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PREMIUM

INTELLIGENCE BY ZPRYME | ZPRYME.COM 2012 ZPRYME RESEARCH & CONSULTING, LLC. ALL RIGHTS RESERVED.

SMARTGRIDRESEARCH.ORGINTELLIGENT RESEARCH FOR AN INTELLIGENT MARKET TMSMART GRID INSIGHTS

ENERGY MANAGEMENT 3.0:

ADVANCED SYSTEMS FORCOMMERCIAL AND

INDUSTRIAL USERS

NOVEMBER 2012


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INDUSTRIAL USERS

1 [PREMIUM] ZPRYME SMART GRID INSIGHTS

Copyright 2012 Zpryme Research & Consulting LLC All rights reserved www zpryme com | www smartgridresearch org

Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012

Table of Contents

Executive Summary ............................................. .................... 2

Energy Management System Market Transition ................ 5Recommendations and Opportunities .................................. 6

Market Overview .................................. ................................... 8

State of the Market ................................................................ 8

Technology Definition ............................................................ 8

Market Drivers ......................................................................... 9Market Barriers....................................................................... 10Technology Benefits and Segments .................................. 11Service Delivery..................................................................... 11

Energy Management Market Transition ........................... ... 13

Energy Management Systems Today ............................... 13

Energy Management Systems in 3-5 years ....................... 14

Energy Management 3.0 (6 - 10 years) ............................. 15Global Market Value Forecasts........... ................................. 16

Global Energy Management Systems Market ValueForecast, 20122020 ........................................................... 16Global Energy Management Systems Market Value by

Technology, 20122020 ..................................................... 16Methodology ........................................................................ 17

Key Players and Solutions ..................................................... 18

Emerging Companies to Watch ........................................ 23Major Government Initiatives ............................................... 26

Major Regional Projects ........................................................ 27

Keys to Entering the Energy Management Market ............ 30

Zprymes Market Outlook, 2012 - 2020 ................................ 31
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Executive Summary

Commercial energy management systems (EMS) allow

firms to reach energy efficiency goals and control energyconsumption company-wide by using proven energy

control techniques to optimize their energy efficiency.

Commercial buildings are a large potential market for

energy efficiency programs, and this includes energymanagement systems. To drive this adoption, federal

programs play a key role to encourage the technological

development of enterprise grade energy management

systems for commercial facilities.

Currently, EMS offerings are focused on energy

optimization based on company-specified goals and

preferences. However, in the future, EMS will also integrate

operations optimization, and will automatically adjustsettings for the highest levels of performance, in addition

to providing energy savings.

There are several segments of the EMS market, with each

having specific needs and being at a different stage ofdevelopment. As such, vendors will need to provide

solutions specifically suited to the requirements of each

customer. To address that, several small specialized firmsare currently offering customized products suited for the

different segments, and some large firms are alsoleveraging their knowledge and market presence to

introduce additional EMS products.

Overall, we expect companies will begin adopting EMSsoftware in increasing numbers over the next 5 to 10 years,

especially solutions that not only optimize energy

efficiency, but also integrate with other business functionsto provide both energy efficiency and operations

optimization. These systems are an amalgamation of

building management systems and advanced software

solutions that assist in managing the building functions in a

more energy efficient way to provide demand responsecontrols when situations within the power grid demand it.

To do this, the EMS software measures the energy

consumption and utilization of all network-connected

devices and systems to provide visibility into power usageacross the enterprise. Typical components include work

management capabilities, enhanced demand-response

applications, and analytics and forecasting applications.

Energy management is an evolving market, but we see

several opportunities for growth. Key examples include therising significance of social responsibility and managing

climate change; focus on increasing demand efficiency

and operating cost savings; new product offerings;compliance with energy efficiency regulations; and

increased use of renewable energy all of these are

driving demand for energy management solutions.

This report has been developed by Zprymes Smart Grid

Insights Research Team andZprymes Smart Grid AdvisoryBoard.
http://zpryme.com/practices/smart-grid-insights/smart-grid-advisory-boardhttp://zpryme.com/practices/smart-grid-insights/smart-grid-advisory-boardhttp://zpryme.com/practices/smart-grid-insights/smart-grid-advisory-boardhttp://zpryme.com/practices/smart-grid-insights/smart-grid-advisory-boardhttp://zpryme.com/practices/smart-grid-insights/smart-grid-advisory-board


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Key Takeaways by the Numbers

The global energy management system market is

projected to reach $1.70 billion in 2012. By 2020, the global

market is projected to reach $9.98 billion. The market is

projected to grow at a compound annual growth rate(CAGR) of 25%.

