Good morning, everybody. Look, thank you all for taking the time to come here today. It really is. I know COVID probably feels like a long time ago, a lifetime ago for many of us. For me, this is actually the first time to be able to see many of you face to face since COVID, actually. It really is terrific to have you all here. I think one of the other things I should say is that my kids were sick and tired when Burwell, our first grid battery site went live, my kids were sick and tired of me playing the same 30-second video to them over and over again of when it went live and the exciting moment when the lights came on and you heard a buzzing noise. That was the sum total of the video: lights come on, buzzing noise. Today you get to experience the same excitement. Thank you for coming here as well. Grid-scale Battery Storage is clearly, you know, a big part of our business and a big part of you know, the future of the energy system as well. Really, I hope that today you go away learning a bit more and being educated and informed and being able to ask some questions as well, a bit more about Grid-scale Battery Storage and getting a slightly better feel for it by being able to see the first site as well. Look, in terms of agenda, I'm gonna give a brief introduction. Really to be honest, I've met and spoken to most of you pretty regularly. Today isn't really about hearing from me, it's about hearing a bit more from some of the leadership team within the business who are delivering on this part of the business. After I've given a brief introduction, I'm gonna hand over to John Flaherty here, who is the MD of our Grid-scale Battery Storage division. He's also gonna then introduce a couple of pre-recorded videos. One from Barry Hatton, who's the director of asset management at UK Power Networks, and one from Daniel Greten, who works at Trina Storage, who's one of our battery storage partners and manufacturers of the batteries that are actually at the Burwell site. We'll then Lily Coles will then take over to talk you through the life cycle of a battery site from first origination all the way through to energization. Lily's then gonna hand over to James Taylor, who leads our trading team, the internal trading team. Suspect that'll be quite an area of interest for some of you in terms of some of the detail around how these assets provide services to the grid and the revenues that flow from it accordingly before I come back in with some closing remarks. Okay? At the end then, we'll have. That should take about an hour. We're gonna have half an hour of Q&A. After the Q&A, there'll be a short health and safety video to make sure we're all ready to go to site as well. Then we'll have some lunch before we head up site. We'll be leaving here in two groups, but the first one will be leaving about 1:00 P.M. Okay. I'd actually just like to start with a brief video just to set the scene. Households and businesses expect electricity to be available at any time, which National Grid has a duty to supply. In a perfect world, supply and demand would be completely balanced, with National Grid delivering enough power to meet customers' needs at all times, with no excess energy going to waste. However, in reality, there has always been an imbalance between supply and demand, and the system has always required some short-term generation flexibility to keep the network stable, such as that historically provided by pumped hydro storage facilities. What happens when more renewable generation, like wind and solar, are added to the energy system? On windy and sunny days, wind and solar will produce more electricity than the grid is capable of handling. Conversely, on windless or cloudy days, wind and solar energy will produce little or no electricity to the grid. In both these situations, either the excess generation is wasted or there is a risk of power outages, with existing short-term generation flexibility unable to meet the speed or volume of response required in a new low-carbon energy system. Between 2015 and 2021, the UK's electricity system operator curtailed over 13% of the total wind energy generated, effectively paying generators to turn their systems off. The volatility in the UK's wholesale electricity prices has also increased significantly since 2020, with several episodes of more than GBP 4000 per MWh power prices more than 75 times the prior normal. This growing reliance on renewable energy to decarbonize electricity grids alongside national energy security requirements brings this particular challenge to the forefront, the fundamental need to match demand with intermittent supply. This is where battery storage comes into play. Grid-scale energy storage is needed to absorb excess energy generation, release power when demand is greater than supply, shift energy across time and locations, and provide real-time grid balancing. Battery storage also seamlessly operates with other demand-side flexible systems like smart meters, distributed solar and storage, and electric vehicle charging infrastructure that can power down non-essential equipment at times of high system load or power up standby generation when grid prices peak. Ultimately, transitioning towards a cheaper, cleaner, and more secure renewable energy future requires renewable sources of energy and efficient ways to store that energy. Battery storage solutions are critical to enabling this transition that will enable us to drive down the cost of energy and accelerate the adoption of renewable generation. Hopefully that sort of sets the scene in terms of why we need grid-scale batteries. I just want to touch on that a little bit more. The first thing to say is that over the last 10, 20 years in particular, the UK energy system, energy systems around the world have started to change fundamentally. Moving away from centralized generation into much more decentralized, renewable and intermittent generation, as I'm sure you all know. Alongside that, we have now sort of bi-directional flow. Much more, if you like, generation across the grid, putting energy into and out of the grid. We now have DNOs called the local distribution operators, being called system operators, just like National Grid is a national system operator. We have energy flowing in multiple directions. At the same time, we have end users who are starting to use energy and will be using energy in different ways. Particularly as we have the electrification of transport and potentially heat behind that starts to shift the relatively predictable load patterns that we've had in the past into more unpredictable and peakier loads in the future. It perhaps goes without saying as well that from a macro perspective, energy security is a very significant issue. Now, that isn't just because of the Ukraine crisis and issues with Russia. Regardless of that, over the