Clint-Wheelock-Pike Research - SG Tutorial

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    Smart Grid An Overview and Introduction

    GridWeek Asia

    J anuary 2012

    Clint Wheelock

    PresidentGridWeek Asia 2012

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    Copyright 2012 Pike Research 2

    Pike Research Overview

    Smart Grid Overview

    Smart Metering Market Update

    Distribution Automation

    Smart Grid Communications

    Home Energy Management

    Smart Energy and Transportation Markets

    Summary

    Agenda

    GridWeek Asia 2012

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    Copyright 2012 Pike Research 3

    Pike Research is a market research and consultingfirm that provides in-depth analysis of global clean

    technology markets.

    The companys research methodology combinessupply-side industry analysis, end-user primaryresearch and demand assessment, and deep

    examination of technology trends to provide acomprehensive viewof the Smart Energy ecosystem.

    Sector Focus:

    Smart Energy

    Smart Grid

    Smart Transportation

    Smart Industry

    Smart Buildings

    Research Services:

    Research Reports

    Subscription Advisory Services

    Consulting & Custom Research Go-To-MarketStrategy CustomMarketAnalysis MarketSizing & Forecasts Primary Research Technology Evaluation Commercial Due Diligence Competitive Benchmarking StrategicAdvisorySessions

    Introduction

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    Copyright 2012 Pike Research 4

    Advisory Services

    SMARTENERGY

    SMARTGRID

    SMARTTRANSPORTATION

    Energy Management

    Green IT

    Smart Cities

    Building Systems

    Green Buildings

    Electric Vehicles

    Alternat ive Fuel Vehicles

    Smart Meters

    Smart Grid Infrastruc ture

    Smart Energy Home

    Microgrids

    Smart Grid Security

    Smart Grid Communications

    Renewable Energy

    Distributed Generation

    Fuel Cells

    Energy Storage

    Advanced Batter ies

    Utility Innovations

    SMART

    INDUSTRY

    SMART

    BUILDINGS

    Bioenergy

    Smart Grid IT

    Industrial Innovations

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    Copyright 2012 Pike Research 5

    Research Methodology

    Primary Research Secondary Research

    Executive Interviews Vendor Br iefings Product Demos and Tours

    Company News & Financials Technology & Product Specs Government Data Economic, Demographic Data

    Consumer Surveys Business Leader Surveys

    Case Studies Reference Customers

    INFORMATION COLLECTION

    Qualitative Quantitative

    Business Models & Trends Technology Issues Policy & Regulatory Factors Competitive Landscape Profiles of Key Players

    Market Sizing Segmentation by Technology,

    Geography, Application, etc.

    Market Share Analys is Forecasts by Segment

    Supply Side

    Demand Side

    MARKET ANALYSIS

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    Copyright 2012 Pike Research 6

    Pike Research Overview

    Smart Grid Overview

    Smart Metering Market Update

    Distribution Automation

    Smart Grid Communications

    Home Energy Management

    Smart Energy and Transportation Markets

    Summary

    Agenda

    GridWeek Asia 2012

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    Copyright 2012 Pike Research 7

    Reduce utility operating costs

    Improve grid reliabili ty

    Increase energy efficiency Overall demand reduction

    Reduce end-to-end system losses

    Peak demand shifting (C&I, residential) Soft consumer-driven demand response

    Verifiable, centrally controlled demand response

    Integrate renewable generation Intermittent, bulk generation

    Distributed Renewable Generation (DRG)

    Support electric transportation transition Commercial and personal vehicles (PHEV)

    Smart Grid Goals

    More Grid

    Intelligence

    Less Grid

    Intelligence

    Sustainable, Secure, Environmentally Safe EnergySustainable, Secure, Environmentally Safe Energy

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    Copyright 2012 Pike Research 8

