Pitch deck sample detail for New Business Proposal
An Analysis of Demand Side Management Technologies
1. An Analysis of Demand Side Management
Aug 24, 2011
ⓒ 2011 insprout Corporation.
All rights reserved
2. Table of Contents
1st Part: Introduction
Introduction
Our Focus in the Technological Domains of Smart Grid
Demand Side Management
Big News!
2nd Part: 3rd Case Study
EnerNOC
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3. Introduction
Purpose
-In the previous research, we identify the business opportunities in
Demand Side Management (DSM) that include the Energy
Management Services (EMS) and Advanced Metering Infrastructures
(AMI) & Field Area Network (FAN).
-In this research, we will deeply take a look at the structure of these
technological domains, and pick up & analyze some companies
active in these domain as case study.
Methodology
-We will present an diagram of Demand Side Management,
identifying each technological component within the system.
-We will then pick up some companies that are actively doing
businesses within these fields to get case studies for Japanese startups.
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4. 2．Our Focus in the Technological Domains of Smart Grid
Generation Transmission Distribution Consumption
1 2 3 Energy Consumption
Energy Production Monitoring&Control of System Power Supply
1） Renewable Energies 4） Wide Area Monitoring System 5）Distribution Automation 6） EMS
2） Alternative Energies 7） EV
4
Effective Operation of System Power Supply
3）Fossil Fuel Efficiency 8） Recycle
10）Superconducting Transmission
9） Energy Saving
11） Power Electronics Applied Equipment
5
Advanced Interface Technologies
12） AMI / FAM
13） Power Conditioner Technologies
6
Energy Storage
14） Energy Storage Technologies
4 ⓒ 2011 insprout Corporation.
※Classifications are based on Japan’s New Energy and Industrial Technology Development Organization (NEDO) “Renewable Energy Technology White Paper 2010.” All rights reserved
5. 2．Detailed Descriptions of DSM Domains
Technological
Description
Domain
Process of managing the consumption of energy, generally to
③Energy Consumption
6) EMS Technologies
optimize available and planned generation resources.
It includes HEMS, BEMS, FEMS, and Demand Response.
AMI refers to a system that integrates smart meter and various
⑤Advanced Interface
control devices for energy management. FAN is a network that
Technologies
12) AMI / FAN bundles multiple smart meters and connects to public
communication lines.
5 ⓒ 2011 insprout Corporation.
※Classifications are based on Japan’s New Energy and Industrial Technology Development Organization (NEDO) “Renewable Energy Technology White Paper 2010.” All rights reserved
6. 3．Structure of DSM
Block Diagram
Demand Response Network Household
Power Company Energy
Business Generator
AMI HEMS Household
System
Controller Devices
Distribution Energy
MDMS Concentrator Communication
Storage
Automation
System Building/Commercial/Industrial
Energy
Generator
Measure
Gas Company
Control
BEMS/FEMS Household
Controller Devices
Service Energy
Provider Storage
System Structure Wired/Wirelsss
Communication
Unit MDMS Smart Meter
EMS Controller
Concentrator 6 ⓒ 2011 insprout Corporation.
※Source: “Technologies and Standardization of Smart Grid” published in 2010 by Japan Standard Association All rights reserved
7. 3．Structure of DSM
AMI assumes communications among Smart Meter, Service Providers
including utility companies and Energy Management System placed in the
demand side.
Between service providers and consumers AMI provides information to
various systems through Meter Data Management System (MDMS). For
example, billing automation system, distribution automation system are done
through AMI.
The introduction of AMI makes it possible to
measure power consumption real time.
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8. 4．Big News!
California PUC adopted the world’s first comprehensive set of rules
to ensure that consumers can access the detailed energy usage data
gathered by their smart meter. This decision calls for:
1. Web Presentment
-Utilities must provide via their websites such information as detailed energy usage.
2. Tier Alerts
-When customers move from one price tier to the next, the utilities are to provide notification.
3. Rate Option Calculator
-Help consumers understand whether they would save money by switching to a time-of-use rate.
4. Real-time Data
-Decision requires them to file plans that “include an initial phase with a rollout that enables a
minimum of 5,000 HAN-enabled devices to be directly connected with smart meters.
5. Third-Party Data Service
- Consumers can authorize third parties to receive their backhauled smart meter data directly from the
utility to support services such as energy efficiency. Will use OpenADE as standard.
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9. 4．Big News! ~OpenADE (Automated Data Exchange)
How the Open Automated Data Exchange communication standard works
Utility Data Center Authorized Third Party
Meter Utility Utility Open
Open Internet ADE
Data Billing Web
ADE Energy Info
Mgmt & CIS Site
Application
Smart Network
Application Platform
Communication Network
Head End
Internet
Smart Meter Next Day Data
Communications AMI
Network Radio
9 ⓒ 2011 insprout Corporation.
※Source：http://www.emeter.com/smart-grid-watch/2011/california-puc-adopts-consumer-data-access-and-privacy-rules-for-smart-meters/ All rights reserved
10. Case Study 3
EnerNOC
Aug 24, 2011
ⓒ 2011 insprout Corporation.
