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[Smart Grid Market Research] Energy Management 3.0: Advanced Systems for Commercial and Industrial Users - Zpryme Smart Grid Insights


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The global energy management system market is projected to reach $1.70 billion in 2012. By 2020, the global market is projected to reach $9.98 billion. The market is projected to grow at a compound …

The global energy management system market is projected to reach $1.70 billion in 2012. By 2020, the global market is projected to reach $9.98 billion. The market is projected to grow at a compound annual growth rate (CAGR) of 25%.Currently, EMS offerings are focused on energy optimization based on company-specified goals and preferences. However, in the future, EMS will also integrate operations optimization, and will automatically adjust settings for the highest levels of performance, in addition to providing energy savings. This report has been developed by Zpryme’s Smart Grid Insights Research Team and Zpryme’s Smart Grid Advisory Board.

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  • 2. Table of ContentsExecutive Summary ................................................................. 2 Energy Management System Market Transition ................ 5Recommendations and Opportunities .................................. 6Market Overview ..................................................................... 8 State of the Market ................................................................ 8 Technology Definition ............................................................ 8 Market Drivers ......................................................................... 9 Market Barriers....................................................................... 10 Technology Benefits and Segments .................................. 11 Service Delivery..................................................................... 11Energy Management Market Transition .............................. 13 Energy Management Systems Today ............................... 13 Energy Management Systems in 3-5 years ....................... 14 Energy Management 3.0 (6 - 10 years)............................. 15Global Market Value Forecasts............................................ 16 Global Energy Management Systems Market Value Forecast, 2012 – 2020 ........................................................... 16 Global Energy Management Systems Market Value by Technology, 2012 – 2020 ..................................................... 16 Methodology ........................................................................ 17Key Players and Solutions ..................................................... 18 Emerging Companies to Watch ........................................ 23Major Government Initiatives ............................................... 26Major Regional Projects ........................................................ 27Keys to Entering the Energy Management Market ............ 30Zpryme’s Market Outlook, 2012 - 2020 ................................ 311 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 3. Executive Summary efficiency, but also integrate with other business functions to provide both energy efficiency and operationsCommercial energy management systems (EMS) allow optimization. These systems are an amalgamation offirms to reach energy efficiency goals and control energy building management systems and advanced softwareconsumption company-wide by using proven energy solutions that assist in managing the building functions in acontrol techniques to optimize their energy efficiency. more energy efficient way to provide demand response controls when situations within the power grid demand it.Commercial buildings are a large potential market forenergy efficiency programs, and this includes energy To do this, the EMS software measures the energymanagement systems. To drive this adoption, federal consumption and utilization of all network-connectedprograms play a key role to encourage the technological devices and systems to provide visibility into power usagedevelopment of enterprise grade energy management across the enterprise. Typical components include worksystems for commercial facilities. management capabilities, enhanced demand-response applications, and analytics and forecasting applications.Currently, EMS offerings are focused on energyoptimization based on company-specified goals and Energy management is an evolving market, but we seepreferences. However, in the future, EMS will also integrate several opportunities for growth. Key examples include theoperations optimization, and will automatically adjust rising significance of social responsibility and managingsettings for the highest levels of performance, in addition climate change; focus on increasing demand efficiencyto providing energy savings. and operating cost savings; new product offerings; compliance with energy efficiency regulations; andThere are several segments of the EMS market, with each increased use of renewable energy – all of these arehaving specific needs and being at a different stage of driving demand for energy management solutions.development. As such, vendors will need to providesolutions specifically suited to the requirements of each This report has been developed by Zpryme‘s Smart Gridcustomer. To address that, several small specialized firms Insights Research Team and Zpryme‘s Smart Grid Advisoryare currently offering customized products suited for the Board.different segments, and some large firms are alsoleveraging their knowledge and market presence tointroduce additional EMS products.Overall, we expect companies will begin adopting EMSsoftware in increasing numbers over the next 5 to 10 years,especially solutions that not only optimize energy2 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 4. Key Takeaways by the Numbers Technology SegmentationThe global energy management system market is From a system technology perspective, communicationprojected to reach $1.70 billion in 2012. By 2020, the global networks represent the largest market segment in 2012,market is projected to reach $9.98 billion. The market is accounting for 20% of the global market. In 2020,projected to grow at a compound annual growth rate communication networks will account for 18% of the(CAGR) of 25%. market. This equates to a projected global market value of $0.34 billion in 2012 and $1.80 billion in 2020 (23% CAGR).In 2012, North America (40%) and Europe (30%) willaccount for about 70% of the global EMS market. Asia By 2020, control systems will be the largest technologyPacific will account for 15% of the market in 2012. By 2020, segment, accounting for 21% of the global market (vs. 19%North America and Europe will each account for 30% of in 2012). This equates to a projected global market valuethe market, while Asia Pacific will account for 26% of the of $0.32 billion in 2012 and $2.10 billion in 2020 (26% CAGR).market. In 2012, field equipment (15%), hardware (13%), software  North America: From 2012 to 2020, the region will (10%), and sensors (8%) will account for a total of 46% of grow by 21% annually, from $0.67 billion to $3.01 the global market. By 2020, these four technologies will billion. account for 44% of the market.  South America: From 2012 to 2020, the region will Among the six core energy management system also grow by 21% annually, from $0.09 billion to $0.39 technologies, sensors and software are projected to grow billion. the fastest (30% CAGR).  Europe: From 2012 to 2020, the region will grow by 25% annually, from $0.51 billion to $2.96 billion.  Asia Pacific: From 2012 to 2020, the region will grow by 34% annually, from $0.25 billion to $2.55 billion.  Rest of the World (ROW): From 2012 to 2020, the ROW will also grow by 25% annually, from $0.18 billion to $1.07 billion.3 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 5. Global EMS Market Value Forecast Global EMS Regional Market Segmentation CAGR = 25% 2012 to 2020 - % of Global Market 2012 to 2020 (in U.S. billions) (figure 2, source: Zpryme) (figure 1, source: Zpryme)$12 100% 11% 11% 11% 12% 12% 12% 12% 11% 11% ROW $9.98 90%$10 15% 16% 80% 17% 18% 19% 20% 22% 24% 26% 70% Asia $7.66 $8 Pacific 60% 30% 30% $5.89 30% 30% 30% 30% $6 50% 30% 30% 30% Europe $4.54 5% 40% 5% 5% $3.72 5% 5% 5% $4 $3.05 4% 4% 4% 30% $2.50 South $1.70 $2.06 20% America $2 40% 38% 37% 35% 34% 32% 32% 31% 30% 10% North $0 0% America 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 Global EMS Market Segmentation by Technology Global EMS Market Segmentation by Technology 2012 - % of Global Market 2020 - % of Global Market (figure 3, source: Zpryme) (figure 4, source: Zpryme) Field Equipment, 9% Field Equipment, 15% Control System, Control System, 19% Hardware, 10% 21% Hardware, 13% Sensors, 11% Comm. Comm. Networks, 20% Networks, 18% Sensors, 8% Software, 14% Other , 15% Other , 17% Software, 10%4 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 6. Energy Management System Market Transition (table 1, source: Zpryme) Energy Type of Solution Providers Key System Management Description Primary End-use Sectors (% of market served) Features/Characteristics Systems Large commercial and Cloud based industrial customers EMS mainly employed in large Preventive analytic buildings and facilities to decrease Multinational corporations modeling functions energy costs by controlling, Multinational corporations (75%) monitoring and assessing the Today Large commercial building Control hundreds of energy use of lighting, HVAC, and real estate owners and Niche solution providers (25%) devices across several machinery, thermostats, and other managers locations areas that use large amounts of energy. Federal and State Automatic device Governments start/stop functions Full energy profile Mid-sized manufacturing visualization The EMS will integrate energy facilities* Multinational corporations (60%) efficiency with business processes, Customized to user needs management and operations. Large retail operations* Niche solution providers (30%) This will enable integration and In 3 – 5 years* Micro-level device control control by department, Mid-sized corporate offices* Start-ups (5%) appliance, equipment, IT M2M communication infrastructure, human resources, Healthcare/Hospitals* Utilities (5%) etc. Advanced demand Multi-unit apartments* response capabilities Plug-n-play The EMS will allow businesses to Small manufacturing Multinational corporations (50%) Highly interoperable In 6 – 10 align energy efficiency with facilities** years** business goals, and be able to Niche solution providers (25%) Energy-management-as-a- (Energy integrate and communicate with Small and medium retail service (EMaaS) Management energy aggregators, utilities, operations** Start-ups (10%) 3.0) distributed energy resources, and Control thousands of whole sale electricity markets. Small offices** Utilities (15%) devices across multiple locations *In addition to the functions, features, and sectors mentioned in ‗Today‘ **In addition to the functions, features, and sectors mentioned in ‗Today‘ and ‗in 3 – 5 years‘5 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 7. Recommendations and Opportunities environmentally responsible and better global corporate citizens. These are key value drivers thatRecommendations utilities can use to get their customers to see benefits beyond cost savings for EMS. 1. Vendors looking to enter the EMS market need to take a long-term view of the opportunity. The Opportunities current global market is only $1.7 billion, but will grow to $10 billion by 2020. They must also 1. North America and Europe provide the most understand the regional nature of EMS, with 70% of immediate opportunities for vendors in the energy current expenditures being in either North America management space, and combined, currently or Europe. account for 70% of the market. 