2016 Annual Review

Unleashing
the Energy
Opportunity
When you look
at the system
in parts you
see the Innovation is
fundamental to energy
problems. system transformation
on a global scale
When you look The Energy Systems Catapult is
supporting British industry to
unleash innovation and exploit the
at the system
opportunities of the global energy
revolution. The UK has set itself
challenging legally binding emissions
targets that will not only drive the
energy transition forward in the UK
but also present export opportunities
as a whole you
for new products and services.
We estimate that 10 billion in
capital value, 6 billion of annual
sales and over 9,000 jobs could be
generated directly from the growth
of existing and new companies
see the
providing innovative services and
products to the new markets enabled
by the Catapult by 2030.
The Catapults activities are rooted
in understanding the commercial
opportunities, the market failures
opportunities.
that must be addressed, the UKs
relative competitive strengths and
the needs of innovators in the sector.
We are working with these innovators
to address three key capabilities
that are currently missing from the
UK energy innovation landscape:
A whole systems view of the
energy landscape: to help
innovators understand how their
product fits into the energy
transition and how best to
accelerate its exploitation
Expertise in integrated energy
systems: to help innovators
overcome the systems integration
barriers (social, technical and
economic) of assimilating their
products into a highly complex
energy system
Developing, deploying and
managing multi-stakeholder,
real-world demonstration and with us to explore the opportunities
scale-up environments
The Catapult is enabling innovators
to leverage these capabilities (data,
models, analysis, skills, simulation
and test environments) in a variety
of ways, including collaborative
programmes and projects with
strategic partners and a range
of knowledge-sharing assets and
targeted offerings to support high-
growth potential companies,
especially SMEs.
We are already collaborating with
industry in change projects at local,
national and international levels and
with a wide range of partners from
individual universities, academic
partnerships, local authorities,
investors and sector think-tanks to
trade associations and companies
of all sizes. Cities are using energy
planning models developed by the
Catapult, SMEs are working with us
to develop new insights into how end
users relate to energy at home, and
the World Economic Forum is working
and challenges of the energy transition
at global level. We are also working
alongside other Catapults to co-
develop programmes and potential
demonstrators at city and sector level.
In essence, the Catapult is working to
support UK economic growth from
across the energy sector and beyond
by building and leveraging innovation
support assets and capabilities that
the UK lacks today. The opportunity
is both challenging and exciting.
1
 CEOs foreword
Energy underpins economies
everywhere. It is fundamental to
how we live, to our prosperity, and
to our environment. The UK energy
system like many others is seeing
revolutionary change. From the
types of energy we use, the way it
is harnessed, distributed, stored,
used, paid for and related to by
consumers, to the role and nature
of the actors in the energy sector
whether policy makers, regulators,
investors, established businesses,
new entrants, communities and
households everything is in play.
We believe that this energy revolution
can spark an amazing array of
opportunities for consumers,
institutions, investors and businesses.
If we get this right, we can enable
the UK to reap competitive
advantage, both by accelerating
the transition to a low-carbon
economy at lower cost, and by
developing the technologies and
know-how that other economies
will value. A coherent, evidence-
based energy strategy must be at
the core of a successful industrial
strategy. But in what is historically
a highly structured environment,
where the excitement of innovation
is often balanced by the imperatives
of security, resilience, reliability,
accessibility and social equity, it
can be easier to see the obstacles.
This is what was recognised by
consultation with over 220 stake-
holders: a need for a body that is
independent, capable of convening
across the sector and building
alignment, that provides the
innovation support tools that are
missing today, supports the
scale-up of new technologies
and business models and, most
critically, a body that is able to
look at the system as a whole.
2 3
This review is intended to provide
some insight into the progress the
Catapult is making in delivering
against these goals, and equipping
itself to make a useful contribution
to the enormous opportunity for
the UK economy that the energy
revolution provides.
Our early development has been
shaped by the decisions to have the
Catapult deliver two significant,
demanding and complimentary
programmes: Smart Systems and
Heat (SSH) where the Energy
Technologies Institute (ETI) and
its members have been both client
and collaborator in the initial
phase - and Future Power System
Architecture (FPSA), in partnership
with the Institution of Engineering
and Technology. These programmes
address some of the most intractable
questions we face in the transfor-
mation of our energy system and
we are building a wide range of
capabilities through delivering them.
