Virtual energy manager for a commercial building

Energy costs reduction – problem for commercial buildings

Source: EIA, McKinsey,

• Businesses operating commercial buildings, like retail stores or restaurants are working with very low 3 - 5% margins and trying to optimize everything including energy consumption

• Energy consumption not the largest cost category (4 - 9% in-store operating costs) but with one of the largest optimization potential (20 - 30%)

• In practice savings are hard to capture, for the companies do not have internal capacity technical expertise, stamina and discipline to identify, implement and control dozens of needed small changes in equipment, operating parameters and policies

Opportunity to increase margins x 1,5 times !

Lack of internal capacity, technical expertise, stamina

and discipline for implementation : (

IQnergy solution

• Easy installation of equipment from 1 day: IQnergy controller + sub meters / sensors (by other producers)

• Real-time measurement of power consumption split by devices and microclimate

• Assembly without interruption of power networks

Constant implementation support and control

Real time data collection

I III

• Automated tips to the building’s staff on required adjustments of equipment (system console, text messages, chats)

• Transparent statistics on energy consumption and microclimate in easy to use web interface

Automatic inefficiencies identification

• Identification of inefficiencies by analyzing historical consumption patterns in this and similar buildings (machine learning)

II

IQnegry: steadily identifies, helps

implementing and tracks energy efficiency

measures

IQnergy solution: example

1

2

Please, kindly pay attention: air curtains are not switched off during non working hour

Please, kindly pay attention: positive ventilation level could be adjusted lower on weekends, choose minimum level on your VTS ventilation panel (see the picture)

1

2

Competitors

Savings potential

Easiness in rollout and operation

IQnergy takes advantage of both “full automation” and “monitoring only” systems:

• Like “full automation” systems IQnergy influence equipment, by “hands” of staff resulting in high savings potential

• Like “monitoring only” systems IQnergy is easy to install / operate and cheap

Full automation

Monitoring only

Market

Source: ETS Insights

6,8

10,6

15,1

2013 2016 2019

Global building energy management system market, USD bn.

• 14% CAGR

• Above 20% in US and some other developed economies with not yet highest electricity prices

• Growth due to increasing installation in healthcare, retail and offices

Monetization

Customer view (non food retail example)

IQnergy monetization (per 1 location)

• Energy costs: 300 MWh (20 000 USD)• Potential saving: 15% (3 000 USD)• Equipment set cost: 1 700 USD• Monthly subscription fee: 50 USD / month• Payback: 1 year

• Subscription sales:o Revenue: 600 USD / p.a.o Costs: 200 USD / p.a.o Margin 400 USD / p.a.

• Equipment saleso Revenue 1700 USDo Margin 500 USD (30%)

• In 2017 IQnergyplans to test the business model by selling on the Russian market

• Available market 2017 (Russia only) 20 000 chain store and restaurant locations

Project development

2016(Completed)

2017

2018

• Achieved up to 30% electricity costs savings in 3 Pilot projects: an office, a municipal building, a store

• Signed preliminary contractwith one of the largest retail chains in Russia

• Over 25 potential clients in the pipeline (retail chains, restaurant chains, trading centers, airports, hotels)

• USD 500 000 revenue (sales mostly in Russia)

• 250 equipment sets installed

• Contracts with 3 medium size retail / fast food chains

• Business model tested and fully functional on the Russian market

• Pilots on international markets

• USD 2 500 000 revenue

• 1 500 equipment sets installed

• Contracts with 2 large and 5 medium size retail / fast food chains

• Rollout on international markets

IQnergy team

Egor Chistyakov10 years of work experience in energy, IT and finance with Russian and foreign companies: Sberbank (IT), Enel (energy), McKinsey (consulting)

Dmitry TsarevOver 9 years of experience in programming of research

activities at the Moscow State Lomonosov University; author of 15 articles on intelligent data analysis

• Project Leader• Energy expert

• CTO• Machine learning

expert• Programmer

Leonid Mednikov10 years of experience in programming, data analysis and promotion of high-tech products: analyst of the Yandex.Probkiservice; B2B sales manager with several companies

• Data analyst• Marketing officer• Programmer

What are we looking for?

• Sites for projects (pilot projects) internationally:o Retail chainso Restaurant / fast food chainso Trading and office centerso Government / municipal buildings, e.g. in spheres of medicine

/ education

Clients1

• Seed investment 150 000 USD o To complete product rollout in Russia and

adopt the products for international markets Investments2

Contacts

IQnergyAddress: 10 Bolshaya Tulskaya St., 115191, Moscow, RussiaTel.: +7 (495) 220-41-02E-mail: info@iqnergy.com

Egor Chistyakov, Project LeaderTel.: +7 916 5791972E-mail: egor.chistyakov@iqnergy.com