2. EMS solutions consist of several components, namely 2. By region, the U.S., Canada, U.K., and Germany are hardware, software, sensors and control systems. To four countries that have adopted these get early traction, vendors need to be technologies at the highest rate over the past few interoperable, plug-and-play, and compatible with years, and are expected to continue leading the the customer‘s communications network. market. 3. Vendors must also be careful in targeting the right 3. While North America and Europe drive short-term types of customers. EMS offers the most immediate demand, the long-term growth opportunity includes value to large consumers of energy, such as Asia. During the forecast period, North America‘s industrial or commercial facilities and campuses. market share will decline, Europe‘s will remain While small businesses represent the largest number constant, but Asia will steadily grow from 15% share of physical sites, the ROI is more difficult to gauge, to 26% of the global market by 2020. and this end of the market will develop later as EMS costs come down and the track record is more 4. In Asia, the most immediate opportunity is Japan, proven. where industries have been charged with reducing their energy consumption as a result of the 4. Utilities need to view the value proposition of EMS Fukushima disaster that happened in 2011. beyond ROI. In the U.S., smart meter stimulus funding, the Better Building Initiative and the ISO 5. Advanced energy management systems will 50001 certification are examples of how become more attractive financially when they government and industry bodies are working to enable individual customers to sell power back to promote solutions that make businesses more the grid. This capability will emerge as smart meter6 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 8. deployments reach critical mass, and as communications networks become more integrated with the smart grid. 6. Companies with multiple locations stand to benefit from advanced EMS deployments in terms of aggregated billing capabilities. Not only will advanced analytics help optimize power consumption across all sites, but they will streamline the data management, making the billing process simpler and more accurate. 7. On a more granular level, EMS will provide real time visibility into energy consumption with the ability to control the usage of any endpoint connected to the data network. This will provide businesses with unprecedented capability to proactively manage energy use, and allow utilities to make better use of dynamic pricing with customers, which will help align energy supply with real time demand conditions.7 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 9. Market Overview limiting, and renewable energy generation management.1 The business specifies preferences and goals that governState of the Market automation activities and create cost savings. In addition, advanced analytics allow management to make moreDeployment of the Smart Grid and smart meters enable cost effective and energy efficient management to understand their consumption,as well as take measures to lower consumption and For the purposes of this report, the term ‗commercial‘energy costs. To date, energy management systems have refers to both commercial and industrial businesses.been adopted primarily in large industrial facilities,however use in other business settings is increasing as Commercial Energy Management Systems (EMS) are aexecutives become more aware of the benefits they suite of applications and technologies that enable users toproduce. In addition, technological advances will drive monitor, control, and optimize their use of energy. Theadoption by reducing prices and creating products that typical energy management system is comprised of thewill not only optimize energy efficiency, but also optimize core components described below.operations. Finally, economic recovery will further propel EMS Core Componentsadoption, as firms will have greater ability to make (table 2, source: Zpryme)investments in energy efficiency. EMS Component Description Measurement devices installed in a facility, building, orCommercial buildings currently consume approximately Field equipment business. Examples include sub-meters, cameras, power analyzers, and media gateways40% of all energy or $400 billion per year in the United Proprietary software needed to integrate EMS with userStates, making them the largest sector of the energy Software operations/ systems. This includes software that enablesmarket. Given the size of the market, reducing additional functionality to an existing EMS.consumption in the commercial market will significantly Main system interface that manages, controls, and Control systemincrease overall grid reliability. (user interface) communicates with the entire EMS. Users optimize and program the EMS with the control system. Physical equipment used to integrate EMS such as servers,Technology Definition Hardware user work stations, backup power suppliers, and mobile monitoring devices such as tablets.One way that a building is able to decrease its overall Communication equipment and architecture that Communicationsconsumption is through the deployment of an energy network connects and enables the transmission of data and information in the system (EMS). It does this through utilizing a Wireless or wired sensors placed throughout an installationnumber of proven energy efficiency programs, such as to measure power and/or communicate device data. Sensorsload shifting, duty cycling, optimal start and end time, Some devices or equipment may come installed with EMSthermal heat utilization, energy storage, response to compatible changes, time of day scheduling, demand 1 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 10. Typically, an EMS comprises of system placed in the Market Driverscustomers premise, including hardware and software,designed to control the operation of other energy devices Energy management is an evolving market and end usersaccording to customer preferences and objectives such are investing selectively in energy management reducing energy costs, or maintaining comfort or However, the market provides several opportunities forconvenience. Controlled devices could include, but are growth as new companies focused on the space emerge,not limited to, security, thermostats, lighting, HVAC, and longstanding IT companies and buildingappliances, large pieces of equipment, and even IT management system companies gravitate to this growinginfrastructure such as servers, computers, and market. Several factors are driving demand for energycommunication networks. Among other control inputs, an management solutions including rising significance ofenergy management system can accept energy pricing social responsibility and climate change; focus onsignals from a utility or third party energy service provider. increasing demand efficiency and operating cost savings; new product offerings; compliance with energy efficiencyThe EMS of the future will further integrate energy regulations; and increased use of renewable energy.efficiency with strategic business goals. Because futurebusiness energy management systems will control more By using energy management solutions, firms are able todevices, from individual electrical outlets to the individual respond to government regulations to reduce carbonlights and pieces of machinery, the EMS will go a step emissions; to employee, customer, and communityfurther than current capabilities to both control energy requests to operate in an environmentally friendly manner;and optimize production efficiency. and to shareholder demands to decrease costs and produce higher returns. There are several approaches toIt will utilize occupancy sensors and scheduling to turn off reducing the carbon footprint, from promoting eco-individual outlets to reduce vampire energy, shift the friendly practices to changing energy production methodsstorage of information to maximize server use, while to establishing and enforcing carbon emissions limits.leaving critical outlets protected and backed up by astorage system to maintain constant operation. It will even While the U.S. has yet to enact federal carbon regulationsperform programmable functions like copying and or pricing laws, other government regulations affect futurecomputer maintenance and updates during non-peak energy supply strategies. In Pennsylvania, for example, atimes. By integrating operations with energy efficiency, new law requires a 4.5 percent reduction in peak energyfirms will be able to better maintain equipment, reduce demand by 2013. Moreover, by 2015, U.S. stimulusdowntime, improve production and maximize overall spending promises to support an additional 50,000profitability. megawatts of renewable energy sources. These types of energy sources present intermittency challenges: The wind does not always blow, and the sun does not always shine.9 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 11. As a result of intermittency, energy management systems In the U.S., for example, BuildingIQ (an energymust incorporate rapidly accessible response reserves for management software company) and Schneider Electricuse during power shortages. Furthermore, plug-in hybrid (a global specialist in energy management) announced inand all-electric cars, such as the Nissan LEAF and Chevy April 2012 that they were collaborating to provideVolt, promise to help reduce both carbon emissions and commercial building