SSH has demonstrated city-level
planning and modelling capacity,
designing initial energy pathways,
and has built deep insight into how
people use energy in their homes.
It has the potential to enable new
energy markets and business models.
FPSA has provided an architectural
framework for identifying the changes
needed if the power system is to
adapt to meet future needs. Both
FPSA and SSH are investigating
the tools that will be required by
new markets such as peer-to-peer
trading, decentralised energy
marketplaces, and energy services
and storage if they are to flourish
and have system coherence at scale.
Although largely still a set of
research tools, these programmes
are already being leveraged to
support the UK economy for
example, by informing local energy
planning and enabling businesses
to develop new value propositions.
We have also been active in
reinforcing the UKs ability to
understand the whole energy system
at a national level working with the
Engineering and Physical Sciences
Research Council, UK Energy
Research Centre and many individual
institutions to develop capability.
This will be significantly reinforced
by the anticipated transfer of the
strategy and analysis team from
the ETI later in 2017.
Innovators are critical. We have
started to reach out through our
Energy Innovation Centre partnership,
regional engagement and through
closer relationships with BEAMA
and others. We have connected
with over 300 SMEs so far, and are
developing the Energy Knowledge
Exchange to open up access to
knowledge and data across the
energy sector.
We have in place the governance
and core corporate processes that
will provide the backbone for future
development. Over 100 people now
work for the Catapult giving critical
mass in some key disciplines and
our new office is proving to be an
important addition to the Midlands
innovation resource base.
There is much more to do. Future
goals include working with the sector
to select the assets that should
be developed and disseminated
A body that is independent,
at scale, building a sustainable
engagement model with industry,
supporting UK companies in
winning exports and building skills
capable of convening
in supporting large-scale real world
demonstrations of the technologies
and ways of working that can
directly benefit innovators,
across the sector and
investors and policy makers.
We are encouraged by our first steps,
recognise the task we face, and are
building alignment
energised by the road ahead.
Philip New, CEO
 View from the Chairman
Im very proud of the progress
thats been made in the brief time
the Energy Systems Catapult has
been established. A key part of
the work has been the recruitment
of an excellent board with very
talented people in the management
team and as non-executive directors.
The experience, understanding
and skill we can now deploy covers
the full range of the energy sector,
from large players to SMEs,
across academia, government,
regulation and the devolved
administrations too. Its vital for
organisations like ours to have
good governance not just
because public money is involved
but because theres so much riding
on our work. I am confident that
we are a well-run organisation
that will deliver huge new value
to the UK.
I think all of us involved now
understand the true challenge
of meeting our legislative carbon
commitments, while providing
affordable and secure energy
for customers. In 2010 most
observers agreed the UK might
hit its overall targets by doing
two things. First, decarbonising
our electricity using large-scale
mature technologies like offshore
wind, nuclear, and continuing to
burn fossil fuels with carbon
capture and storage.
4 5
ESC launch day
setting out the
Second, ensuring that this new, In the same period that it has
cleaner electricity was used instead become apparent that the large-
of much of the oil used in trans- scale top-down solution will prove
portation and replacing the natural difficult and slow to deliver, we
challenge
gas on which heating depends have seen major improvements in
with very heavy deployment of the economics of other components
electric vehicles and heat pumps. such as photovoltaics, energy
storage, energy efficiency and
We now know this refreshed electric cars. We now see the
centralised top-down energy exciting prospect of combining At the Energy Systems Catapults
system is unlikely to be more than the replacement of large-scale official launch on 9 May 2016 we
a component in the overall solution. fossil fuel-based energy sources set out our stall to you, our stake- At the launch, we were able to
The extensive introduction of with a local, distributed, mixed holders and partners in the energy review our establishment period
nuclear and wind technologies to energy system that empowers industry and government. We told those 12 months immediately up
the levels required has progressed customers and provides affordable you about the challenges facing to the event. The ESC came into
slowly and political support for the energy without the need for large the energy industry, such as lack existence with two employees in
technical components has been subsidies. of consensus on the path forward April 2015. During the subsequent
variable, with concern about the for the UKs future energy system, year we had carefully recruited
impact on customer bills. The Catapult will support the and the barriers to commercialisation 50 staff, appointed a Board of
development of new technologies faced by innovators developing Directors and CEO, and we were
Happily, political support in the and solutions that in many cases new products and services to contracted by the Energy Tech-
UK to transition quickly to a low will be owned by local communities make it happen. nologies Institute to deliver phase
carbon economy remains strong. and thus ultimately controlled by one of their Smart Systems and
There is widespread acceptance the customer. This means embracing, Overcoming these challenges will Heat programme (pp. 12-13).