In 2012, North America (40%) and Europe (30%) will

account for about 70% of the global EMS market. Asia

Pacific will account for 15% of the market in 2012. By 2020,North America and Europe will each account for 30% of

the market, while Asia Pacific will account for 26% of the

market.

North America: From 2012 to 2020, the region willgrow by 21% annually, from $0.67 billion to $3.01billion.

South America: From 2012 to 2020, the region willalso grow by 21% annually, from $0.09 billion to $0.39

billion.

Europe: From 2012 to 2020, the region will grow by25% annually, from $0.51 billion to $2.96 billion.

Asia Pacific: From 2012 to 2020, the region will growby 34% annually, from $0.25 billion to $2.55 billion.

Rest of the World (ROW): From 2012 to 2020, theROW will also grow by 25% annually, from $0.18

billion to $1.07 billion.

Technology Segmentation

From a system technology perspective, communication

networks represent the largest market segment in 2012,

accounting for 20% of the global market. In 2020,

communication networks will account for 18% of themarket. This equates to a projected global market value of

$0.34 billion in 2012 and $1.80 billion in 2020 (23% CAGR).

By 2020, control systems will be the largest technology

segment, accounting for 21% of the global market (vs. 19%in 2012). This equates to a projected global market value

of $0.32 billion in 2012 and $2.10 billion in 2020 (26% CAGR).

In 2012, field equipment (15%), hardware (13%), software(10%), and sensors (8%) will account for a total of 46% of

the global market. By 2020, these four technologies willaccount for 44% of the market.

Among the six core energy management systemtechnologies, sensors and software are projected to grow

the fastest (30% CAGR).


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$1.70 $2.06$2.50

$3.05$3.72

$4.54

$5.89

$7.66

$9.98

$0

$2

$4

$6

$8

$10

$12

2012 2013 2014 2015 2016 2017 2018 2019 2020

Global EMS Market Value ForecastCAGR = 25%

2012 to 2020 (in U.S. billions)

(figure 1, source: Zpryme)

FieldEquipment, 15%

Hardware, 13%

Sensors, 8%

Software, 10%

Other , 15%

Comm.Networks, 20%

Control System,19%

Global EMS Market Segmentation by Technology2012 - % of Global Market(figure 3, source: Zpryme)

40% 38% 37% 35% 34% 32% 32% 31% 30%

5% 5% 5% 5% 5% 5% 4% 4% 4%

30% 30% 30% 30% 30% 30% 30% 30% 30%

15% 16% 17% 18% 19% 20% 22% 24% 26%

11% 11% 11% 12% 12% 12% 12% 11% 11%

0%

10%

20%

30%

40%

50%

60%70%

80%

90%

100%

2012 2013 2014 2015 2016 2017 2018 2019 2020

Global EMS Regional Market Segmentation2012 to 2020 - % of Global Market


ROW

AsiaPacific

Europe

SouthAmerica

NorthAmerica

FieldEquipment, 9%

Hardware, 10%

Sensors, 11%

Software, 14%

Other , 17%

Comm.Networks, 18%

Control System,

21%

Global EMS Market Segmentation by Technology2020 - % of Global Market



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Energy Management System Market Transition(table 1, source: Zpryme)

EnergyManagement

SystemsDescription Primary End-use Sectors

Type of Solution Providers(% of market served)

Key SystemFeatures/Characteristics

Today

EMS mainly employed in large

buildings and facilities to decreaseenergy costs by controlling,monitoring and assessing the

energy use of lighting, HVAC,

machinery, thermostats, and other

areas that use large amounts ofenergy.

Large commercial and

industrial customers

Multinational corporations

Large commercial building

and real estate owners and

managers

Federal and StateGovernments

Multinational corporations (75%)

Niche solution providers (25%)

Cloud based

Preventive analyticmodeling functions

Control hundreds of

devices across several

locations

Automatic devicestart/stop functions

In 35 years*

The EMS will integrate energyefficiency with business processes,management and operations.

This will enable integration and

control by department,

appliance, equipment, IT

infrastructure, human resources,

etc.

