Day 2

Elta
Kolo, Ph.D
GTM Research
Research Manger,
Grid Edge
Colleen
Metelitsa
GTM Research
Analyst, Grid Edge
Paulina
Tarrant
GTM Research
Research Associate
Fei
Wang
GTM Research
Senior Grid Edge
Analyst
Kristen
Brown,Ph.D
ComEd
Utility of the Future
M
Questions? Enter them at: gtm.cnf.io #gridedge
GTM Research Presentation

GTM Research Presentation
Grid Edge Innovation Summit
Elta Kolo, Colleen Metelitsa, Paulina Tarrant, Fei Wang
Grid Edge Research Team
June 21, 2018

5Grid Edge Innovation Summit - June, 21 2018
Networking - Meeting other professionals and influencers in the grid
edge space
Mentorship - Fostering interaction between accomplished energy
professionals with those looking to further develop their career
Skills Building - Interactive sessions to learn how to implement
specific skills relevant to professional development
Knowledge Sharing - Learning key industry content from the
experiences and knowledge of professionals
Learn more at:
www.greentechmedia.com/wage
Introducing W.A.G.E.

-
200
400
600
800
1,000
1,200
-
10
20
30
40
50
60
70
80
90
100
2017 2018 2019 2020 2021 2022 2023
Cumulative AMI Meters Installed (Millions)
Annual AMI Meters Installed (Millions)
Asia Europe North America Latin America Oceania Africa Cumulative
Global AMI Installations Will Surpass 1 Billion by 2022
Note: PPL and Salt River Project in the U.S., Enel in Italy, and Sweden are deploying a second generation of AMI meters. These AMI retrofits are not included in the cumulative AMI installations, but are instead shown in the annual amount of AMI installed.
Source: GTM Research
AMI Meters Installed, 2017E-2023E

Voice Assistant Devices Support Home Automation Including Energy Management
Cumulative Voice Assistant Device Deployment in the U.S., 2016-2023
0
50
100
150
0
50
100
150
2016 2017 2018 2019 2020 2021 2022 2023
# of Households Using Devices as Smart
Home Platforms (Millions)
Deployment (Millions)
Cumulative Deployment Smart Home Platform Penetration

Grid-Interactive DERs and Connected Devices Bring Greater Demand Flexibility
Residential Demand Flexibility in the U.S., 2016-2023
0
10
20
30
40
50
60
70
80
2016 2017 2018 2019 2020 2021 2022 2023
Impact on Peak Demand (GW)
Smart Thermostats Residential Solar Residential Storage

Blockchain Unlocks New Ways to Transact Energy and Associated Attributes
57% 29%
12%
Transactive
Energy
Asset
Tokenization
Accounting
Cybersecurity
94 Organizations
Blockchain Organizations by Primary Use Case

Blockchain Serves as the Settlement and Data Transfer Layer
Data Analytics Platforms
Physical
Energy Generating Devices
72
Blockchain Data Stores
Digital
Physical
(Blockchain Nodes)
3:00
4:00
5:00
6:00
7:00
8:00
Digital

Investments in Blockchain in Energy Organizations*
$447 Million Raised by Blockchain in Energy Companies Since Q2 2017
*ICOs often raise money in cryptocurrencies; dollar values use the conversion rate at the end of the ICO.
$-
$50
$100
$150
$200
$250
Q2 Q3 Q4 Q1 Q2
2017 2018
USD (Millions)
ICO VC Pre-ICO Public Offering Crowdfunding Private Placement

Utility Blockchain Companies
Utilities Have Been Part of This Investment Strategy
Utilities With Multiple Blockchain in Energy Investments (Q2 2017 – Q2 2018)

Grid Edge Venture Capital & Private Equity and Mergers & Acquisitions
Venture Capital & Private Equity 2010 – 2018 YTD
Mergers & Acquisitions 2010 – 2018 YTD
0
20
40
60
80
100
120
140
$0
$400
$800
$1,200
$1,600
2010 2011 2012 2013 2014 2015 2016 2017 2018
YTD
Deal Count
Disclosed Value (Millions USD)
AMI Customer Energy Management
DER Services Distribution Automation
Electric Vehicle Infrastructure Energy Storage
Grid Edge Customer Analytics Grid Edge Network Analytics
Utility Back Office Utility Network Operations
Deal Count
0
10
20
30
40
50
60
$0
$5
$10
$15
$20
$25
2010 2011 2012 2013 2014 2015 2016 2017 2018
Deal Count
Disclosed Value (Billions USD)
AMI Customer Energy Management
DER Services Distribution Automation
Electric Vehicle Infrastructure Energy Storage
Grid Edge Customer Analytics Grid Edge Network Analytics
Utility Back Office Utility Network Operations
Deal Count

