An Analysis of Demand Side Management

              Sep 14, 2011




                                        ⓒ 2011 insprout Corporation.
                                                   All rights reserved
Table of Contents

1st Part: Introduction
    Introduction
    Our Focus in the Technological Domains of Smart Grid
    Demand Side Management
    Big News!

2nd Part: 6th Case Study
   GridPoint




                              2                      ⓒ 2011 insprout Corporation.
                                                                All rights reserved
Introduction
Purpose
-In the previous research, we identify the business opportunities in
Demand Side Management (DSM) that include the Energy
Management Services (EMS) and Advanced Metering Infrastructures
(AMI) & Field Area Network (FAN).
-In this research, we will deeply take a look at the structure of these
technological domains, and pick up & analyze some companies
active 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 doing
businesses within these fields to get case studies for Japanese startups.
                                   3                        ⓒ 2011 insprout Corporation.
                                                                       All rights reserved
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
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
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

                                                                                                                      Control
   Gas Company
                                                                                                                                        BEMS/FEMS              Household
                                                                                                                                         Controller             Devices
        Service                                                                                                                                                 Energy
        Provider                                                                                                                                                Storage

System 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
3.Structure of DSM

  AMI assumes communications among Smart Meter, Service Providers
including utility companies and Energy Management System placed in the
demand side.
  Between service providers and consumers AMI provides information to
various systems through Meter Data Management System (MDMS). For
example, billing automation system, distribution automation system are done
through AMI.




          The introduction of AMI makes it possible to
          measure power consumption real time.


                                      7                            ⓒ 2011 insprout Corporation.
                                                                              All rights reserved
4.Big News!

   California PUC adopted the world’s first comprehensive set of rules
to ensure that consumers can access the detailed energy usage data
gathered 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
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
Case Study 6
 GridPoint
  Sep 14, 2011




                 ⓒ 2011 insprout Corporation.
                            All rights reserved
Company Overview

   Name        GridPoint, Inc.

               2801 Clarendon Blvd. Suite 100
Headquarters
               Arlington, VA, 22201

Year Founded   2003


 Employees     117 employees (registered on linkedin as of Sep. 2011)

  Business     Provides utility companies software solutions for electrical grid
   Sectors     management and electric power demand and supply balancing

  Partners     Utility companies

                                    11                             ⓒ 2011 insprout Corporation.
                                                                              All rights reserved
Funding History
             Year      Amount             Participants in the Round
                                Skypoint Capital
Series A   Mar. 2006 8M
                                BDC Venture Capital

                                Advantage Capital Partners, Altira Group
Series B   May. 2006 16M
                                Contango Capital Partners

Series C   Sep. 2006   21M      Goldman Sachs

                                Altira Group, Goldman Sachs, New Enterprise
Series D   Oct. 2007   48.5M    Associates, Perella Weinberg Partners,
                                SIG Private Equity Investments


Series E   Sep. 2008   120M


 Total         -       252M                              -
                                  12                                  ⓒ 2011 insprout Corporation.
                                                                                 All rights reserved
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

                                                                                                                      Control
   Gas Company
                                                                                                                                        BEMS/FEMS              Household
                                                                                                                                         Controller             Devices
        Service                                                                                                                                                 Energy
        Provider                                                                                                                                                Storage

System 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
Description of GridPoint Solutions

  GridPoint provides utility companies software solutions for
electrical grid management and electric power demand and
supply balancing.
  GridPoint provides enterprises software solutions for effective
energy management.
  GridPoint provides a comprehensive platform that controls the
flow of electricity to plug-in vehicles and charging stations,
allowing to balance real-time grid conditions.




                               14                       ⓒ 2011 insprout Corporation.
                                                                   All rights reserved
GridPoint Solutions



        Enterprise Solutions                                 Utility Solutions
Energy Management Systems(EMS)                    Enterprise Energy Efficiency(EEE)
consists of design and installation,              same as EMS
monitoring, control, dashboards and
energy advisory services                          Home Energy Management

Renewable Energy Sokutions                        Electric Vehicle Management
provides solar energy solutions for that
                                                  controls the flow of electricity to plug-in
include design and engineering, hardware
                                                  vehicles and charging stations
assets such as solar panels and inverters
                                                  Load Management
EV Infrastructure Management                      shapes and shifts peak residential load.
integrates with EVSE hardware and utility
metering systems to provide charge service        Storage Management
 providers with the analytics and control         aggregates and dispatch grid resources
                                             15                                    ⓒ 2011 insprout Corporation.
                                                                                              All rights reserved
Aggressive M&A Strategy

      V2Green                          Lixar                 ADMMicro
 (Acquired in Sep.2008)         (Acquired in Jun.2009)    (Acquired in Nov.2009)

helps utilities manage power    makes home energy        manages heating&cooling
demands of charging PHEV        management software      and lighting and provide
from the electric grid.         and systems              with online reports



                                  Home Energy
                                  Management
        Electric
        Vehicle                  GridPoint’s                      C&I
                               Focus Businesses


GridPoint aggressively expands into various domains in
    energy management services through M&As
                                                                            ⓒ 2011 insprout Corporation.
                                                                                       All rights reserved
A Big Deal with US Postal Service (USPS)

                                              -provide its energy management
                                              system to 2,250 USPS locations.
                                              -enables to track, monitor and manage
                                              the energy consumption in its buildings