Mid-sized manufacturing

facilities*

Large retail operations*

Mid-sized corporate offices*

Healthcare/Hospitals*

Multi-unit apartments*



Start-ups (5%)

Utilities (5%)

Full energy profile

visualization

Customized to user needs

Micro-level device control

M2M communication

Advanced demand

response capabilities

In 610

years**

(Energy

Management3.0)

The EMS will allow businesses toalign energy efficiency with

business goals, and be able to

integrate and communicate with

energy aggregators, utilities,distributed energy resources, and

whole sale electricity markets.

Small manufacturingfacilities**

Small and medium retail

operations**

Small offices**



Start-ups (10%)

Utilities (15%)

Plug-n-play

Highly interoperable

Energy-management-as-a-

service (EMaaS)

Control thousands ofdevices across multiple

locations

*In addition to the functions, features, and sectors mentioned in Today

**In addition to the functions, features, and sectors mentioned in Today and in 3 5 years


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deployments reach critical mass, and ascommunications networks become more integrated

with the smart grid.

6. Companies with multiple locations stand to benefitfrom advanced EMS deployments in terms ofaggregated billing capabilities. Not only will

advanced analytics help optimize power

consumption across all sites, but they will streamline

the data management, making the billing process

simpler and more accurate.

7. On a more granular level, EMS will provide real timevisibility into energy consumption with the ability to

control the usage of any endpoint connected tothe data network. This will provide businesses with

unprecedented capability to proactively manageenergy use, and allow utilities to make better use of

dynamic pricing with customers, which will help

align energy supply with real time demandconditions.


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Market Overview

State of the Market

Deployment of the Smart Grid and smart meters enable

business management to understand their consumption,

as well as take measures to lower consumption andenergy costs. To date, energy management systems have

been adopted primarily in large industrial facilities,however use in other business settings is increasing as

executives become more aware of the benefits they

produce. In addition, technological advances will drive

adoption by reducing prices and creating products that

will not only optimize energy efficiency, but also optimizeoperations. Finally, economic recovery will further propel

adoption, as firms will have greater ability to make

investments in energy efficiency.

Commercial buildings currently consume approximately

40% of all energy or $400 billion per year in the United

States, making them the largest sector of the energy

market. Given the size of the market, reducing

consumption in the commercial market will significantlyincrease overall grid reliability.

Technology Definition

One way that a building is able to decrease its overallconsumption is through the deployment of an energy

management system (EMS). It does this through utilizing a

number of proven energy efficiency programs, such as

load shifting, duty cycling, optimal start and end time,thermal heat utilization, energy storage, response to

weather changes, time of day scheduling, demand

limiting, and renewable energy generation management.1The business specifies preferences and goals that govern

automation activities and create cost savings. In addition,

advanced analytics allow management to make more

cost effective and energy efficient decisions.

For the purposes of this report, the term commercial

refers to both commercial and industrial businesses.

Commercial Energy Management Systems (EMS) are a

suite of applications and technologies that enable users to

monitor, control, and optimize their use of energy. The

typical energy management system is comprised of thecore components described below.

EMS Core Components

(table 2, source: Zpryme)EMS Component Description

Field equipmentMeasurement devices installed in a facility, building, orbusiness. Examples include sub-meters, cameras, poweranalyzers, and media gateways

SoftwareProprietary software needed to integrate EMS with useroperations/ systems. This includes software that enablesadditional functionality to an existing EMS.

Control system(user interface)

Main system interface that manages, controls, andcommunicates with the entire EMS. Users optimize andprogram the EMS with the control system.

Hardware

Physical equipment used to integrate EMS such as servers,

user work stations, backup power suppliers, and mobilemonitoring devices such as tablets.

Communicationsnetwork

Communication equipment and architecture thatconnects and enables the transmission of data andinformation in the EMS.

Sensors

Wireless or wired sensors placed throughout an installationto measure power and/or communicate device data.Some devices or equipment may come installed with EMScompatible sensors.

