by Chris Cook and Marcus Saul, Island Power As Research Fellows at the Institute for Strategy, Resilience and Security, at University College, London, Marcus Saul and Chris Cook researched and developed the Pacific Natural Grid resource resilience strategy. Here they explain how Denmark has led the way in creating sustainable networks of community-based energy production and distribution. This has been transformative for Denmark, enabling it to become independent from the oil and gas industry’s dominance. But it is also transformative for communities, who are now creating their own energy economies.

1. IslandPower
Alderney energy resilience
Chris Cook / Marcus Saul
17 June 2022
Energy independence for Alderney.
www.island-power.net

2. www.island-power.net
Chris Cook
Forensic accounting – insolvency & fraud investigation
Regulation – markets & enterprises
Market & enterprise development
Networked market development
Research into resilience – institutions & instruments
Marcus Saul
Team members
ISRS finance and energy leads.
Microgrid Development – multi-megawatt thermal and electrical
Renewable integration – largescale onshore and offshore
Business and market development – across all sectors
Renewable product development and deployment
Application of resilient networks – hydrocarbons & renewables
IslandPower IslandPower presentation to Alderney - Wednesday 17, June 2022

3. What
Reality-based strategy.
Island Power Page 4 of 18
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Reality-based economy.
l Location (3D Space)
l Energy
l Intellect
Market 3.0 - evolution of markets.
l Market 1.0 - decentralised & disconnected - People
l Market 2.0 - centralised & connected - Middlemen
l Market 3.0 – decentralised & connected – Networks
Trend to services.
l Energy Intensity
l Capital intensity
Island Power IslandPower presentation to Alderney - Wednesday 17, June 2022

4. What
Reality-based strategy – Financial Technology.
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Fintech.
Finance (Law & Accounting) + Technology ( Data Processing &
Communications) = FinTech
Financing.
Short/Medium term, medium high risk/reward development finance
for new productive asset or enterprise
Funding.
Long term, low risk/reward funding based on completed asset or
mature enterprise
Island Power IslandPower presentation to Alderney - Wednesday 17, June 2022

5. What
Energy First.
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Energy is the only ‘hard’ objective cost.
Energy is a universal positive unit of account.
Energy is an existential need.
Successfully addressing the needs of Society for energy as a service is the first step in
addressing other existential needs
Island Power IslandPower presentation to Alderney - Wednesday 17, June 2022

6. Why: Introduction
Denmark: Energy Independence and Resilience.
IslandPower
1990
Wind turbines
CHP power stations
Coal power stations
Natural grid 2014
www.island-power.net
National grid Independence is not a policy: it is an aim of policy, in the same
way that Security and Resilience – which may be seen as aspects
of Independence. If resilient local infrastructure is networked then
the result will be regional and national resilience. In other words,
resilience, security and independence are bottom up not top
down.
Denmark were the first country to adopt this principle. In 1973
the 400% oil price increase from $3 to $12 per barrel exposed
Denmark’s 90% reliance on fossil fuels. Denmark focused on
resource resilience, or least resource cost, as opposed to least
financial cost per BTU used.
Denmark mandated that for any given use of heat, transport,
power, light and other energy services the purchase of oil & gas
as a commodity would be minimised. This principle was applied
across all possible energy services and led to the development of
renewable energy systems and companies (Vestas/MHI Vestas). It
also led to heat infrastructure throughout Denmark, notably
combining heat and power; district heating, heat storage and
finally a massive investment in energy efficiency in buildings, and
in zero waste generally.
The outcome has been that since 1973 while Denmark’s GDP has
doubled, their use of energy has declined and their use of carbon
fuels (and CO2 production) has declined significantly.
Economic rationale
Organising principle
IslandPower presentation to Alderney - Wednesday 17, June 2022

7. To ensure that we are achieving the best results from a
location energy mapping is essential. This takes account for
existing energy consumption that is stored in the energy
ledger as well as local energy resources that may include:
• Geothermal
• Wind
• Tidal
• Ocean/Water thermal cooling / heating
• Sun
• Wastewater
Along with looking at existing energy usage, we look at the
potential to export energy to localised national grids.
Mapping: Energy Use.
Shared energy ledger.
Island Power
www.island-power.net
Phase 1: Phase 1: Phase 1:
Socioeconomic mapping
DEVELOPMENT PHASE
Phase 1:
OPERATIONAL
PHASE
IslandPower presentation to Alderney - Wednesday 17, June 2022

8. A small historic town situated 22 miles outside of Edinburgh, is known as the
birthplace of Mary Queen of Scots. In 2013, with support from the UK
Government’s Community And Renewable Energy Scheme (CARES) a study was
undertaken to understand both the practicality and feasibility of installing an
independent energy microgrid network that would seek to introduce resilient,
reliable and efficient energy systems to the town as the primary supplier of
energy.
The result of the survey was to highlight that there would be a up to 50% savings
in energy consumed and an average reduction in the annual energy bill of £750
per year.
Mapping: Energy Resources.
Mapping natural energy resources.
A. Survey target Area (2013)
Aim: Enable a town to be
independent in energy
Means: Application of least carbon
fuel cost principle
Action: Collection of energy bills from all energy users
This enables us to understand the ‘cost’ hot spots as well as areas for energy savings.
Island Power
www.island-power.net
IslandPower presentation to Alderney - Wednesday 17, June 2022

9. Biosphere alliance.
Island Energy Networks.
Island “National” Grid Island “Natural Grid”
www.island-power.net
Money flows out of the island
through fossil fuel supply, energy
export or financed renewable
projects.
A Natural Grid maintains money within the island
through Capital and Community Partnership.
Excess energy production can be exported using
different energy vectors in order to create more
revenue for the island.
IslandPower IslandPower presentation to Alderney - Wednesday 17, June 2022

10. IslandPower
Smart Acceleration
Island Energy Rings. www.island-power.net
Urgently needed working capital and rapid investment in power generation and energy cost
reduction are central to accelerate island energy development. There is currently estimated to be $17 Trillion USD of
capital that is making flat or negative returns. IslandPower’s model facilitates investment in local energy projects
with a guaranteed energy related return to investors.
Providers of energy technology such as solar PV, small wind, floating solar, tidal and battery storage do not sell their
technology on a transactional basis as they currently do. But, instead supply it as a service in exchange for an energy
production or revenue share.
For each of the locations we would propose:
MAPPING
• existing and potential energy demand including heat/cooling & transport
• existing generation and distribution assets and energy use
• identify natural resources available for power generation and heat/cooling
• financial and social mapping extending to amenity (acceptability and location of power generation assets, fuel
poverty, modes of transport etc).
DESIGN
• identify network losses and inefficiencies
• profile demand growth inclusive of transportation and seasonality
• identify and prioritise optimal interventions (“low hanging fruit”) e.g., energy storage systems
• identify and procure technology partners and capital partners to cover installation and other costs
• identify and procure locations
• energy management via SMART Grid network and billing system
BUILD
• sequenced localised system upgrades, using renewable energy systems and efficient energy consumables.
Resilient Microgrids
Are IslandPower energy networks that sit on the demand side of a transformer. Their primary objective is to provide
resilient and renewable energy to the energy users. As a community builds out its renewable energy requirements it
is able to connect with the grid and store or sell any excess surplus. As more Energy Rings are developed, the more
stable the grid becomes.
TRANSITION
IslandPower presentation to Alderney - Wednesday17, June 2022

11. IslandPower
www.island-power.net
www.island-power.net
www.isrs.org.uk
C.Cook@isrs.org.uk
M.Saul@isrs.org.uk
marcus@island-power.net
chris@island-power.net