WAVE ENERGY SCOTLAND - Advisory Group - Call for Expressions of Interest

4th April 2015

Introduction
Wave Energy Scotland is seeking expressions of interest from appropriately qualified and
experienced industry representatives to join its independent Advisory Group. The Advisory
Group will play a critical role in supporting Wave Energy Scotland meet its objectives, and to
support wider Scottish efforts to develop the wave energy sector into one which plays an
important role in our future energy mix, and contributor to the Scottish economy. Members
of the Group will have the opportunity to both influence and be part of the development
journey for this emerging sector.

Background
On 24 November 2014 the Scottish Government publicly announced its intention to establish a new wave energy technology development body - Wave Energy Scotland ("WES"). At the request of Scottish Government, Highlands and Islands Enterprise ("HIE") has established and will operate WES with the aim of facilitating research and development activity in order to accelerate the development of wave technologies.

WES is fully funded by the Scottish Government, which has recently announced funding of £14.3million up to March 2016. It has further committed to make significant funds available to WES beyond that date. Scottish Government has set a number of strategic objectives for WES, and these are
summarised below:
 To retain the intellectual property from marine energy device development in Scotland for future benefit;
 To enable wave energy technologies to reach commercial readiness by:
o Ensuring the learning gained from wave energy development to date is used to benefit the development of the sector;
o Fostering greater collaboration across the industry, and with academia/research institutes;
o Promoting greater confidence in the technical performance of wave technologies in order to encourage the return of private sector investment;

WES will also ensure value for money from public sector investment, whilst ensuring its activities contribute to Scotland's ambitions to develop a low carbon economy.

Operating Model
WES has been established as a collaborative model to support innovation and avoid duplication in addressing the technical challenges of reliability, survivability, performance and affordability that have hindered private sector investment and delayed commercialisation of wave technology. WES will support the development of the best technology - no matter where it is from - and is open to any organisation registered in European Economic Area. Innovation, collaboration and technology transfer from other sectors are actively encouraged. Development will be prioritised and subject to rigorous technical reviews to optimise technology, drive convergence and ensure that technical solutions are commercially viable. Innovation will be captured to create Intellectual Property that will be made available to advance marine technology.

Crucial to the model is the establishment of an Advisory Group which will play a key role in supporting WES identify research and development priorities. It is intended that the group will be made up of representatives of industry, academia, investment and insurance
interests. Recommendations on projects and collaborations to be pursued and supported by WES will be submitted to the Advisory Group for consideration and endorsement where appropriate. It is intended that the Advisory Group will provide a commercial focus to the operation of WES, and support WES and HIE ensure that only those projects or collaborations which have a realistic prospect of delivering technology which can be commercially developed are taken forward.

WES will issue a series of open competitive calls for technology development in priority areas. The first call focussing on power take-off technology, and with a budget of up to £7million, issued on 16 March 2015. It is anticipated that up to a further 4 calls will issue during 2015/16.

Technical milestones will be set for all projects supported by WES, and performance of each activity against these milestones will be assessed using a stage gate review process. This will determine whether the technology will progress to the next stage and further funds will be made available. This process will introduce a level of engineering rigour, objectivity and cost management. It will also identify additional collaboration opportunities. WES will also ensure that all activity undertaken within its programme is in line with industry standards.

Governance Arrangements
WES is a wholly owned subsidiary of HIE, with the HIE Chief Executive acting as Accountable Officer. WES operates under HIE's operating and governance arrangements with a scheme of delegation in place. Under those arrangements, funding decisions above a certain value will be made at the appropriate level within HIE. WES will report on all aspects
of performance to the HIE Leadership Team and Board under a reporting and monitoring framework agreed with it.

The role of the Advisory Group is to provide an external, commercial focused review mechanism into this process. While the Advisory Group will not be a decision making body, its views will importantly feed into that overall assessment and decision making process, and it will support WES ensure that its objectives are met.

It is anticipated that the Advisory Group will meet in person or virtually up to 6 times a year. Recruitment and Appointment of Advisory Group Members Expressions of Interest in membership of the Advisory Group are sought through this open
call. To ensure the Advisory Group is able to provide the forward looking commercial focus to support the direction of WES, expressions of interest are sought from representatives from industry (including utilities), academia, investment and insurance communities.

Membership is not sought from wave device developers or the public sector.

WES seeks expressions of interest from those who have a track record in providing strong strategic advice in relation to project delivery, experience of securing long term project finance for technology development activities and an understanding of what makes them investable and insurable. The link with academia is also important and interest is sought from those with significant relevant experience in relation to marine renewable technology development.

Appointments to the Advisory Group will be for an initial 3 year term, with the option of extending by one further term if deemed appropriate by WES. Advisory Group members will be fully recompensed for travel and subsistence costs by WES.

Conflicts of Interest
It is recognised that Advisory Group members may on occasion have a conflict of interest in relation to a particular project presented to the Group. On acceptance of membership to the Advisory Group, all members will be asked to register any relevant interests they may have, and thereafter to remove themselves from any discussions in relation to these interests.

Terms of Reference
The Advisory Group shall support WES and HIE ensure that the operation of WES has a strong commercial focus, and will undertake the following:-

 Provide objective challenge and insights to enable WES to meets its objectives.
 Review and provide advice to WES and HIE on technology prioritisation, and associated work programme, which will act as the focus of WES activity.

Consider recommendations from the WES executive team for projects and collaborations to be taken forward under the WES programme, both for entry into the programme and for movement through the stage gate review process on the
achievement of technical milestones. The views of the Advisory Group shall be used to inform WES and HIE and support them to reach decisions on project decisions.

 Review and comment on technology assessment plans and associated milestones to be applied to projects and collaborations accepted onto the WES programme.

 To advise WES and HIE on key areas of risk in relation to programme and project delivery which may impact on the ability of WES to meet its objectives.

 Other matters which may arise to support the operational effectiveness of WES.

The role of the Advisory Group, and these terms of reference, may evolve in response to experience.

Responses to the Call
Expressions of Interest should be made in writing either in hard copy or by electronic mail, and be accompanied by an up to date CV, and any other relevant supporting information which details the applicant's interest, knowledge and skills pertinent to the role of Advisory Group member. Expressions of interest are sought by close on 27 April 2015 and should be
addressed to Elaine Hanton at the following address:

Highlands & Islands Enterprise
Fraser House
Friar's Lane
Inverness
IV1 1BA
Tel:01463 244 284

or

elaine.hanton[AT]hient.co.uk

Informal enquiries are also welcome and should be directed to Elaine Hanton or Tim Hurst, Interim Director of Wave Energy Scotland, at tim.hurst[AT]hient.co.uk or on 07796 930 669.