1 www.eisalliance.com/documents/EIS_A_CEMS_WP.pdf
http://eisalliance.com/documents/EIS_A_CEMS_WP.pdfhttp://eisalliance.com/documents/EIS_A_CEMS_WP.pdf


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Typically, an EMS comprises of system placed in thecustomer's premise, including hardware and software,

designed to control the operation of other energy devices

according to customer preferences and objectives such

as reducing energy costs, or maintaining comfort or

convenience. Controlled devices could include, but arenot limited to, security, thermostats, lighting, HVAC,

appliances, large pieces of equipment, and even IT

infrastructure such as servers, computers, and

communication networks. Among other control inputs, an

energy management system can accept energy pricingsignals from a utility or third party energy service provider.

The EMS of the future will further integrate energy

efficiency with strategic business goals. Because futurebusiness energy management systems will control more

devices, from individual electrical outlets to the individuallights and pieces of machinery, the EMS will go a step

further than current capabilities to both control energy

and optimize production efficiency.

It will utilize occupancy sensors and scheduling to turn off

individual outlets to reduce vampire energy, shift the

storage of information to maximize server use, while

leaving critical outlets protected and backed up by astorage system to maintain constant operation. It will even

perform programmable functions like copying and

computer maintenance and updates during non-peak

times. By integrating operations with energy efficiency,firms will be able to better maintain equipment, reduce

downtime, improve production and maximize overall

profitability.

Market Drivers

Energy management is an evolving market and end users

are investing selectively in energy management solutions.

However, the market provides several opportunities for

growth as new companies focused on the space emerge,and longstanding IT companies and building

management system companies gravitate to this growing

market. Several factors are driving demand for energy

management solutions including rising significance of

social responsibility and climate change; focus onincreasing demand efficiency and operating cost savings;

new product offerings; compliance with energy efficiency

regulations; and increased use of renewable energy.

By using energy management solutions, firms are able to

respond to government regulations to reduce carbonemissions; to employee, customer, and community

requests to operate in an environmentally friendly manner;

and to shareholder demands to decrease costs andproduce higher returns. There are several approaches to

reducing the carbon footprint, from promoting eco-

friendly practices to changing energy production methods

to establishing and enforcing carbon emissions limits.

While the U.S. has yet to enact federal carbon regulations

or pricing laws, other government regulations affect future

energy supply strategies. In Pennsylvania, for example, a

new law requires a 4.5 percent reduction in peak energydemand by 2013. Moreover, by 2015, U.S. stimulus

spending promises to support an additional 50,000

megawatts of renewable energy sources. These types of

energy sources present intermittency challenges: The wind

does not always blow, and the sun does not always shine.


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As a result of intermittency, energy management systemsmust incorporate rapidly accessible response reserves for

use during power shortages. Furthermore, plug-in hybrid

and all-electric cars, such as the Nissan LEAF and Chevy

Volt, promise to help reduce both carbon emissions and

dependence on imported oil; however, they also lead toan increase in demand for power. Thus, energy

management systems are required to assist in minimizing

the energy requirement of these vehicles.

The use of energy is the second-largest variable cost in themanufacturing process after raw material costs. Energy

use changes from one hour to the next depending on

many influencing factors, such as outside temperatures.

Since energy needs can change abruptly, the energyinfrastructure must always have the capability of meeting

the peak demand. Newer, informed demand-responsetechnologies help shape energy demand, predict

available load, and then precisely shape that load. In

particular, informed demand response enables distributedintelligence end-points, verifiable results, accountability

and measurement, and comprehensive data analysis.

Organizations require enterprise-level reporting for

hundreds of thousands of devices across their highlydistributed offices and data centers worldwide. Therefore,

there is an increasing demand from global enterprises for

more depth and breadth to their energy management

solutions. This allows them to seamlessly scale to andsupport multiple locations around the world. Rapid energy

modeling, app stores, energy kiosks, cloud computing, big

data, online communities, and continuous optimization

are now required in the vocabulary of market players.

In the U.S., for example, BuildingIQ (an energymanagement software company) and Schneider Electric

(a global specialist in energy management) announced in

April 2012 that they were collaborating to provide

commercial building owners with a next generation

solution for energy management. This partnership providescustomers with a cloud-based energy management

system that automatically and continually reduces

Heating, Ventilation, and Air-Conditioning (HVAC) energy

use and connects commercial buildings to the Smart Grid.

Market Barriers

Getting consumers to understand that the use of energy

management systems can empower them to dosomething about their energy costs is the biggest market

barrier for the energy management system market. Mostcompanies and customers realize there are means to

reduce energy costs, but they lack information about

what is happening within their energy systems. Energymanagement systems can provide a window of how the

equipment in their buildings is operating, monitor

performance, and identify areas of potential savings.