next 30 years, the expectation would be even if we dragged all of the gas out of the North Sea, then we would still be importing more gas into this country than we currently do at this moment in time. Energy security for the UK is an increasing challenge regardless of the situation with Ukraine as well. Grid-scale battery storage helps to address all of those challenges by storing energy, as we sort of just talked about, when demand is low and discharging it when demand is high and supporting the energy grid accordingly. Now one of the things that I know I've probably spoken to a number of you about previously is, you know, that is in the context that we are already seeing a very significant increase in intermittent renewable generation on the grid. So currently around 45% as shown there, but expected to go up towards 77%. If you just look at what we already know in terms of the amount of offshore wind in particular, for example, that's coming online over the next 8-10 years, then that is going to provide a very significant challenge to the energy grid to be able to balance all of that intermittent generation that's coming online. One of the consequences of that increasing intermittent renewable generation is increasing volatility in power prices. Now, while it isn't necessarily volatility in power prices in terms of the wholesale price that batteries are accessing, but volatility is driving imbalance on the network, and it's that imbalance on the network that grid-scale batteries can address. If you look at this sort of graph here, and I have to always explain that this is showing the spreads, i.e., the value between the cost to charge and the value to discharge a battery onto the grid. The important thing here is that the gap in between them isn't the spread. The bottom line is the spread as was forecast in 2021, and the green line is the spread as forecast now. What you can see is that while the current turbulence has significantly increased the size of that spread as more volatility is coming, has come into the energy network and with all of the macro issues over the last year, but actually over the long term, the forecast hasn't changed that much. There was always forecast to be an increasing spread on the grid as we have an increasing amount of intermittent renewable generation coming online over time. Really, from our perspective, while there may be some short-term drivers, if you like, to increasing spreads, increasing revenues, increasing need for grid-scale storage, this has been a long-term requirement, and that is going to be there over the long term as well. Now in terms of what that means, as you know, we've got our first 50-megawatt site live in Burwell today that you'll have the opportunity to see. We previously guided that we expected that to provide between GBP 42,000 and GBP 53,000 of EBITDA per megawatt. It's actually been delivering over GBP 100,000 pounds of EBITDA per megawatt since it went live at the end of January earlier this year. Now, we are not expecting that to remain the case for forever, and we have sort of guided towards a GBP 57,000-GBP 65,000 pound EBITDA per megawatt over the medium term. That is driven by these storage spreads and this long-term requirement for storage on the network to balance the grid and to keep it in balance accordingly. We'll provide a bit more color around some of that today. As I said, this is the context for this is that there is a very, very significant and increasing requirement for storage on the grid over the coming years. National Grid, in their Future Energy Scenarios report that was released in July, have forecast a requirement for 18.7 gigawatts of energy storage on the grid by 2030. That's in the context that today there is around 4 gigawatts, most of which is pumped hydro. There's about 1.6 gigawatts of lithium-ion type short-term response battery storage on the grid right now, and that's forecast to need to increase to over 14 gigawatts by 2030. There's a very, very significant requirement for these asset classes over the coming years. One of the questions I get asked is, "Well, of course, when more batteries come online, this balancing requirement is going to go away." Well, the context is that very significant requirement, a growing requirement over the coming years, without which we cannot, frankly, have all of the intermittent renewable generation coming online that is planned to at least not without very significant amounts of curtailment, as the video just described. We've currently got 50 megawatts live, as you know. We've got a pipeline of 760 megawatts of projects that we're working on. That would give us, if we just delivered that, around 0.4% market share by 2030. We'd like not to stop there. We see, as I said, it's a very significant market requirement. If we had, say, a 10% market share, then that would mean us moving towards 1.5 GW by 2030 as well. That's sort of within our thinking. Albeit, as I said, the pipeline is currently 760 MW. That pipeline is spread out across the country. You can see the Burwell site down here in the bottom right. Of that 760, there's currently 350 MW of that, the bottom line there, are projects that are in exclusivity, where we haven't yet fully secured them, if you like. I would expect to see us continue to bring those sites through from exclusivity, if you like, into being secured over the coming months and seek to continue to build the overall pipeline of projects, as well. That's it for me. I'll come back at the end and obviously for Q&A and with some concluding remarks. As I said, look, today, really, I wanted to make sure it's the opportunity for you to see some of the leadership team within the business. I'll hand over to John Flaherty, who's the MD of our Grid-scale Energy Storage division. Thank you. Thank you. Hello, I am John Flaherty, the MD of the Grid-scale Battery Storage part of the business. I'm gonna lead you through the fundamentals of the batteries before introducing you to the networks and one of our key suppliers. Contrary to what I'm going to tell you straight after I describe this, the fundamentals of what batteries do is very simple. They're bi-directional, and therefore we export when the market is short, i.e., where demand is greater than supply, and then vice versa, we import when it's long, i.e., there is greater supply than there is demand. Now, later on, James and his team are gonna explain the greater complexity that sits behind that fundamental principle and explain how we overlay different strategies to actually change that basic concept into what is the reality of a multi-revenue stacked system. Now, this is a very simple diagram of what you're gonna see when you go to our Burwell site later this morning. Now because it's bi-directional, I could start at either end of the system, but for me it's slightly