of the benefits both to the UK and encouraging and facilitating the involve whole-system analysis, We have managed the business
export markets. Many countries numerous new technologies and conquering integrated energy Our contribution goes much of being a start-up, and are now
are driving hard to replace out- business models across the sector systems barriers and demonstrating further than management, however. focused on delivery and the road
dated fossil-based energy systems and beyond. new ideas in real-world environments. One of the Catapults ongoing ahead. Given the scale of the
with modern, affordable, secure It will mean uncovering insights objectives will be to support our challenge, we want you to hold us
and low carbon ones. This will It means a lot of work, a lot of new and making sure knowledge is engineers, scientists and innovators accountable. Visit our office and
provide massive opportunities for thinking and a lot of coordination. shared between the relevant to develop unique technical and ask us what new projects were
UK companies to sell new products, Thats where the ESC comes in. utilities, academics and businesses. commercial capabilities. We are working on, tweet us @EnergySysCat
services and solutions, helping I have every confidence that our Crucially, it will mean collaboration building skills that we can use in if youre puzzled about something
our balance of payments and staff and directors are prepared to ensure that effective new ways partnership with businesses to youve heard, and agree or disagree
providing GDP growth. This is and ready to play their part in the to produce, deliver and fund your develop the new solutions required with our latest blog post at
an area in which the UK is well coming year and into the future. energy requirements dont just get for the future energy system, es.catapult.org.uk/news-and-
placed to become a global thought about and explored, they simultaneously creating both events/news/. We are all part of
technology leader. Nick Winser, Chairman actually happen. wealth and positive social impact. the UKs energy future.
 Accelerating
innovation:
building
capabilities
The Catapult is developing
capabilities in three critically
important areas that are currently
missing from the UK energy
innovation landscape. The Catapult
builds capability in areas of
market failure where the private
sector finds the associated risk
hard to manage.
6 7
It then makes those capabilities
such as models, simulators, energy
systems architectures, frameworks
and methodologies, data sets,
insights and test environments
available to innovators.
A whole systems view
of the energy landscape
The existing UK energy model is a
massive system of systems that is
already complex but will become
substantially more so in the future.
This complexity is proving to be a
significant barrier for innovators,
so the Catapult is developing whole-
systems capability to help them
understand how their product fits
into the energy transition, and
how to exploit its commercial
opportunities.
Unlike other key UK industry
sectors (eg aerospace, automotive),
energy lacks alignment on the
direction of travel of innovation
and market needs. Stakeholder
feedback confirms that this whole-
system understanding is fundamental
if policy confidence is to be enhanced,system. This integration complexity to set up or participate in as they
and fresh capital attracted to
innovation across the sector. The
Catapult is already collaborating
with organisations including the
Committee on Climate Change,
National Grid, UKERC and Whole- This capability is being built
SEM as well as SMEs to deliver a
whole-systems capability. This
capability will be further enhanced Programme (SSH, see pp. 12-13)
by the models, relationships and
knowledge assets of the Energy
Technologies Institutes (ETI)
Strategy Analysis Function when
it is integrated into the Catapult
in mid-2017.
Finally, it works with them to
design and deliver collaborative
programmes and projects that will
accelerate the innovator and their
companies towards commercial
success.
The three areas are:
Expertise in integrated Capability in
energy systems development,
System integration is the essential deployment and
glue that will allow us to achieve management of multi-
the best performance from the stakeholder, real-world
overall integrated energy system. demonstration and
It is the discipline of connecting scale-up environments
together all of the necessary
components whether they be The UK energy industry is naturally
technologies, devices, data, conservative due to a number of
communications, networks, reasons ranging from safety and
methodologies, processes, system reliability drivers to
business models and market perceived technology risks or hassle
mechanisms that between them factors by consumers. New
make up the energy system and technologies, products, services
ensuring that they work efficiently or business models need to be
together. For new products and demonstrated and proven before
services to make it into the they can be deployed at scale.
