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Demand Response 101
                 Johnson Energy Club

                 January 23, 2013




© EnerNOC Inc.
Agenda
    •    Demand Response Overview
         •   How it works
         •   Three perspectives
    •    Quick Case Study
    •    Discussion / Next Steps for MBAs




                                            2
How Demand Response Works

    Utility Anticipates Supply Shortfall


    Utility Notifies EnerNOC of pending
                                              Typical Demand Response Event
    grid emergency

    EnerNOC dispatches its portfolio of
    customers to curtail energy usage


    Customers initiate curtailment plan


    EnerNOC network operation center
    coaches underperformers
                                              Notify       Respond     Restore
    Load reduction is delivered to the grid
    at precisely the time it is needed

    Customers receive payment for
    verifiable load delivery




                                                                                 3
C&I Customers of all types




                             4   4
Balancing supply/demand is difficult and expensive
End users of electricity that provide a balancing resource can be compensated



            Annual Electricity Demand As a Percent of Available Capacity
 100%

 90%


 75%




 50%




 25%




            Winter               Spring               Summer                    Fall




                                                                                       5
Strong value proposition to end-users




 Earn Payments   Protect Your   Protect Your   Preserve the
                  Operation     Community      Environment




                                                              6
EnerNOC’s Mission: Unlock The Value
Comprehensive application suite for every energy management need




    Meters




BMS/BAS/EMS




   Bills/Rates




     External
(e.g. weather, prices)




                                                                   7
Quick Case Study: California industrial end user

Multi-tenant industrial park in PGE
service territory
• Converted building with inconsistent
metering
• One of the large tenants has a corporate
sustainability effort and works with an
energy consultant
• Most tenants are smaller, privately held
entities
• Decision-makers include a part-time
property manager, PG&E account
representative and the individual business
managers




                                                   8
Clear opportunity for EnerNOC-created value



                     EnerNOC provides:
                                                 Commercial
                     1. Customized energy
                        reduction plans
                     2. Simple, no-cost
                        implementation
                     3. Maximum event
                        preparedness and
     Local Utility      performance                Institutional
                     4. Maximized payments
                        and revenue assurance




                                                Industrial



                                                                   9
Focus: End User’s Perspective

•   Other priorities
•   Current energy management landscape (rates,
    operational considerations, decision-making, etc.)
•   Cost



What are the levers?

- Utility perspective
- End user perspective
- EnerNOC perspective




                                                         10
Discussion / Next Steps for MBAs




                                   11
Brian Alward
Account Manager




                   12

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Energy 101 ener noc and demand response

  • 1. Demand Response 101 Johnson Energy Club January 23, 2013 © EnerNOC Inc.
  • 2. Agenda • Demand Response Overview • How it works • Three perspectives • Quick Case Study • Discussion / Next Steps for MBAs 2
  • 3. How Demand Response Works Utility Anticipates Supply Shortfall Utility Notifies EnerNOC of pending Typical Demand Response Event grid emergency EnerNOC dispatches its portfolio of customers to curtail energy usage Customers initiate curtailment plan EnerNOC network operation center coaches underperformers Notify Respond Restore Load reduction is delivered to the grid at precisely the time it is needed Customers receive payment for verifiable load delivery 3
  • 4. C&I Customers of all types 4 4
  • 5. Balancing supply/demand is difficult and expensive End users of electricity that provide a balancing resource can be compensated Annual Electricity Demand As a Percent of Available Capacity 100% 90% 75% 50% 25% Winter Spring Summer Fall 5
  • 6. Strong value proposition to end-users Earn Payments Protect Your Protect Your Preserve the Operation Community Environment 6
  • 7. EnerNOC’s Mission: Unlock The Value Comprehensive application suite for every energy management need Meters BMS/BAS/EMS Bills/Rates External (e.g. weather, prices) 7
  • 8. Quick Case Study: California industrial end user Multi-tenant industrial park in PGE service territory • Converted building with inconsistent metering • One of the large tenants has a corporate sustainability effort and works with an energy consultant • Most tenants are smaller, privately held entities • Decision-makers include a part-time property manager, PG&E account representative and the individual business managers 8
  • 9. Clear opportunity for EnerNOC-created value EnerNOC provides: Commercial 1. Customized energy reduction plans 2. Simple, no-cost implementation 3. Maximum event preparedness and Local Utility performance Institutional 4. Maximized payments and revenue assurance Industrial 9
  • 10. Focus: End User’s Perspective • Other priorities • Current energy management landscape (rates, operational considerations, decision-making, etc.) • Cost What are the levers? - Utility perspective - End user perspective - EnerNOC perspective 10
  • 11. Discussion / Next Steps for MBAs 11

Notes de l'éditeur

  1. Script:“Because there is no storage of electricity, we build power plants and transmission lines to meet the peak demand. However, the grid peaks rarely so we only use 90% or greater of system capacity 1% of the entire year --- 80 hours or less. That’s incredibly expensive. Furthermore, the system is complicated and prices fluctuate significantly. End users can help to meet these challenges by participating in demand response programs.”
  2. Script: “There are many benefits to demand response participation:Payments: EnerNOC has paid out over $200M of demand response payments to customers. Customers earn anywhere from a few thousand to over a million dollars per year depending on the amount of demand they can reduce.”Protect Your Community: Blackouts are extremely expensive for the local community and its economy. By doing your part, you keep the lights on for everyone.Preserve the Environment: During times of peak demand, the oldest and dirtiest power plants are activated; demand response makes that less likely. Also, blackouts cause disruptions that are often environmentally damaging, such as overflows from waster water treatment plants.”Protect Your Operation: Prior to a blackout, voltage on the grid is often reduced. This can damage sensitive and expensive motors. Also, the sudden interruption of a blackout can disrupt the flow of work and equipment. It’s all about getting the heads-up so you can be prepared and making it less likely that the blackout will actually occur.”