simpler, I think, to talk initially from an exporting point of view. Our battery cells are DC, and they provide power to the inverters, so they change it to AC, at which point we then step it up from roughly 600 volts to 33,000 through a medium voltage transformer, represented by the inverted Y. And at Burwell it's 132 KV connected, so we do a secondary step up, having gone through the switchgear and other interesting parts of the plant, and we step it up through another transformer to 132,000 volts. At which point it then goes onto the network at a local substation and provides power to the demand on the network, be it industrial or domestic consumers. Equally in reverse, when there is excess generation, let's say it's windy at night, is the simple explanation, we go in reverse, we step it down, we convert it to DC, we store it in the cells. That activity goes on multiple times per day, in fractions of the site's capability. Back and forth, as and when the requirement is there. Now, I will explain this and point to the relevant boxes, when we're on site, and you'll get a better understanding of what that actually physically means and how they're laid out, et cetera. That's the basic fundamentals of every battery site in the UK. What are the overarching benefits of a battery compared to other elements of generation on the system? The first key benefit is speed. Batteries and ours are no different, operate at sub-20 millisecond response time, and that's in both directions. Compared to the quickest flexible assets, pumped hydro, gas peakers, they are unbeatable in speed in terms of instantaneous response. They also allow us to more economically deal with the changes in demand and supply throughout the day and throughout the year. As there is greater wind in particular, essentially thermal generation cannot adapt quick enough, and therefore the network, as was mentioned before, tends to and would increasingly so curtail wind. It's the simplest way to do it, but it is very expensive. Whereas batteries like ours can either pay a very low price to take that power or even get paid to take it, and it still costs less than a Contract for Difference would cost to support, which is actually curtailing wind is the most expensive element of balancing the network over the past few years that National Grid faces. There is also, as we've seen, the dramatic volatility in fuel prices. The gas price currently and in previous periods, the impact that international markets have on that and their susceptibility to conflict and geopolitical instability makes them a more expensive and less positive way of dealing with the network's demands. As we close thermal plants and as we increase the volume of intermittent renewables such as wind, such as solar, and then if we move into other types, inertia drops, i.e., the need for frequency services increases, at which batteries are ideal to service. That prevents a high likelihood of outages, brownouts, blackouts at the worst case. Finally, yes, you can adapt fossil fuel generation, and we do when we have to. But when you run such plants at suboptimal levels because you ramp them down or ramp them up, your carbon emissions per kilowatt increase quite dramatically. It's a negative carbon way of dealing with the issues that the network needs to manage. Batteries are a much better, cleaner, and quick way of doing that. It's often of a lot of interest to people is around duration. Batteries like ours operate in the kinda minutes to hours space. Now, most activities on the network require less than half an hour of action, which is ideal for a lithium-ion battery and for ours, which is a 1-hour site, that satisfies the vast majority of needs that the network has. Now, there is absolutely a requirement for longer duration storage over time, and when it becomes more economically viable to have thermal storage or hydrogen-based storage, it will have its place in the system, but that will in no way reduce the need or requirement of the storage at our level, of the 1 to 2-hour kind of scale. Those services are still gonna be required. The speed is still beneficial, and the sheer need for storage will be satisfied across that wide range. In terms of chemistry, we use lithium iron phosphate for three primary reasons. It's more cost effective than other lithium-based chemistries, it has a much lower fire risk, and it has better ability to cycle, i.e., it degrades at a much slower rate than other chemistries, and therefore allows us a longer life with more activity. The chemistry will change over time, but over the short to medium term, lithium iron phosphate is going to be the best chemistry for the next few years until something else comes along. How do we make money? There are, in simple terms, two revenue sources, and I am giving you the simple version and fear not, James and his team will give you the more complicated version shortly. Effectively, there are balancing services, and that is, as I mentioned before, charging when power is cheap, exporting when power is expensive based on demand and supply and balance. That fundamentally is what our base case revenue projections are based on because those are activities that have been around for decades, aren't going anywhere, and are fairly well and historically proven to be forecastable. It's represented by our dark green. It's relatively stable forecast. It's where we will always end up, even if we're not doing other things. Those other things, as we've seen in 2022 in particular, would be ancillary services dominated by frequency. In 2022, frequency services have outperformed balancing services by quite a considerable degree. We have made the most of that, and we have done frequency services for the majority of the year. Those kind of ancillary services ebb and flow. We treat them as upside, and we've taken that upside this year and at some point, to use a water-based analogy, that wave will come down, but it won't come down below what we can achieve through balancing services. Through the 40-year life of this asset, we will ride the next wave and the one after that and optimize the site based on whatever is the best use of the asset and source of revenue at the time. Now you've seen this volatility image before, and it is for good reason. The volatility since 2021 has been unprecedented. Previously, we would see a GBP 4,000 pound or a GBP 2,000 pound per megawatt-hour event once, maybe twice a year. Since late 2021, it's been commonplace. That is driving spreads up, which is driving the available revenues from balancing services such as wholesale and balancing mechanism up. Then I point you to the second graph, and you may say, "But wholesale and BM are not the dominant factors in 2021 or 2022's revenue stack," which is true, and because, as I said, we've been doing frequency for the majority