Growth in Strategic Utility Investments
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Percentage of VC deals
Strategic Utility Strategic Vendor Strategic Oil & Gas Non-Stragetic Investors Undisclosed
Percentage of Venture Capital and Private Equity Deal 2009 – 2018 YTD

2017 Grid Edge Investment by European Giants
January March June September September October October
InvestmentAcquisition
October November
Q1 2017 Q2 2017 Q3 2017 Q4 2017
Source: GTM Research Grid Edge Data Hub
December DecemberOctober

2018 Grid Edge Investment by European Giants
InvestmentAcquisition
Q1 2018
January January February March
Q2 2018
April
May May May
Q3 2018 Q4 2018
?

European Giants Are Building Out Distributed Practices
2017 and 2018 Investments
30%
20% 15%
10%
10%
5%
5% 5% E-mobility
Energy Storage
Demand Response
Connected Home
Residential Retailer
Blockchain
DER Developer
Energy Efficiency
20 deals*
Formally established distributed practices
*Inspire is counted twice because of the nature of its offerings

Interested in other GTM Research products and services? Please visit www.gtmresearch.com or contact sales@greentechmedia.com
Thank you!
June 21, 2018

M
Gil C.
Quiniones
New YorkPower
Authority
President & CEO
Shayle
Kann
Energy Impact
Partners
Senior Vice President,
Research & Strategy
Keynote Interview: Innovation Strategies

Rishi
Bhakar
Tenaska
Vice President
Ugo
Catry
Total Energy
Ventures
Investment Manager
Bosco
Lai
Macquarie
Senior VicePresident,
Commodities and
Global Markets Group
Eric
Wesoff
Greentech Media
Former editor
M
Energy Investor: How They Invest in Energy Frontier
Technology & Business Models

Hilary
Flynn
National Grid
Director, External
Innovation
Lee
Krevat
Sempra
Renewables
Director, New Ventures,
PXiSE EnergySolutions,
LLC
Lydia
Krefta
PG&E
Principal Product
Manager, Emerging
Technologies, Grid
Innovation & Integration
Proof of Concept: Strategies to Pilot Frontier
Grid Edge Technologies
Ben
Kellison
GTM Research
Director, Grid Edge

Stina
Brock
Sunverge
Energy, Inc.
Senior Director,
Global Utility & Grid
Solutions
Stefan
Jarnason
SolarAnalytics
Co-Founder & CEO
Chris
Moris
Sunrun
Advanced Product
Team Lead
Colleen
Metelitsa
GTM Research
Analyst, Grid Edge
M
Can Blockchain Change the Paradigm of how Energy is
Transacted at the Grid Edge?

Ben Kellison
GTM Research
Director, Grid Research
Grid Edge Innovation Awards

Colton
Ching
Hawaiian Electric
Company
Senior Vice President,
Planning &Technology
Audrey
Lee
Sunrun
Vice President,
Energy Services
Marc
Romito
Arizona Public
Service
Manager, Renewable
Energy Resources
Mark
Dyson
Rocky Mountain
Institute
Principal
M
Lunch Workshop: Growing the Market for
Virtual Power Plants

Chris
Brazell
Appalachian
Regional
Commission
InfrastructureProgram
Manager
Itai
Dadon
Itron
Senior Director, IoT
Product Management
Margarett
Jolly
Con Edison
Director,
Demonstration
Projects, Customer
Energy Solutions
Daniel
Munoz-
Alvarez
GTM Research
Analyst, Grid Edge
M
Building Smart Energy, Smart City and IoT Platforms
and Products for the Future

Mark
McGranaghan
Electric Power
Research Institute
Vice President,
Integrated Grid Sector
Stephen
Prince
Centrica Business
Solutions
Senior VicePresident,
North America
Joshua
Wong
Opus One
Solutions
President & CEO
Managing the DER Life Cycle: Policy, Planning,
Interconnection, Integration and Operations
Ben
Kellison
GTM Research
M

M
Neil
Gerber
IBM
Director, New Energy
& Environment
Colleen
Metelitsa
GTM Research
Analyst, Grid Edge
IBM Case Study: Blockchain & Energy

June 2018
IBM Confidential
Blockchain for Energy, Environment, and Utilities
Neil Gerber
Director, New Energy & Environment
IBM

