KIC InnoEnergy

Renewable Energy Systems:Opportunities for investors and lessons learned

Kenneth JohanssonCEO, KIC InnoEnergy Sweden 21 Sept 2016

KIC InnoEnergy2 Agenda

• About KIC InnoEnergy• What, How, Who

• Network and connections• Our Services and Achievements

• Innovation Projects• Business Creation Services• Education

• Energy – a business in change• Future Energy Business Landscape • Key factors driving change and innovation

• Investment opportunities

KIC InnoEnergy3 What we are

About KIC InnoEnergy

Europe’s engine for innovationin sustainable energy

Empowering every stageof the innovation process

Investing in people,technologies, businesses

Established 2010:supported by the EIT

Public-private partnershipaiming for financial sustainability

KIC InnoEnergy4 Sustainability and impact for Europe

Our goal: sustainable energy

Ensure security and safety of supply

Reduce costs in the energy value chain

Reduce CO2 emissions

Improve European competitiveness

Remove barriers to innovation

Encourage sustainable growth

Create jobs

Impact and business

oriented in

everything we do

KIC InnoEnergy5 How we do it

Bringing the Knowledge Triangle to life• Strengthen EU innovation • Creates tomorrow’s entrepreneurs • Increases sustainable growth • Encourages global competitiveness

The Innovation Engine for EuropeKPIs#Graduates

#Products&Services

#Created Companys

InputOutput

EIT supported (~80M€)

KIC InnoEnergy6

6 co-location centres27 shareholders160 additional partnersActivities in 17 countries

Co-location Centres

Network and connections

Making connections:the power of the network

KIC InnoEnergy7

Research InstitutesOur Shareholders

6 co-location centres27 shareholders160 additional partnersActivities in 17 countries

Co-location Centres

Network and connections

Making connections:the power of the network

KIC InnoEnergy8

Research InstitutesOur Shareholders

6 co-location centres27 shareholders160 additional partnersActivities in 17 countries

Co-location Centres

Network and connections

Making connections:the power of the network

Universities

KIC InnoEnergy9

Research InstitutesOur Shareholders

6 co-location centres27 shareholders160 additional partnersActivities in 17 countries