of this year. That volatility and those increased spreads are pushing up the required price of the frequency service because the fallback position is always what you can get from the balancing market. When you're setting your auction price for the frequency, it's based on, well, I can do X by doing wholesale. Therefore, I need more than that for frequency. That fundamentally has lifted the frequency prices in combination with a mismatch between supply and demand. While wholesale has not derived the majority of the revenue, it is one of the key factors as to why those revenues are so high. Now, every battery site is unique, but at the same time, they're all fundamentally the same. More than half of the required CapEx comes from the battery system. The key thing about understanding that is that the battery system isn't just the cells. It is the fire prevention system. It is the BMS. It is the inverters that change AC/DC. It's the entirety of that system before you start doing step up, is what we classify as a battery system. When it comes to repowering at the point at which the cells are degrading, we're not replacing all of it, we're replacing the cells. After that, we've got the construction of the site with the other elements of plant, such as transformers being the next major component, and then it's grid connection and site consent, and all of those factors are 40-year assets, effectively. Our OpEx is, broadly speaking, 25% of revenue, but I refer to that being 25% of our baseline revenue, so when we get upside, our OpEx doesn't necessarily rise. It's not a truly variable OpEx, it's relatively fixed. Obviously, sourcing of such a large investment is critical, and so we work only with tier one suppliers, so entities like Siemens, ABB, and from our battery supply systems, we work with entities like Trina Storage, who come from long histories of doing energy asset manufacturing, have robust balance sheets, and can support warranties. Because our warranties are absolutely key. Our battery systems have 10-year warranties, which is a product capacity and availability warranty, which supports the life of the cells. Our other major plant items have extended warranties out to 5 years. Those assets being 40-year life, if something goes wrong with an asset of that type, it goes wrong quickly. It doesn't happen in the later years. Critically, we take our environmental, social, responsibilities very seriously. All of our supply chain have been externally audited, and that is to make sure that employment standards, sourcing, methodology, environmental compliance and recycling at the end of life are all up to our exacting standards. Now, during this period, we've not physically been able to get to China to do inspections ourselves, so we have used parties like Achilles who have local resource to do those visits themselves, and all of our supply chain have passed those standards. Finally, in terms of the competitive landscape, we still have a fairly unique position in that we operate almost the entirety of the value chain of battery storage. That's beneficial because it allows us to lean more into self-development of sites and originate those ourselves in a market where there is a lot of competition, there is a finite amount of grid space, and it allows us to mitigate rising costs in that area. Because we have an in-house design and technical expertise, we can carefully manage our ICP partners who do the construction and the electrical works, and monitor what is a stretched resource in a high-demand market for the kind of quality that we all expect. In a world of complex revenues, which you'll get to hear about shortly, our in-house trading team gives us the advantage of doing the right thing for our asset, both in health and revenue optimization, as well as being less obsessed about how we look against our route to market competition and more about driving absolute value for the business from the assets. That concludes my element until I answer your questions and take you around site. Next, we're gonna hear from Barry Hatton, the Director of Asset Management at UKPN, who's gonna help us better understand why batteries are so critical to balancing the grid. Hi, my name is Barry Hatton. I'm the Director of Asset Management at UK Power Networks. UK Power Networks is the distribution network operator that covers London, the South East and East Anglia. We serve 8.5 million customers. We have a network of about 180,000 km of overhead line and underground cable, and a population of around 130,000 substations. The UK energy network is evolving in moving away from what was a model of a small number of very large generators connected to the transmission system, to a model where you'll still have a large number of, you know, renewable generators connected to transmission systems, but supplemented by a very large number of small generators connected to the distribution system. The level of interaction between the distribution system and the transmission system is increasing, which is sort of, you know, creating new challenges that have to be managed on both networks. Batteries have a key role to play in that. You know, they're absolutely vital to enabling the management of the disparity between the levels of intermittent generation and the demand profile that there is. They have a key role to play in sort of filling that gap to sort of make sure that we can capture the output of renewable energy generators and being able to use that back into the network at the time when demand is greater. Once the batteries are there, of course they're in a position to be able to participate in flexibility services, and we do expect flexibility service requirements to increase over the next sort of 10, 15 years. Clearly, batteries provide a good alternative to reinforcing networks and allow a quicker response to the challenges of reinforcing networks where a sudden demand appears. One of the challenges at this particular point in time is that, you know, inevitably we're gonna be heading to a point of having to constrain renewable output, which, you know, doesn't sort of seem to be the right thing to be doing. Storage has a role to play in helping to reduce that. The use of battery storage to manage or assist at times of peak demand in terms of storing energy during the day or whenever there's excess energy over and above demand, and then exporting that back into the network at times of peak means that we don't have as much generation on the system as would be needed to meet that peak demand. But likewise, the capacity of the networks wouldn't have to increase as much to be able to meet those sort of peak demands. By reducing the volume of generation and the volume of capacity that has to be put on the network, that's how we keep costs to customers down. Batteries are gonna be a key part of the