Topics
§ Business Value of Blockchains
§ Blockchain Characteristics
§ Network Governance and Scaling
§ Energy & Utility Industry high value use cases

Time
Many business transactions:
§ are time sensitive
§ require much settlement and
reconciliation time
§ are process-delay prone
Cost
§ include overheads from
multiple intermediaries
§ are costly to manage
and execute
§ require extensive
documentation
Risk
§ are ambiguous and
non-verifiable
§ are prone to errors and
tampering
§ have no single source of truth
©2016 IBM Corporation 21 June 201833
As a result of frictions many business transactions
remain inefficient, expensive and vulnerable
Source: IBM Institute for Business Value analysis

Aspects of two blockchain types, with hybrids emerging
Business blockchain
• Permissioned access
• Consensus via trusted intermediaries
• Cryptographic database managed and
shared by trusted parties
• Used for enterprise and consortium
applications
Public blockchain
§ Permissionless, open access
§ Anonymous participants and
validators of transactions
§ Allows anonymous
transactions without need for
a trusted intermediary
Main focus of this presentation
Adapted from: https://www.evry.com/globalassets/insight/bank2020/bank-2020---blockchain-powering-the-internet-of-value---whitepaper.pdf.
Hybrid blockchain
§ Built on Public Chain
Infrastructure
§ Provide technology for
permissioned networks

© 2017 IBM Corporation
Attributes of blockchain for business
35
Append-only
distributed system of
record shared across
business network
Business terms
embedded in
transaction database
& executed with
transactions
Transactions are
endorsed by
relevant
participants
Ensuring appropriate
visibility; transactions are
secure, authenticated
& verifiable
Privacy
Shared
ledger
Smart
contract
Trust

© 2017 IBM Corporation
Blockchain for Business – Design Principles
Consensus
models
• What trust system is appropriate for the
business network?
Control and
governance
• Which entities are allowed to do what?
• Who owns and begins the investigative
process in the event of a system
anomaly?
• Are Smart Contracts Legally credible?
Digital asset
generation
• Who generates the asset in the system
and who governs it?
Authority for
issuance
• In a truly decentralized system, the notion
of authority simply does not gel.
• Who is responsible for governance,
culpability, and eventually regulations?
Security
considerations:
• How will enterprise security and new
security challenges imposed by a shared
business network be addressed?
While blockchain technology alone is interesting, many other mechanics of a business network need to be
evaluated as well. IBM has 7 key principles for Blockchain Solutions on the Hyperledger fabric:

| I BM CONFI DENTI AL
37
Cross-Industry Network
New
Market
Models Collaborate with non-traditional partners
to innovate to build new value
propositions, digital platforms and
marketplaces
New revenue
New services
New products
Network of Competitors
Market
Utility
Collaborate with competitors to build
market utilities to optimize shared B2B
processes
Founder Network
Business
Differentiation
Collaborate with non-competitors to
enhance today’s differentiating
processes B2B-2C
Enterprise
Optimize B2B costs
Optimize risk
Optimize capital
Cost
Innovation
Service
Enterprise Entry Points

Coal
Gas
Nuclear
Energy
Storage
Solar
Wind
Petroleum
Geothermal
Biomass
Hydropower
Industrial
Residential
Commercial
Energy
Storage
CHP
Transportation
DSM
Generator
Energy
Efficiency
Microgrid
Solar
SCADA
Control Center
GENERATION TRANSMISSION DISTRIBUTION END USERS/EDGE
Step-Up
Transformer
Transmission
Lines
Substation Step-Down
Transformer
Distribution
Lines
Meter
Meter Transmission
Customer
Energy
Storage
Market
Operator
Synchrophasor
D
i
s
t
r
i
b
u
t
e
d
E
n
e
r
g
y
R
e
s
o
u
r
c
e
s
Aggregator
IBM Confidential

D
i
s
t
r
i
b
u
t
e
d
E
n
e
r
g
y
R
e
s
o
u
r
c
e
s
Microgrid
Industrial
Residential
Commercial
CHP
DSM
Generator
Energy
Efficiency
Solar
SCADA
Control Center
Step-Up
Transformer
Transmission
Lines
Transformer
Distribution
Lines
Meter
Meter Transmission
Customer
Energy
Storage
Synchrophasor
Aggregator
Coal
Gas
Nuclear
Energy
Storage
Solar
Wind
Petroleum
Geothermal
Biomass
Hydropower
Energy
Storage
Transportation
Market
Operator
IBM Confidential
GRID BALANCING
The Market Operator accesses behind-the-meter Distributed
Energy Resources (DERs) like home batteries or batteries in
electric vehicles to balance the transmission grid. Typically this
happens by agreement via a smart contract between the
User/Provider and the market operator, at various timeframes
down to 1 minute.