Co-location Centres

Network and connections

Making connections:the power of the network

UniversitiesIndustry Partners

10 Sustainability for Europe

Thematic fields and technology focus

Clean Coal andGas Technologies

Energy Storage Energy Efficiency Energy fromChemical Fuels

RenewableEnergies

Smart and EfficientBuildings and Cities

SmartElectric Grid

Sustainable Nuclearand Renewable Convergence

11

Innovation Projects

BusinessCreation Services

Education

Our services

For every stage of the innovation journey

12 Our services. Innovation Projects

Connecting ideas and industry,innovators and business partners

Simplifying the journey from lab to launch

Partners, skills and resources

Market needs and potential customers

Shorten time to market

Financing and investment

A commercial product in 5 years

Expanding the circle of innovationin Europe’s energy sector

13 Our services. Innovation Projects

Innovation success

KIC InnoEnergy

Renewable Energy Energy from Chemical Fuels

NeptuneWind power

from sea to sea

DeBuggerMaking the most

of biomass

Manufacturing facilities constructed

Patents filed

Billion euros in project costs

Project partners across Europe

Million euros of KIC InnoEnergy investment

Products and services supported

3

77

1.2

160

147

78

3Billion euros in

forecasted sales

3DSiC3D Silicon Carbide high voltage power

switch

KIC InnoEnergy14 Our services. Business Creation Services

KIC InnoEnergy Highway®

Connecting entrepreneurs and start-ups to markets and customers

Long-term investment to drive energy sustainability

2-year acceleration program

Access to Europe-wide network of experts and business partners

Sustainable energy expertise

Comprehensive package of business support services

15 Our services. Business Creation Services

Entrepreneurial success

KIC InnoEnergy

SpainEnergy efficiency

SwedenSmart electric grid

FranceEnergy storage

TechnoturbinesEnergy recovery

through hydraulic turbines

FerroampDistributed energy storage for smart

grids

NAWATechnologies Ultra-fast batteries

149Early start-ups

supported

70Companies created

32Million euros of

external investment raised

1744Business ideas

captured

KIC InnoEnergy

KIC InnoEnergy16 Our services. Education

Connecting graduates and employers, researchers and industry

Combining technical knowledgeand commercial awareness

Improve career prospects

Deepen the industry’s talent pool

Encourage innovation and entrepreneurship

Increase competitiveness

Delivering smart people, skills and connectionsto Europe’s energy sector

17 Our services. Education

Our alumni

KIC InnoEnergy

Gregory Kotsis,MSc SENSE

Project engineer at IREC Barcelona

Roberta Cirillo,MSc EMINE

Research engineer, CEA Grenoble

Joeri Siborgs,MSc Energy for Smart Cities

R&D project engineer,Elia Brussels

“We need toinvest more

in green power”

"Long-term vision

is the keyto the future"

“Versatility, entrepreneurship and international

experience”

KIC InnoEnergy18 Business Model evolution for 2016-2022

KIC InnoEnergy19

KIC InnoEnergy20

KIC InnoEnergy Innovation Project

KIC InnoEnergy21 Conclusion

A new approach to sustainability

Connectedat the heart of

Europe’s energy sector

Commercialsustainable

businesses and viable technologies

Collaborativebringing skillsand resources

together

Challengingnew ways ofworking and

thinking

KIC InnoEnergy22

Investment opportunities

KIC InnoEnergy23 Sustainability for Europe

Energy – A Business in Transformation

Electrical infrastructure Communications

Present Future

EnergyStorage

Storage Residential customer

Commercialcustomer

Industrialcustomer

Substation

Residential customer

Commercialcustomer

Industrialcustomer

Substation

Control Centre Control Centre

Energy Service Provider

KIC InnoEnergy24 Market drivers - PV

KIC InnoEnergy25 Market drivers – Trans. & Distribuiton

As a consequnece of Renewable Integration

- Grid reinforcement- Massive investments

KIC InnoEnergyMarket Drivers - Storage26

2 – person household / apartment

- without 2.7 kWh Battery

- with 2.7 kWh Battery

Powerwall,

350 $ / kWh

KIC InnoEnergy27 Market Drivers - Storage

Global battery production

KIC InnoEnergy28 Market Drivers – Ref case

• 1.2 millioner heatpumps sold last 12 years• Consumer ”decision” to Investment 60 – 80 BSek • Local Heat Production 25 TWh• District heating production 45 TWh (”lost” 25 TWh rev)

Consumer behaviour decides – but not always rational

KIC InnoEnergy29

KIC Ventures – Downstream products

KIC InnoEnergy30

Our supported start-ups in Sweden

KIC InnoEnergy31

Big vs Small

Start UpOfferNew ProductPrice: X Euro

Utility / Customer

Start Up

Start Up

Market risk• End Customer acceptance• Business Case• Regulations• P&L pressure• Be first on unbroken field

Supplier Risk• Integration and interoperability• Technology PoC• Supply Chain (delivery, quality,..)• After sales support• O&M, Pruduct Life Cycle• Financial stable

Existing Suppliers

Market Creator

KIC InnoEnergy32 Market Creator

KIC InnoEnergy(Special Purpose Vehicle)

Start Up

Utility / Customer

Start Up

Start Up

Existing Suppliers

KIC InnoEnergy will :• Risk Hedge towards Customer• Build the SPV• Integrate, sell and deliver Venture products • Operate, grow, build value in SPV• Divest in 3-5 years • Build Operate Transfer

• System integrator• Solution Provider• Financial stability• Supply Chain

KIC InnoEnergy

34 Find out more cip.kic-innoenergy.com

facebook.com/kicinnoenergytwitter.com/KICInnoEnergy linkedin.com/company/kic-innoenergyyoutube.com/user/InnoEnergy

Thank you