Managing Energy to Save Money
Presented to NE Kiln Drying Assoc.
November 5, 2009
Agenda
About EnerNOC
The NOC
North American Markets Served
Growth
Business Partners
Lumber Industry Examples
Electric Grid Hierarchy
EnerNOC’s Suite of Energy Services
DR - Demand Response
Background – “The 1 in 10 Standard”
The Problem – 1/10 of 1%
The Big Picture
Value Proposition
How do we do it?
Sustainability
Market Rules
ESM – Energy Supply Management
CarbonTrak
Road Map
2
About EnerNOC
About EnerNOC
EnerNOC
E
NOC is
i the
th nation’s
ti ’ leading
l di developer
d
l
and
d provider
id off clean
l
and
d intelligent
i t lli
t energy solutions.
l ti
Its Network Operations Center (NOC) ensures the ease and success of demand response events.
4
Why participate with EnerNOC?
9
Larges most experienced DR
provider in New England
9
No costs, fees, or penalties
9
EnerNOC technology and people
deliver revenue assurance
9
Real-time metering
9
24x7x365 customer support
9
Financial strength
g
EnerNOC is the largest demand
response provider in North America with
over 3,150 MW under management
across 5,450 customer sites in North
America.*
EnerNOC Demand Response
E NOC Office
EnerNOC
Offi
5
EnerNOC’s Growth
As of June 30, 2009
3,150 MW Under Management
2 400 D
2,400
Demand
dR
Response C
Customers
t
5,450 C&I Sites Under Management
2005
2006
2007
2008
2009
EnerNOC has the largest dedicated field
operations team in North America
Field technicians are radio dispatched and GPS tracked to ensure constant
communications and reliable load control
7
How is Demand Response GREEN?
“The greenest kilowatt-hour is the one never used.”
Emissions-Free Peaking Capacity: Unlike most renewable resources, DR can be dispatched as
an alternati
alternative
e to fossil fuel-fired
f el fired generation during
d ring critical peak periods
periods, offsetting the need to tturn
rn
on the dirtiest peaking generators
Defer Construction of New Generation: Demand response mitigates peak demand growth and
reduces the need for new generation. This allows more time for the development and adoption of
“ l
“cleaner”
” ttechnologies
h l i and
d th
the adoption
d ti off public
bli policies
li i d
designed
i
d tto reduce
d
GHG emissions.
i i
What makes EnerNOC a green company?
EnerNOC is dedicated to maintaining a clean, sustainable environment for future generations
through efficient energy management and demand response.
First energy management company to offset carbon dioxide pollution with the
purchase of Green-e® certified wind, solar, and other renewable energy credits
These credits offset 100% of emissions generated by EnerNOC & its customers
8
EnerNOC – Business Partners
EnerNOC has secured marquee
q
customers in its demand response
p
p
program
g
territories.
Commercial
Office and
High Tech
Education
Food Sales
and
d St
Storage
Government
Healthcare
Light Industrial
Lodging
and Resorts
9
EnerNOC Experience: Lumber
EnerNOC Experience
Potential Demand Response Strategies
9
100 Customers
9 Milling machines
9
163 Sites
9 Debarkers
9
100 MW of Demand Response Capacity
9 Kilns
9 Lighting
“Our actions ease the strain on the grid and
make it a more reliable electricity resource
for our community. Partnering with
EnerNOC for energy management allows
us to focus
f
on what we do best: producing
high-quality Eastern White Pine for our
customers.”
– Win, Maine Lumber Company
9 Planer miller
9 Saw mill
9 Complete shutdown
9 Backup generator
Customer Case Study
“EnerNOC really did make
i l
implementation
t ti
as simple
i l as
possible. They signed us up,
stayed on top of all the
implementation details, and
continually
ti
ll look
l k for
f new ways to
t
help us reduce our electricity use.”