owners with a next generationdependence on imported oil; however, they also lead to solution for energy management. This partnership providesan increase in demand for power. Thus, energy customers with a cloud-based energy managementmanagement systems are required to assist in minimizing system that automatically and continually reducesthe energy requirement of these vehicles. Heating, Ventilation, and Air-Conditioning (HVAC) energy use and connects commercial buildings to the Smart Grid.The use of energy is the second-largest variable cost in themanufacturing process after raw material costs. Energy Market Barriersuse changes from one hour to the next depending onmany influencing factors, such as outside temperatures. Getting consumers to understand that the use of energySince energy needs can change abruptly, the energy management systems can empower them to doinfrastructure must always have the capability of meeting something about their energy costs is the biggest marketthe peak demand. Newer, informed demand-response barrier for the energy management system market. Mosttechnologies help shape energy demand, predict companies and customers realize there are means toavailable load, and then precisely shape that load. In reduce energy costs, but they lack information aboutparticular, informed demand response enables distributed what is happening within their energy systems. Energyintelligence end-points, verifiable results, accountability management systems can provide a window of how theand measurement, and comprehensive data analysis. equipment in their buildings is operating, monitor performance, and identify areas of potential savings.Organizations require enterprise-level reporting forhundreds of thousands of devices across their highly Financing installations is a problem. Vendor providers can‘tdistributed offices and data centers worldwide. Therefore, provide up-front costs, and equity leasing firms are notthere is an increasing demand from global enterprises for interested in entering the market. If they would, it‘smore depth and breadth to their energy management predicted that the applications would This allows them to seamlessly scale to andsupport multiple locations around the world. Rapid energy Last, a burdensome regulatory environment, a lack ofmodeling, app stores, energy kiosks, cloud computing, big standards, and acceptance of modern communicationsdata, online communities, and continuous optimization networks are also holding back the potential of the energyare now required in the vocabulary of market players. management systems market.10 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 12. Technology Benefits and Segments are more affected by the cost of the energy management system. Although there is considerableBusinesses that deploy an EMS first benefit from reduced interest in energy management systems, widespreadenergy consumption, which leads to reduced energy adoption will not be possible until the cost decreases andcosts, reduced GHG emissions, and reduced pollution. the size becomes more scalable and customized.Our research finds that peak energy demand (load) canbe reduced 10% to 20% through the use of advanced The office business market is the largest segment of theenergy management systems. In addition, the firm will be commercial building market. Offices have very specificmore knowledgeable about consumption and better able needs and critical equipment, such as servers, that mustto identify the high consumption areas, as well as plan for be continually on. Energy waste can be significantlythe future. Modeling also lets the firm try out decisions reduced through implementation of an energybefore they are implemented, allowing the firm to management system. The segment is poised fordetermine the optimum settings and prevent potential widespread adoption, however the cost must be reducedproblems. and the energy management system must control all devices, while insuring the continued operation of others.Any areas performing out of range can be quickly and Finally, small businesses (those with under 500 employees)automatically scheduled for maintenance. In addition, represent a huge portion of the commercial market. Inenergy optimization can increase the utilization of 2009, there were nearly 27.5 million small businesses in theequipment, and coordinate energy efficiency programs United States, representing 99.9% of all businesses. In 2008,across multiple locations, thus reducing overall energy 21.4 million firms had no employees. The size of the marketcosts for a business. is enormous, however facilities and capital are very limited, and ROI is extremely important. For that reason,The EMS market has several segments. First, the large energy management systems for small businesses must beindustrial, commercial, and government segment has relatively inexpensive and extremely customizable.been implementing EMS for some time as energyaccounts for a significant portion of their operating costs. Service DeliveryIn the near future, the large industrial market willimplement improvements, especially as technology Initially advanced energy managed systems and servicesenables further integration with operations management. will be provided and managed by technology vendors, third-party aggregators, and eventually utilities.The Mid/Medium commercial segment includes retail Management of these systems will take place under onefacilities, manufacturing facilities, and hospital and of the three scenarios below.medical buildings. These mid-sized facilities are not asdependent on energy consumption as large facilities and11 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 13.  Vendor or third-party managed: The solution provider a monthly subscription fee that is determined by the will manage the user‘s system from a central location overall size and number of locations each customer has. (off-site). They are typically the least expensive solution, Initially, utilities will not be interested in providing these as they have the lowest capital investment and a services unless they are reasonably progressive. Due to the monthly management fee. This EMS is cloud-based regulatory landscape, utility decision-makers are keen on and business executives can link remotely to modify keeping the status quo due to potential liabilities. They are preferences. ultra-cautious and hesitant to engage in programs and services that might disrupt their operations. User managed: In this case, a building or company will manage the solution on site or from a central location. They are open to looking at utility rebates but won‘t be The executives directly input preferences and openly receptive to discussing the alternatives being parameters, and staff monitors the system to perform offered by these companies until they can demonstrate overrides or manual operations. These systems typically critical mass, which is normally considered to be a have a significant initial capital investment, and require successfully installed base of at least 300 units. continued maintenance costs. In addition, human resources are also utilized to manage the EMS. Overall, next generation services will be delivered and managed through the Internet cloud. However, Utility managed: The utility will manage the progressive utilities seeking new revenue streams will solution/service for the user (commercial/residential eventually enter the market. building or facilities). However, it is extremely costly due to extensive deployment costs and could lead to significant problems, such as customer equipment failure due to duty cycling. In addition, the utility would manage numerous clients, decreasing customization by businesses and preventing individual efficiency.Prices for advanced energy management services varysignificantly. Companies that work with smaller entitiessuch as residential homes, grocery stores, hotels, andtelecom applications charge as little as $1,500 forupgrades of existing customers, $5,000 - $7,000 for mostinstallations, and up to $50,000 to $100,000 for largecustomers. The average ROI time frame is 2 – 4 years forsuch systems. In addition, customers are normally charged12 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 14. Energy Management Market Transition Several benefits of employing corporate energyAs energy management systems become more management systems are being experienced by its users.advanced, they will go through a series of changes. First, The primary benefit of utilizing an energy managementthe users that utilize energy management systems will system is reducing energy consumption. Reducing energyexpand to comprise a larger section of the small to consumption provides a number of secondary energymedium sized business market. In addition, as adoption of benefits including reducing the energy cost, reducingenergy management systems increase, benefits to users greenhouse gas emissions, and reducing the carbonand the overall electric grid will also increase. Next, the footprint for the firm. Because the firm would reducetechnology will advance significantly, enabling the energy consumption, it would require less energy from thepotential to control thousands of devices across multiple grid, thus creating a more reliable grid. Another benefitof locations. Finally, seamless integration with the electric firms experience is increased knowledge about its energygrid, distribute generation resources, and whole sale consumption. Finally, this increased knowledge alsoelectric markets will become a key feature of the energy improves documentation and compliance ofmanagement systems of the future. environmental and other regulatory requirements.Energy Management Systems Today Several key pieces of technology enables business energy management systems to integrate disparate systems toCurrently business scale energy management systems are offer energy reduction for the firm. Energy sensors can beemployed in facilities large enough to consume a very attached to energy consuming equipment, allowing thehigh amount of energy, operate many pieces of high energy management system to monitor and control theconsumption equipment, coordinate multiple buildings, or devices. These sensors are becoming integrated with newwhere energy availability, reliability, and security are a equipment, as in smart appliances, such as airpriority. Industrial facilities frequently utilize energy conditioners, water heaters, and security systems. In fact,management systems because they employ a number of the motion sensors employed by security systems becomevery high energy consuming devices. Large automotive, more important as they provide valuable informationfood production, and other energy intensive industries also about