network. There's no doubt about it. While apologizing for my slight omnipresence in videography, I'm afraid most of them were done during COVID, and had to limit the number of people traveling around just to do videos, so I'm afraid it's me in most of them. Next, we're gonna hear a short video from Daniel Greten, who is the Head of Trina Storage EMEA. Trina being one of our key battery suppliers and the ones that supplied the site that you're gonna visit today. They're gonna give you more of an insight into the critical elements of the supply chain. My name is Daniel Greten, and I'm the head of Trina Storage in EMEA. Trina Storage is a business unit of Trina Solar. Our company has over 25 years of PV manufacturing experience and delivered more than 100 gigawatts of solar modules in over 100 countries around the globe. Trina Storage provides state-of-the-art energy storage systems. Our utility scale solutions are fully integrated, competitive, safe and highly bankable. We work with our partners around the globe to build innovative industry-leading products which make a difference to our planet. With the EV market taking up the lion's share of the LFP supply, vertical integration becomes key. Recent shortages and price volatility already showed that a vertical integration strategy is crucial for a strong and robust supply chain. For Trina, technological innovation is part of our DNA. Going forward, our in-house cell manufacturing and system integration capabilities are the key to ensure total control over our better value chain to tackle market volatility. With Elementa, Trina's battery cabinet solution, customers will benefit from our supply chain stability, price stability, cell performance stability, and capacity stability. Trina has a multi-supplier strategy for raw material sourcing and for lithium in particular. We are following Trina supplier standards to not only ensure quality, but also meet our social and environmental targets. Our LFP batteries have been specifically designed for grid storage. This is unique in our industry, where other manufacturers have simply taken cells from another industry sectors, namely EVs, and trying to fit them into an application for which they are not ultimately designed for. This ensures higher performance with related lifetime cost savings and increased revenues. Besides our technology, Trina Storage has boots on the ground with our expert project execution teams and after-sales service teams, including the warehouses. Specifically in our core markets like U.K., we ensure quick reaction times and highest availability. On top, our projects are being covered by a solid warranty package for the planned lifetime, which includes product warranties and performance warranties for capacity and availability coverage. We are taking care of our batteries throughout the entire life cycle, which includes recycling at the end of life. Trina provides integrated, safe and scalable energy storage solutions which deliver industry-leading cost performance. Now I'm gonna hand over to Lily Coles, who's gonna give you a rundown of how we originate and develop batteries. Hi, everyone. Hi, I'm Lily, a director for the grid-scale batteries, and like John said, I'm gonna talk you through about how we originate sites all the way through to construction and then energization before James then starts trading it. SMS provide the full turnkey solution in identifying sites through all the way through to the in-house trading side. That starts with identifying a suitable parcel of land, ideally next to a grid connection, submitting an application to the grid to secure that grid connection, and then finally securing planning permission. Our engineering team have got a wealth of experience within high-scale grid connections, and that ensures that we have swift, efficient and intelligent management processes to secure a valid grid connection. Our projects and engineering team then go on to construct the sites, energize the sites, and then hand it over to James, all ensuring that we're in the budget and the timescales that we identified at the start. These sites have got a 40-year lifetime, so it's imperative that we manage the full life scale of those projects by maximizing the value, minimizing the economic, the environmental impact, and optimizing the trading opportunities. SMS has got a wealth of experience within this area, with over 25 years of experience within electricity and gas infrastructure. This includes large-scale infrastructure partners within the UK, including the high voltage network for the London 2012 Olympic Park, the rollout of the 3G, 4G and 5G telecommunications, and then the fast high-speed infrastructure for National Rail. Our experience also contributed to the Competition in Connections legislation, which then allowed independent connection providers to quote, "Design and then install networks for the DNOs". With this pioneering role, we then followed that into our carbon reduction assets, including our battery systems. Part of the team can also offer energy services and procurement. How do we originate the sites? Grid is the hardest thing at the moment, so finding a valid grid connection is where our team spend a lot of time. With our long-term relationships with the DNOs, we have a number of workshops with them. We can use the heat maps, and we quickly map out the whole of the UK to see whether there's any available capacity at any of the local substations. By identifying a substation, we can then overlay our maps and look at potential land areas. What we try to avoid is areas of outstanding natural beauty, SSSI, premium agricultural land, and identify risks that then could potentially be an issue when we then apply for planning permission. Once we've identified a suitable site near hopefully a good grid connection, we then apply for grid, and we work with the landlord to secure the land rights in that area. About 3 months later, we hopefully get a grid connection back and it comes out, feasible, and we then secure the land with the landowner and we ask for 40-year leases, and that then gives us, a long-term visibility and security of that site. We then apply for the planning and that involves a number of, key concerns that we address right from the beginning. Currently, noise is an issue where you get a lot of people think that these batteries are really noisy. We do a noise assessment, and if there are local people in the area, we put up the appropriate acoustic fences. Lots of people don't like the sight of batteries, and we ensure that if you are near a battery or there's a footpath near a battery, we then put up additional screening, whether that's bunds or new hedgerows. Fire is the new issue. Ensure that our systems are safe and secure. Like John was explaining, we use lithium iron to reduce that fire risk. Once