Scaling Up and Tapping Big Data: Next Steps for Energy Efficiency in MA German American Smart Buildings Symposium June 2015

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1 Scaling Up and Tapping Big Data: Next Steps for Energy Efficiency in MA German American Smart Buildings Symposium June 2015

2 Our mission Accelerateclean energy technologies, companies and projects Createhigh-qualityjobsand long-term economic growth Support municipal clean energy projects Investin residential and commercial renewable energy installations Cultivate a robust marketplace for innovation

3 Wind Turbine Testing Facility Boston, Massachusetts

4 Investments in Job Creation (Venture Debt) $100K - $1M Debt Investment Investments in the Advancement of Technology ~$500K Equity Investment 3-6 Deals / Year Size of Investment Catalyst Program Up to $40K Grant AmplifyMass (ARPA-E Matching Program) ~$100K-300K Convertible Grant InnovateMass Up to $150K Grant; ~10 Grants / Year Mass as First Customer Total Pilot Program Budget of $1M 10 Grants / Year Workforce Development Programs New Invention Technology Improvement Product Development

5 Challenges

6 Massachusetts Energy Efficiency Track Record State regulated, rate payer funded, utility administered energy efficiency programs have invested billions in energy efficiency measures in the residential and commercial sectors, resulting in billions more in savings for ratepayers. Massachusetts has been ranked #1 in efficiency for 3 straight years by the ACEEE.

7 Where do we go from here? Scaling Up Big Data/IoT Demand Management The opportunity Challenges Our role

8 Scaling Up

9 GHG Reduction Goals (80% by 2050) Buildings (9.8%) All cost-effective energy efficiency/rggi (7.1%) Advanced building energy codes (1.6%) Building energy rating and labeling Deep energy efficiency improvements for buildings (0.2%) Expanding energy efficiency programs to C/I heating oil (0.1%) Developing a mature market for solar thermal water/space heating (0.1%) Tree retention and planting to reduce heating and cooling loads (0.1%) Federal appliance and product standards (0.6%) Microgrids/District Energy (?%)

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12 Increased Resiliency Lower Total Cost of Energy Lower GHG Emissions Lower Total Energy Costs make the state attractive to all firms and residents Energy Security makes the state more attractive to hi-tech/ clean tech/ bio tech / advanced manufacturing Local generation revenues keep capital local, jobs Clean energy infrastructure attracts third party investment and job creation District Scale Solutions

13 Changing Grid Landscape Distant carbon intensive generation Local low carbon DG One way power flows Two way power and communication Static, flat rates Time of use pricing And New Entrants: Energy Storage Electric Vehicles M2M Communication

14 If Microgridsare so great, why aren t they everywhere? Challenge incumbent grid architecture and utility franchise Commercial real estate market largely unfamiliar with value proposition Evolving business model and finance models, and regulatory uncertainty re. microgrid revenue streams Technical challenges related to existing grid and identifying optimal deployment areas Some key components still very expensive

15 Community Microgrid Market Development Approach Business Model 12 Hours of scenario planning Utility Corporate Strategy / Gov. Relations, Real Estate Developers, Infrastructure investors, Muni-finance Advisors, Energy Developers, DPU staff and Commissioners, Outcomes: Straw proposal outlines business plan City Planning City Wide Energy Study to identify Microgrid Districts Economic impact analysis will show City-wide benefits: lower total cost of energy, avoided business downtime, local environmental impact March June 2014 June June 2015 Pilot Project Local planning to reduce costs for manufacturing hub of Boston (Marine Industrial Park) Local utility is engaged Engineering study to be completed June 2015, investors ready

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17 One Example: Demand Management Sleeping untapped assets vs. smart buildings with only 10% customer participation, the potential nationwide value of demand dispatch could be several billion dollars per year in reduced energy costs and, more than one-fourth of the 713 GW of U.S. electricity demand in 2010 could be dispatchable, offsetting new generation and transmission build for years National Energy Technology Lab (NETL)

18 What we can do? Federal Support Communication Standards Development Promote Private Sector Adoption Help Technology Developers Overcome Commercialization Valley of Death State Demonstration Projects Adopt Technology Help Technology Developers Overcome Commercialization Valley of Death Leverage Building Code Authority to Accelerate Market Adoption Local Support Pilot Projects Adopt Technology Leverage Zoning and Planning Functions to Accelerate Market Adoption Map Opportunity

19 Ten years from now, when we look back at how this era of big data evolved, we will be stunned at how uninformed we used to be when we made decisions. Billy Bosworth, DataStax CEO (2015)

20 Thank you! Galen