-Malcolm Milne, Compliance Coordinator
IIndustry
d t
Manufacturing (lumber and wood products)
Location
New London, NH
Lumber mill cuts down energy
costs with EnerNOC demand
response
Durgin and Crowell Lumber makes money while
moving toward a more sustainable future
Program
EnerNOC Demand Response in New England
DR Strategy
Curtailment only
Primary Curtailment Strategy
Equipment shut-downs (sawmills, planer mill,
kilns)
Annual Payments
Approximately $40,000
11
Electric Grid Hierarchy
Understanding the Electric Grid Hierarchy
FERC
ISO / RTO / IOU
EnerNOC
Utilities & Suppliers
Rate Payers
Federal Energy
gy Regulatory
g
y Commission - FERC
Creates policy / standards for US Grid
Grid Operators manage supply & demand and
create energy markets and value of energy
Gives rate payers the ability to interface
energy markets and control cost of energy
Suppliers & Utilities make power
and deliver it to market
Have littl
H
little tto no say
on rates or policies
13
EnerNOC’s
EnerNOC
s Suite of Energy Services
EnerNOC’s Suite of Energy Services
EARN
Demand Response
REDUCE
Energy Procurement
Consulting
Monitoring-Based
Commissioning (MBCx)
Emissions Tracking and
Trading Support
Benefits of Total Energy Management
EnerNOC provides a technology-enabled,
technology enabled, advanced monitoring, control, and program management
solution that optimizes usage, minimizes costs, and generates revenue.
Total Energy Management with EnerNOC
(Cumulative Savings)
Enterprise-wide Carbon Management,
Measurement, Reporting, and Advisory
$ Valu
ue
Energy Analytics and Control
Sustainability Goals
10% to 25% Bill Savings
5% to
t 10% Bill S
Savings
i
Energy Procurement
Consulting with Green
Options (if interested)
2% to 5% Bill Savings
g
Demand
Response
and Advanced
Metering
You Can’t Manage
What You Don’t
Measure
Time
Demand Response
Demand Response (DR) – The Big Picture
Demand response is the voluntary reduction of electric demand in
response to grid instability or high wholesale electricity prices.
It substantially lowers peak demand and helps stabilize the grid.
Demand response pays participants as if they were adding firm
capacity to the grid for committing to curtail when necessary.
18
Background – The 1 in 10 Standard
Grid operators must meet the demand of a control area’s aggregated load while
meeting FERC’s reliability downtime standard of no more than one day in ten years!
Demand
Supply
Plant 1’s
Capacity
+
Plant 2’s
Capacity
+
Plant 3’s
Capacity
=
Your
Building’s
Demand
+
Next
Building’s
Demand
+
Next
Building’s
Demand
If Load Increases . . .
1
Build g
generator
Build generator
Build generator
2
Consume less
Shift consumption
Curtail during critical peaks
The Energy Market Now Pays Load to Respond!!!
19
The Problem – 1/10 of 1%
Electricity Demand (Percentage of Peak)
100%
90%
% of P
Peak Deman
nd
75%
50%
>10% of infrastructure costs
are spent to meet peak
demand that occurs less
than 1% of the time
25%
0%
Winter
Spring
Summer
Fall
20
Demand Response Value Proposition
O
ti
l Reliability
R li bilit – Demand
D
dR
id advance
d
ti when
h th
Operational
Response provides
notice
the
supply of electricity cannot meet demand.
Notification p
protects facility
y operations
p
and computer
p
servers from damage,
g ,
costly repairs or replacement due to power quality threats from grid instability.
Notification helps prevent data loss
Supplemental Revenue – Market created through rate tariffs paid by customer.
Emergency DR - Participants receive payments for their capacity and
additional payments for energy
Secondary Markets – Sync Reserve; Economic DR; Permanent load reduction
funds
gy Monitoring
g – EnerNOC’s PowerTrak® monitoring
g software
PowerTrak® Energy
provides Vic Firth real time visibility of facility electrical consumption including
baseline averages and peak demand. PowerTrak® can be used by Vic Firth to
help achieve your energy reduction goals.
21
EnerNOC DR is Simple and Rewarding
BENEFIT TO ACME
C t i d energy reduction
Customized
d ti
plans
l
1
2
Benefit from a unique, customized energy reduction plan that will
deliver the maximum reductions with the minimum impact on
your operation.
Simple, no-cost implementation
Ensure that implementation is quick and easy for you and
your staff so you stay focused on your business.
M i
Maximum
eventt preparedness
d
& performance
f
3
Be prepared for an event so participation is easy for you. Meet
your target reductions when an event is called – so you earn the
highest payments.