    Smart Grid should be understood as partof a broader Smart Energy ecosystem

    Smart Grid in Context

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    Smart Grid Vision

    Source: Oncor

    Generation > 30%renewable sources Secure,

    self-healing,self-optimizing

    grid

    Self-managing,demand responsive

    smart buildings

    Clean transportation,leveraging clean

    generation

    Energy-efficient,self-managing

    homes driven byconsumer choice

    Unidirectional powerdistribution from centralized

    bulk generation

    (Source: Pike Research)GridWeek Asia 2012

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    Power Network

    Grid Infrastructure

    Transmission Distribut ion Substat ion M et ering ConsumersSuppliers

    (Source: Pike Research)

    Existing Role: Reliable distribution from

    Suppliers to Consumers

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    Power Network

    Smart Grid Adds Intelligence

    Communications / Automation Network

    IT/OT Infrastructure

    Transmission Distribut ion Substat ion M et ering ConsumersSuppliers

    (Source: Pike Research)

    Current goals: More efficient and flexibledistribution from Suppliers to Consumers

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    Power Network

    Role of SG Infrastructure

    Communications / Automation Network

    IT/OT Infrastructure

    Transmission Distribut ion Substat ion M et ering ConsumersSuppliers

    Flexible Markets (Wholesale, Retail, Ancillary, etc.)

    Demand Management Services

    Consumer Energy Services

    Distributed Generation / VPP / Microgrids

    Energy Storage

    Electric Transportation

    (Source: Pike Research)

    Challenge: Platform for new services, suppliers, consumers

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    Pike Research Overview

    Smart Grid Overview

    Smart Grid Infrastructure Market Update

    Distribution Automation

    Smart Grid Communications

    Home Energy Management

    Smart Energy and Transportation Markets

    Summary

    Agenda

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    Advanced Metering Infrastructure (AMI)

    Smart meters and associated hardware installations

    Electric Vehicle (EV) Management Systems

    Both in-home and distributed charging infrastructure

    Distribution Automation (DA) systems

    Communications, sensors, equipment for distributionoptimization and management

    Substation Automation (SA)

    Intelligent substation components and communications

    Transmission System Upgrades

    High-voltage lines, FACTS equipment, and relatedcommunications gear

    Smart GridInfrastructure Segments

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    Global Smart GridInvestments

    Transmission upgrades represent highest overall spend worldwide

    Strongest innovation focus in the distribution portion of the grid

    Smart meters remain high-profile, but relatively small spend

    Asia, and specifically China, is largest regional driver

    (Source: Pike Research)

    Smart Grid Revenue by Application, World Markets: 2011-2015

    $-

    $10,000

    $20,000

    $30,000

    $40,000

    $50,000

    $60,000

    2011 2012 2013 2014 2015

    ($Millio

    ns)

    AMI

    EV Management Systems

    Distribution Automation

    Substation Automation

    Transmission Upgrades

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    U.S. AMI InvestmentPeakingNow

    U.S. smart meter / AMI shipments expected to peak this year (2012)

    Opportunities shifting toward smaller municipal and co-op utilities

    Advanced smart meters (with HAN) at least 80% of shipments

    RF-based systems (mesh or star) will continue to dominate

    Consumer push-back larger issue than most expected

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    -

    2

    4

    6

    8

    10

    12

    14

    2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

    (Penetratio

    nRate)

    (UnitsM

    illions)

    (Source: Pike Research)

    Smart Meter Shipments and Installed Base, United States: 2010-2020

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    Outside the U.S.,AMI is Accelerating

    European deployments accelerating in light of EU mandates

    China driving massive deployments of semi-smart meters

    Latin America, led by Brazil, increasing adoption

    Mostly Basic (non-HAN) meters; PLC favored in Europe & China

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    40%

    45%50%

    55%

    60%

    65%

    70%

    75%

    80%

    85%

    90%

    95%

    2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

    North America

    Europe

    Asi a Pacif ic

    Latin America

    Middle East/Afr ica

    Total

    (PenetrationRate)

    Smart Meter Installed Base (of all Meters) by Region, World Markets: 2010-2020

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    Investment in DistributionAutomation / Optimizationincreasing significantly

    Different goals andtechnologies

    Auto Fault Isolation and Recovery CVR and Volt/VAR control for DR

    Asset health & lifecycle monitoring

    No consumer engagement !

