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20110824 enernoc english_combined

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  • 1. An Analysis of Demand Side Management Aug 24, 2011 ⓒ 2011 insprout Corporation. All rights reserved
  • 2. Table of Contents1st Part: Introduction Introduction Our Focus in the Technological Domains of Smart Grid Demand Side Management Big News!2nd Part: 3rd Case Study EnerNOC 2 ⓒ 2011 insprout Corporation. All rights reserved
  • 3. IntroductionPurpose-In the previous research, we identify the business opportunities inDemand Side Management (DSM) that include the EnergyManagement Services (EMS) and Advanced Metering Infrastructures(AMI) & Field Area Network (FAN).-In this research, we will deeply take a look at the structure of thesetechnological domains, and pick up & analyze some companiesactive in these domain as case study.Methodology-We will present an diagram of Demand Side Management,identifying each technological component within the system.-We will then pick up some companies that are actively doingbusinesses within these fields to get case studies for Japanese startups. 3 ⓒ 2011 insprout Corporation. All rights reserved
  • 4. 2.Our Focus in the Technological Domains of Smart Grid Generation Transmission Distribution Consumption 1 2 3 Energy Consumption Energy Production Monitoring&Control of System Power Supply 1) Renewable Energies 4) Wide Area Monitoring System 5)Distribution Automation 6) EMS 2) Alternative Energies 7) EV 4 Effective Operation of System Power Supply 3)Fossil Fuel Efficiency 8) Recycle 10)Superconducting Transmission 9) Energy Saving 11) Power Electronics Applied Equipment 5 Advanced Interface Technologies 12) AMI / FAM 13) Power Conditioner Technologies 6 Energy Storage 14) Energy Storage Technologies 4 ⓒ 2011 insprout Corporation.※Classifications are based on Japan’s New Energy and Industrial Technology Development Organization (NEDO) “Renewable Energy Technology White Paper 2010.” All rights reserved
  • 5. 2.Detailed Descriptions of DSM Domains Technological Description Domain Process of managing the consumption of energy, generally to ③Energy Consumption 6) EMS Technologies optimize available and planned generation resources. It includes HEMS, BEMS, FEMS, and Demand Response. AMI refers to a system that integrates smart meter and various ⑤Advanced Interface control devices for energy management. FAN is a network that Technologies 12) AMI / FAN bundles multiple smart meters and connects to public communication lines. 5 ⓒ 2011 insprout Corporation.※Classifications are based on Japan’s New Energy and Industrial Technology Development Organization (NEDO) “Renewable Energy Technology White Paper 2010.” All rights reserved
  • 6. 3.Structure of DSM Block Diagram Demand Response Network Household Power Company Energy Business Generator AMI HEMS Household System Controller Devices Distribution Energy MDMS Concentrator Communication Storage Automation System Building/Commercial/Industrial Energy Generator Measure Gas Company Control BEMS/FEMS Household Controller Devices Service Energy Provider StorageSystem Structure Wired/Wirelsss Communication Unit MDMS Smart Meter EMS Controller Concentrator 6 ⓒ 2011 insprout Corporation.※Source: “Technologies and Standardization of Smart Grid” published in 2010 by Japan Standard Association All rights reserved
  • 7. 3.Structure of DSM AMI assumes communications among Smart Meter, Service Providersincluding utility companies and Energy Management System placed in thedemand side. Between service providers and consumers AMI provides information tovarious systems through Meter Data Management System (MDMS). Forexample, billing automation system, distribution automation system are donethrough AMI. The introduction of AMI makes it possible to measure power consumption real time. 7 ⓒ 2011 insprout Corporation. All rights reserved