Financing installations is a problem. Vendor providers cant

provide up-front costs, and equity leasing firms are not

interested in entering the market. If they would, its

predicted that the applications would explode.

Last, a burdensome regulatory environment, a lack of

standards, and acceptance of modern communications

networks are also holding back the potential of the energy

management systems market.


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Technology Benefits and Segments

Businesses that deploy an EMS first benefit from reduced

energy consumption, which leads to reduced energy

costs, reduced GHG emissions, and reduced pollution.

Our research finds that peak energy demand (load) canbe reduced 10% to 20% through the use of advanced

energy management systems. In addition, the firm will be

more knowledgeable about consumption and better able

to identify the high consumption areas, as well as plan for

the future. Modeling also lets the firm try out decisionsbefore they are implemented, allowing the firm to

determine the optimum settings and prevent potential

problems.

Any areas performing out of range can be quickly and

automatically scheduled for maintenance. In addition,energy optimization can increase the utilization of

equipment, and coordinate energy efficiency programs

across multiple locations, thus reducing overall energycosts for a business.

The EMS market has several segments. First, the large

industrial, commercial, and government segment has

been implementing EMS for some time as energy

accounts for a significant portion of their operating costs.

In the near future, the large industrial market willimplement improvements, especially as technology

enables further integration with operations management.

The Mid/Medium commercial segment includes retail

facilities, manufacturing facilities, and hospital andmedical buildings. These mid-sized facilities are not as

dependent on energy consumption as large facilities and

are more affected by the cost of the energymanagement system. Although there is considerable

interest in energy management systems, widespread

adoption will not be possible until the cost decreases and

the size becomes more scalable and customized.

The office business market is the largest segment of the

commercial building market. Offices have very specificneeds and critical equipment, such as servers, that must

be continually on. Energy waste can be significantly

reduced through implementation of an energy

management system. The segment is poised for

widespread adoption, however the cost must be reducedand the energy management system must control all

devices, while insuring the continued operation of others.

Finally, small businesses (those with under 500 employees)

represent a huge portion of the commercial market. In2009, there were nearly 27.5 million small businesses in the

United States, representing 99.9% of all businesses. In 2008,

21.4 million firms had no employees. The size of the market

is enormous, however facilities and capital are very

limited, and ROI is extremely important. For that reason,energy management systems for small businesses must be

relatively inexpensive and extremely customizable.

Service Delivery

Initially advanced energy managed systems and services

will be provided and managed by technology vendors,

third-party aggregators, and eventually utilities.

Management of these systems will take place under oneof the three scenarios below.


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Vendor or third-party managed: The solution providerwill manage the users system from a central location

(off-site). They are typically the least expensive solution,

as they have the lowest capital investment and a

monthly management fee. This EMS is cloud-based

and business executives can link remotely to modifypreferences.

User managed:In this case, a building or company willmanage the solution on site or from a central location.

The executives directly input preferences andparameters, and staff monitors the system to perform

overrides or manual operations. These systems typically

have a significant initial capital investment, and require

continued maintenance costs. In addition, humanresources are also utilized to manage the EMS.

Utility managed: The utility will manage thesolution/service for the user (commercial/residential

building or facilities). However, it is extremely costly dueto extensive deployment costs and could lead to

significant problems, such as customer equipment

failure due to duty cycling. In addition, the utility would

manage numerous clients, decreasing customization

by businesses and preventing individual efficiency.

Prices for advanced energy management services vary

significantly. Companies that work with smaller entities

such as residential homes, grocery stores, hotels, andtelecom applications charge as little as $1,500 for

upgrades of existing customers, $5,000 - $7,000 for most

installations, and up to $50,000 to $100,000 for large

customers. The average ROI time frame is 2 4 years for

such systems. In addition, customers are normally charged

a monthly subscription fee that is determined by theoverall size and number of locations each customer has.

Initially, utilities will not be interested in providing these

services unless they are reasonably progressive. Due to the

regulatory landscape, utility decision-makers are keen on

keeping the status quo due to potential liabilities. They areultra-cautious and hesitant to engage in programs and

services that might disrupt their operations.