    Communicationsarchitectures hot ly debated

    Integration with NAN or AMI-WAN Public vs. private networks

    RF Mesh, RF Star, Wired, Satellite

    Standards-based vs. proprietary

    Increasing Focuson Distribution

    HAN

    NAN

    AMI-WAN

    DA-WAN

    SA-WAN

    DA Devices

    CustomerPremises

    Field Area

    Substation

    Meter

    SA-LAN

    Enterprise

    SA Devices

    Enterprise LAN

    (Source: Pike Research)

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    Pike Research Overview

    Smart Grid Overview

    Smart Grid Infrastructure Market Update

    Distribution Automation

    Smart Grid Communications

    Home Energy Management

    Smart Energy and Transportation Markets

    Summary

    Agenda

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    Typical Grid Architecture

    DistributionNetwork

    (Source: Pike Research)GridWeek Asia 2012

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    Copyright 2012 Pike Research 21

    Distribution Devices

    Fused Cutout Switch(www.sandc.com)

    Sectionalizer(www.joslynhivoltage.com)

    Automatic Recloser(www.langley-eng.co.uk)

    Transformers(www.specialtytransformers.com)

    Disconnect Switch(www.sandc.com)

    Capacitor Bank(trinetics.maysteel.com)

    Fault Sensor(www.selinc.com)

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    SCADA(Supervisory Control And Data Acquisition)

    Substation and/or throughout distribution systems

    (Source: Pike Research)

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    Reliability and Resiliency Planning and maintenance

    Outage anticipation & awareness

    Outage recovery

    Outage isolation

    Automated reconfiguration

    Efficiency

    Capacity Planning & Awareness

    Load sharing / shifting

    Distributed Generation Conventional and Renewable

    Microgrids

    Residential

    Support / integration of Demand Response

    PHEVs

    Distribution System Challenges

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    VAR Control - VAR (voltage-ampere reactive) is measure of reactive power,more of which is needed to maintain a given voltage on distribution line as thelength of that line increases

    Conservation Voltage Reduction (CVR) Dynamically adjust voltage to withinspecifications based on actual load characteristics rather than statically set withconservative guard bands

    Advanced DA Application:Volt-VAR Control Systems

    (Source: Pacific Northwest National Laboratory)

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    Sensors

    Types of sensors and equipment varies widely, as do typical applications

    Communications

    Technologies, bandwidth, etc. also varies widely

    RF Mesh, MAS radio, POTS, fiber, Cellular

    Centralized vs. Autonomous control

    Sectionalizers, reclosers, often work autonomously, only reporting status tocontrol center

    Some operate without communications at all, with external sensors used tointerpolate activity

    Other related systems

    Workforce management and safety

    Asset management

    Distribut ion Management Systems (DMS)

    Distribution Automation Issues

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    Management and forecasting of demand response, distributedgeneration, and storage resources

    Dispatch of active and reactive power (through aggregation ofDER) for optimization of losses and voltage profile

    Optimal operation of voltage control and distributionautomation

    Detection, isolation, and response to faults, vulnerabili ties, andthreats

    State estimation to facili tate accurate and near real-time

    reliabili ty and security assessment Integration of network models, market models, and renewable

    resource models

    DMS Requirements

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    Pike Research Overview

    Smart Grid Overview

    Smart Grid Infrastructure Market Update

    Distribution Automation

    Smart Grid Communications

    Home Energy Management

    Smart Energy and Transportation Markets

    Summary

    Agenda

    GridWeek Asia 2012

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    28Copyright 2012 Pike Research

    CommunicationsInfrastructure

    HAN

    AMI-WAN

    SA-LAN

    Enterprise

    SA Devices

    DA-WAN

    DA Devices

    Enterprise LAN

    SA-WAN

    NAN

    Meter

    Metering Distribution Substation

    (Source: Pike Research)

    HAN

    NAN

    AMI-WAN

    DA-WAN

    SA-WAN

    DA Devices

    Customer Premises

    Field Area

    Substation

    Meter

    SA-LAN

    Enterprise

    SA Devices

    Enterprise LAN

    Silo Infrastructure Layered Infrastructure

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    Strong communications node growth, driven by AMI deployments