  • 8. 4.Big News! California PUC adopted the world’s first comprehensive set of rulesto ensure that consumers can access the detailed energy usage datagathered by their smart meter. This decision calls for:1. Web Presentment -Utilities must provide via their websites such information as detailed energy usage.2. Tier Alerts -When customers move from one price tier to the next, the utilities are to provide notification.3. Rate Option Calculator -Help consumers understand whether they would save money by switching to a time-of-use rate.4. Real-time Data -Decision requires them to file plans that “include an initial phase with a rollout that enables a minimum of 5,000 HAN-enabled devices to be directly connected with smart meters.5. Third-Party Data Service - Consumers can authorize third parties to receive their backhauled smart meter data directly from the utility to support services such as energy efficiency. Will use OpenADE as standard. 8 ⓒ 2011 insprout Corporation. All rights reserved
  • 9. 4.Big News! ~OpenADE (Automated Data Exchange) How the Open Automated Data Exchange communication standard works Utility Data Center Authorized Third Party Meter Utility Utility Open Open Internet ADE Data Billing Web ADE Energy Info Mgmt & CIS Site Application Smart Network Application Platform Communication Network Head End Internet Smart Meter Next Day Data Communications AMI Network Radio 9 ⓒ 2011 insprout Corporation.※Source:http://www.emeter.com/smart-grid-watch/2011/california-puc-adopts-consumer-data-access-and-privacy-rules-for-smart-meters/ All rights reserved
  • 10. Case Study 3 EnerNOC Aug 24, 2011 ⓒ 2011 insprout Corporation. All rights reserved
  • 11. Company Overview Name EnerNOC Type Public (NASDAQ: ENOC), IPO May 2007 75 Federal Street Suite 300Headquarters Boston, MA, 02110Year Founded 2001 Revenue $280 Million (FY2010) Employees 484 employees (as of Dec.31 2010) Business Demand response, energy management systems Sectors 11 ⓒ 2011 insprout Corporation. All rights reserved
  • 12. Funding History Year Amount Participants in the Round Draper Fisher Jurvetson,Series A Apr. 2003 2.6M Braemar Energy Ventures New Atlantic Ventures, Foundation CapitalSeries B Jan. 2005 7.75M Braemar Energy Ventures, Draper Fisher Jurvetson Total - 10.35M - 12 ⓒ 2011 insprout Corporation. All rights reserved
  • 13. Focus Area Block Diagram Demand Response Network Household Power Company Energy Business Generator AMI HEMS Household System Controller Devices Distribution Energy MDMS Concentrator Communication Storage Automation System Building/Commercial/Industrial Energy Generator Measure Gas Company Control BEMS/FEMS Household Controller Devices Service Energy Provider StorageSystem Structure Wired/Wirelsss Communication Unit MDMS Smart Meter EMS Controller Concentrator 13 ⓒ 2011 insprout Corporation.※Source: “Technologies and Standardization of Smart Grid” published in 2010 by Japan Standard Association All rights reserved
  • 14. Description of EnerNOC’s Services DemandSMART SupplySMART•Demand response application •Offers consulting services to help•EnerNOC acts as an aggregator companies buy energy efficiently.between utilities and end-users.*For a video presentation, see the following link: *For a video presentation, see the following link:http://www.youtube.com/watch?v=wDJb8YhbE6k http://www.youtube.com/watch?v=v6bJTFagwq0&feature =related EfficiencySMART CarbonSMART•Analyzes users real-time power •Tracks and manages greenhouseconsumption to reveal opportunity gas emissions for companiesto save energy. trying to reduce their emissions.•Offers traditional commissioning. *For a video presentation, see the following link: http://www.youtube.com/watch?v=FD0mvzHWlcw&featu re=related 14 ⓒ 2011 insprout Corporation. All rights reserved
  • 15. Description of DemandSMARTSupply Demand 1.Notify when 1.Request Power increase in Demand demand Response CommercialCompany Users Power 2.Aggregate EnerNOC 2.CurtailCompany reduction of Power energy use Demand Consumption Institutional Response Users PowerCompany 3.Pay reward 3.Pay reward based on the based on the amount saved amount saved Industrial Power UsersCompany *Note: EnerNOC does not target residential customers 15 ⓒ 2011 insprout Corporation. All rights reserved