occupancy and feedback about facility use. Theutilize energy management systems. Universities frequently more devices that can be connected to the energyutilize energy management systems to manage energy management system, the more valuable the systemconsumption in multiple buildings across their entire becomes for the firm. Energy management systemcampus. Finally, government facilities also employ software is exceedingly important, as it takes theenterprise energy management systems, both due to the information obtained from the multitude of devices andsize of their facilities, and their security and efficiency sensors and analyzes it to monitor and manage energyrequirements. facility-wide. Also, additional features are being added,13 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 15. such as GIS integration, modeling and renewable energy creating an integrated total energy management systemintegration. Of course, renewable energy integration capable of optimizing all resources. Automation will alsoincludes solar panels, wind turbines, and all other be key, as firms will receive automatic notifications of anyequipment associated with renewable energy generation. equipment performing outside the normal range, and theFinally, energy management systems require a dedicated energy management system will also schedulecomputer terminal or control center to manage its maintenance and repairs, thus automatically reducingnetwork of connected devices. Increasingly, cloud based downtime and increasing production. This will alsosystems are being deployed to allow remote monitoring, increase the lifetime of the equipment and minimizecontrol, and utilization. equipment failures. The main focus of energy management systems in 3-5 years will be integratedEnergy Management Systems in 3-5 years energy efficiency with business management and operations. The firm will benefit from being able toIn 3-5 years the enterprise grade energy management prioritize devices, thus maintaining consistent operation ofsystem will have expanded beyond the large industrial, critical systems while minimizing energy costs, such asmanufacturing, government, and university market. At this moving data to one server while shutting down atime it will have expanded to offices, large retail stores, secondary server when it is not conglomerates, building and apartment operators,and the primary education sector. In addition, hospitals The energy management systems will evolve to integrateand medical buildings will also begin to utilize facility business information by department, appliance,energy management systems, as they are highly equipment, IT infrastructure, human resources, etc. Thedependent on energy reliability, especially during system will use advanced analytics and modeling to makeemergency situations. predictions, detect patterns, and manage systems based on this information. Because the firm will be able toIn addition to benefits currently experienced by firms control energy to the individual device level, most newutilizing energy management systems, numerous other building and office equipment will have to be producedbenefits will be experienced. The energy management with sensors allowing control by the energy managementsystems will be controllable to the individual device level. system. Next, commercially produced sensors will beIn addition, systems will be able to suggest opportunities available to integrate with older appliances, such asfor additional savings, such as opening windows, and computers, copiers, fax machines, phones, etc. Finally,cycling the air conditioner. This will provide additional advanced weather devices will also integrate withenergy efficiency and cost savings, further lowering renewable energy generation and modeling technologyoperational costs, increasing profits, and increasing cash to optimize the load profile of business users. Examples offlow. These energy management systems will also offer this weather technology include thermostats, barometers,integration with natural gas, water and cable systems, and hygrometers. In conclusion, technological14 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 16. advancements integrating all areas of business utilize the most efficient equipment first, and even performinformation, advanced analytics, sensors, storage, and routine maintenance automatically. In addition, theweather devices will enable both manufacturing firms and system will be able to integrate and communicate withlarge office and retail facilities to experience the energy aggregators, utilities, distributed energy resources,numerous benefits of utilizing business energy whole sale electricity markets, and across thousandsmanagement systems. devices located at different locations.Energy Management 3.0 (6 - 10 years) For these benefits to be realized, technology must be enabled. First the energy management system willWithin the next 10 years, small businesses will realize the become scalable with customization features that allowpotential benefits of employing an energy management both pre-set programs and a high level of individualization.system and will look for suitable options to meet their The energy management system will also develop plug-needs. The use of energy management systems will and-play capabilities that offer the ease of set-up for allexpand to include small to medium size businesses such as users. One key development in the energy managementsmall retail facilities, restaurants, and small offices. These system will be the ability to integrate data from everysystems will be smaller, inexpensive, and highly business segment, including inventory, purchasing, humancustomizable. resources, billing, IT, maintenance, etc. Another technological step will be the ability to enter operationalThe benefits firms experience by employing a business goals and then translate those goals into an appropriateenergy management system will be based on and optimum course of action. The software will be ablecustomization and integration. Again, business operations to utilize real-time data to make instantaneous correctionswill be of primary focus, and will allow businesses to align to meet said goals and optimize energy. The software willenergy efficiency with business goals. One way the also be able to offer different options to obtain the goals,energy management system achieves this benefit is as well as suggest improvements to achieve better resultsthrough the ability to prioritize energy functions by business across systems or departments.impact. The energy management system will evolve tothe extent that the operational goals can be input into theenergy management system and the system will be ableto discern patterns, and make predictions to guide energymanagement efforts. This will result in the energymanagement system warming up equipment, turning offoutlets to reduce vampire energy, and optimize staffdeployment. In addition, the energy management systemwill extend the life of equipment by detecting irregularities,15 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 17. Global Market Value Forecasts Global Energy Management Systems Market Value Forecast, 2012 – 2020 (table 3, source: Zpryme, in U.S. billions)Region 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGRNorth America $0.67 $0.78 $0.92 $1.07 $1.26 $1.47 $1.87 $2.37 $3.01 21%South America $0.09 $0.10 $0.12 $0.15 $0.18 $0.21 $0.26 $0.32 $0.39 21%Europe $0.51 $0.62 $0.76 $0.93 $1.13 $1.38 $1.78 $2.29 $2.96 25%Asia - Pacific $0.25 $0.33 $0.42 $0.55 $0.71 $0.93 $1.30 $1.82 $2.55 34%ROW $0.18 $0.23 $0.28 $0.35 $0.44 $0.55 $0.69 $0.86 $1.07 25%Total $1.70 $2.06 $2.50 $3.05 $3.72 $4.54 $5.89 $7.66 $9.98 25% Global Energy Management Systems Market Value by Technology, 2012 – 2020 (table 4, source: Zpryme, in U.S. billions)Technology 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGRField Equipment $0.25 $0.28 $0.35 $0.39 $0.43 $0.47 $0.59 $0.77 $0.90 17%Hardware $0.22 $0.27 $0.30 $0.34 $0.41 $0.45 $0.59 $0.77 $1.00 21%Software $0.17 $0.23 $0.28 $0.37 $0.45 $0.59 $0.77 $1.00 $1.40 30%Communication Networks $0.34 $0.41 $0.50 $0.58 $0.71 $0.86 $1.06 $1.38 $1.80 23%Control System $0.32 $0.39 $0.50 $0.64 $0.78 $1.00 $1.30 $1.61 $2.10 26%Sensors $0.14 $0.16 $0.23 $0.27 $0.33 $0.45 $0.59 $0.77 $1.10 30%Other $0.25 $0.31 $0.35 $0.46 $0.61 $0.71 $1.00 $1.38 $1.70 27%Total $1.70 $2.06 $2.50 $3.05 $3.72 $4.54 $5.89 $7.66 $9.98 25% 16 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012 Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 18. MethodologyZpryme utilized secondary research sources, publiclyavailable sources, government announced plans, andSmart City, Smart Grid, and Building Efficiency plans toanalyze the Energy Management Systems (EMS) Market forcommercial and industrial users. In-depth industryinterviews were also conducted to better understand themarket drivers, demand, and opportunities. Qualitativeassessments were made by Zpryme‘s research team thattake into account both the primary research(meetings/interviews) and secondary research findings toassess the market segments of interest.Finally, time series forecasting was used to project marketvalues from the baseline data obtained from primary andsecondary research methods. Other variables accountedfor in our models include but are not limited to:  Energy demand  Energy/fuel prices  Economic growth (GDP growth)  Government stimulus  Government goals  Renewable generation targets  Private sector capital investment.17 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 19. Key Players and Solutions IBM® TRIRIGA® Energy Optimization combines real-time systems monitoring with facilities and event management.Currently, Energy Management Systems for businesses are It helps analyze and optimize facilities operations, reduceoffered by a group of specialty firms, as well as energy expense, and improve asset management andmultinational firms offering a range of services. reliability.IBM: IBM has recently introduced its Smart Building and Smarter Rebuilding in New OrleansPower Systems Energy Management Program. IBMintegrates a buildings diverse systems including security, Tulane Universitys School of Architecture, a programlighting, doors and windows, CO2 sensors, and even distinguished by its focus on community engagement andbadge readers into an illustrative analytics program environmental sustainability, has turned to IBM Intelligentcapable of making predictions and modeling decisions. Building Management and Johnson Controls to advanceThe solution provides visualization of key benefits and goals its own smarter buildings evolution in the wake ofincluding reliability, efficiency, performance and Hurricane Katrinas destruction six years ago. As the largestavailability. IBM