What does smart grid mean for businesses?

British American Business Council

Boston, MA | December 10th 2014

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Smart Energy SolutionsWorcester, MA

Smart Energy Solutions Video

Highlights:

� $45M pilot program in Worcester, MA

� 15k smart meters have been deployed

� More than 1,400 customers have requested technology packages

� 3,600+ customers have visited the hub

� TOU rates will go live January 2015 (2 options)

� Grid devices ready to go live January 2015:

� Customers are actively engaged with the web platform

This is a microcosm of Grid Modernization

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Grid Modernization

• Energy Efficiency

• Demand Response

• Distributed Generation

• Electric Vehicles

• Information

• Combined Heat & Power

• Energy Storage

• Resiliency and Reliability

• Cost Efficiency

• Efficient Consumption

• Greenhouse Gas Emissions

• CAFE standards –Alt Fuels

• Oil to Gas Conversions

Customer & Market Drivers• Resilient Backbone –

prevents and reduces impact of

outages while integrating clean,

central and distributed

resources

• Market Enabler - facilitates

and sends the right price

signals to customers and 3rd

parties

• Customized Solutions –

provides utility-customized

solutions that can stimulate the

market

Policy Drivers

Connect 21 - the heart of a clean energy future

�Optimizes value for all customers

�Meets policy objectives and Enables policy drivers to facilitate market solutions

�Centralizes information to prioritize & optimize solutions�Creates accountability to deliver policy drivers�Accelerates market expansion to meet policy objectives

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Grid Modernization

Today Tomorrow

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What does a smarter gridmean for business owners?

Fewer and shorted outages

Efficient integration of distributed energy

resources

More pricing options

Visibility and insights into energy

usage

Customized solutions for customers

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What are some of the business opportunities?

Global Solar panel market 3X

FORECAST FOR THE NEXT 5-10 YEARS

Global smart meter market 8.1%

EV market 2.3X

Global smart t-stat market

23X

Home energy management market expected to reach $1.9 billion by 2019

Smart Appliances Market 92%

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What are some of the business opportunities?

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What are some of the business opportunities?

DATA

� From 1M reads a month to 96M reads per day (per 1M meters)

� Smart devices such as t-stats will generate the same amount of data or more

� Processing, storing and analyzing the data is one of the biggest challenges/opportunities

� Integrating the data with other systems is critical

SERVICES

� 14% of customers participate in DR programs today, but 87% would do so with the right incentives.

� Targeting and segmentation

� Marketing of smart products – including cost/benefit analysis

� Enhanced customer experience

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What it will take to win

� Consider all players

� Finding attractive opportunities (who plays, who pays, regulation, margins)

� Deep understanding of full value at stake

� Consultative solution-selling

� Compatibility and interoperability

� Willingness to take risk on a forward looking market