Aim at reducing energy use in its facilities by 30 percent by 2015.
                                 17                                ⓒ 2011 insprout Corporation.
                                                                              All rights reserved
Citations
English
http://venturebeat.com/2010/05/24/gridpoint-suddenly-relevant-again-with-post-office-
energy-management-deal/
http://gigaom.com/cleantech/10-energy-dashboards-for-your-home/
http://gigaom.com/cleantech/gridpoint-buys-yet-another-smart-grid-startup-admmicro/
http://news.cnet.com/8301-11128_3-10049104-54.html
Japanese
http://greenpost.way-nifty.com/softenergy/2008/12/gridpoint-renew.html
http://greenpost.way-nifty.com/softenergy/2009/12/gridpoint-ffea.html
http://japan.cnet.com/news/biz/20359029/
http://ippeisuzuki.wordpress.com/2010/06/08/smartgrid-/

                                           18                             ⓒ 2011 insprout Corporation.
                                                                                     All rights reserved
TO BE CONTINUED
We will analyze in detail various EMS technologies and
             companies in those domains




                        19                      ⓒ 2011 insprout Corporation.
                                                           All rights reserved

20110914 gridpoint english_combined

  • 1.
    An Analysis ofDemand Side Management Sep 14, 2011 ⓒ 2011 insprout Corporation. All rights reserved
  • 2.
    Table of Contents 1stPart: Introduction Introduction Our Focus in the Technological Domains of Smart Grid Demand Side Management Big News! 2nd Part: 6th Case Study GridPoint 2 ⓒ 2011 insprout Corporation. All rights reserved
  • 3.
    Introduction Purpose -In the previousresearch, we identify the business opportunities in Demand Side Management (DSM) that include the Energy Management Services (EMS) and Advanced Metering Infrastructures (AMI) & Field Area Network (FAN). -In this research, we will deeply take a look at the structure of these technological domains, and pick up & analyze some companies active 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 doing businesses within these fields to get case studies for Japanese startups. 3 ⓒ 2011 insprout Corporation. All rights reserved
  • 4.
    2.Our Focus inthe 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 ofDSM 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 Control Gas Company BEMS/FEMS Household Controller Devices Service Energy Provider Storage System 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 Providers including utility companies and Energy Management System placed in the demand side. Between service providers and consumers AMI provides information to various systems through Meter Data Management System (MDMS). For example, billing automation system, distribution automation system are done through 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 rules to ensure that consumers can access the detailed energy usage data gathered 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 6 GridPoint Sep 14, 2011 ⓒ 2011 insprout Corporation. All rights reserved
  • 11.
    Company Overview Name GridPoint, Inc. 2801 Clarendon Blvd. Suite 100 Headquarters Arlington, VA, 22201 Year Founded 2003 Employees 117 employees (registered on linkedin as of Sep. 2011) Business Provides utility companies software solutions for electrical grid Sectors management and electric power demand and supply balancing Partners Utility companies 11 ⓒ 2011 insprout Corporation. All rights reserved
  • 12.
    Funding History Year Amount Participants in the Round Skypoint Capital Series A Mar. 2006 8M BDC Venture Capital Advantage Capital Partners, Altira Group Series B May. 2006 16M Contango Capital Partners Series C Sep. 2006 21M Goldman Sachs Altira Group, Goldman Sachs, New Enterprise Series D Oct. 2007 48.5M Associates, Perella Weinberg Partners, SIG Private Equity Investments Series E Sep. 2008 120M Total - 252M - 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 Control Gas Company BEMS/FEMS Household Controller Devices Service Energy Provider Storage System 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 GridPointSolutions GridPoint provides utility companies software solutions for electrical grid management and electric power demand and supply balancing. GridPoint provides enterprises software solutions for effective energy management. GridPoint provides a comprehensive platform that controls the flow of electricity to plug-in vehicles and charging stations, allowing to balance real-time grid conditions. 14 ⓒ 2011 insprout Corporation. All rights reserved
  • 15.
    GridPoint Solutions Enterprise Solutions Utility Solutions Energy Management Systems(EMS) Enterprise Energy Efficiency(EEE) consists of design and installation, same as EMS monitoring, control, dashboards and energy advisory services Home Energy Management Renewable Energy Sokutions Electric Vehicle Management provides solar energy solutions for that controls the flow of electricity to plug-in include design and engineering, hardware vehicles and charging stations assets such as solar panels and inverters Load Management EV Infrastructure Management shapes and shifts peak residential load. integrates with EVSE hardware and utility metering systems to provide charge service Storage Management providers with the analytics and control aggregates and dispatch grid resources 15 ⓒ 2011 insprout Corporation. All rights reserved
  • 16.
    Aggressive M&A Strategy V2Green Lixar ADMMicro (Acquired in Sep.2008) (Acquired in Jun.2009) (Acquired in Nov.2009) helps utilities manage power makes home energy manages heating&cooling demands of charging PHEV management software and lighting and provide from the electric grid. and systems with online reports Home Energy Management Electric Vehicle GridPoint’s C&I Focus Businesses GridPoint aggressively expands into various domains in energy management services through M&As ⓒ 2011 insprout Corporation. All rights reserved
  • 17.
    A Big Dealwith US Postal Service (USPS) -provide its energy management system to 2,250 USPS locations. -enables to track, monitor and manage the energy consumption in its buildings Aim at reducing energy use in its facilities by 30 percent by 2015. 17 ⓒ 2011 insprout Corporation. All rights reserved
  • 18.
  • 19.
    TO BE CONTINUED Wewill analyze in detail various EMS technologies and companies in those domains 19 ⓒ 2011 insprout Corporation. All rights reserved