4
$
HOW WE DELIVER
• Expertise identifying reduction
potential for a wide range of facilities
• Experience installing over 5000 sites
across the country
• End-to-end program management
• Simple enrollment process
• No upfront costs or financial risk
• 24/7 customer support
• Reliable advanced event notification
• Access to real-time event
performance through PowerTrak
• NOC event performance coaching
Maximized payments and revenue assurance
Get the most financial benefit– and get paid on time
$
22
The Benefits Begin Almost Immediately
$
•
Earn payments for Emergency DR after
acceptance test (~12-16 weeks)
•
Save money by identifying opportunities for
efficiency through PowerTrak immediately after
installation (~8-10 weeks)
23
Offset Your Generator Maintenance Fees with DR
For a facility with a 500 kW generator, maintenance on that generator would cost roughly
$1250 per year, which includes one site inspection and one planned maintenance service.
With EnerNOC you make that back and more!
Est. Generator Maintenance Costs*
Name Plate kW
Demand Response Revenue
Loaded kW
2010
5-Year
2010
5-Year
250
125
$1,000
$5,000
$1,278
$8,688
500
250
$1,250
$6,250
$2,555
$17,375
750
375
$1 500
$1,500
$7 500
$7,500
$3 833
$3,833
$26 063
$26,063
1,000
500
$1,750
$8,750
$5,110
$34,750
1,250
625
$2,000
$10,000
$6,388
$43,438
1,500
750
$2,250
$11,250
$7,665
$52,125
1 750
1,750
875
$2 500
$2,500
$12 500
$12,500
$8 943
$8,943
$60 813
$60,813
2,000
1000
$2,750
$13,750
$10,220
$69,500
2,250
1125
$3,000
$15,000
$11,498
$78,188
2,500
1250
$3,250
$16,250
$12,775
$86,875
2 750
2,750
1375
$3 500
$3,500
$17 500
$17,500
$14 053
$14,053
$95 563
$95,563
3,000
1500
$3,750
$18,750
$15,330
$104,250
*Generator maintenance costs are an estimate and are based off of one site inspection and one planned
maintenance service per year.
How do businesses reduce demand from the grid?
Transfer load to existing onsite
generator
Power down energy-intensive
applications (curtailment)
and/or
25
Demand Response – How do we do it?
Using energy costs money
Conserving energy saves money
Committing some energy to demand response creates money
EnerNOC’s real-time energy monitoring provides grid operators capacity on demand
Baseline
Actual Demand
26
PowerTrak delivers powerful energy data
Real-time
R
l i
visibility
i ibili iinto event performance
f
iis iinstrumentall iin getting
i the
h
most from demand response programs
27
Maximize DR Event Performance
“Textbook” Event Performer: Energy Reduction as Planned
This customer performs flawlessly
throughout the event and requires no
additional coaching. Through PowerTrak,
the customer can see their event
performance in real time and make any
adjustments necessary to meet their goal.
Event Underperformer:
p
Coaching
g Needed
Not
meeting
reduction
target
Meeting
reduction target
The NOC event staff identifies an
underperforming site and coaches them
through their energy reduction plan.
Customer can view their performance in
PowerTrak to confirm they are hitting
their targets – and maximizing their DR
payments!
28
Access to More Cost-Savings with PowerTrak
Month 1: Normal consumption pattern
Are you wasting energy?
How do you know?
Month 2: In week 3,
3 nighttime baseline increases
Difference in monthly usage: 19,600 kW/hr
With PowerTrak’s detailed, roundth l k visibility
the-clock
i ibilit iinto
t energy
consumption at your facility, you
can:
• Quickly identify irregularities in
consumption
• Spot excess usage
• Verify the data on your utility
bills
Wasted energy =
$1,400/month
Month 1
Month 2
• Save on energy bills
29
Demand Response – New England
Program Name
EnerNOC Demand Response - New England
(Action 9 or 12)
EnerNOC Demand Response - New England
(Day-Ahead)
Territory
All New England
All New England
Demand Response Types
Curtailment and permitted generation
Curtailment and permitted generation
Capacity Payments
Yes
No
Energy (Event) Payment
Yes
Yes
Program Period
Year-round
Year-round
Program Hours
7 AM – 6 PM, Monday – Friday,
non-holidays
7 AM – 6 PM, Monday – Friday, non-holidays
Maximum Events
N/A
N/A
Event Notification
30-minutes
Day-ahead
Response Duration
Minimum 2 hours
At customer’s discretion, maximum of 11 hours
per event
Event History
2006: 2 Curtailment Events, 2 Generation Events
2007: 2 Curtailment Events (Maine), 1 Generation
E
Event
t (Maine)
(M i )
2008: 1 Curtailment Event (NEMA)
N/A
Testing Requirement
Single 2 hour test if no event has been called
None
Technology Requirement
5-minute interval metering
5-minute interval metering
30
EnerNOC Demand Response – New York
A program d
designed
i
d tto h
help
l NYISO provide
id critical
iti l supportt tto th
the electric
l t i grid
id d
during
i an emergency
Trigger
NYISO initiates as a final measure before resorting to rolling blackouts
Event History
8 events since 2003
Testing
If a zone has not had any DR activations during a capability
period (summer: May-October, winter: November - April),
the ISO may conduct a one hour audit for that particular zone at any time
before the end of the capability period.