has been named one of the top four firms private employer in the City of New Orleans, Tulaneleading the way in Enterprise Energy Management University has made significant advances in rebuilding inSystems, and the firms establishment in diverse sectors of more environmentally sustainable ways.the energy industry makes IBM one of the most trustedfirms in the field and its product is suitable for large firms The first IBM project is helping to transform the home ofalready utilizing IBM products.2 Tulanes School of Architecture, the century-old Richardson Memorial Hall, into a "smarter building livingAnother solution offered by IBM is IBM TRIRIGA. IBM TRIRIGA laboratory," using IBM Intelligent Building Managementprovides a single system to manage the life cycle of while maintaining respect for its historic status. The schoolfacilities. It delivers business analytics, critical alerts and aims to arm a new generation of architects withautomated processes to increase visibility, control & techniques that will allow historic buildings to be moreautomation of real estate management, capital projects, efficiently adapted for modern management, facility maintenance and energymanagement. IBM TRIRIGA provides an integrated The IBM project will bring together building technology forworkplace management system to increase operational, heating, cooling, lighting and water to act in a morefinancial and environmental performance of facilities.3 holistic fashion for better results. The building will have intelligence to monitor itself and communicate how it should be most efficiently operated, significantly reducing the natural resources it currently uses.42 4 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 20. IBM to Monitor 50 Federal Buildings Emerson: Emerson Process Management, an Emerson business, is a leader in helping businesses automate theirIBM has won a contract to develop and install smart production, processing and distribution in the chemical, oilbuilding technology in 50 of the U.S. federal government‘s and gas, refining, pulp and paper, power, water andmost energy-consuming buildings, and the resulting data wastewater treatment, mining and metals, food andcould help reduce operating costs across the General beverage, life sciences and other industries. The companyService Administration‘s entire inventory of nearly 182 combines products and technology with industry-specificmillion square feet. engineering, consulting, project management and maintenance services. Its brands include PlantWeb™,The GSA says this initiative will save taxpayers up to $15 Syncade™, DeltaV™, Fisher®, Micro Motion®, Rosemount®,million annually by connecting building management Daniel™, and AMS to a central cloud-based platform. In the first year,50 buildings will be integrated on this building Emerson‘s Ovation system with SCADA technologymanagement system. As additional federal buildings are integrates all processes, not only the control ofconstructed and other facilities are upgraded, the mechanical equipment such as turbines, boilers, pumpsplatform will manage those buildings, too. and mills, but also the control of electrical equipment, all performed from a common platform. The OvationUnder the terms of the contract, IBM will develop a system controller combines technologies and Ethernet networkingto monitor building performance nationwide and stream which enables an interface with multivendor equipment indata to a central facility. The technology will link major the low and medium voltage arenas. It includesbuilding controls, and when the system is fully integrated, capabilities for the automation, monitoring and control oftenants will be able to view the performance of their actuators, variable speed drives, automatic voltagebuildings on dashboards with real-time metrics on energy regulation, transformers and generator protection.savings. They will also see recommendations on how tofurther increase efficiencies. Ovation also supports specific protocols designed for the power industry for data exchange between generatingGSA says it will then use the data and analytics to save facilities and dispatch centers, and can be installed in newenergy and reduce costs across its entire fleet of buildings. or existing enclosures. Emerson also provides a CSI 6500 Machinery Health Monitor which combines protection andThe contract is part of GSA‘s larger smart building strategy prediction, with real-time performance monitoring andto reduce energy use. The agency‘s plan to meet the process automation. Integrated with Ovation, it providesrequirements of President Obama‘s Executive Order 13514 the enterprise-wide information needed for real-timegoal of reducing energy consumption in federal buildings decision 30 percent by 2015, using fiscal year 2008 as a baseline.19 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 21. Barking Power LTD., one of the largest independently the cost of natural gas, electricity and water that will payowned generation plants in the UK, successfully installed for itself in 10 years. The upgrades included low-flowEmerson‘s Rosemount wireless acoustic transmitters to fixtures to conserve water, enhanced lighting, retrofittedidentify failed steam traps, leaking valves, and boiler tube heating, ventilation and cooling systems, and a new 630leaks to improve the efficiency of its Combined Cycle Gas panel photovoltaic system, all linked by the Metasys©Turbine Power Station in London. Using the wireless building management system to monitor and control thenetworks already in place, additional devices can be performance of Pioneers‘ facilities.added at a much lower cost than if they had to be wired-in individually. Siemens: Siemen‘s Totally Integrated Automation (TIE) concept for energy management offers the integration ofJohnson Controls: Johnson Controls provides equipment, all types of products and solutions, including thecontrols and services for heating, ventilation, air manufacturing systems of other vendors. Their productconditioning, refrigeration and security systems to increase spectrum extends from automation and driveenergy efficiency and lower operating costs in buildings. technologies to system integration using industrial softwareTheir Metasys© building management system, with IT- to technology-based customers. Their products allowbased infrastructure, software and wireless capabilities, companies to digitally plan and simulate entire productionprovides monitoring and control of all building systems, plans and manufacturing processes to optimize them priorincluding comfort controls for temperature and humidity, to, fire safety, and security equipment. In addition,one of their strategies is to play a significant role in the Their SPPA-M3000 is an energy management suite ofgrowing market for demand response services by enabling modules for power plants and fleets which providessmart buildings to interface seamlessly into the grid. precise detection analysis along the entire workflow processes. The suite consists of five modules: PlantTo enhance their position in this market, the company Management, Early Fault Warning, Generation Planningacquired EnergyConnect Group, Inc. to create a new and Monitoring, Business Performance Monitoring, andlevel of building intelligence. EnergyConnect‘s demand Process Information Management.response technology and service platform providesenergy managers and facility operators with real-time Their ―‖ Energy Management product createsenergy information and access to energy markets to transparency in infrastructure processes, makingmanage their energy use. heterogeneous system landscapes easier to navigate, due to the provision of a source-related energy cost allocationJohnson Controls engineered a $3.8 million facilities and the ability to transfer data into an accounting system.upgrade for Pioneers Memorial Hospital in Brawley,California to improve operational efficiency by reducing20 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 22. Schneider Electric: Schneider Electric provides a product Honeywell: Honeywell provides energy and emissioncalled StruxureWare which is comprised of platform of management solutions to help manufacturers monitor,applications and software suites that allows companies report, analyze, and reduce greenhouse emissions.visibility into energy, other resource usage and business Honeywell experts combine their knowledge of radioneeds across buildings, industrial plants, and data centers. frequency fundamentals and wireless networks with theirEach suite delivers seamless integration with third-party experience in process control networks and cyber securityoffers and legacy systems, as well as a scalable platform. to provide the most secure and high performance wireless network for a facility.Their Resource Advisor module is an online carbon andenergy reporting portal. This enterprise level software-as-a- Their Energy Dashboard product provides a completeservice (SaaS) tool allows end-users to visualize energy cost integration with the overall information and workand resource usage data, capture and report carbon processes of a manufacturing facility.emissions accurately, and manage all energy efficiencyprojects in one location. Their SentientSystem is an integrated suite of modules specifically designed to address boiler, boiler cleaning,The Energy Operation module is also a SaaS tool which turbine cycle and unit optimization to provide assettransforms data into essential energy information to management to utility companies.identify areas of continuous improvement to reduceoperating expenses. The Building Operation module Honeywell‘s Experion PKS transforms process controlprovides integrated monitoring, control and management beyond traditional DCS functionality by unifying peopleof energy, lighting, fire safety, security and HVAC. with process variables, business requirements and asset management. Integrated with the Experion PKS, theirThe Power SCADA Expert module is a real-time monitoring Digital Video Manager (DVM) product presents video asand control software solution for large facility and critical the next generation process sensor to automate theinfrastructure operations. It provides real-time data detection of events and improve the speed and accuracyintelligence for power distribution through alarming and of operator response to process upsets.graphical interface functions. The Process Expert module isthe software that integrates the control application, the Honeywell also provides a highly scalable, integrated,supervision, and the field devices in a single environment. multi-server SCADA solution that incorporates applicationsIn the fourth quarter of this year, Schneider Electric will for human machine interface (HMI) to address complexrelease the Security Expert module to encompass video, remote automation requirements. They also provide aaccess control and building management, as well as the specialty quality control solution, the HC900, for the pulp,release of an Asset Operation module in 2013. paper and rubber industries.21 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 23. In the latter regard, Honeywell was selected on May 16, analyze, visualize, and benchmark energy consumption2012, by Mitsubishi HiTec Paper Europe GmbH, a leading across operations, including offices, data centers, plants,European specialty paper manufacturer, to replace its equipment, and other assets‖.7 The product offerscurrent quality control systems with Experion MX at its advanced analytics and modeling features, as well asproduction facility in Bielefeld, Germany. offering real-time interaction and facility-wide analysis. C3 has won numerous awards, including Company of thePower Measurement Limited: The company has been Year from Going Green Global 200 and Platts Globalawarded a $3 million grant from the Government of Energy Awards Award of Excellence.8Canada to participate in a pilot project at the BritishColumbia Institute of Technology. The company installed CA Technologies: CA Technologies offers the CA EnterpriseIon Enterprise, an enterprise energy management system Energy and Sustainability program to help firms managewith advanced forecasting, emergency power systems, and track their energy consumption to meet companyfunctionality allowing load side management and robust goals, including sustainability, carbon footprint, resourcesecurity. Total consumption is forecasted to decrease management, government compliance, water usage,energy 10-25%, and illustrate the extent in which business and waste generation. One key feature is the CAcustomers will decrease consumption based on energy ecoDesktop, which reduces the energy consumed bymanagement system usage, as well as the ability of computers. The product is scalable and able to identifyintegration with dynamic pricing models, and is a suitable consumption from the entire firm to the smallest asset,option for multi-building facilities, such as universities.5 relying on advanced metrics and analytics to make predictions. CA Technologies has also won numerousJouleX: JouleX offers the JouleX Energy Manager that awards, including being named one of the four leaders inoffers a scalable solution for businesses. The sensorless the Enterprise-Scale Energy Management System field.system integrates office equipment including VOIPphones, copiers, servers, as well as distributed facilities into Carbon Systems: Carbon Systems has also been nameda central system. Through cloud computing, the product one of the top four leaders in the Energy Managementoffers remote management, real-time feedback, demand System field, deploying their Enterprise Sustainabilityresponse, and green initiative support. Their primary Platform in over 45,000 locations worldwide. The web-customers are large office buildings.6 based platform analyzes and reports information on energy, environmental, and carbon consumption as wellC3 Energy: C3 Energy offers its Energy and Emissions as progress on social responsibility goals. In addition, itManagement Software as a part of a portfolio of services provides detailed information on return on investment andfor business clients. C3 Energys product ―monitors, energy cost reduction.5 7 www.c3energy.com6 8 Ibid.22 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 24. Verisae: Verisae offers its Energy Information System to niche industries, but primarily mobile telecom operatorsenable upgrades and support firms that are already with cellular shelters. Their patent-pending IP-based systeminvolved in energy management and have already optimizes peak and non-peak power consumption byexperienced the cost savings that basic, low cost using proprietary algorithms. eCurv reports utility costimprovements bring. The second level of improvements reductions in excess of 11% without the costs or impact offocus on energy supply and demand, and optimization of a major infrastructure overhaul, and savings of overenergy projects, as it suggests opportunities for $2,000/month for each megawatt under theirimprovement and potential energy savings. ―The energy management. The company has future plans to market tosolutions primary components include utility bill processing commercial customers with large footprints and largeand meter data management for energy spend analysis, fleets of appliances, including hotels, hospitals,energy alerting and review through flagging data government buildings, universities, institutional buildings,anomalies, energy analytics, executive dashboards for and eventually, EV‘s.reporting and performance scoring, and energy validationfor exception management.‖9 Their solution is uniquely OutSmart Power Systems: OutSmart, based in Natick,suited for the large scale industrial customers that have Massachusetts, is the latest company launched byimplemented previous improvements, thus looking for Manifold, a firm that spins off tech start-ups toupgrades to existing systems within the next 10 years. commercialize products developed by outside investors and its own engineers. It consists of a network, includingEmerging Companies to Watch hardware and software that monitors energy usage, building occupancy, and other activities in each room ofRetroficiency: Retroficiency is a start-up firm founded from commercial properties. The network includes nodesMIT. They focus on expanding the capabilities of the designed for installation in electrical breakers, outlets, andenergy management for businesses, including managing switches. The nodes are equipped with electronics thatseveral buildings from one location. The on-site program calculate electricity consumption and use existing wires inallows access to every energy consuming area, and a building to feed that information into a controller. Thepartners with utilities to not only strengthen business energy controllers are linked to servers, where the information canmanagement, but also the Smart Grid as a whole. The be accessed and viewed over the Internet. The companysolution is best suited for firms with many locations.10 also plans to sell sensors that connect with the existing electrical infrastructure in buildings to detect motion,eCurv: eCurv is a privately-held start-up company based temperature, and other conditions. In addition to ownerin Cambridge, Massachusetts. The company focuses on occupied commercial properties, their current marketing and sales efforts focus on the domestic food vertical markets including grocery stores, cold storage [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 25. distribution facilities, data centers, and pharmaceutical In May of 2012, Pennsylvania‘s Public Utilities Commissionlaboratories. approved an application from VCharge to become an Electric Generator Supplier (EGS) within PPL‘s service area,Powerhouse Dynamics: Powerhouse Dynamics, based in allowing VCharge to provide electricity to up to 250Newton, Massachusetts, is the developer of the eMonitor, customers in PPL territory.a hardware solution that provides circuit level monitoringof all uses and sources of energy while controlling energy Zome Energy Networks (Changing name to ColorPower):intensive equipment by way of a cloud-based user Zome Energy Networks, based in Cambridge,interface to provide energy management systems for Massachusetts, provides a software and hardwaresmall commercial entities such as schools, restaurants, platform for utilities and energy suppliers to forecast,food and convenience stores, and residential homes. On simulate, monitor and ultimately control real-time energyAugust 6, 2012 it was announced that Ingersoll Rand has demand and supply conditions on the distribution network.made a strategic investment in Power Dynamics. The Zome‘s product offerings utilize algorithms which operateintegration of Power Dynamic‘s eMontior into Ingersoll under a framework known as ―engineered self-Rand‘s Nexia Home Intelligence that leverages the organization‖ computing which uses distributed,advanced technologies of Trane and Schlage will probabilistic, and spatial computing paradigm (―Proto-enhance customers‘ ability to control their energy usage. amorphous‖) to achieve response times a fraction of today‘s Demand Response systems, while simultaneouslyVCharge: VCharge, founded in 2009 and headquartered reducing Automated Metering Infrastructure (AMI)in Cranston, Rhode Island, provides high-efficiency, low- network traffic by an order of magnitude. The algorithmscost heating with its SmartBricks Thermal Storage and computing framework together serve as the optimumtechnology. The SmartBricks system connects electric energy applications, such as Demand Response, EVs, andthermal storage heaters to local electricity markets, distributed storage and generation integration, layer fortransforming the thermal storage into a resource for use over constrained smart metering infrastructuresrenewable energy integration. Their mission is to preparefor 70-80% wind, nuclear, and solar generation through SCIenergy, Inc: SCItrack is a cloud-based energyeconomic improvements in managing Transactive Loads. management solution that provides real-time actionableVCharge uses decentralized, market-based principles to insights into building performance through benchmarking,enable residential electric thermal storage heaters, EV‘s, automated monitoring and targeting, data visualization,and other Transactive Loads to respond dynamically to and reporting. Building operators and owners cangrid conditions and demand response. The company is leverage SCItrack to capture energy data acrosscurrently active in the energy and ancillary services disparate metering technologies to visualize andmarkets in New England, the Mid-Atlantic, with a special demonstrate building and portfolio performance.focus on serving retail customers in Pennsylvania. Customers often achieve up to 5% energy savings simply24 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 26. by gaining clarity into building performance and working of most building environments. Telkonet can provide andhand-in-hand with a dedicated energy analyst. install any combination of intelligent thermostats, occupancy sensors, door contacts, and plug load controlGridNavigator: GridNavigator Energy Management devices. All products can be networked to enhanceSystem (EMS) is a highly sophisticated metering and energy efficiency and provide remote monitoringmodularized control system designed to help monitor, capability.11analyze and control facilities to optimize efficiency andminimize cost. The