They are open to looking at utility rebates but wont be

openly receptive to discussing the alternatives beingoffered by these companies until they can demonstrate

critical mass, which is normally considered to be a

successfully installed base of at least 300 units.

Overall, next generation services will be delivered and

managed through the Internet cloud. However,progressive utilities seeking new revenue streams will

eventually enter the market.


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Energy Management Market Transition

As energy management systems become more

advanced, they will go through a series of changes. First,the users that utilize energy management systems will

expand to comprise a larger section of the small to

medium sized business market. In addition, as adoption ofenergy management systems increase, benefits to users

and the overall electric grid will also increase. Next, thetechnology will advance significantly, enabling the

potential to control thousands of devices across multiple

of locations. Finally, seamless integration with the electric

grid, distribute generation resources, and whole sale

electric markets will become a key feature of the energymanagement systems of the future.

Energy Management Systems Today

Currently business scale energy management systems are

employed in facilities large enough to consume a very

high amount of energy, operate many pieces of high

consumption equipment, coordinate multiple buildings, or

where energy availability, reliability, and security are apriority. Industrial facilities frequently utilize energy

management systems because they employ a number of

very high energy consuming devices. Large automotive,food production, and other energy intensive industries also

utilize energy management systems. Universities frequentlyutilize energy management systems to manage energy

consumption in multiple buildings across their entire

campus. Finally, government facilities also employ

enterprise energy management systems, both due to thesize of their facilities, and their security and efficiency

requirements.

Several benefits of employing corporate energy

management systems are being experienced by its users.

The primary benefit of utilizing an energy management

system is reducing energy consumption. Reducing energy

consumption provides a number of secondary energybenefits including reducing the energy cost, reducing

greenhouse gas emissions, and reducing the carbon

footprint for the firm. Because the firm would reduce

energy consumption, it would require less energy from the

grid, thus creating a more reliable grid. Another benefitfirms experience is increased knowledge about its energy

consumption. Finally, this increased knowledge also

improves documentation and compliance of

environmental and other regulatory requirements.

Several key pieces of technology enables business energymanagement systems to integrate disparate systems to

offer energy reduction for the firm. Energy sensors can be

attached to energy consuming equipment, allowing theenergy management system to monitor and control the

devices. These sensors are becoming integrated with new

equipment, as in smart appliances, such as air

conditioners, water heaters, and security systems. In fact,

the motion sensors employed by security systems becomemore important as they provide valuable information

about occupancy and feedback about facility use. The

more devices that can be connected to the energy

management system, the more valuable the systembecomes for the firm. Energy management system

software is exceedingly important, as it takes the

information obtained from the multitude of devices and

sensors and analyzes it to monitor and manage energy

facility-wide. Also, additional features are being added,


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such as GIS integration, modeling and renewable energyintegration. Of course, renewable energy integration

includes solar panels, wind turbines, and all other

equipment associated with renewable energy generation.

Finally, energy management systems require a dedicated

computer terminal or control center to manage itsnetwork of connected devices. Increasingly, cloud based

systems are being deployed to allow remote monitoring,

control, and utilization.

Energy Management Systems in 3-5 years

In 3-5 years the enterprise grade energy management

system will have expanded beyond the large industrial,

manufacturing, government, and university market. At thistime it will have expanded to offices, large retail stores,

global conglomerates, building and apartment operators,and the primary education sector. In addition, hospitals

and medical buildings will also begin to utilize facility

energy management systems, as they are highlydependent on energy reliability, especially during

emergency situations.

In addition to benefits currently experienced by firms

utilizing energy management systems, numerous otherbenefits will be experienced. The energy management

systems will be controllable to the individual device level.

In addition, systems will be able to suggest opportunities

for additional savings, such as opening windows, andcycling the air conditioner. This will provide additional

energy efficiency and cost savings, further lowering

operational costs, increasing profits, and increasing cash

flow. These energy management systems will also offer

integration with natural gas, water and cable systems,

creating an integrated total energy management systemcapable of optimizing all resources. Automation will also

be key, as firms will receive automatic notifications of any

equipment performing outside the normal range, and the

energy management system will also schedule

maintenance and repairs, thus automatically reducingdowntime and increasing production. This will also

increase the lifetime of the equipment and minimize

equipment failures. The main focus of energy

management systems in 3-5 years will be integrated

energy efficiency with business management andoperations. The firm will benefit from being able to

prioritize devices, thus maintaining consistent operation of

critical systems while minimizing energy costs, such as

moving data to one server while shutting down asecondary server when it is not needed.