existing energy market they need During the Catapults early scoping
to seamlessly connect to and consultation, large-scale trials
interoperate with the components were identified as being a
that are already part of the energy particular challenge for innovators
is a real barrier to innovators and need dedicated set-up resource
is therefore one of the key areas long before any testing takes place.
of capability that the Catapult During 2017 the Catapult will
offers to the sector. develop capability in this area
and build on work it has already
done in scoping multi-vector
through the Catapults involvement component demonstration
in the Smart Systems and Heat capability in the UK.
and the Future Power Systems Each of these three components
Architecture (FPSA, see pp. 10-11). is targeted at the areas where we
believe intervention will have the
SSH focuses on the strategic greatest leverage in building new
challenge of decarbonising the energy markets and driving
UKs domestic energy sector innovators to deliver economic
with heat at the core of the issue. growth. Collectively, they will
The programme was scoped by provide the basis for a viable
the ETI, which has already funded innovation runway to be
over 30m of the work to date. established, providing assets
In November 2015, the ETIs SSH and capabilities that will be
delivery function of 30 staff and leveraged across the sector.
licences for specialised tools and
assets was transferred to the
Catapult together with a commit-
ment from the ETI to fund further
innovation work. This established
programme is split into a number of
themes that focus on integration
challenges. Through SSH the
Catapult has engaged a very wide
range of companies, government
organisations and universities.
A key opportunity for Phase 2 of
the SSH Programme in 2017 is to
extend and enhance stakeholder
engagement even further
especially with industry and SMEs.
 Development and
early impact of the
Catapult assets
At the heart of any organisation is
culture the people, their skills, the
way they work together and with
others. As a start-up, the Energy
Systems Catapult has worked hard
to build the team and the ways of
working that best fit with the
organisations aims.
EnergyPath Networks*
helps the Council and its
local partners to work
out the best heating
technologies for
deployment to homes
across the city.
Adrian McLoughlin, Newcastle City Council
8 the Smart Systems and Heat programme funded by the Energy Technologies Institute
The Catapult takes a systems
thinking approach to building the
capacity that it offers the sector,
building assets that span value
chains, which are multi-vector,
non-prescriptive and based on
inter-disciplinary capabilities.
The value of any system is best
judged by its end users and should
be shaped around their needs, so
consumer and societal insight sits
alongside software development,
systems and business modelling,
technology evaluation, project
development and delivery, data
analysis and impact evaluation in
the skills we are building and
deploying both within the
Catapult and with our partners.
I think everybody realises that
they are building something
better for people, for communities,
for businesses, for the UK.
Dr Grant Bourhill, Chief Operating Officer, ESC
Architecture and
Our current capabilities include:
Modelling
Our modelling assets aim to
generate consensus around
energy transition pathways.
We have developed with Baringa
the most advanced multi-vector
local energy planning tool available.
We have used it in partnership
with Newcastle City Council,
Northern Power Grid, Northern
Gas Networks, Arup and Jones
Lang LaSalle to create a cohesive
pathway that delivers the Councils
future energy ambition and is
projected to create 5,000 jobs.
We have also used this tool with
the Greater Manchester Combined
Authority to create a Spatial
Energy Plan report.
The report has fulfilled its purpose
in making the case for low carbon
master-planning of our future energy
supply and identifying the need
for elevated building standards,
above current building regulations,
within the Spatial Framework.
The report has also allowed us to
justify focusing our ERDF Sustainable
Urban Development funds on a
systemic approach to innovation
in heat and energy systems and
has been invaluable in helping us
to communicate our future energy
priorities to key stakeholders and
communities.
Mark Atherton, Director of
Environment, Greater Manchester
at Association of Greater
Manchester Authorities
*EnergyPath Networks and the Home Energy Services Gateway are part of
integration
Our architectural assets serve UK
innovators to understand where
new products can fit and how they
can integrate with the rest of the
end-to-end energy system, technically
and commercially. This need is
exacerbated as more distributed
and renewable generation is
deployed, heat and transport are
electrified, and hybrid products
connect energy vectors together.