cloud based platform consists of a Panoramic Power: Panoramic Power‘s P3E energycombination of real-time benchmark alerts, dynamic management system provides users with real-timereports and control capabilities, connecting different granular, asset-level energy measurement, anomalyfacilities and multi-site energy endpoints for continuous detection, and failure prediction through customizedenergy savings opportunities. The typical payback period alerts.12 The solution combines miniature, wireless sensorfor most GridNavigator customers is within 18 to 24 months, technology with a powerful cloud-based analyticsresulting in operational savings of 20% or more annually. platform, offering complete visibility regarding the energy consumption of individual assets. The solution detectsBy offering integrated software and hardware solutions, hidden inefficiencies and waste, and identifies problemsthey allow clients to create smart electricity networks that and risks early, before they lead to high energy costs andcan monitor and control anything from heavy-load unexpected equipment failures.machinery to a single light switch. They also offer remotefacility management services, and can monitor Panoramic Power has partnered with AtSite, which will useconsumption levels at the individual appliance level to Panoramic Power‘s P3E to provide its clients — includingguarantee clients maintain optimal energy performance the U.S. Green Building Council‘s headquarters inand undergo minimal expenditures at all times. Washington, DC — with real-time energy usage feedback.The GridNavigator integration server (GridXchange Server) AtSite says it has deployed the EMS at restaurants,is a turn-key solution for real-time read and write from supermarkets and retailer facilities. Its clients includeBACnet data points. This approach eliminates the Adventist HealthCare, which AtSite says is on target tounnecessary sub-metering endpoints that are already reduce its expenses by $2.9 million by 2014, while reducingmonitored by the Building Management System (BMS) and its carbon footprint by 16 percent, by collecting andlowers the overall metering and monitoring cost. analyzing energy data streams.13Telkonet: Telkonet‘s EcoSmart offers a product suitecapable of creating an in-room energy management 11 12 that can be configured to meet the requirements 13 building-council-buildingiq-and-nv-energy-trial-commercial-hvac-efficiency/25 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 27. Major Government Initiatives project funded by the U.S. Department of Defense (DOD) under its Environmental Security Technology CertificationFuji Electric Co., Ltd., DENSO Corporation, Toyota Tsusho Program (ESTCP). Using Siemens and Boeings cyber-secureCorporation, FamilyMart Co., Ltd., Takamiya Corporation, energy savings technology, the DOD will realize up to 40and Yamato Transport Co., Ltd. have collaborated to percent savings in energy costs at this one installation. Theconduct a demonstration test in Kita Kyushu City, Fukuoka, team, which also includes the University of California atJapan. The project focuses on the development of a Berkeley and KEMA Services Inc., will implement intelligentBuilding Energy Management System (BEMS), which will energy-management solutions that include integratedhelp realize ―smart stores‖ that will contribute to leveling controls for cooling and heating systems, lighting,regional electric load, creating a low-carbon society, and ventilation and plug loads. The upgrades will help improveusing energy more effectively. The demonstration test was DOD infrastructure energy security and reduce its facilityplanned to start in June 2012 and end in December 2014. energy costs. Siemens and Boeing have formed aIn Japan, Kita Kyushu City is designated as an strategic alliance for DOD energy modernization. Underexperimental city for next-generation energy sources and the alliance, the companies will develop and marketsocial systems. The program is being promoted by Japan‘s "Smart Grid" technologies to improve energy surety andMinistry of Economy, Trade and Industry since April 2010.14 security for U.S. military installations.16In 2010, it was announced that Power Measurement Ltd., a In the U.S., President Obama created the Better Buildingsubsidiary of Schneider Electric, will receive up to $3 million Initiative, which encourages companies to reduce energythrough the Government of Canada‘s Clean Energy Fund, consumption by 20% by 2020.17 Also, the U.S. D.O.E. hasto demonstrate a Smart Grid electricity system. The energy encouraged business to participate in the ISO 50001management business intelligence platform will determine certification program, internationally established standardsthe ability of a Smart Grid electricity system to optimize that serve as best practices and aim to benchmarkenergy resources, including renewables, in an institutional energy efficiency of commercial facilities. In addition, thebuilding complex at the British Columbia Institute of mandatory Californias Energy Efficiency and Co-BenefitsTechnology (BCIT). The project will also determine the Assessment Regulation has encouraged the performanceability of commercial customers, at sites in Calgary and of an energy audit, as well as the identification of highToronto, to voluntarily reduce their demand based on real- energy consumption areas, and includes the possibletime price signals.15 installation of energy management systems.18In February 2012, under a strategic alliance, Siemens andBoeing, together with a team of partners, were awarded a 16 dod-contract-140536583.html 17 DENSO Europe 18 NRCAN management-systems-in-the-united-states/26 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 28. Major Regional Projects Argonnes expertise in optimization and modeling, is expected to improve energy performance at ArgonnesGovernments and businesses are focused on finding and Theory and Computing Sciences (TCS) building as well asimplementing energy management solutions that can enable the further collaboration and development ofreduce energy usage and the amount of carbon dioxide sustainable innovative technologies between BuildingIQin the atmosphere. Following are some of the projects and leading researchers at the facility.20have been undertaken in this regard: The Menlo Business Park project in the U.S. is focused onNorth America creating both energy savings and reducing greenhouse gas emissions. Several companies (such as Pacific GasIn May 2012, nine Japanese companies – Shimizu and Electric Company, EnerNOC, Global Energy PartnersCorporation, Toshiba Corporation, Sharp Corporation, and Progressive Lighting & Energy Solutions) haveMeidensha Corporation, Tokyo Gas Co., Ltd., Mitsubishi collaborated to make the building energy efficientHeavy Industries, Ltd., Fuji Electric Co., Ltd., Furukawa through automation and integration of lighting control, theElectric Co., Ltd. and The Furukawa Battery Co., Ltd. – building management system, data collection capabilitieslaunched a demonstration study for the Albuquerque with HVAC systems and demand response solutions.21Business District Smart Grid Demonstration Project. This Menlo Business Park is managed by Tarlton Properties Inc.project was consigned to them by the New Energy and of Menlo Park, CA in the U.S.Industrial Technology Development Organization (NEDO),to be carried out as part of its Japan-U.S. Collaborative AsiaSmart Grid Demonstration Project. The project will becompleted by March 2014. Shimizu Corporation will focus As one of the largest cities in Japan, Yokohama aims toon providing a building energy management system build a smart city model that maximizes CO2 reduction.(BEMS). Toshiba Corporation will also work on the design, On completion of the project, the Yokohama-modelestablishment, and performance verification of a Smart solutions will be exported to cities overseas. A communityGrid energy management system (utility side).19 energy management system will be installed at the site to absorb power output fluctuation from renewable energyIn 2010, BuildingIQ, an energy management software sources by integrating stationary battery with the Homecompany, announced its first Predictive Energy Energy Management System (HEMS) and the BuildingOptimization pilot project in the U.S. at the U.S. Energy Management System (BEMS). BEMS will be used toDepartment of Energys (DOE) Argonne National ensure optimum energy management at each businessLaboratory. The BuildingIQ pilot installation, together with 20 2119 Shimizu Corporation Advanced-Lighting-Control-Installation27 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 29. building, and CO2 emissions will be reduced through the In 2011, it was announced that the Queenslandefficient use of energy. Buildings will also be grouped Government is investing $1.5 million to support thetogether and optimum energy management will be development of a $7.75 million solar photovoltaic projectconducted for each group of buildings.22 (1.2 megawatt MW) at the University of Queensland. The project is considered the largest roof top solar powerAs a consortium partner of KEPCO (Korea Electronic Power panel installation in Australia. The solar project will be builtCorporation), Nuri Telecom will be providing energy at the University‘s St Lucia Campus, and will save aroundmanagement systems for the Smart Grid test-bed project 1,750 tonnes of greenhouse gas emissions annually. Thein Jeju Island, a self-governing province of South Korea. projects will help research into new solar powerThe Jeju Island Smart Grid project is a $58 million (64.5 breakthroughs, by providing researchers with real life databillion KRW) Korean government initiative to build a Smart on energy management and the impact of solar on theGrid community to test and demonstrate the viability of electricity network.25the Smart Grid.23 EuropeAustralia In October 2011, it was announced that Siemens togetherIn August 2010, BuildingIQ, an energy management with a number of European companies and universities issoftware company, successfully completed its Demand participating in an EcoGrid EU demonstration project.Response (DR) application trial with Western Power, an Within the framework of the EU-sponsored project, aAustralian utility, and the City of Perth (a local government prototype Smart Grid will be installed and put intoarea and body, within the Perth metropolitan area, which operation on the Danish island of Bornholm in the Balticis the capital of Western Australia). BuildingIQ‘s DRiQ Sea. The project will run until 2015. Siemens will contributeapplication was also installed in Perth‘s historic Council an intelligent control system for energy loads in domesticHouse building. The system uses Predictive