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11. Company Overview
Name EnerNOC
Type Public (NASDAQ: ENOC), IPO May 2007
75 Federal Street Suite 300
Headquarters
Boston, MA, 02110
Year Founded 2001
Revenue $280 Million (FY2010)
Employees 484 employees (as of Dec.31 2010)
Business
Demand response, energy management systems
Sectors
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12. Funding History
Year Amount Participants in the Round
Draper Fisher Jurvetson,
Series A Apr. 2003 2.6M
Braemar Energy Ventures
New Atlantic Ventures, Foundation Capital
Series B Jan. 2005 7.75M Braemar Energy Ventures,
Draper Fisher Jurvetson
Total - 10.35M -
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13. Focus Area
Block Diagram
Demand Response Network Household
Power Company Energy
Business Generator
AMI HEMS Household
System
Controller Devices
Distribution Energy
MDMS Concentrator Communication
Storage
Automation
System Building/Commercial/Industrial
Energy
Generator
Measure
Gas Company
Control
BEMS/FEMS Household
Controller Devices
Service Energy
Provider Storage
System Structure Wired/Wirelsss
Communication
Unit MDMS Smart Meter
EMS Controller
Concentrator 13 ⓒ 2011 insprout Corporation.
※Source: “Technologies and Standardization of Smart Grid” published in 2010 by Japan Standard Association All rights reserved
14. Description of EnerNOC’s Services
DemandSMART SupplySMART
•Demand response application •Offers consulting services to help
•EnerNOC acts as an aggregator companies buy energy efficiently.
between utilities and end-users.
*For a video presentation, see the following link: *For a video presentation, see the following link:
http://www.youtube.com/watch?v=wDJb8YhbE6k http://www.youtube.com/watch?v=v6bJTFagwq0&feature
=related
EfficiencySMART CarbonSMART
•Analyzes users' real-time power •Tracks and manages greenhouse
consumption to reveal opportunity gas emissions for companies
to save energy. trying to reduce their emissions.
•Offers traditional commissioning.
*For a video presentation, see the following link:
http://www.youtube.com/watch?v=FD0mvzHWlcw&featu
re=related
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15. Description of DemandSMART
Supply Demand
1.Notify when 1.Request
Power increase in Demand
demand Response Commercial
Company
Users
Power 2.Aggregate EnerNOC 2.Curtail
Company reduction of Power
energy use Demand Consumption Institutional
Response Users
Power
Company 3.Pay reward 3.Pay reward
based on the based on the
amount saved amount saved Industrial
Power
Users
Company
*Note: EnerNOC
does not target
residential customers
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16. How Does Demand Response Actually Works
When demand is high, power
company raises electricity price.
EnerNOC requests its business
partners that participated the DR
program to curtail their energy use.
Companies that wish to avoid
high electricity price accept to cut
back consumption.
EnerNOC aggregates such
reductions of power consumption,
successfully shifting heavy load.
EnerNOC and those who helped
the DR get paid based on the
amount of energy they saved.
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17. EnerNOC’s Business Model
DemandSMART
1. Reliability-Based
Power Demand Response
Company EnerNOC
Commercial
&
Industrial
2. Price-Based Users
Multi-million dollar contracts with Demand Response
terms that generally range between
three and ten years. Such contracts
also predetermine capacity
commitment and payment levels. 3. Ancillary Services
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18. EnerNOC’s Business Model ~continued~
•ENC receives recurring capacity payments, which they share with
customers, from utilities for being on call, whether they receive a signal
to reduce consumption.
Reliability-Based •When called to implement a demand reduction, ENC typically receives
Demand Response an additional payment, which they also share with customers, for the
energy they reduce.
•By aggregating a large number of C&I customers to participatein these
reliability-based programs, ENC helps to prevent blackouts.
•Enable C&I customers to monitor and respond to wholesale
electricity market price signals when it is cost-effective
Price-Based
•ENC receives an energy payment in the amount of the wholesale market
Demand Response price for the electricity that the customer does not consume and share
this payment with the customer.
•This service is called upon byelectric power grid operators and utilities
during short-term contingency events such as the loss of a large power plant.
Ancillary Services •Utilities rely on a reserve pool of these quick-start resources to provide
short-term support as needed during these contingency events.
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19. Financial Highlights
(Unit: Million $) (Unit: Million $)
300 280.2 20
EnerNOC now mamages 5,300MW,
250 serving 3, 600customers at 8,600 sites 9.6 10
190.7
200 0
-5.8 -6.8
150 -10
106.1
-23.6
100 -20
60.8
50 26.1 -30
-36.7
0 -40
2006 2007 2008 2009 2010
Revenues Net Income
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20. Risk Factors
Dependence on utilities for revenues
ENC currently generates all of its revenues from utilities.
Upfront costs
As ENC expands the MW under management, the infrastructure (such as STB installed at
customers’ sites) necessary to enable those rises.
Time lag in revenue recognition
PJM forward capacity market operates on a June to May program-year basis. For example, a
MW that ENC enables after June of each year won’t be recognized as revenue until June of
the following year.
Penalty payments when capacity commitment is not met
Under the contracts, utilities make periodic payments based on the amount of demand
response capacity committed by ENC, not the amount of consumption actually saved.
If this commitment is not met, penalty payment is imposed on ENC.
Net penalty payments were $288,527, $168,719, and $82639 in 2010, 2009, and 2008
respectively, about 1/100 of annual revenue.
20 ⓒ 2011 insprout Corporation.
*Source: EnerNOC 2010 Annual Report All rights reserved
22. TO BE CONTINUED
We will analyze in detail various EMS technologies and
companies in those domains
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