we've got those three key elements, the grid connection, the lease for the land, and the planning permission, it is then shovel-ready, and we can hand it on to our construction team to start building. Another key aspect, sorry, I should mention is our ESG. We ensure that all our sites are net positive in biodiversity. We spend a lot of time working with ecologists, to ensure that we're using native species, putting in bird boxes, bat boxes, et cetera. As an example, I've got Burwell here. This is the site that we're going to go and see later. I'll take you through some of the design considerations that we thought about at the beginning and have then been implemented. To start with, you can see that we've got a weir running around the edge of the site, and that's local to this area. We had to construct a bridge to access the site, so you can see the new bridge in the top corner. We had to think about how the surface water might drain into the weir and manage that appropriately. We've got an attenuation pond that you can see in red. All the surface water will then drain into the attenuation pond and then gets filtered naturally into the weir. Thirdly, like I mentioned, we've got ecology on site. Before anything could happen, we had to do badger surveys, water vole surveys, and otter surveys before construction started. We had to think about the layout. This site, we've got about an acre, an acre and a half. How do we fit all that in there? We work closely with Trina, which was our battery supply partner for this site, to look at the layout to maximize the capacity that we can get, but also taking into account safety concerns around fire, around access, et cetera. The fire regulations have got specific spacing requirements that you need between all the equipment. You will see that there's enough spacing around, and we can walk around and access all the key areas. Then thirdly, we've got Burwell Village quite close, and so you do have neighbors. Like I said, we want to make sure that on a nice summer evening, they can open their window at nighttime, and they can't hear the batteries. You will see quite a lot of acoustic fencing around this site, and that's a noise impact survey that we've modeled to ensure that none of the local residents can physically hear the batteries when they're operational. There's also this nice path that you'll see when the coach drops you off, that lots of the local residents use as a footpath with their dogs. Of course, when they saw planning permission for a battery going in, the last thing they want to see is these huge, great white containers. What we've tried to do is shield the site as much as possible, and you'll see a nice big bund, and then a native hedgerow all the way along. We've used native grass seed mix as well. We've got Burwell 2. We're planning an extension. Just here, you'll see a nice empty field, hopefully, when we get there. As part of the construction and design for Burwell 1, we took that into consideration while doing the grid connection. The huge great substation that you can see up there has already been designed to accommodate the extension of Burwell 2 for when that goes operational. Finally, these assets are gonna be with us for hopefully longer than 40 years. I mean, there's never not gonna be a requirement for batteries. Although the planning stipulates that they need to be removed within a certain amount of time, it is very unlikely that the planners are gonna say, "Actually, scrap that battery and throw it away." We need to take into account that 40 years. SMS provide a long-term O&M to manage that site. We work with our battery providers and our ICP contractors to ensure that we've got long-term warranties and maintenance aspects behind it. Our battery providers offer a minimum of a 10-year product warranty and a 98% availability guarantee. That 98% availability guarantee is then back to back with our construction partner, who then has a 2-year defects liability period. When that site goes live, they are then responsible for 2 years. If anything does break down, they have to come and fix it. Everything else, I think John mentioned, but our key components like the transformers, et cetera, have all got a minimum of 5 years. We always ensure we get extended warranties. Then we've got our in-house asset management, and that ensures that we maximize the revenue streams without compromising the health of the asset. It ensures that we are meeting the warranty restrictions that we have. We have a conservative assumption of two cycles per day for the trading. It's unlikely that we use that much, but we have negotiated direct warranties with our supply partners to ensure that we've got flexible warranties. If there is a key event that happens, we're not restricted to that two cycles. We can maximize that day by getting optimal revenue streams. I think that is it before I hand over to James, and he can talk to you more about how we optimize those revenue streams. Hi, I'm James Taylor, Trading Director at SMS. Before we look at actual trading, I'd like to explain the power UK structure. Essentially, we have supply, network, market and demand. On the supply side, you've got the generation producers. These consist of power stations, so gas-fired power stations, coal-fired power stations, wind farms, solar and of course, battery. The electricity produced from the generators essentially gets sold in the power market to the suppliers who have retail customers and also industrial commercial customers. To get it to the customers, you have a network. The transmission system operator, in the case of the UK, which is National Grid, transmits through the cables and wires on the extra high voltage from the producers, for example, wind farm in Scotland, down to say, a demand in, say, for example, London. It will get it from the TSOs to the DNOs, the distribution network operators, which for example, Burwell is UKPN. The market, which we'll go into greater detail on the next slide, but essentially you've got government from BEIS and the regulator is Ofgem. Of course, then you've got the supply side. You've got the energy suppliers who manage on behalf of consumers, which can be heavy energy intensive users such as railways or steel producers, but also domestic and small to medium enterprise businesses as well. The key aspect here is that for the markets, is that for a battery storage asset, you want to import at low prices and sell and export at high prices. It's not just, as I'll go into more details on the next slide, it's not just that storage spread that can add value. There are a number of ways a battery storage asset can add value. These are the revenues that a battery storage asset can generate. Generally, we split them between the balancing services, which incorporate the balancing mechanism with National Grid, the