The Smart Grid and Market

Transformations Christine Hertzog

Managing Director, Smart Grid Library

June 2012

Transformational consulting and analysis for clients

Market & Competitive assessments Entry strategies/Business Case development Partner strategies Go-to-Market Thought Leadership

Focus on Smart Grid and M2M

Grid: Distribution to consumer edge Contact centers and consumer experience Disruptive technology impacts and risk mitigation

Major publications Smart Grid Dictionary (English and Chinese) The Smart Grid Consumer Focus Strategy Smart Grid Dictionary Plus Weekly syndicated blog

Featured in The Energy Collective ElectricityPolicy.com IEEE Smart Grid Newsletter Intelligent Utility Daily Greenbiz/Verge European Energy Review SAP Gamechangers Industry ezines

thought leaders

Smart Grid proven

knowledgeable pragmatic flexible

M2M strategic results-driven experts

contact centers partners teamwork

insightful mission-critical hands-on

responsive success quality value

20+ years in telecommunications hardware and software

Customer-facing roles: product management, marketing, partner management, sales/sales engineering management, consulting B2B and B2C Startups to global multinationals

Smart Grid consulting Startups: Network management systems, data analytics, consumer applications, energy storage Energy service providers

M2M (Machine to Machine) definition: Wired or wireless IP-based communications between fixed and

mobile devices that can transmit and/or receive data, and can optionally take actions without human intervention. From a Smart Grid perspective, communication between devices in a grid that could range from simple condition-based sensing to complex condition-based participation in markets.

Sensors and Controls for Building Energy Management Systems in North America and Europe to Top $4 Billion in 2020 (Lux Research 2012)

M2M devices are a $12B market by 2013 (Harbor Research)

M2M Market is a $7B market by 2015 (Yankee Group) 35% is connected energy

M2M

Smart Grid

Smart Cities

Intelligent Buildings

•Energy •Transportation/Logistics •Retail •Security •Healthcare •Network/Communications •Industrial Automation

•AMI •NASPInet project •Energy Management Systems •Hybrid Grid/Network Management •Energy Markets •Demand Response •Substation/Distribution Grid Automation

•Vehicular Flow Control •Intelligent Street Lighting •Environmental Monitoring •Parking Enforcement •Infrastructure Response Management •Microgrids

•Energy Management •Consumer/Prosumer participation: OpenADR •Water Management •Local Generation/Energy Storage: Microgrids •Energy-efficient building materials

Generation Transmission Distribution

Bell wouldn’t recognize today’s communications networks.

Edison would recognize today’s power grid.

6

Electricity, gas, and water –sparse data

Centralized planning and

control

Traditional supply chain

Proprietary and Confidential

7

Proliferation of data

Proliferation of distributed energy

resources

Conceptual transformation:

value chain

Transmission Generation Distribution Consumption

Investments across value chain but focused in distribution

Proprietary and Confidential

8

Monetization of data Transactive retail

energy market

Conceptual transformation:

consumer to prosumer

Transmission Generation Distribution Prosumption

Dynamic supply/demand interaction at point of prosumption

Proprietary and Confidential

An individual

A building Energy Market participation = Demand Response

EnerNOC, Comverge, and others Time-shifted consumption

Energy efficiency Building envelope Occupant comfort/safety

Local gen/cogen + energy storage

Time-shifted generation

An asset aggregation like a microgrid

Participation in the Electricity Market

Negawatts Kilowatts

Both Negawatts and Kilowatts

None of the above

Demand Response Energy Efficiency Microgrid Islanding

Distributed Generation Smart Charging Microgrid Generation

For additional information and actionable insights, contact:

Christine Hertzog chertzog@SmartGridLibrary.com

www.SmartGridLibrary.com