Game-Changing Smart Grid Applications

Agenda

• What are the opportunities?– Utility: intelligent distributed controls– Consumer: energy savings

• Are utilities positioning themselves effectively to take advantage of these opportunities?

• What are the hurdles and impediments?

Jeff LundMember, ESNA

ESNA, The Energy Service Network Association, is an association of companies to promote the application of advanced energy management systems, including AMR/AMM, based on the Networked Energy Services (NES) smart grid infrastructure platform and to expand the interoperability standard for utility networks NTA 8150. ESNA is comprised of utilities, application designers, IT companies, hardware manufacturers and consultants. www.esna.org

Michael AndersonSVP, NES Sales and Market DevelopmentEchelon Corporation

Echelon Corporation (NASDAQ: ELON) is leading the worldwide transformation of the electricity grid into a smart, communicating energy network, connecting utilities to their customers, enabling networking of everyday devices, and providing customers with energy aware homes and businesses that react to conditions on the grid. www.echelon.com

Founded in 1991 and recently acquired by Elster, Energy ICT provides advanced energy monitoring and control systems to utilities and their customers with over 400 systems installed:

– Largest AMI- US = DTE (2.8 million hourly electric , 1.2 million daily gas, 20 K C&I)– Largest AMI – Europe = EDF( 35 million 2-channel, ½ hour electric) – Largest MDMA = IMServ (+100,000 meters/150,000 channels read daily)– Largest EMS = Wal-Mart (3,500 stores - 21,000 meters)

Claude Godin

President, Energy ICT

Michael MurphyPartnerPillsbury Winthrop Shaw Pittman LLP

Pillsbury is an international law firm. Michael’s group specializes in the acquisition of complex technologies and systems, including advanced metering, smart grid and related technologies, back office systems, and related external services. Pillsbury's legal services span the whole sourcing cycle from RFP development through contract negotiations, technology licensing and the protection of intellectual property rights. www.pillsburylaw.com.

Opportunity: Taking the Smart Grid Beyond the Meter

There Is An Unmet Market Need• Today’s AMI systems are closed

• AMI systems are meter-centric, not smart-grid-centric

ESNA is Filling This Market Need• Making available a field-proven Open Smart

Grid Protocol (OSGP)– Proven scalability and reliability in over 2 million

smart grid devices worldwide (meters and more)

• Promoting adoption of smart grid systems and standards built on the OSGP standard

• Providing a certification process to assure products comply with OSGP specifications

The crisis at the edge of the grid

Outages have increased by 124% in the U.S. over the past two decades

U.S. utilities experience peak demand just 2% of the year…but incur 15% of their annual costs on these days

There will be 1 million EV chargers in the US by 2015

Developing countries' share of global electricity demand is projected to jump from 27% in 2000 to 43% in 2030

So far the Smart Grid has focused on meteringSmart meters are about demand shifting…

We Need the Smart Grid to Go Beyond Metering

Why does the neighborhood need to be smart?

The Power of Open Control at the Edge of the GridApplications

• Easily integrate AMR, AMI devices• Monitor and control power quality

at the edge• Manage and control deployment of

electric vehicle chargers and solar panels

• Add neighborhood Volt/VAR control• Easily add dynamic micro demand

response capabilities

Benefits

Fewer outages Faster restorations Greater efficiency Better security Lower operating costs and

CAPEX Happier customers A cleaner environment

Opportunity: Energy Savings

• Critical steps• Energy savings value chain• Feasible activities and payback• Implementation barriers

Key dimensions along value chain

Feasible energy savings activity

Source: Driving the adoption of metering, monitoring, & targeting in the UK (2004) Carbon Trust of the UK

Barriers to Metering, Monitoring & Targeting

Typical End Customer Instrumentation

Forecasting & Performance Monitoring

Demand Response• Requires use of sophisticated work flow engine for EMS dispatch• Automated polling of ISO/utility price and scheduling systems• Load forecasting and baseline calculations used in calculating risk position

Continuous Commissioning

Performance Dashboards

Utility Implementations

• Are utilities positioning themselves to take advantage of these opportunities?

• What are the major hurdles and impediments?