wholesale power and capacity mechanism, as well as the embedded benefits as balancing services. Then separately, we have frequency services provided to National Grid. The balancing mechanism is essentially a system that's managed. Ourselves, Elexon actually manage it for National Grid control. If National Grid control room in the short term, on a real-time basis wants to increase output, it will look at the prices that all the power stations in the balancing mechanism will submit, called offer prices. If they want to reduce, it'll be the bid prices. On a continuous basis, our trading platform will update the prices to take into account power station outages, changes in weather, and positioning ourselves competitively in the stack. If it's the right price for National Grid, they'll essentially dispatch the asset automatically. We have a process where if they dispatch the asset, our trading systems will then dispatch the battery. The price is agreed, it's only a question of volume. That's the balancing mechanism value. Next up, we've got the wholesale power. This is day ahead auctions and intra-day power trading. The best way to manage these positions for Burwell and our BESS assets is via the two power exchanges. There's EPEX power exchange, and there's the N2EX power exchange. They have different varying levels of liquidity for those assets. What they allow us to do essentially is trade ahead in the auctions many times during the day. We've also got access to the ICM market as well for those auctions. With our automated trading platform, we can always continuously trade on the 24/7 M7 EPEX system. We have access to the EPEX market. Following up from that is the capacity mechanism. The capacity mechanism is a relatively small amount of revenue on a percentage basis, but it is over a long-term period. You can get a contract. There are two types of auctions, once per year T-1 auction, which is just for one year ahead, and essentially a T-4 auction that's either for one year or for a new asset, and our sites are new assets, up to 15 years. You can lock in a value in a T-4 auction for 15 years, which will give you a long-term contract that's stable. What do you provide? Well, in the event of a capacity mechanism event, you have to make yourself available. If you make yourself available, then essentially you fulfill the contract. If you don't, then you have to buy from the market. There's a market there, associated volume reconciliation market. Embedded benefits are associated with the local siting of it. For Burwell, you get some Triad benefits. These are relatively small value revenues compared to the others, but they're useful. It does depend on where you are in the country. Essentially, if you're in and around London, South East, you'll get Triad benefits. If you're in Scotland, you don't. Then we come to frequency response. Frequency response is one of the biggest revenue areas at the moment. You've got frequency response as the traditional standard product of dynamic. There's two products, dynamic and static. But for batteries, it's the dynamic market. It's going to be replaced eventually by the dynamic services, which consists of Dynamic Containment, Dynamic Moderation, and of course, Dynamic Regulation. FFR will eventually be replaced by those services. There's also within that two types of service. There's two types of service. There's a pre-fault and a post-fault. Post-fault event is essentially as it sounds, an event has happened, and to rapidly solve the frequency issue for National Grid, they will use Dynamic Containment, they will use FFR. There's also a pre-fault frequency services, which is essentially the Dynamic Moderation as well as the Dynamic Regulation. They offer a pre-service to an event. Each of these have slightly different technical parameters. For example, Dynamic Containment is a post-fault 15-minute service. It's one of the nice things about Dynamic Containment is very low in cycles. If you're essentially in Dynamic Containment, you won't put a lot of usage on your battery. It's very attractive for keeping the cycle level low. Also, it's been most of the headlines for providing most of the value in the last couple of years, that and FFR. With the Dynamic Moderization, it's a 30-minute pre and for Dynamic Regulation, it's 60. Now, these are developing markets. We're in all these markets. We're in FFR, we're in DC, DM, and DR. The key aspects to our trading is that we want to have access to the full market. DM, we're heavily involved in DR. DM is a market that later next year will come more to the fore. That's also true in the capacity mechanism. We're in those markets, in those auctions. Obviously, we've got EPEX for wholesale power, and all our sites are in the balancing mechanism. Not all sites are in the balancing mechanism. You can have a battery that is a non-BMU, doesn't have access to that revenue value. In terms of revenue, the battery storage asset, as I mentioned, gains value from volatility, from spread, but also from these frequency response services. If you think about price, what are the drivers of price? There's three main components of it. There's on the supply side, on the generator side, there's the cost base of the individual assets. You've got gas-fired power stations. At the moment, you're seeing high gas prices. That feeds into the wholesale price that a gas-fired power station needs to generate at. It also needs to take into account carbon. You have this stack essentially of assets. On the lowest end, you've got nuclear power stations, you've got must-run renewables. You go through the fossil fuels, essentially of gas and coal setting prices. You've got further out the higher prices, you've got gas peakers, et cetera. That affects the pricing. If a power station with our assets being day-ahead and within day, if a power station breaks down, that's potentially an opportunity. If you end up with a situation where that'll make essentially the market tighter, you'll see the movements. If you see an interconnector outage, all these things take into account in the trading on the supply side. Of course, you've got the demand side. Customer usage, I&C usage, to a certain extent, flows on interconnector, all these can have an impact. We've also got on the demand side, even generators, small embedded generators are also included, all adding to unpredictability. You've got unpredictability on the generation side, the demand side, and then the third component is weather. You've also got, if it turns out cold, you'll have increased demand. You'll also have a change in gas prices. If you've got renewables, or too much renewables, you're going to reduce the price. If you've got too much renewables, it actually helps with the balancing with the frequency responses. If you're looking at DC, you'll generally see that DC is a