We are working with others to
create the vision, principles and Knowledge assets
future systems architecture
Open access to knowledge and
underpinning the energy system
data can accelerate the route to
evolution, such as the Institution
market for energy innovations,
of Engineering and Technology
both in the UK and overseas.
on the Future Power System
In 2016, we worked with Encraft,
Architecture project (see pp. 10-11).
the UK Energy Research Centre,
the Energy Industries Council and
Demonstration the Energy Networks Association
The transition to a low-carbon to prototype an Energy Knowledge
Exchange (EKX) platform. Currently
energy system is encouraging new
products, services and business under test, the platform aims to
models, as well as new market improve availability, quality and
players. New approaches need to access to information across the
be demonstrated and assessed energy sector, including completed
from both supplier and end-user project and data resources.
perspectives before wide-scale
adoption can happen. Exploiting The Catapult Energy Knowledge
our consumer insight, engineering Exchange is an innovative concept.
and project development capabilities, If built upon correctly it can provide
we are currently running an a valuable asset to the energy
innovative Home Energy Services sector and address the needs of
Gateway*, which provides the game-changing SMEs. Knowledge
information needed for service is key and having an EKX service
companies to identify consumer to connect relevant research with
preferences. It is the enabling the right networks would be of
piece of architecture to allow immense use in a fast-changing
industry.
experimentation and scale-up
by innovators of new energy Shevali Patel, Project Manager,
service propositions. ON5 Biz and SMEs, ON5 Company Ltd
9
 The Future Power
In 2015 we embarked on a project
with a 2030 horizon: the Future
Power System Architecture (FPSA)
project. The purpose of FPSA is
System Architecture
to provide analysis, insight and
advice to assist ministers, officials,
industry professionals and innovators
on how the architecture of the
project
power system should evolve to
meet the challenges of:
The project is built on the principles from members of the IET.
of collaboration and broad stake-
holder engagement. It is managed A clear learning from FPSA1 was
by the Energy Systems Catapult
and the Institution of Engineering collaborative environment for
and Technology (IET), working in
collaboration with specialists with best practice in all aspects of
diverse expertise spanning technical, delivery, something which aligns
market and social issues. It actively well with both Catapult and IET
seeks to involve stakeholders,
including those who are already
in the sector and those who are
new participants. Our stakeholder made a compelling, evidence-
community comes from across
industry, government, academia
and businesses of all sizes. Our
governance structure similarly
reflects the diversity of the sector. government and power system household sizes and the increasing
The projects analysis draws on
National Grids Future Energy
Scenarios, focusing on the Gone
Green scenario as the one that
most closely reflects government
decarbonisation objectives, and
would support an ambitious fifth
carbon budget (20282032)
consistent with the Climate
Change Act and international
commitments.
The first phase FPSA1 used the
discipline of Systems Engineering
techniques to establish that 35 new
The collaboration between the IET and the ESC has been truly seamless or significantly enhanced functions
will be required by 2030 under
and has allowed each party to bring its best to solving complex problems credible evolutionary pathways,
and assessed their novelty,
at the heart of the future electricity system in a way that neither could complexity and urgency. These
have done alone. functions will be necessary to
respond to customer requirements,
Simon Harrison, Chair of the Energy Panel, Institution of Engineering and Technology (IET) mitigate risks and exploit the
Chair of the Future Power System Architecture (FPSA) Project Delivery Board opportunities that lie ahead.
10
delivering the policy and
legal commitment to deep
decarbonisation
the Industrial Strategy
commitment to efficiency
and value for money as new
technologies and techniques
are integrated at scale
the operational imperative of transformative change to Britains
maintaining secure, reliable, power system architecture by 2030.
and affordable electricity supply
In order to bring the necessary
breadth and depth of expertise
to bear, specialists were engaged
from organisations including
Frazer-Nash, Ricardo and Mapsar.
Significant contribution was made
the importance of creating the
creative work while maintaining
culture and methods.
FPSA1 reported in April 2016 and
based case that:
Substantial new or extended market mechanisms. This must
functionality is required to meet happen while changing life patterns,
objectives by 2030
New functionality has features
that present substantial
implementation challenges
from a technical, market and
commercial perspective
FPSA1 concluded that delivery
was feasible by 2030, but that much
new functionality is concerned with
interactions that span the whole
system, and therefore:
across the sector. In FPSA2 we
The scale and complexity
warrant special focus and
urgency
An effective response will
require new organisational and
governance capabilities to
establish and energise this assure balance and challenge.
whole-system approach
necessary for transforming
Britains power system
architecture
The power system architecture
is the underlying structure of the
electricity system how its
components and its particicpants
are organised and interact.
