The Michigan Energy Forum will explore new developments in Residential Energy Management, exploring the recent explosion of commercially available technologies and firms offering them to consumers. While commercial energy management is a multi-billion dollar industry, residential energy management has lagged far behind. Three years ago, the few consumers who were interested in residential energy management had to buy hundreds of dollars worth of home automation controls from niche online retailers unless they were lucky enough to participate in pilot programs offered by electrical utility companies testing "smart home" and "demand response" programs. Today, television commercials invite consumers to lease the devices they need to control smart lights, plugs, thermostats and appliances including washers, dryers, thermostats, and water heaters, all for a flat monthly fee from firms such Cable TV giant Comcast, home security giant ADT, and new home automation firms such as Vivint. The MEF will explore these and other technologies that are now, or may soon be, commercially available to help manage and reduce, residential energy consumption.
Moderator:
Scott Phillips
Director, Inovo Group
Panelists:
Glynne Townsend
CEO, Spider 9
Tom Catania
Executive-in-Residence, Erb Institute
3. 3
0%
20%
40%
60%
80%
100%
0% 20% 40% 60% 80% 100%
Pe rce ntage of Ye ar
LoadFactor(%)
Electric Generation Distribution A sset
5%
5% = ~400 hrs/yr
75%
90%
(8,760 hrs)
distribution
generation
VALUE OF DEMAND RESPONSE: LOWER PEAK DEMAND REDUCES
INFRASTRUCTURE INVESTMENTS
25% of distribution & 10% of generation assets (transmission is similar),
worth of 100s of billions of dollars, are needed less than 400 hrs/year!
Hourly Loads as Fraction of Peak, Sorted from Highest to Lowest
4. 4
FERC’s estimated 20 percent reduction in peak demand “if realized, can reduce
significantly the number of power plants needed to meet peak demand
and thereby reduce carbon emissions by as much as 1.2 billion tons of carbon
annually…”
Cutting demand by a few minutes or seconds also could let the U.S. grid cheaply
incorporate renewable sources like wind and solar that otherwise would need backup
from plants that stayed idle most of the time…If the electrical grid were 5% more
efficient it could displace the equivalent of 42 coal-fire power plants.
Jon Wellinghoff, Chairman, Federal Energy Regulatory Commission (FERC),
testimony before the Committee on Environment and Public Works, United States
Senate, August 2009
The Smart Grid empowers consumers to control their own carbon footprints.
North American Electric Reliability Corporation (NERC), “Electric Industry Concerns on the
Reliability Impacts of Climate Change Initiatives," November 2008
Don’t take my word for it:
5. What does a smart/connected
appliance do?
• It knows what time of day it is
• By default it performs a variety of functions outside of peak periods
– Defrosting of a refrigerator
– Washing dishes
– Washing or drying clothes
– Self –cleaning an oven
• It educates consumers about their product’s energy use and gives
them options and explains the consequences
• It allows for remote monitoring and controlling of a product
• It provides one touch energy management
• It can interpret and react to information about and from a utility
• It leaves the decision about product operation in the hands of the
consumer
13 September 2013 5
6. 6
Key Policy Elements Needed to Drive Ubiquitous Smart Appliances- 5%
Allowance against Energy Star level for demand response capable appliance
Manufacturer Product Cost Savings Sufficient to Materially Defray Cost of
Adding Demand Response Capability – 5% Allowance Against Energy Star
Energy Star is a Voluntary Program with High Public Recognition and Flexibility
This allowance was a lynch-pin to achieving voluntary agreement to higher
efficiency standards
Natural connection between this new connected appliance capability and utility
consumer appliance rebates, because system benefits now even greater than
traditional individual product efficiency
Can be readily integrated with National Peak Demand Reduction Target and
Integrates well with national efforts to expand renewables and growing
addition of electric vehicles
13 September 2013
The Size of the Prize is 300 gigawatts of peak demand reduction and a
substantial fraction of that total in daily callable demand that can be served
through episodic renewables
7. 7
This is Real!
April 29, 2013
Whirlpool Corporation Reaffirms Commitment to Smart Home Solutions
Flagship brand puts home management in the palm of your hand with smart appliances
BENTON HARBOR, Mich., April 29, 2013 /PRNewswire/ -- Global appliance leader Whirlpool Corporation
(NYSE: WHR) continues its legacy of leadership in sustainability with the launch of a line of smart appliances
with 6th Sense Live™ technology. The company's flagship Whirlpool brand will make smart home
management a reality this month in the Chicagoland area with the release of a suite of smart appliances
along with a free mysmartappliances app which is available in the iTunes app store now.
13 September 2013
8. EPA has just completed the
Connected Refrigerator Specification
and Test Procedures that must be
met to earn the 5% allowance
Other appliances and products will
follow
13 September 2013
10. 0
200
400
600
800
1000
2012 2017 2022 2027 2032 2037
QuadrillionBTU World Energy Demand
ENERGY DEMAND
WILL GROW MORE
THAN 50% OVER
THE NEXT 30 YEARS.
Source: www.eia.gov
12. 2013: VENEZUELA LOSES 70% OF ITS POWER
2012: HURRICANE SANDY AFFECTS 8M IN N.E. USA
: DROUGHT & FAILURES AFFECT 620M IN INDIA
: STORMS AFFECT 3.8M IN MIDWESTERN USA
: MUNITIONS ACCIDENT LEAVES CYPRUS DARK
2011: 9M ARE LEFT WITHOUT POWER IN CHILE
: 5M IN CALIFORNIA & ARIZONA LOSE POWER
: HURRICANE IRENE LEAVES 5M IN DARK
: 53M BRAZILIANS ARE LEFT WITHOUT POWER
IT WILL NEVER HAPPEN HERE
13. The Need for Energy Storage
FOSSIL FUELS ARE NOT
THE ANSWER.
16. • GERMANY
• EUROPE
• USA: CALIFORNIA
• CHINA
• CANADA
• AUSTRALIA
• ISLAND NATIONS
• SOUTH AMERICA
• AFRICA
• INDIA
$20 BILLION / YR MARKET BY 2020
A RAPIDLY GROWING CLEAN TECH SECTOR
17. Load shifting & capital asset deferral Renewable firming & ramp rate control
Microgrids & building efficiency Frequency regulation
0
1
2
3
4
Power(kW)
One Day
Solar Generation in Lanai, HI
Demand
Solar
APPLICATIONS
RESIDENTIAL
APPLICATIONS
18. HOME ENERGY INDEPENDENCE
70% of energy is generated
when nobody is home to use it.
An energy storage system can
more than double self-
consumption of clean, home-
generated power
19. RESIDENTIAL ENERGY STORAGE OPTIONS
• 6X Cost
• 3x Energy
• 2x Life
• 5x smaller
• Min. Maint.
Lead Acid
Lithium-Ion
22. Product and Services:
Complete energy storage systems and performance monitoring
Value Proposition:
Increased energy, life, serviceability and reliability
Future proofs technology and revenue risk
Lowers customer costs by 40% over the competition
Target Customers:
Commercial, residential, government and grid operators
Business Model:
Revenue: Product sales & recurring performance monitoring fees
Phase
Proven tech. ,established partners, initial orders, expanding sales
Seeking
$10M Round: Working capital and sales channel expansion
SPIDER
“WE MAKE BIG BATTERIES, BETTER”