strong market in terms of price on windy days. You've got this trade-off between them. That wraps up the revenue side. We've got a video from the traders. Hi, I'm Sam Jellicoe, and I work in SMS' energy trading team. I'd like to take you through a day in the life of an energy trader at SMS, demonstrating how we optimize grid-scale battery assets. We use an energy trading tool which provides real-time access to energy markets and forecasts, providing insight into the UK's anticipated energy needs for the day ahead and the week ahead. Naturally, for accurate decision-making, the most up-to-date forecast and insights are the most reliable. Therefore, in the morning, before the day-ahead markets open, we look at relevant forecasts and then adopt the strategy based on this information. For example, National Grid provide a four-day frequency forecast, which outlines the predicted required volume for all dynamic frequency services. This information guides our strategy and helps us decide which markets we are going to participate in. The first markets we have access to is the wholesale day-ahead market with 2 big hourly auctions at the start of each day. These have very good liquidity, provided with the option for multiple strategies using basic blocks and smart blocks. A basic block is an order where you can submit a sell or buy order for several hours in the day at the same price with flexible volumes. Smart blocks allow for greater complexity and allow for more customizable strategies. Depending on the outcome of these hourly auctions, they will continue to shape our strategy for the next day. We can enter into frequency response markets such as Dynamic Containment, Dynamic Moderation, or Dynamic Regulation. Alongside our day-ahead trades from the morning auctions via daily auctions each afternoon. These frequency services help grid manage system inertia and the rate of change of frequency when there's high renewable generation on the system, and to keep the system frequency as close to 50 hertz as possible. The final markets available to us for day-ahead are the half-hourly auctions, which have good liquidity, allow smart blocks for certain half-hour granularity optimization. The final day-ahead auction is the half-hourly Irish auction. Even the liquidity is fairly low here, with less than 200 megawatts trading each half-hour, there are good opportunities here as not all counterparties enter this market and liquidity is more sparse. Once we have completed all the possible day-ahead auctions, we then take a position for within-day. Each day, we will be looking to manage the state of charge of the batteries alongside our trading platform, as well as buy cheap power when renewables are high and demand is low, selling the power back when demand is high. There are numerous products available from half-hourly all the way up to 24 hours. We use our trading platform to automatically schedule trades to satisfy the trades we make in real-time, price our balancing mechanism, and check the status of the assets. During our frequency services and intraday trading, we also participate in the balancing mechanism. This is the final way the grid can balance the system, adjust any scheduled power flows to manage system changes, constraints, or plant issues. The prices of these are submitted up to 90 minutes in advance and are usually more lucrative than the wholesale market prices. However, the Balancing Mechanism market is harder to forecast and more competitive. Any actions done within the balancing market to override any contracts or commitments made, even wholesale or frequency, are without penalty. Here is a real-life example of a hybrid strategy we executed, which identified value in various markets throughout the day. For blocks 1 and 2, the first 8 hours of the day, we entered into Dynamic Regulation, which is highlighted by A and B. This gave us the ability to export in the morning peak as per item C. Before going back into Dynamic Regulation high for block 4, 11 A.M. to 3 P.M., and then Dynamic Containment for block 5, 3 P.M. to 7 P.M. Which then gave us the ability to export over the evening peak as per item F. The following day, we will review our actions and revenues to ensure we will continue to target the right markets and track any movements we see in them. All of this activity is managed through a thorough governance framework. The key areas of review are warranty asset management, review the cycles within the day, grid code compliance, review Physical Notification and maximum and minimum export limits and balancing mechanism actions. Revenue versus perfect hindsight. We will look at the revenues from all sources, whether that's frequency markets, wholesale, and the balancing mechanism. We will also review dynamic frequency volumes, prices, and trends. Asset management. Finally, we'll see if the asset has any unplanned availability issues or if there's a planned maintenance over the next few days, so we can plan around the works. We've now covered the three areas that we look at in the day in the life of an energy trader at SMS. Of course, these are all done every day simultaneously for tomorrow, today, and yesterday. Day ahead, where we use forecasting and various analytical tools to come up with our strategy. Intraday, where we optimize the battery depending on market movements. Finally, reviewing the previous day, where we look at the previous strategy and then readjust accordingly. Thank you. Thank you, James. What we can see from all of that is if you think about the way I look at our business, and if you like, the founding principles of our business, we like to take engineering and energy knowledge and know-how. We like to take technology platforms and use those to originate and manage long-term assets to provide secure, long-term recurring revenues. If you look at that from a meters perspective, what did that mean? Well, it meant we took control of the metering station activity because that's a risk. Here, we've taken control of the origination and indeed of the trading activity because that's something that we want to hold within our grasp, if you like, and not just outsource to a third party. That's a risk, if you like, we wanna manage within our business. We provide an end-to-end solution, and you can see that through all of that sort of life cycle that you've seen there today. When you see, you know, the battery data, you'll see some of that physically, but, you know, they're fairly static sites. There's not sort of moving parts or anything like that. All of the sort of communication with the site and all of the systems capability is obviously held remotely, and we manage that accordingly. I hope that gave you a better insight into our grid-scale battery business, into our the capability and the competency within our business as well. Thank you, all.