Major policy challenges, advanced
technologies and emerging new
business models will require
Arguably one of the most important
drivers of the conclusions is the
requirement to meet the needs of
policy without compromising the
experience of UK energy customers.
The recommendations include
Active Network Management
to maximise the capacity of the
power system, as new demand
and new resources come into play,
so that all these changes remain
effectively invisible to the
average householder.
The report also recommends
allowing smaller, flexible energy
providers to break into, and
disrupt, currently established
use of smart appliances impact on
customers understanding and
control of what they pay for energy.
The project is now in its second
phase, FPSA2, which aims to
broaden, deepen and confirm the
analysis of FPSA1 and to provide
further insights into the imple-
mentation challenges. Work is
in progress and builds further on
the principles of collaboration
and working with specialists from
work with Ricardo, TNEI, Element
Energy, Delta EE, Analysys Mason,
WSP Parson Brinckerhoff, the
University of Southampton and
Mapsar. As in FPSA1, our governance
draws widely from the sector to
We welcome you to follow the
progress of the project at
es.catapult.org.uk/what-we-do/
fpsa/.
11

Tougher targets
require smarter systems
Decarbonising domestic heat is a
critical component in the necessary
mix of measures required for the
UK is to meet its 2050 emissions
targets. Heating speaks to the
very core of how we think about
comfort in our homes. There is
something very fundamental, and
very personal, about it. Most of
us are fortunate enough to take
a comfortable home for granted
and, of course, we worry about
people not being able to enjoy
a warm home in this country,
fuel poverty ranks alongside
malnourishment in any hierarchy
of deprivation.
It is curious that something that is
so central to our lives is so poorly
understood by most of the people
who benefit from it. We get upset
when it doesnt work, or we think we
are being cheated, but otherwise,
we ignore it. But changing our
energy use may mean having to
change our habits, our behaviour
or the fabric of our homes things
that go to the heart of how many
of us establish our identity.
12
Changing the way that this
cherished, precious, yet often
overlooked service happens in
each and every household in the
country is a task that almost
certainly has to encompass not
only technical innovation, but also
new thinking about the relationship
between the energy system and
the people who use it, and about
the market and delivery structures
needed to support these new
relationships between household
and provider.
The Smart Systems and Heat
programme (SSH), which was
successfully transferred from the
Energy Technologies Institute as
part of its enduring legacy, fits well
with the Energy Systems Catapult.
It is absolutely rooted in taking a
whole-systems approach and is
exploring possible new business
models. But SSH is not a silver bullet:
problems of this complexity need
the combined forces of actors across
and beyond the sector, of established
players and new entrants, if we
are to get to a solution.
To understand the complexity,
we need to recognise two things.
Firstly, that the energy market
traditionally has been producer-
orientated and top-down, with
electricity, gas and oil produced
and charged on a volume basis.
This means people arent currently
used to buying their domestic
energy on the basis of specific
benefits to themselves experiences,
essentially and dont tend to
think in those terms.
Organisations like the ESC are
leading the way in innovating by
encouraging strategic private
sector partners, like EDF Energy,
to support and collaborate on
initiatives which are critical to
the UKs low carbon future.
Xavier Mamo, Director of EDF Energy R&D UK Centre
Secondly, theres a challenge in
introducing carbon-reducing in-
itiatives because the ones most
easy for customers to grasp have
already been put in place. Instead
of judging the success of our ener-
gy system by how well it works for
generators and distributors selling
a commodity, the SSH programme
is based on the principle that good
will in future be determined by
customer experience and
engagement.
SSH is a vehicle for exploration
and collaboration to accelerate
innovation, and as such it is
developing a set of platforms,
insights and tools that can be of
value to the sector as a whole in
addressing the challenge.
There are five elements
4. Creating a platform, Energy
Path Networks, to enable a
dialogue between local
authorities, network operators
1. Creating a Home Energy and energy services providers to
Services Gateway, which plan infrastructure
enables a change in the
customersupplier dialogue 5. Creating a platform, Energy
from units of energy input to Path Operations, to help the
a language of service outcomes sector explore new system
instead architectures that put under-
standing, shaping and delivering
2. Establishing a test bed with this customer value at the core
Gateway in real homes opened
to innovators seeking to become Doing this makes the chances of
energy services providers that success far greater for the UK to
sort out integration to deliver achieve its challenging targets,
service outcomes and for creating substantive new
export opportunities by enabling
3. Enabling policy makers to work UK innovators to be at the forefront
with these innovators in a test of a new paradigm for customer
bed to explore new options for service in the energy sector.
carbon policy, tackling fuel We hope you will follow our progress:
poverty, protecting consumers es.catapult.org.uk/what-we-do/
and so on ssh-programme
13
 The ESC has a unique perspective, which has eased our transition
from academic research into early-stage commercialisation.
