happens the Gaelic for

mouse is

‘LUC’