    Networking Node Forecast

    Communications Node Forecast by Application, World Markets: 2009-2016

    (Source: Pike Research)

    -

    10,000

    20,000

    30,000

    40,000

    50,000

    60,000

    2009 2010 2011 2012 2013 2014 2015 2016

    (Thousands)

    SA-WAN

    DA-WAN

    AMI-WAN

    AMI-NAN

    HAN

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    30Copyright 2012 Pike Research

    Communications Diversity

    Private / Public

    Wired /

    Wireless Standard /

    Proprietary

    Geographic

    Vendors

    Management

    AMI-NAN Communications Technologies, World Markets: 2009-2016

    (Source: Pike Research)

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    2009 2010 2011 2012 2013 2014 2015 2016

    Other

    WiMAX

    Proprietary Pt2MPt

    Microwave Pt2Pt

    Wi-Fi

    802.15.4 MeshProprietary Mesh

    Other

    BPL

    N-PLC

    Copper

    Fiber

    Other

    4G2G/3G

    Broadband

    TDM

    POTS

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    Smart Grid CommunicationsDevices

    31

    HN - HAN Node

    AN - AMI Node

    AC - AMI Concentrator

    NI - Network Interface Converter

    SR - Substation Router

    SS - Substation Ethernet Switch

    WB - WAN Backbone

    GR - Generalized Grid Router

    HAN

    HN

    AN

    NAN

    AMI-WAN

    DA-WANAC

    NI

    SA-WAN

    WB SR SS

    NI

    NI

    Enterprise LAN

    WB

    GR

    GR

    GR

    RTU, IEDs

    RTU, IEDs

    GR

    GR

    Premises

    Network

    Field Area

    Networks

    Substation LAN

    Wide AreaNetwork

    (Source: Pike Research)

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    Revenue growth tempered by lower ASP mix

    Smart Grid Network DeviceForecast

    Communications Device Revenue Forecast by Device Type, World Market: 2009-2016

    (Source: Pike Research)

    -

    10,000

    20,000

    30,000

    40,000

    50,000

    60,000

    2009 2010 2011 2012 2013 2014 2015 2016

    (Thousands)

    GeneralizedGrid Router

    WANBackbone

    SubstationEthernetSwitchSubstationRouter

    Network

    InterfaceConverterAMIConcentrator

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    Rapid Evolution toward standards (IP) IEEE 802.15.4g Smart Utility Network for 900MHz RF Mesh

    Private WiMAX for DA-WAN, AMI-WAN applications

    Major push by publ ic network carriers

    Improved pricing, marketing, broader services

    Preparation for focused 4G services

    Vendor push for end-to-end solutions

    As AMI growth slows, push for growth in DA-WAN, other applications

    Partnerships (Ex: Tropos with Itron/Elster, Aclara with Firetide)

    Acquisitions (Cisco/Arch Rock, etc.)

    RF Mesh still dominant, but under some pressure Consumer health concerns; bandwidth/latency concerns for DA-WAN

    New platforms for secure distributed applications

    Open platforms in DA-WAN (Grid Net, Echelon, SmartSynch, Ambient)

    Smart Grid CommunicationsTrends

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    Pike Research Overview

    Smart Grid Overview

    Smart Grid Infrastructure Market Update

    Distribution Automation

    Smart Grid Communications

    Home Energy Management

    Smart Energy and Transportation Markets

    Summary

    Agenda

    GridWeek Asia 2012

    id f

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    Util ity energy applications Information gathered by utility via smart meters and provided

    back to customers (often day-behind data)

    Web-based portal leveraging smart meter data

    Mobile applications (iPhone, Android, etc.)