The need:
§ The electricity grid is becoming more volatile
due to the growing share of renewable
electricity generation in the overall supply
§ TenneT is working to find new ways of
maintaining the security of supply
Solution:
§ TenneT is exploring the use of a permissioned
blockchain network that will use Hyperledger
Fabric to integrate flexible battery storage
capacity into the electrical grid
§ Blockchain enables owners of electric
vehicles and residential solar batteries to
indicate the available capacity of their
batteries available to help TenneT balance
grid supply and demand
“These pilot projects are part of TenneT’s broader
strategy of preparing the electricity system to
accommodate the growing volume of renewable
energy.”
Mel Kroon
CEO, TenneT
TenneT is unlocking distributed energy
resources flexibility via IBM Blockchain

41
How Quickly can you
respond to a request?
Remotely controlled
systems are not fast
• Not for primary control
reserve
Electric vehicles have
limited capacity
• Not suitable for tertiary
control reserve
Different ancillary energy products
https://www.entsoe.eu/fileadmin/user_upload/_library/publications/entsoe/Operation_Handbook/Policy_1_final.pdf
Remotely controlled
battery appliances

42
Blockchain Based Energy Balancing
Flex energy
offer
Trading
Ancillary
market
Vehicle
Control
EMS/
SCADA
Blockchain
Hyperledger Activation
Signal
Activation
Signal
Flex
Service
Provider
Transmission
System
Operator
Flex
Monitoring
Car
Monitoring
EV
Drivers
Flex energy
offer

Aggregator
Energy
Storage
CHP
Transportation
DSM
Generator
Energy
Efficiency
Microgrid
Solar
D
i
s
t
r
i
b
u
t
e
d
E
n
e
r
g
y
R
e
s
o
u
r
c
e
s
Coal
Gas
Nuclear
Energy
Storage
Solar
Wind
Petroleum
Geothermal
Biomass
Hydropower
SCADA
Control Center
Step-Up
Transformer
Transmission
Lines
Transformer
Distribution
Lines
Meter
Meter Transmission
Customer
Energy
Storage
Market
Operator
Synchrophasor
Industrial
Residential
Commercial
IBM Confidential
ENERGY USE DISAGGREGATION
Energy usage can be disaggregated behind the meter
for all types of energy users - industrial, residential or
commercial. The goal is to not only be able to know how much
energy a single user has been consuming, but understand the
usage on a machine, appliance or singular entity level.
Research has shown that this data transparency leads to much
higher energy savings. In addition there is a trend in utility
regulation to require this capability for end users.

Energy consumption for a given period:
Current Situation
Home Use
Smart Meter
Home Owner
Retailer
Consumption
Smart Meter
Charging of EV
Arrow = Energy Volumes
Grid
Connection
Home

Energy consumption for a given period:
Blockchain-based EV charging
Home Use
Smart Meter
Lease Company
Energy Provider
Energy Blockchain
kWh Value =
Smart Meter - Blockchain
Consumption
Charging of EV
Car
Non-Gauget
IoT meter
Home Owner
Retailer
Virtual Meter
Smart Meter
IoT Meter

Energy consumption for a given period
Charging of EV
Smart Meter
Home Owner
Retailer
Lease Company
Energy Provider
Energy Blockchain
PV
2nd Retailer
Consumption
Virtual Meter
Smart Meter
IoT Meter
Car
Home Use
Gen

Step-Up
Transformer
Transmission
Lines
Substation
Meter Transmission
Customer
Coal
Gas
Nuclear
Energy
Storage
Petroleum
Aggregator
Industrial
Residential
Commercial
Energy
Storage
CHP
Transportation
DSM
Generator
Energy
Efficiency
Microgrid
Solar
SCADA
Control Center
Step-Down
Transformer
Distribution
Lines
Meter
Energy
Storage
Synchrophasor
D
i
s
t
r
i
b
u
t
e
d
E
n
e
r
g
y
R
e
s
o
u
r
c
e
s
Solar
Wind
Geothermal
Biomass
Hydropower
Market
Operator
IBM Confidential
RENEWABLE ENERGY CREDITS
Trading platforms already trade renewable energy generation
credits from hydropower, wind energy, biomass plants, solar
or geothermal plants. Blockchain makes it easier to track
provenance of these credits as well as simplify audits and
enhance transparency. In addition, tokens can be created that
have an embedded carbon footprint offset, providing more
consumable and bankable credits.