  • 16. How Does Demand Response Actually Works When demand is high, power company raises electricity price. EnerNOC requests its business partners that participated the DR program to curtail their energy use. Companies that wish to avoid high electricity price accept to cut back consumption. EnerNOC aggregates such reductions of power consumption, successfully shifting heavy load. EnerNOC and those who helped the DR get paid based on the amount of energy they saved. 16 ⓒ 2011 insprout Corporation. All rights reserved
  • 17. EnerNOC’s Business Model DemandSMART 1. Reliability-Based Power Demand Response Company EnerNOC Commercial & Industrial 2. Price-Based UsersMulti-million dollar contracts with Demand Responseterms that generally range betweenthree and ten years. Such contractsalso predetermine capacitycommitment and payment levels. 3. Ancillary Services 17 ⓒ 2011 insprout Corporation. All rights reserved
  • 18. EnerNOC’s Business Model ~continued~ •ENC receives recurring capacity payments, which they share with customers, from utilities for being on call, whether they receive a signal to reduce consumption.Reliability-Based •When called to implement a demand reduction, ENC typically receivesDemand Response an additional payment, which they also share with customers, for the energy they reduce. •By aggregating a large number of C&I customers to participatein these reliability-based programs, ENC helps to prevent blackouts. •Enable C&I customers to monitor and respond to wholesale electricity market price signals when it is cost-effective Price-Based •ENC receives an energy payment in the amount of the wholesale marketDemand Response price for the electricity that the customer does not consume and share this payment with the customer. •This service is called upon byelectric power grid operators and utilities during short-term contingency events such as the loss of a large power plant.Ancillary Services •Utilities rely on a reserve pool of these quick-start resources to provide short-term support as needed during these contingency events. 18 ⓒ 2011 insprout Corporation. All rights reserved
  • 19. Financial Highlights(Unit: Million $) (Unit: Million $) 300 280.2 20 EnerNOC now mamages 5,300MW, 250 serving 3, 600customers at 8,600 sites 9.6 10 190.7 200 0 -5.8 -6.8 150 -10 106.1 -23.6 100 -20 60.8 50 26.1 -30 -36.7 0 -40 2006 2007 2008 2009 2010 Revenues Net Income 19 ⓒ 2011 insprout Corporation. All rights reserved
  • 20. Risk Factors Dependence on utilities for revenues ENC currently generates all of its revenues from utilities. Upfront costs As ENC expands the MW under management, the infrastructure (such as STB installed at customers’ sites) necessary to enable those rises. Time lag in revenue recognition PJM forward capacity market operates on a June to May program-year basis. For example, a MW that ENC enables after June of each year won’t be recognized as revenue until June of the following year. Penalty payments when capacity commitment is not met Under the contracts, utilities make periodic payments based on the amount of demand response capacity committed by ENC, not the amount of consumption actually saved. If this commitment is not met, penalty payment is imposed on ENC. Net penalty payments were $288,527, $168,719, and $82639 in 2010, 2009, and 2008 respectively, about 1/100 of annual revenue. 20 ⓒ 2011 insprout Corporation.*Source: EnerNOC 2010 Annual Report All rights reserved
  • 21. CitationsEnglishhttp://en.wikipedia.org/wiki/EnerNOChttp://www.slate.com/id/2248558/http://www.greentechmedia.com/articles/read/demand-response-solid-team-player-but-not-a-star-yet/http://www.sramanamitra.com/2009/01/08/deal-radar-2009-enernoc/http://gigaom.com/cleantech/enernoc-sees-business-beyond-demand-response/http://buildaroo.com/news/article/enernoc-efficiencysmart-energy-management-software/Japanesehttp://ventureclef.com/blog2/?p=1135 21 ⓒ 2011 insprout Corporation. All rights reserved
  • 22. TO BE CONTINUEDWe will analyze in detail various EMS technologies and companies in those domains 22 ⓒ 2011 insprout Corporation. All rights reserved