Their relationships within the industry enabled us, as a start-up,
to identify the right partners for our first development project.
Through focussed interventions, they have provided us with bidding
support and guidance on leveraging funding to maximise value.
They are an accessible sounding board for developing our
commercialisation strategy. Working with the ESC is exciting!
Dr Martin Caton, CEO MC Power Innovations

Providing
opportunities
One of the most important remits Our aim, therefore, is to help
we have at the Energy Systems remove those roadblocks. The
Catapult is to work in increasing ESC is already working with SMEs

for SMEs
numbers and increasingly closely through our stakeholder network
with SMEs (small- and medium- This is because energy is a heavily and advice on relevant funding The two things Id most like SME
sized enterprises). regulated sector, necessarily programmes. At the same time, directors to understand is that the
conservative in nature, and that we have several other areas under Catapult is around for the long
All Catapults fundamentally exist makes for a complex market, development through which we haul, and that if you get engaged
to transform the UKs capability one which many SMEs lack the will be offering further support, and talk to us you can expect
for innovation and help drive resource to tackle. New players paid services or the provision of things to happen as a result.
future economic growth. In the need to understand integration help with securing investment,
energy sector, new ideas need to into the different parts of the via three different delivery models. In essence, we help innovators
be developed, tested and adopted system and be able to navigate navigate tomorrows energy system,
into the ever-evolving energy the future market designs, archi- Firstly, we will include SMEs in the Next, there will be a raft of shared- because they need it today, so we
marketplace. Getting SMEs tectures and standards. Likewise, Catapults expertise, knowledge cost opportunities for collaborative Finally, the ESC will provide want to make ourselves the first
involved in doing that is vital if they need to demonstrate in real- and stakeholder networks, granting working, with one or more SMEs at commercial support across the port of call for those interested in
were to access the full capacity world environments that their new introductions to investors, test a time engaging with the Catapult. energy sector. This means SMEs working on integrated smart
of UK talent and innovation. technologies, business models, providers and holders of industry Principally focussed on addressing accessing services, insight and energy system products or services.
market structures and regulations knowledge; giving access to new systems integration barriers, this either technical or commercial This applies to any new or established
This involves overcoming some are valid in order to ensure tools under development like our could mean pooling resources to validation. Some of our services energy provider or company wanting
serious challenges. While there is successful commercialisation. Energy Knowledge Exchange reduce costs and overcome common will aim to fill gaps that we know to bring a raw idea or proven
considerable innovation activity in (EKX) platform; and linking to technology issues, or working to exist in the marketplace, others concept to the sector.
energy systems within the UK, Add this to the lack of an existing network innovation demonstrate new business models will utilise our unique skills and Paul Jordan,
its still rare for new technology- established development pathway competitions through our partners in the search for regulatory capability, such as our consumer Head of Business Development, ESC
based products and services to or agreed vision for the energy such as the Energy Innovation approval for a new idea. The ESC behaviour capability, our knowledge
actually get to market particularly sectors structure and requirements Centre. This type of support will is an ideal partner in such situations, of future energy systems If youre an SME and this has
from start-ups, but even from and you can understand the be made universally available given our expert, independent architectures and access to real- piqued your interest, wed love to
established, medium-sized substantial barriers that SMEs either at low cost, or zero cost, role between industry, academia world, large-scale demonstration hear from you: es.catapult.org.uk/
companies. are facing. to our SME clients. and government. environment platforms and tools. working-with-us/
14 15
 Things that happen in this office have
the potential to make a real difference
in our lifetimes.