    Home energy awareness In-home measurement and/or display devices

    Standalone systems or connected via smart meters

    Home energy management Active management of home energy devices, such as HVAC, hot

    water, pool/spa, appliances Standalone Home Automation systems

    Utility-based Home Area Network systems

    3rd-party energy management services

    Wide Range of HEMSolutions

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    HEM Enabling Technologies

    Paper BillsPaper Bills

    Neighbor

    Comparisons

    Consumption

    TrendsWeb

    Portal

    Web

    Portal

    Neighbor

    Tracking

    Consumption

    Trends

    Social

    Networking

    In-Home

    Display

    In-Home

    Display

    Meter-based

    Consumption

    TOU Pricing

    Orb

    Bill-to-Date

    Information

    Standalone

    HEM

    Standalone

    HEM

    Device-level

    Tracking

    Consumption

    Estimation

    AutomaticDevice Control

    HAN /

    HEM

    HAN /

    HEM

    DR Response /

    Load Control

    Auto Pricing

    Response

    Home Automation

    Control

    Consumer

    Energy

    Savings

    Connectivity

    Better Technology Offers Greater Energy Savings

    (Source: Pike Research)GridWeek Asia 2012

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    Home Area Networking

    Home Area Networks (HAN) connect various in-home devices to smart grid

    ZigBee wireless technology is dominant HAN technology, with 802.11 Wi-Fi andHomePlug Power Line Carrier also emerging to play a role

    Underlying business models and regulatory requirements remain uncertain

    Many implementation options are possible; future unclear

    NAN

    HAN

    Gas Meter

    Smart

    Appliances

    PCT

    In-Home

    Display

    Smart

    Meter

    HVAC

    System

    Water Meter

    WAN

    Utility Enterprise Systems

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    Utility Managed HAN

    NANUtility

    HANUtility ICT

    Systems

    Gas Meter

    Smart

    Appliances

    PCTAdvanced

    Smart

    Meter

    Load Control

    IHD

    Smart Plugs

    Utility

    Consumer

    3rd-Party

    Utility WebPortal

    Smart

    Phone

    PC

    Device Authentication

    Security

    Utility-Device Communications (pricing, DR, etc.)

    Two-way command confirmation

    Management Key

    Home

    Utility

    3rd-Party

    Internet

    Access

    3rd-Party Web

    Portal

    (Source: Pike Research)

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    Utility Managed Gateway

    NANConsumer

    HANUtility ICT

    Systems

    Gas Meter

    Smart

    Appliances

    PCTAdvanced

    Smart

    Meter

    Load Control

    IHD

    Smart Plugs

    Utility

    Consumer

    3rd-Party

    Utility WebPortal

    Smart Phone

    PC

    Device Authentication

    Security

    Utility-Device Communications (pricing, DR, etc.)

    Two-way command confirmation

    Management Key

    Home

    Utility

    3rd-Party 3rd-Party

    Services

    Internet

    Access

    3rd-Party Web

    Portal

    Energy

    Management

    Gateway

    (Source: Pike Research)

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    3rd-Party Managed Gateway

    NANConsumer

    HANUtility ICT

    Systems

    Gas Meter

    Smart

    Appliances

    PCTBasicSmart

    Meter

    Load Control

    IHD

    Smart Plugs

    Utility

    Consumer

    3rd-Party

    Utility WebPortal

    Smart Phone

    PC

    Interval Meter Reading

    Management Key

    Home

    Utility

    3rd-Party 3rd-Party

    Services

    Internet

    Access

    3rd-Party Web

    Portal

    Energy

    Management

    Gateway

    Device Authentication

    Security

    Utility-Device Communications (pricing, DR, etc.)

    Two-way command confirmation

    (Source: Pike Research)

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    HAN without Smart Meter

    Consumer

    HANUtility ICT

    Systems

    Gas Meter

    Smart

    Appliances

    PCT

    AMR

    Meter

    Load Control

    IHD

    Smart Plugs

    Utility

    Consumer

    3rd-Party

    Utility WebPortal

    Smart Phone

    PC

    Basic Meter Reading

    Management Key

    Home

    Utility

    3rd-Party 3rd-Party

    Services

    Internet

    Access

    3rd-Party Web

    Portal

    Energy

    Management

    Gateway

    Device Authentication

    Security

    Utility-Device Communications (pricing, DR, etc.)