Current Guarantees of Origin processes
The current GO lifecycle is spread across multiple parties, systems and ledgers
Expensive
Every participant keeps
their own ledger, next to the current CertiQ ledger, with
their transactions. Not fully-automated processes.
Inefficient
Disputes because organizations use different ledgers.
Corrections of mistakes
Does not scale to small scale assets.
Vulnerable
Non-automated processes require
intensive auditing.

Guarantees of Origin processes using blockchain
Blockchain captures the end-to-end process in one ledger. All parties work on the same data.
Transparent
Every participant keeps the shared ledger updated with
their relevant transactions.
Trustworthy
All participants agree on what information is stored
immutably on the blockchain and how.
Efficient
All participants share the same source of truth for their
operations.
Granular
Smaller decentralized sources of renewable energy can
receive GOs cost effectively.
With a private Blockchain, privacy between parties is ensured, and access is secure and controlled.

Veridium “Verde” Carbon Offset Token
50
Transaction of tokens triggers
“emptying and refilling” of carbon
bank
Imagine as a “target” network for a
variety of green credits

Energy
Storage
CHP
Transportation
DSM
Generator
Energy
Efficiency
Microgrid
Solar
D
i
s
t
r
i
b
u
t
e
d
E
n
e
r
g
y
R
e
s
o
u
r
c
e
s
Industrial
Aggregator
Coal
Gas
Nuclear
Energy
Storage
Solar
Wind
Petroleum
Geothermal
Biomass
Hydropower
SCADA
Control Center
Step-Up
Transformer
Transmission
Lines
Transformer
Distribution
Lines
Meter
Meter Transmission
Customer
Energy
Storage
Market
Operator
Synchrophasor
Residential
Commercial
IBM Confidential
PEER-TO-PEER TRADING
Peer-to-Peer (P2P) energy trading is a novel paradigm of
power system operation, where people can generate their own
energy from Renewable Energy Sources (RESs) in dwellings,
offices and factories, and share it with each other locally.
Although not viable yet fully supported by most regulatory
regimes, these types of transactions can enhance grid
efficiency, and eventually, grid stability.

Meter
Meter Transmission
Customer
Solar
Industrial
Residential
Commercial
Energy
Storage
CHP
Transportation
DSM
Generator
Energy
Efficiency
Microgrid
Market
Operator
D
i
s
t
r
i
b
u
t
e
d
E
n
e
r
g
y
R
e
s
o
u
r
c
e
s
AggregatorEnergy
Storage
Synchrophasor
Coal
Gas
Nuclear
Energy
Storage
Solar
Wind
Petroleum
Geothermal
Biomass
Hydropower
SCADA
Control Center
Step-Up
Transformer
Transmission
Lines
Transformer
Distribution
Lines
IBM Confidential
CYBERSECURITY
The confluence of Blockchain and Cybersecurity is still new.
Device provenance for all RTUs and other monitored assets
in the transmission and distribution grids can be protected by
adding an additional security layer at the firmware level.
This will be intrusive in nature, but with threat levels
increasing this may be a solution that gains fast traction.

Final thought – Verifying authenticity of assets at source
53
Combining AI and Optical
Imaging to codify
authenticity for use in
verification somewhere else
in the blockchain network

Ray
DeMeo
Virsec
Co-Founder & Chief
Operating Officer
Lara
Pierpoint
Exelon
Senior Fundamental
Program Strategy
Manager
Craig
Watson
West Monroe
Partners
Senior Manager
Randy
Bishop
Gaurdtime
General Manager,
Energy
M
Securing the Edge: Balancing Innovation
& Cybersecurity

John
Elliott
Lawrence Berkeley
National Laboratory
Chief SustainabilityOfficer
Ben
Sampson
GE Ventures
Director
Joseph
Aamidor
Aamidor
Consulting
Senior Product & Market
Strategy Consultant
The Past, Present & Future of Smart Buildings Vendors:
Offerings, Positioning & Value Propositions
M

Ben Kellison
GTM Research
Closing Remarks

All slides will be emailed to attendees today
If you’re interested in speaking at or sponsoring a
future GTM event, reach out to
gtmevents@greentechmedia.com. We’d love to hear
from you!
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