Talk prepared for session in January 2013 at Danmarks Tekniske Universitet, under the auspices of Danish American Business Forum. Find out more at http://www.muninsight.com/energy-efficiency-smart-grid-markets-usa

1. Energy Efficiency and Smart Grid
Markets in USA
Original can be found on http://www.muninsight.com/energy-efficiency-smart-grid-markets-usa

2. Who we are
• We are an independent
advisory firm based in
Boston, Massachusetts,
USA
• We are deeply connected in
the energy markets
• We take part in the daily
life of energy markets and
in the agenda setting
discussions

3. Energy Efficiency and Smart Grid
Markets in USA
Talk prepared for session in January 2013 at
Danmarks Tekniske Universitet, under the
auspices of Danish American Business Forum

4. Opportunities

5. 2009 and Before
BUILDINGS
• Recession
• Energy irrelevant
-for most of population
-real estate appraisal
-real estate databases
• Misplaced incentives
-utilities paid for consumption
-split incentives (owner-tenant)
• Low level of financing
GRID
• Precedence for "prudent"
investment only (state
authority, attorney heavy)
• Customer: utility procurement
AND PUCs AND Off. of AG
• Example: Cape Wind politics

6. 2009-2013: Piecemeal Changes
BUILDINGS
• New utility incentives:
-ARRA 2009 (Obamapenge)
-Decoupling
• Locally initiated loan programs
(c1000 retrofits/yr in MA
pop.6.6m)
• Certifications:
LEED, Energy Star
• Educate stakeholders
• Next generation
GRID
• New incentives
-ARRA
-Deregulation
• Cape Wind and Distributed
Generation
• Demand response
• Smart grid buzz
• Many vendors pushing
• Next generation

7. Future
BUILDINGS
• Green homes market from
$17bn (2012) to ~$80bn (2017)
• Why?
-Ratepayer funding x 4
-Transparency
-PlaNYC
-Appraisal Institute
-Certifications
-Real Estate Databases
-ACEEE
-Green leases
GRID
• Growth from $26.7 billion by
2017 with a CAGR of 13%
• Events (e.g. blackouts) -->
reliability trumping price
-Regulatory changes --> more
ratepayer funding (AG office:
"stemming the flood")
-But:
regulatory changes slow
major cyber security issues

8. The Grand Future
BUILDINGS
• Standardization of loan program
underwriting and management
• Green lease acceptance
• Energy relevant categories in
real estate databases
• Securitization of loans
• All this amounts to "maturation
of securitized bond markets" -->
easy funding for DK products
GRID
• New RIIO-style regulation in
some states
• --> tipping point

9. Conclusion
• Changes all point in the same direction
• Many niches for Danish products, but …
• From the outside hard to grasp
– Local opportunities
– Timing
– Complex drivers and decision making processes

10. Grow Your Business in the USA