Smart Energy Market Trends

Low Carbon Economy can be Achieved by

Implementing …

Smart Transportation

Regulation

Renewable Power

Smarter Energy

Smarter Consumers

Macro Trends for Grid Modernization is also Driven by…

Need to Increase Power

Availability

Need to Improve Energy

Efficiencies

Compliance Regulatory Pressure to

Accommodate Renewable

Power

Pressure to Support Growing Usage of Electricity

Commercial and Industrial Facilities Adopting Energy

Efficiency Strategies

Buildings are the main focus to meet mandates for reduced energy usage

and greenhouse gas (GHG) emissions in the U.S.

Buildings account for 36 percent of total energy usage and 30 percent of

GHG emissions in the U.S. Combined C&I represents approximately 50

percent of all energy consumed in the U.S.

Within an office building energy consumption can represent up to 40 percent

of operating cost. This figure is higher for industrial facilities.

According to the U.S. Energy Information Administration (EIA) 30 percent of

energy used in buildings is wasted.

These trends along with the speculation of dramatic rate hikes over short

periods are driving facility managers, business owners, and government

officials to better manage energy consumption.

Building integration with smart grid and related applications, will be a major

driver for market growth.

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Industry Trends for Implementing Smart Energy

Strategies at the Building Level

Energy Management Services

• The market is segmented by performance and non performance contracts.

• Currently, the vast majority of sales comes from performance contracts.

• In 2010 this market was estimated to have annual sales valued at $4.56 billion in North America alone.

• The market is seeing strong interest for energy management services within the government, institution, and healthcare verticals.

Demand Response

• Aims at reducing energy consumption during peak power period by providing monetary incentives.

• Demand response for C&I is an established market, representing approximately 90 percent of the market.

• Frost & Sullivan estimated the C&I market for demand response to be valued at approximately $373 million in 2009.

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Industry Trends for Implementing Smart Energy

Strategies at the Building Level

Leadership in Energy and Environmental Design (LEED) Certifications

• The Environmental Protection Agency (EPA) requires all major renovation projects that are 20,000 square feet or larger to meet LEED Silver certification standards since 2006.

• Similar initiatives have been implemented both at the state and municipal level.

• The number of LEED certified buildings is projected to increase from a total of 244.6 million square feet in 2008 to 4.05 billion square feet in 2013.

Advanced Meter Infrastructure (AMI)

• Annual revenues for AMI is projected to reach $4.16 billion by 2015.

• Smart meters represents the bulk of sales and are expected to reach a 50 percent penetration of U.S. households by 2015.

• There are currently over 20 states with more than 50 percent penetration of smart meters including California, Texas, Oregon, Nevada, Arizona, Oklahoma, and Florida, among others.

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Data Analytics Enabled by Smart Grid Strategies

Integrating building automation with

smart grid is projected to be a major

driver.

Already, the market has seen growth

for meter data management

systems, that collects data from

smart meters.

Progressive utilities will continue to

be in the best position to serve its

customers as well as address the

changing market dynamics of the

industry.

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Strategic Energy Procurement: Using Data to Forecast,

Plan and Manage Your Energy Spend

This slide deck was presented during the “Strategic Energy Procurement: Using

Data to Forecast, Plan and Manage Your Energy Spend” online webinar, recorded

on Tuesday, June 26, 2012.

Click here to register to view the recording.

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Britni Myers

Corporate Communications

Energy & Power Systems

(210) 477-8481

Britni.myers@frost.com

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