Emerging Business Models - Deloitte US | Audit, consulting ... · Emerging Business Models Marlene Motyka, Moderator Principal, US Alternative Energy Leader ... Distribution substation

Emerging Business Models

Marlene Motyka, Moderator Principal, US Alternative Energy Leader

Deloitte Transactions and Business Analytics LLP

John Jung President and Chief Executive Officer

Greensmith Energy Management Systems

Bert Valdman President and Chief Executive Officer

Optimum Energy LLC

Emerging Business Models

© 2016 Proprietary and Confidential

John Jung

President & CEO

Greensmith Energy

Greensmith Energy


Greensmith-at-a-Glance • Selected fastest growing company in energy storage (Deloitte, Inc 5000)

• Delivered over 1/3rd of total US energy storage in 2014 after 2008 founding

• Provider of turn-key systems to software-only licenses to integration svcs

• Proven in both grid-scale systems and behind-the-meter (BTM) technology

• Serve and partner with largest power companies in the world such as Duke and E.ON, as

well as, behind-the-meter entrants such as JCI and LMCO

• Recently completed over-subscribed series C growth round after having delivered more

revenue and MW’s than entire BTM industry combined

• Forecast to deliver over 100MW in 2016 - US, Canada, Germany and ROW

Hardware Integration Installation

& service

System

Design Software


Greensmith's Point of View

• Electrical Grid is the only asset-intensive industry with average asset utilization of under 50%

• Grid congestion is not about more equipment or generation but largely an IT problem

• Energy Storage can be the first versatile grid appliance available to any participant, either side of the meter

• All DERs should be developed, delivered and integrated with the future grid in mind, Grid 2.0, not "paper-mached" to the antiquated grid today

• The value of energy storage is beyond batteries, important but commoditizing component like CPUs, and largely tied into value capture and intelligence, therefore software

• A battery is a terrible thing to waste


Greensmith Profile

Industry Expertise

Component-Agnostic 40 Installations

70MW

30 Customers

Grid & BTM


Recognized Leader in Energy Storage


2015 Sample Technology Deliveries 20MW/9MWh PJM - IL

Frequency Regulation

To IPP

2MW/6MWh - CA

Grid Deferral

To Utility

1MW/500kWh –

Puerto Rico

Microgrid/Solar Integrated

To OEM

18MW/7MWh PJM - PA


To IPP


Software: Core Value Driver of ESS

Grid Services Renewables End-User C&I Microgrid


Serving the Entire Value Chain • Turn-Key solutions for capacity, reliability and deferral

• Mature, proven platform – qualified by 9+ utilities

• Grid-Scale (>1 MW – 100s MW)

• Flexible partnering: Turn-Key to SW-only solutions

• Mature, proven platform – partnered with EPCs

• Grid scale (>1 MW – 100s MW)

• Flexible partnering: Turn-key to SW only solutions

• Proven BTM platform via channel partnerships

• C&I scale (= or < 1 MW)

• Flexible partnering: Turn-key to SW only solutions

• Deep design, integration and installation expertise

• Grid scale for utility and IPPs as well as C&I/BTM

Utility

Developer

End-User C&I

OEM


Addressing All Energy Storage Markets

Nuclear

plants

Natural gas

generators

Distribution substation Residential

Solar farms Wind farms

Commercial & Industrial

Community

Energy Storage

T&D Applications C&I Applications

Hydro


GEMS Software Platform C

om

po

ne

nts

BMS Adaptors PCS Adaptors Grid Adapters Other Device Adaptors

Temperature sensors

Fire suppression

HVAC, etc.

AMI Adaptors

Optimization Platform

Operation Scheduling • Peer-to-Peer Group Control • Real-time Equipment Control • Local HMI

Ap

pli

ca

tio

ns

Ramp Rate Control

Renewables Smoothing

Capacity Shifting

Demand Management

EV Charge Management

Black Start



Technology-Neutral Platform

PCS Integrated Batteries Integrated


Energy Storage Growth & Drivers

• Component cost reduction and process efficiency

• Technology familiarity beyond pilots and single use-

cases

• Number and expansion of entrants across value chain

• Strategic regard for energy storage as part of broader

grid trend

• Economies of scale and increasing longevity of

deployment use-case

• Renewables penetration and associated distributed

congestion/synergies

• OEM and supply chain dedication to stationary energy

storage

• Regulatory frameworks and support across markets and

geographies

• Multi-application, software enabled and advanced

applications


The Evolution of the Grid

Continued growth of renewables

Continued innovation in batteries,

price reductions and consolidation

Intelligent software and data to

manage reliably and economically

Software

Hardware

Renewables


Industry Issues Delivering ESS Technology

Industry

Knowledge &

Design for ROI

Component-Bias &

Core Competency

System of

Systems

Architect/Integratio

n • Poor economic and technical

rationale for project investment

• Lack of trade-off analysis through

life of system

• Lack of long-term strategy and

comprehensive set of

considerations/goals

• Energy storage projects

constrained by premature

component selection

• Natural OEM bias/motivation and

lack of software core competence

• Single-component limitations on

tech and econ innovations

• Lack of experienced energy storage

technology specialists as a central

point of responsibility

• Lack of long-term, fleet and

distributed asset control integration

and data analytics with growing

DERMS investment

• "Devil in the details" experience


Frequency Regulation Case Study

Site Details

• 18 Megawatts

• Pennsylvania, U.S.

• Performing frequency

regulation for wholesale power

market (PJM)

Challenges

• Integrate with renewables

• Environmental/terrain

• Respond quickly and

accurately to PJM signal

Solution

• Delivered in 5 months

• Qualified with 97% score

• Optimal performance,

maximum ROI


Microgrid Case Study

Site Details

• 1 Megawatt

• Puerto Rico, U.S.

• Performing ramp rate control,

integrated with PV

Challenges

• Meeting minimal technical

requirements (MTRs)

• Stabilizing the grid

• Integrating with PV

Solution

• Flexible, multi-application

software

• Alleviating grid congestion


Grid Deferral Case Study

Site Details

• 2MW/6MWh

• California, US

• Grid deferral/peak

shaving/power quality

Challenges

• Provide safe/stable power to

5MW commercial customer

• Stabilize the grid and avoid

feeder upgrade

Solution

• Multi-application deployment of

GEMS

• Scalable architecture

Documents

Emerging Business Models - Deloitte US | Audit, consulting ... · Emerging Business Models Marlene Motyka, Moderator Principal, US Alternative Energy Leader ... Distribution substation