    Two-way command confirmation

    (Source: Pike Research)

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    Smart Appl iances offer energy management links to HAN or internet

    In the United States, ARRA stimulus in itiatives driving some key pilots

    Some major vendors (LG, Whirlpool, GE) providing early units

    Standards for HAN connectivi ty moving toward ZigBee and HomePlug

    Market likely to be slowed by slow HAN adoption by uti lities

    (Source: Pike Research)

    Smart Appliances

    Smart Appl iance Market Value, World Markets: 2010-2019

    $40 $509$984

    $2,150

    $3,772

    $6,266

    $9,773

    $14,597

    $19,942

    $26,149

    $0

    $5,000

    $10,000

    $15,000

    $20,000

    $25,000

    $30,000

    2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

    ($Millions)

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    Utilities Directly or through retail rebate programs

    Telecom/Cable operators Example: Verizon and Time Warner offering home

    energy management as part of communicationsservices

    Other Service providers Home alarm companies such as ADT

    Independent consumer products companies Current Cost, others in Europe

    Who Are Providing HEMs?

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    Pike Research Overview

    Smart Grid Overview

    Smart Grid Infrastructure Market Update

    Distribution Automation

    Smart Grid Communications

    Home Energy Management

    Smart Energy and Transportation Markets

    Summary

    Agenda

    GridWeek Asia 2012

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    Wind is the leading non-hydro renewable energy source; mature, mainstream

    Costs near grid-parity in some regions, though stil l policy / subsidy dependent

    China leads g lobal market, Europe steady, North America falling precipitously

    Intermit tency, time-of-day, and transmission issues remain s igni ficant concerns

    Cumulative Wind Power Generation Capacity by Region, Baseline Scenario, World Markets:

    2008-2017

    (Source: Pike Research)

    Renewable Energy: Wind

    -

    100,000

    200,000

    300,000

    400,000

    500,000

    600,000

    2008A 2009A 2010A 2011F 2012F 2013F 2014F 2015F 2016F 2017F

    Middle East and Africa Onshore Latin America OffshoreLatin America Onshore Asia Pacific Offshore

    Asia Paci fic Onshore North Amer ica OffshoreNorth America Onshore Europe Offshore

    (MW)

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    Distributed

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    Solar PV is dominant distributed renewable energy resource

    PV market remains dependent on incentives, but nearing grid-parity

    Policy changes, module oversupply, and public debt worries impact market

    New business models represent a fast-growing PV segment

    Solar leasing, utility-owned distributed assets, Power Purchase Agreements (PPAs)

    DRG integration a continuing, if elusive, goal for Smart Grid technologies

    (Source: Pike Research)

    DistributedRenewable Energy

    Annual RDEG Capacity Additions, World Markets: 2009-2015

    -

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    14,000

    16,000

    18,000

    2009 2010 2011 2012 2013 2014 2015

    (MW)

    North America Europe Asia ROW GridWeek Asia 2012

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    Energy storage systems (ESS) oriented for long duration or ancil lary services Long duration applications: bulk storage, renewable generation time-shifting

    Ancillary Services applications: frequency regulation, power quality, load following

    Integration of renewable generation is a key, but not only, driver for ESS

    Barriers include market structures, unaligned benefits, and multiple costs

    Technologies are rapidly evolving and commercializing, blurring applications

    (Source: Pike Research)

    Energy Storage Systems

    ESS Segmentation by Technology: 2011

    CAES2,119

    Flow battery147

    Hydrogen1

    Li-ion138

    NaS battery1,399

    Lead/Carbon4

    NiCd

    26Flywheel47Superconducter0

    Pumped Storage5,250

    (MW)

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    Copyright 2012 Pike Research 48(Source: Pike Research)

    Electric Vehicles

    Electrified Vehicle Sales by Category, World Markets: 2011-2017

    -

    200,000

    400,000

    600,000

    800,000

    1,000,000

    1,200,000

    1,400,000

    1,600,000

    1,800,000

    2011 2012 2013 2014 2015 2016 2017

    (Vehicles)

    HEV

    PHEV

    BEV

    Electrif ied vehicle sales (HEV/PHEV/BEV) wi ll nearly t riple in volume through 2017 Hybrids wi ll dominate throughout forecast period