Event Duration
Mandatory 4 hours / event
Event Limitations
0 – 5 events per year
Notification
Day ahead reservation; two hour activation notice
Response Types
Curtailment and/or generation
Penalties
EnerNOC assumes risk of financial penalties
31
NYISO Event History
Number of
Events
Year
Dates
Region
Duration
2003
2
8/15/2003
8/16/2003
ROS (Zone A-I), NYC, LI
ROS (Zone A-I), NYC, LI
14 hours
8 hours
2004
N/A
N/A
N/A
N/A
2005
1
7/27/2005
ROS(Zones G-I), NYC, LI
4 hours
2006
5
7/18/2006
7/19/2006
8/1/2006
8/2/2006
8/3/2006
ROS (Zones H-I), NYC, LI
NYC
NYC, LI
NYC, LI
NYC, LI
9 hours
9 hours
5 hours
6 hours
6 hours
2007
N/A
N/A
N/A
N/A
2008
N/A
N/A
N/A
N/A
32
Energy Supply Management
Energy Supply Management - ESM
EDUCATE - Education is critical - energy costs are volatile and
energy purchasing is a complicated financial transaction
transaction.
ADVISE - With EnerNOC’s EPS services, we act as an independent
advisor. Our fees are disclosed and we act in our client’s
client s interests.
LEVERAGE - In essence, we leverage competitive pressure to secure
the best p
pricing
g and terms available in the marketplace.
p
REDUCE - We help our clients reduce the costs and risks associated
with energy
gy commodity
yp
purchasing.
g
3
34
EDUCATE - How do you know you’re getting the best deal?
% Bill
Charge
Negotiable
60 %
Supply or generation
Yes
20 %
Demand or capacity
Yes
20 %
Ancillaryy or “other”
No
35
ADVISE - Energy Advisory Services
Energy advisory services since 1998
27 employees/consultants
l
/
lt t
Customer spend under management ~$3.5B/yr.
National deregulated
g
markets
- Electricity, natural gas, liquids, RECs, CO2 offsets
Over 750 EPS customers nationwide
Offices:
– Baltimore, Maryland
– Boston,
Boston Massachusetts
– Stamford, Connecticut
36
36
$/kW
h
•
Fixed Price For budget certainty and limited
exposure to volatile energy markets.
•
Fixed Price Energy with Pass-Through For a slightly
better energy price, budget certainty and limited
exposure to volatile energy markets.