Energy and commercial applications. A solution for smartOptimization for Demand Response events. The trial with utilization of electrical energy will be implemented throughWestern Power and the City of Perth was run at the end of the networking of the decentralized energy managementits successful pilot of the BuildingIQ system in Perth Council system (DEMS) and components from the Siemens buildingHouse, and reduced peak energy loads by up to 30 technologies portfolio.26percent during event days.24 European project KnoholEM is a knowledge-based energy management project for public buildings through holistic information modeling and 3D visualization. KnoholEM includes five demonstration projects in Spain and the22 Yokohama23 Nuri Telecom24 25 GBCAWorld%E2%80%99s-Optimized-Demand-Response-Trial 26 Siemens28 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 30. Netherlands. The objective of the project is to test an Schneider Electric has collaborated with Cisco Systems tointelligent energy management solution for energy provide energy management solutions at the Cisco Houseefficient buildings and spaces of public use. The solution in UK. Through its role at the Cisco House, Schneiderwill considerably reduce energy consumption, both by Electric is helping to demonstrate how energy costs cansystematically avoiding energy wasting in buildings and by be reduced by implementing simple solutions and newknowledge-based holistic optimization of energy business models across the entire energy lifecycle. The fullyconsumption. It will be applicable and configurable for a integrated building and energy management systemsbroad range of building types from any EU region. provided and installed by Schneider Electric allow theKnoholEM is co-financed by the European Commission Cisco House teams to make better decisions with regardwithin the scope of the 7th Framework Programme. The to the energy consumption of sub-systems providing forproject began in 2011 and is expected to be completed more sustainable operations and an improved visitorby 2014.27 experience.29In May 2012, it was announced that twenty six partners of In December 2011, it was announced that Toshibathe Smart Energy Collective (one of the largest sector- Corporation and Toshiba Solutions Corporation weretranscending initiatives in Europe for the concrete selected by Japans New Energy and Industrial Technologydevelopment of Smart Grids and services) have signed a Development Organization (NEDO) as lead contractors forrenewed cooperation agreement for the approval of the a Smart Community demonstration project in central Lyon,second phase of its Smart Grid initiative, which involves the Frances second largest city. The project was to start indevelopment of five large-scale Smart Grid demonstration January 2012 and run through to the end of March 2016.projects in the Netherlands. The projects will be The companies will supply Building Energy Managementimplemented at Schiphol airport, in a few offices of ABB Systems (BEMS) and Home Energy Management Systemsand Siemens, and in residential districts in Gorinchem, (HEMS) for the project.30Heerhugowaard, and Goes. The demonstration projects inthe offices will primarily investigate how the flexibility in theenergy demand of these offices can be exploited byenergy management systems, and the introduction ofcommercial generating sets with a complete portfolio ofoffices.2827 Steinbeis Europe28 29 Energy Managementfive-smart-grid-projects-151091715.html 30 CLN29 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 31. Keys to Entering the Energy Management Market but also less flexible in terms control and customization. This is also where cloud-based EMS 1. Vendors must recognize that conventional utilities will find a home, likely managed by a third party make investment decisions that best serve their true vendor with expertise in providing hosted solutions. customer – PUCs – rather than paying customers who consume their power. Initially, EMS may appeal 4. Given the regional nature of this market, it will be more to market-driven utilities who are prepared to important for vendors to understand local initiatives try new solutions that help customers save money that drive the need for EMS. The regulatory climate and reduce energy consumption. Conventional and public policy priorities will vary by region, with utilities are more likely to deploy EMS for regulatory some initiatives being focused on reducing compliance purposes and in that regard they will consumption and promoting energy independence, behave like followers rather than leaders. while others will be driven more by environmental considerations such as global warming, renewable 2. Over time, the delivery model for EMS will evolve, energy or sustainable growth. and vendors need to develop solutions that reflect where the market is going. Essentially, EMS will move towards the cloud, in which case costs come down but remain flexible enough for customers to customize around which endpoints they want a centralized system to control. In terms of components, this means solutions will be based less on hardware and costly field equipment, and more on software and sensors that provide real time connectivity between endpoints and the communications network driving EMS. 3. Both utilities and vendors need to understand the preferences of customers for EMS deployments. Larger businesses will want to own and manage the solution. They have the resources to do that, and in return they maintain full control over setting preferences to manage energy usage. Smaller businesses will prefer either a utility-managed or a vendor-managed solution, which will be less costly30 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 32. Zpryme’s Market Outlook, 2012 - 2020 opportunity for utilities to reduce their overall demand load.Over the next five to eight years, the advanced energymanagement system market will mature to the point By this time, the Asia EMS opportunity will be on par withwhere large customers – industrial facilities, commercial both the U.S. and Europe. This opens up new markets forsites, campuses, etc. – realize energy consumption Western vendors to serve, but it also means that Asian EMSreductions in the range of 10%-20% on a consistent basis. vendors will likely become global players. We see this coming about as they gain valuable deploymentDuring this timeframe, we expect that smart meter experience with the underlying technologies as well asdeployments will be widely adopted and sensors gaining economies of scale by serving customers in theiraffordable enough to enable customers to capture and fast-growing home markets.sell excess capacity back to utilities to make EMS a morecomplete solution. This will also allow them to moreaccurately predict peak load times, and from there takeprecise actions to scale back power consumption, as wellas tap into renewable and distributed energy sourceswhen weather conditions are favorable.As communications networks become upgraded tosupport end-to-end smart grid capabilities, we also expectthe role of EMS will expand beyond electricity to integratewith other utility modes, namely gas and water. This wouldcreate a complete resource management system forbusinesses to run in a centralized manner.By 2020 we anticipate that EMS solutions will largely becloud-based, setting the stage for mass-market adoptionthat is both affordable but also flexible enough forbusinesses to easily customize for their specific energyneeds. This model will likely be essential to support themillions of small businesses that simply do not consumeenough energy to warrant investing in their own systems.For this end of the market, the potential savings areincremental, but collectively this represents a substantial31 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |
  • 33. About Zpryme Smart Grid Insights:Zpryme-powered Smart Grid Insights Publication, Practice andAdvisory Board help organizations understand their businessenvironment, engage consumers, inspire innovation, and take action.Zpryme Smart Grid Insights represents an evolution beyond traditionalmarket research and consulting: combining sound fundamentals,innovative tools and methodologies, industry experience, andcreative marketing savvy to supercharge clients‘ success. At Zpryme,we don‘t produce tables and charts; we deliver opportunity-focused,actionable insight that is both engaging and easy-to-digest. For moreinformation regarding our custom research, visit: Smart Grid Insights | +1 888.ZPRYME.1 (+1 888.977.9631) (Zpryme Smart Grid Insights)Zpryme Credits:Managing Editor Sr. Research Analysts Research LeadJon Arnold* Nidhi Jolly Stefan Trifonov Paula Smith Nivedita Wantamutte Megan Dean*Jon Arnold is also a member of Zpryme’s Smart Grid Advisory Board.Disclaimer:These materials and the information contained herein are provided by Zpryme Research & Consulting, LLC and areintended to provide general information on a particular subject or subjects and is not an exhaustive treatment ofsuch subject(s). Accordingly, the information in these materials is not intended to constitute accounting, tax, legal,investment, consulting or other professional advice or services. The information is not intended to be relied upon asthe sole basis for any decision which may affect you or your business. Before making any decision or taking anyaction that might affect your personal finances or business, you should consult a qualified professional adviser. Thesematerials and the information contained herein is provided as is, and Zpryme Research & Consulting, LLC makes noexpress or implied representations or warranties regarding these materials and the information herein. Without limitingthe foregoing, Zpryme Research & Consulting, LLC does not warrant that the materials or information containedherein will be error-free or will meet any particular criteria of performance or quality. Zpryme Research & Consulting,LLC expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitnessfor a particular purpose, noninfringement, compatibility, security, and accuracy. Prediction of future events isinherently subject to both known and unknown risks, uncertainties and other factors that may cause actual results tovary materially. Your use of these and the information contained herein is at your own risk and you assume fullresponsibility and risk of loss resulting from the use thereof. Zpryme Research & Consulting, LLC will not be liable for anyspecial, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in anaction of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of thesematerials and the information contained herein.32 [PREMIUM] ZPRYME SMART GRID INSIGHTS Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. |