Lucy Ternent, Data Analyst, ESC
The Energy Systems Catapult
centre in the heart of Birmingham
Catapult
opened in October 2016 and
welcomes more than 300 visitors
from the industry in an average
month thats over three times the
number of people who work here.
headquarters
Such a pivotal location is ideal for
what will be the energy industrys
new hub, a place to facilitate and
enhance innovation and to create
new growth opportunities.
will be a centre
The Catapult philosophy
resonates throughout the building:
innovation, openness,
connectivity, collaboration,
for unleashing
inclusion, sustainability,
wellbeing, value for money
and it was Made in Britain.
The developers consulted our
staff, universities and local schools
in designing for flexible and
change
collegiate working practices,
as well as understanding how
multimedia resources from post-
it notes to smart boards enhance
productivity in innovation activities.
16
We analysed the ebb and flow of
the working day, and the placement
of workstations, pods, write-on
walls and smart collaboration
tools is deliberate to optimise
freedom of thought and creativity.
The workspace provides the
sector and the region with a focal
point for creating and showcasing
innovation with labs, display areas
and the 100-seat Sir David MacKay
Theatre. Energy consumption per
square foot has been designed to
demonstrate a 50% improvement
on industry standards set by the
Chartered Institution of Building
Services Engineers, with CO2
emissions a third lower in line
with the Catapults commitment
to a zero carbon pathway.
Marc Stone, our Chief Finance
Officer, played a key role in
collaborating with all the city
partners. This is a thrilling time
for the industry, he said at the
time of opening.
The team have delivered an
excellent experience, that I am
sure will inspire everyone who
comes here, and also one that will
provide a dynamic, flexible and
living laboratory space for the
energy industry and the region
to use.
Already we are opening our space
to those people who will be the
future of the energy opportunity
local school children. We hosted
a group of more than 30 pupils in
December 2016, and their work
and ideas have formed part of
the heritage of Cannon House as
the Catapult plays an active role
in the ongoing transformation of
the energy system over the
coming years.
We welcome you to use the innovation
centre to share ideas and work on
the energy transformation with us
so that together we can unleash
the energy opportunity in the UK.
Ours is a home open to all of us.
17
 So much of the technology around us
is relatively new. Its going to evolve,
its going to require thousands of people
being involved in the work thats needed
and, as time progresses, the way that
we tackle these issues is going to be
ever more interesting.
Warwick Brown, ICT Analyst, ESC
Energy Systems
Catapult
financial
highlights
2015/16
The Energy Systems Catapult is a
not-for-profit research organisation
limited by guarantee and a public
benefit entity as defined by UK
accounting principles. The Catapult
benefits from an element of
Innovate UK grant funding that
underpins the company in its role
within and for the UK energy
systems sector.
18
During our first year we leveraged
this grant funding, and achieved an
additional 3.4m of collaborative
and commercial income in the year.
The financial information is
extracted from the consolidated
statutory accounts for the Energy
Systems Catapult Ltd for the year
ended 31 March 2016.
Its definitely an open,
friendly and inclusive
atmosphere and I think
thats what makes it so
easy to work.
Rutasha Whyte, Commercial Paralegal, ESC
Income
2016 2015
For the year ended March 2016 000s 000s
Innovate UK core grant funding 4,000 -
Collaborative & commercial 3,403 -
7,403
Balance Sheet
2016 2015
For the year ended March 2016 000s 000s
Fixed assets 1,069 -
Net current liabilities (782) -
Creditor amounts falling due greater than 1 year (275) -
Provisions for liabilities - deferred tax (54) -
Net assets (42) -
Capital and reserves (42) -
19
Our vision is for a
clean, intelligent,
energy system that
works for people,
communities and
businesses.
Here at Caparra we recognise the scale and complexity of the
challenge facing the ES Catapult team, so its great to see how
open they all are to new ideas and approaches to deliver the best
overall solution for UK PLC. Together and with the involvement of
both existing businesses and other new SMEs to this marketplace
we will make this happen. Richard Starkey, CEO & Co Founder Caparra Technologies
 Energy Systems Catapult 2017 Follow us:
Illustration by Michelle Thompson
es.catapult.org.uk
Image:
Design Sumarise connceted
by Apropos system - grid version?
@EnergySysCat
...continues from front page
Printed by Park Communications
(illustration brief 1)sources.
on paper from sustainable Contact us:
info@es.catapult.org.uk

If youre really excited about what

were trying to do, send us your CV.
It is about your own personal development.
Come along and you will grow as an
individual, as well as professionally.
Gail Hatfield, Head of HR, ESC