•
Hybrids Many options exist to combine a fixed
product
d t with
ith an iindexed
d
d product
d t tto give
i flflexibility
ibilit tto
lock in price certainty or take advantage of market
swings
•
Indexed Customers can choose to pay the market
Day-Ahead or Real-Time price for all energy
consumed
•
Low
Electricity Purchasing Options
1
•
Hour
•
2
4
•
$/kW
h
•
1
•
Hour
•
$/kW
W
h
Risk
•
•
Fix
Float
•
Float
•
•
2
4
J
•
Season
•
D
•
High
$/kW
h
•
•
1
•
Hour
•
2
4
37
Leverage - Your Strategic Energy Advisor
Sit on the same side of table as you - no
allegiance to supplier
Assess risk and potential savings from
status quo
Help you chose the right product for your
facility
Compete your business – eliminating
supplier advantage
Provide management reports to support
and
d simplify
i lif d
decision
i i making
ki
On-going market monitoring, analysis,
and reporting
Substantial
S
b t ti l staff
t ff time
ti
and
d resources
saved – efficient interface with a
complex, changing competitive suppliers
market
38
Reduce - Simple Value Proposition
Unbundle energy supply purchase to:
Provide maximum risk management flexibility
Lower costs:
Pass through costs (capacity, ancillaries)
Purchase/manage individual components
P i ttransparency - block
Price
bl k purchases
h
We follow a rigorous process:
We assist
W
i t you with
ith an energy strategy
t t
that
th t fits
fit your business,
b i
and
d integrates
i t
t
demand management and energy efficiency with supply
We present you with a variety of pricing options
We compete
p
yyour business with blind bidding
g & reverse auctions
We provide budgeting and on-going market monitoring
3
39
CarbonTrak
Solution
Platform for Coordinated Collection
41
CarbonTrak Solution Overview
Full platform for Self-Serve GHG Reporting
Spreadsheet uploads into structured auditable database (Oracle 10g)
Fits well with distributed flow of information needed for foot printing
Node tree is physical (e.g., building) as well as organizational (e.g., BU)
Analytics Module
Allows Energy team to slice and dice energy information
Reports on Energy Costs, GHG sources by BU
Generates PDF and Excel Reports
Energy Efficiency Tracking
Allows self-service entry of Energy Efficiency Measures (EEMs) with
simple calculation of NPV
NPV, Payback
Payback, MAC
MAC, and CO2 Reduction
“Program Management Module” allows energy managers to publish a
playbook of multiple EEMs and track them across the enterprise
42
Key product attributes
On demand for rapid and accurate deployment
SaaS deployment
Intuitive user experience
System of record for emissions data
Usage repository
Repository of standards for energy,
energy cost and emission conversions
Supporting standard templates and protocols
Extract maximum value from data
Analytics, Mitigation, Energy Optimization / Savings
Sustainable ROI
Low Total-Ownership-Cost (TOC)
Non-invasive, non-disruptive deployments
Minimal training load
Continuous updates
43
Roadmaps
Roadmap – Demand Response
Assessment Plan
EnerNOC receives 1 year of electric bills
EnerNOC receives Backup Generation asset list
EnerNOC creates customer curtailment plan
Agreement – Execution of Master Service Agreement
Equipment Installation – EnerNOC installed metering equipment at your facility to
establish communication with our Network Operations Center (NOC)
Acceptance Test Event – EnerNOC conducts a test event to ensure that your predetermined Demand Response Plan works for you.
Receive Revenue Payments – You are officially on call to reduce your consumption
when an event is called, and you are ready to start receiving payments.
45
Roadmap – Energy RFP Process
Data Collection
& Load Analysis
Gather electric utility bill info
Manage RFP
Process
Develop strategy &
risk
i k assessmentt
If applicable, collect existing
supplier agreement
Package data into
customized RFP
Credit report and supporting
financial statements
Analyze responses
Quantitative & Qualitative
bid comparison
Present recommendations
Interact with suppliers
& customer
Electric interval data analysis
EnerNOC Exchange
reverse auction or
blind bid
One to Four Weeks
46
Recommend
and Negotiate
Conduct and/or support
final negotiation with
chosen supplier
Monitor &
Advise
Alert customer to market
movements
t and
d
regulatory changes
Monitor market for
opportunities
Provide PowerTrak®
monitoring (w/ DR)
Budgeting
Ensure supply agreement
executed & enrolled
Negotiate extensions or
new
On-Going
g
46
Additional EnerNOC Benefits
Customer PR Program Success Stories
Customer Press
Case Studies
Customer Speakers
2008 APPA Conference
“Doing Less with More”
Presentation by: Benny Phillips,
Associated Wholesale Grocers
Customer Marketing
g
Customer Awards
California State University San Marcos
wins statewide Energy Efficiency Award
48
Mathew Tuttelman
Senior Business Development Manager
EnerNOC, Inc.
75 Federal Street, Suite 300
Boston, MA 02110
Phone: (617) 224
224-9905
9905
Email – mtuttelman@enernoc.com
New York, NY ▪ Boston, MA ▪ Toronto, Ontario
Stamford CT ▪ Baltimore,
Stamford,
Baltimore MD ▪ Houston,
Houston TX
49