    U.S. market to remain the largest through 2017; China the fastest growing

    PHEVs, with their longer range, expected to outpace BEV sales by 2.5 to 1

    Cumulative North American PEVs to reach 1M vehicles by 2016, concentrated in CA, NY, FL, TX, IL

    Medium & heavy duty HEV/PHEV/BEV trucks wil l surpass 100,000 units by 2015

    Strong fuel economy improvements (25% to 40%), but high incremental costs ($45,000)

    GridWeek Asia 2012

    EV Supply

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    EV SupplyEquipment and IT

    EV Charging Equipment Unit Sales by Region, World Markets: 2011-2017

    Electric Vehicle Supply Equipment (EVSE) market to reach ~2.0M uni ts in 2017 By 2017, Public EVSE (Asia, Europe) majority of 6.7M installed units; residential will be 67% of U.S. unit

    sales

    Profitable business models for operating publ ic EVSEs remain undefined

    DC charging standards batt le (CHAdeMO vs. SAE) is slowing market

    Risk of in tensifying grid peak demand drives IT investment for PEV

    management

    (Source: Pike Research)

    -

    500,000

    1,000,000

    1,500,000

    2,000,000

    2,500,000

    2011E 2012 2013 2014 2015 2016 2017

    Afr ica/Middle East

    Asia Pacif ic

    Eastern Europe

    Western Europe

    Latin America

    North America(Units)

    GridWeek Asia 2012

    Smart Grid:

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    Smart Grid:Applications and IT

    Total Virtual Power Plant Capacity, World Markets: 2011-2017

    (Source: Pike Research)

    Applicat ion integration required to unlock smart gr id value and ut ilityinnovation

    Demand Response maturing, evolving, and dissolving into smart ecosystem Becoming a feature within smart buildings management, grid management, AMI applications

    Virtual Power Plant concepts leverage emerging smart grid infrastructure Integrates and manages diverse resources: DRG, demand response, storage, EV infrastructure

    Business process transformation is upending existing IT applications

    -

    20,000

    40,000

    60,000

    80,000

    100,000

    120,000

    2011 2012 2013 2014 2015 2016 2017

    (MW

    )

    Base

    Average

    Aggressive

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    Pike Research Overview

    Smart Grid Overview

    Smart Grid Infrastructure Market Update

    Distribution Automation

    Smart Grid Communications

    Home Energy Management Issues

    Smart Energy and Transportation Markets

    Summary

    Agenda

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    Power Network

    So Why Smart Grid?

    Communications / Automation Network

    IT/OT Infrastructure

    Transmission Distribut ion Substat ion M et ering Consumers

    Suppliers

    (Source: Pike Research)

    Energy Management

    Billing

    Reliability

    Opex Reduction

    Safety

    Efficiency

    Customer Service

    Demand Response

    Market Operation

    Forecasting

    Collections

    Lower Energy Costs

    Own Generation

    PEVsProfitability

    Regulatory GoalsRenewables

    Energy Independence Security Carbon Reduction

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    Power Network

    Ultimately All Data Driven

    Consumption

    Use Patterns

    Personal Info

    Financial Info

    Communications / Automation Network

    IT/OT Infrastructure

    Transmission Distribut ion Substat ion M et ering ConsumersSuppliers

    (Source: Pike Research)

    Real-time network operations info

    Asset info

    Embedded info (field devices, etc.)

    Financial / enterprise information

    Workforce information

    Operations

    Markets

    Forecasting

    Assets

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    Are We There Yet?

    Still a long journey ahead

    But smart griddeployment penetration

    reaching show me

    stage

    Smart Energy Ecosystemopportunities are ripening

    Smart Homes

    Smart Buildings

    Clean Transportation

    Renewable generation

    Generation > 30%

    renewable sources

    Secure,self-healing,

    self-optimizing grid

    Self-managing,demand responsive

    smart buildings

    Clean transportation,leveraging clean

    generation

    Energy-efficient,self-managing

    homes drivenbyconsumer choice

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    55Copyright 2012 Pike Research

    Discussion

    GridWeek Asia 2012

    C t t U

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