Brendan McGrath, Group Chief Executive at Gaelectric Holdings plc

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IIEA Brexit Conference

Gaelectric Corporate View

May 2016

Our Background

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Wind Energy Platform

Gaelectric’s First Renewable Energy Platform (WindCo)

!  Largest Independent Developer in Ireland

!  15% Renewable Market Share

!  400MW owned by 2017 – 363MW spinning

!  Growth through organic development & acquisition

!  100MW Development Pipeline

!  !500m Senior / Junior /Equity Raised

!  In house Energy Trading Team –capturing market value

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Cloonty 9.2MW Smulgedon 16.1MW

Monnaboy 9.2MW

Dunbeg 42.0MW

Faughary 6.0MW Inishative

13.8MW

Cregganconroe 13.8MW

Skrine 4.6MW

Ballagh 4.6MW

Corby Knowe 5.4MW

Tullyneil 13.8MW

Carn Hill 13.8 MW

Roosky 4.6MW

Crowinstown 4.6MW

Leabeg 4.6MW

Ballywater 42.0MW

Projects in Planning

Consented Projects Operating Project

Projects Under Construction

Ballybay 13.8MW An Cnoc 5.75MW

Cloghboola 48.0MW

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Energy Storage Platform

!  330MW CAES Larne – All island grid support

!  Planning expected Q2 2016

!  Siemens acquired current technology partner (Dresser Rand)

!  EU designated “Project of Common Interest” (PCI) – Grant funded !6.5m

!  Major EU pipeline opportunity - finalising MOU with EU Salt Mining Organisation.

!  Founded in 2006 – a first for an Irish Renewable Developer

!  Focused on Compressed Air Energy Storage (CAES) , Battery & Flywheel technology

!  Complete understanding of various storage technologies application and needs in the energy market

!  Fully prepared for the impending storage reality

Fig 2 Depiction of CAES Operation Process

Fig 1 Depiction of CAES Larne

!  80MW pipeline of Irish grid scale projects identified

!  First MOU’s with signed with TESLA – to demonstrate utility scale battery and investigate behind the meter storage.

!  1MW grid scale battery to be deployed by Q1 2016 – proof of concept in Ireland

!  US Battery Storage Potential JV identified

Energy Storage Highlights

CAES Storage Details

Battery Storage Details

Solar Platform

Solar in Republic of Ireland:

•  Pipeline of >100 MW of projects in the Republic of Ireland, with

potential to grow to 150 MW.

•  Land exclusivity agreements signed on 30 projects with 18 grid

connection applications submitted (to date) (90 MW).

•  Potential to add a further 8 projects, in Q1/Q2 equating to a total

of over 100MW.

Solar in Northern Ireland:

•  Pipeline of 20MW of projects in Northern Ireland, to be co-located

at Gaelectric’s under construction / operational windfarm sites

Bioenergy Platform

•  Pioneer of Biomass Energy Supply Contracts •  Existing long term contracts with:

–  Monaghan Education and Training Board –  Youghal Town Council –  St Patricks Society

•  Installed over 50MW for biomass projects across UK and Ireland •  Clients include Dail Eireann, Lancaster University, Cofely (GdF Suez), Leicester

University, Carillion Healthcare •  HOT in place for a 6.5MW project (dairy sector) •  Business Development activity targeting further HOTs totalling 40MW ahead of the

introduction of the RHI (June 2016) •  Energy Supply Agreement being finalised for small-scale CHP project with

multinational manufacturing business. Second site for larger project (>10MWe) under negotiation.

•  Acquisition ongoing for operational biomass plant in the UK •  New Build projects identified for participation under CfD (15% IRR)

Renewables in Northern Ireland

•  EU Framework was an essential condition for both States managing the violence in

Northern Ireland from 1970 to 1998 Belfast Agreement.

•  Irish border is the only land border with UK.

•  The Single Electricity Market (SEM) is unique as it is a direct result of the Good

Friday Agreement.

SEM

•  In November 2004 the respective governmental departments of Ireland and

Northern Ireland signed the Development Framework which allowed for the

formal programme of work by the two Regulatory Authorities to commence.

•  Since its opening in November 2007, the SEM has dramatically changed the

nature of the electricity markets in both the Republic of Ireland and Northern

Ireland.

•  The primary objective in establishing the SEM, as defined by the regulatory

authorities, was to “develop wholesale electricity arrangements that deliver

an efficient level of sustainable prices to all customers for a supply that is

reliable and secure in both the short and long term and on an all-island basis.”

•  This primary objective was supplemented by the following five objectives: -

"  ensuring a secure supply of electricity –

"  promoting competition in the electricity market –

"  minimising transaction costs for participants and customers –

"  fostering the use of renewable, sustainable or alternative energy sources –

"  enabling demand side management

Renewable Energy Development

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•  Promoting energy security through European solidarity and trust and

speaking with one voice

•  Aims to ensure security of supply – potentially supporting the European

drivers for I-SEM

•  Address infrastructure needs - PCIs

•  A completed energy market to connect the whole of Europe

•  Support Regional Approach

•  Support PCIs

•  Demand Moderation to improve security and keep bills in check

•  Decarbonising the energy mix and making Europe the global leader in

renewables and other low carbon technologies

•  Strengthening the EU ETS – Carbon pricing. UK started – France &

Germany following

•  Leading efforts in research and innovation and green growth

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