2. Agenda
• Demand Response Overview
• How it works
• Three perspectives
• Quick Case Study
• Discussion / Next Steps for MBAs
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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
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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
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6. Strong value proposition to end-users
Earn Payments Protect Your Protect Your Preserve the
Operation Community Environment
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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)
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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
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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
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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
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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.”
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.”