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
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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
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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
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Greensmith Profile
Industry Expertise
Component-Agnostic 40 Installations
70MW
30 Customers
Grid & BTM
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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
Frequency Regulation
To IPP
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Software: Core Value Driver of ESS
Grid Services Renewables End-User C&I Microgrid
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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
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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
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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
Frequency Regulation
© 2016 Proprietary and Confidential
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
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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
© 2016 Proprietary and Confidential
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
© 2016 Proprietary and Confidential
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
© 2016 Proprietary and Confidential
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
© 2016 Proprietary and Confidential
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