Integrating Energy Efficiency and Demand Response for Commercial Customers. EnerNOC Inc.



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Integrating Energy Efficiency and Demand Response for Commercial Customers November August 2010 2010 EnerNOC Inc.

2

Introduction 3

EnerNOC at a Glance Market Leader in C&I Demand Response More than 5,100 MW under management across 8,200 C&I sites in US, Canada, and UK Proven, consistent resource reliability and exceptional customer satisfaction Innovative Energy Management Applications Including Energy Efficiency Strong Financial Track Record Publicly traded on NASDAQ (ticker ENOC) Projected 2010 revenues of $273-285M and profitable 460+ full-time employees (all figures as of 9/30/10) 4

Select EnerNOC Utility Partnerships In addition, EnerNOC provides capacity, energy and ancillary services in the following wholesale markets: the Electric Reliability Council of Texas (ERCOT), ISO New England, New York ISO, the PJM Interconnection, and National Grid (UK). Utility Allegheny Power Baltimore Gas & Electric Burlington Electric Dept (VT) Commonwealth Edison Delmarva Power Idaho Power National Grid NStar NYSERDA Pacific Gas & Electric Pepco Public Service Company of New Mexico Puget Sound Energy Salt River Project San Diego Gas & Electric Southern California Edison Tampa Electric Company Tennessee Valley Authority Tucson Electric Power Xcel Energy (Colorado) Application SiteSMART SiteSMART SiteSMART SiteSMART & SiteSMART & SiteSMART North America UK 5

The Holy Grail of the Smart Grid: Integrated Energy Efficiency and Demand Response The potential is there -- so what is holding us back??? C&I sector s EE potential is ~285 TWh and DR potential is 68 GW by 2030 1 Less than 5 percent of DSM programs have dual-purpose or integrated DR and EE components 2? 1 Source: Electric Power Research Institute, 2009 2 Source: Environmental Protection Agency, 2010 6

Approaches to Integrating EE and DR Approach 1 A common technology platform delivers both DR and EE. Approach 2 DR incentives are used to fund the cost of EE measures. Approach 3 The data provided by DR program participation can drive customers to optimize and reduce energy usage. 7

Approach 1: A common technology delivers both EE and DR. 8

Integrated Demand Side System Architecture Energy data is collected from the customer s electric meter and building management systems in real-time, which enables demand response and energy efficiency applications. End-use loads Integrated EE and DR application platform Distributed generation Electric meter Gas meter ilon Gateway Customer Facility Connectivity Network Data and Results UPS 9

A Robust Platform Can Provide Both DR & EE Monitor real-time DR performance. Generate energy efficiency through continuous monitoring based commissioning by filtering and analyzing data for anomalous consumption. Actual Schedule View energy information to monitor usage, benchmark facilities, optimize EE investments Present energy savings opportunities in a monthly report, allowing the customer to focus on the highest value measures. 10

Case Study: CSU Monterey Bay Monterey Bay, CA Key Technologies Employed On-Site: BMS: Johnson Controls Metasys 4.1 BMS Gateway: Gridlogix Meter Gateway: Echelon ilon Building Sq. Ft Points University Center 32,000 152 Sports Center 25,600 147 Media Learning Center 30,000 614 Student Center 29,000 53 Classrooms 15,000 110 Total 131,600 1,076 11

Case Study: CSU Monterey Bay, cont d Energy Efficiency Total Savings: (2009) 535 MWh &165 therms $62,000 Demand Response Total Savings: 55 kw $1,000 Participation Start: 2005 Programs: UC/CSU IOU EE Partnership EnerNOC SiteSMART Example Energy Efficiency Measures: Enable summer schedule on BMS Correct false discharge air temperature (DAT) reading on air handler (AHU) AHU is running when no occupants Noteworthy: As of 2009, the combined results of these projects have reduced CSUMB s annual energy intensity from 12.5 kwh/sq ft to 9.57 kwh/sq ft (a 24% decrease) and from 0.54 therms/sq ft to 0.40 therms/sq ft (a 26% decrease). Participation Start: 2009 DR Program: PG&E / EnerNOC Aggregator Managed Program Curtailment load: lighting and HVAC Response type: Automated Technology: Load control strategy is programmed directly into the BMS sequence of operation using standard Demand Limiting Load Rolling (DLLR) features Notification: Facilities managers are notified via text message of each dispatch no further action required 12

Approach 2: DR incentives are used to fund the cost of EE measures. 13

The Concept: Commercial Bakery Example Demand Response DR measure: partially curtail freezers, air conditioning and mixers across 4 sites Reduction: ~500 kw Contract length: 5 years Total annual incentive: $20,000 Energy Efficiency EE measure: high performance oven Discount rate: 10% Total DR incentive that can be applied to EE: $75,000 14

Case Study: Northwest Community Hospital Arlington Heights, IL Energy Efficiency Total Savings Identified to Date: $300,000 Demand Response Total Savings: 4.2 MW $129,000 / year Participation Start: 2009 EE Program: EnerNOC SiteSMART Key Technologies Employed BMS: Johnson Controls BMS Gateway: Tridium JACE Meter device: Echelon ilon End-Use Data Points Collected Approximately 5,000 Participation Start: 2008 DR Program: PJM Emergency Load Response Program Key Technologies Employed: Four 1.1 MW combined heat and power units Curtailment load: Shift load onto onsite generators Response type: Manual Example Energy Efficiency Measures: Reduce air handler run time when the surgery room is not in use. Turn off 125 outdoor alcove spotlights when there is adequate daylight. Reduce lighting in day-lit areas like the cafeteria, the main lobby, and various hallways 15

Approach 3: The data provided by DR program participation can drive customers to optimize and reduce energy usage. 16

Online Energy Management for C&I Customers 17 17

Case Study: MGM Industries Hendersonville, TN By having visibility into our energy usage, we ended up saving about three times the amount of our DR payments. We know a lot more about how we use energy, such as how many amps each piece of equipment draws. This knowledge helps us time our production schedule better and use the right equipment at the right time. 18

How Do C&I Customers Use Energy Data? Avoiding a new peak demand Monitoring weekend energy usage Responding to dynamic pricing signals Monitoring usage when management is offsite 19

Can Energy Data be a New EE Marketing Strategy? FlexPeak Management ACME Corporation Event Performance View Historical Performance Refer a Friend Program FAQ Idaho Power Home Energy Efficiency Easy Upgrades Building Efficiency Custom Efficiency Business Program Comparison Utility branded portal Complete Integrated access to other utility programs Note: This is a mock-up for illustrative purposes only. 20

A Few Considerations and Recommendations Interoperability is key. Human beings can only process so much data! DR and EE are compliments, but programs need to be structured correctly. 21

Questions? Kristin Brief Senior Marketing Manager, Utility Solutions Office: 617.224.9939 Email: kbrief@enernoc.com 22