The energy management systems will evolve to integrate

business information by department, appliance,

equipment, IT infrastructure, human resources, etc. Thesystem will use advanced analytics and modeling to make

predictions, detect patterns, and manage systems based

on this information. Because the firm will be able to

control energy to the individual device level, most new

building and office equipment will have to be producedwith sensors allowing control by the energy management

system. Next, commercially produced sensors will be

available to integrate with older appliances, such as

computers, copiers, fax machines, phones, etc. Finally,advanced weather devices will also integrate with

renewable energy generation and modeling technology

to optimize the load profile of business users. Examples of

this weather technology include thermostats, barometers,

and hygrometers. In conclusion, technological


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advancements integrating all areas of businessinformation, advanced analytics, sensors, storage, and

weather devices will enable both manufacturing firms and

large office and retail facilities to experience the

numerous benefits of utilizing business energy

management systems.

Energy Management 3.0 (6 - 10 years)

Within the next 10 years, small businesses will realize the

potential benefits of employing an energy managementsystem and will look for suitable options to meet their

needs. The use of energy management systems will

expand to include small to medium size businesses such as

small retail facilities, restaurants, and small offices. Thesesystems will be smaller, inexpensive, and highly

customizable.

The benefits firms experience by employing a business

energy management system will be based oncustomization and integration. Again, business operations

will be of primary focus, and will allow businesses to align

energy efficiency with business goals. One way the

energy management system achieves this benefit is

through the ability to prioritize energy functions by businessimpact. The energy management system will evolve to

the extent that the operational goals can be input into the

energy management system and the system will be able

to discern patterns, and make predictions to guide energymanagement efforts. This will result in the energy

management system warming up equipment, turning off

outlets to reduce vampire energy, and optimize staff

deployment. In addition, the energy management system

will extend the life of equipment by detecting irregularities,

utilize the most efficient equipment first, and even performroutine maintenance automatically. In addition, the

system will be able to integrate and communicate with

energy aggregators, utilities, distributed energy resources,

whole sale electricity markets, and across thousands

devices located at different locations.

For these benefits to be realized, technology must be

enabled. First the energy management system will

become scalable with customization features that allow

both pre-set programs and a high level of individualization.The energy management system will also develop plug-

and-play capabilities that offer the ease of set-up for all

users. One key development in the energy management

system will be the ability to integrate data from everybusiness segment, including inventory, purchasing, human

resources, billing, IT, maintenance, etc. Anothertechnological step will be the ability to enter operational

goals and then translate those goals into an appropriate

and optimum course of action. The software will be ableto utilize real-time data to make instantaneous corrections

to meet said goals and optimize energy. The software will

also be able to offer different options to obtain the goals,

as well as suggest improvements to achieve better results

across systems or departments.


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Global Market Value Forecasts

Global Energy Management Systems Market Value Forecast, 20122020(table 3, source: Zpryme, in U.S. billions)

Region 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR

North America $0.67 $0.78 $0.92 $1.07 $1.26 $1.47 $1.87 $2.37 $3.01 21%

South America $0.09 $0.10 $0.12 $0.15 $0.18 $0.21 $0.26 $0.32 $0.39 21%

Europe $0.51 $0.62 $0.76 $0.93 $1.13 $1.38 $1.78 $2.29 $2.96 25%

Asia - Pacific $0.25 $0.33 $0.42 $0.55 $0.71 $0.93 $1.30 $1.82 $2.55 34%

ROW $0.18 $0.23 $0.28 $0.35 $0.44 $0.55 $0.69 $0.86 $1.07 25%

Total $1.70 $2.06 $2.50 $3.05 $3.72 $4.54 $5.89 $7.66 $9.98 25%

Global Energy Management Systems Market Value by Technology, 20122020

(table 4, source: Zpryme, in U.S. billions)

Technology 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR

Field Equipment $0.25 $0.28 $0.35 $0.39 $0.43 $0.47 $0.59 $0.77 $0.90 17%

Hardware $0.22 $0.27 $0.30 $0.34 $0.41 $0.45 $0.59 $0.77 $1.00 21%

Software $0.17 $0.23 $0.28 $0.37 $0.45 $0.59 $0.77 $1.00 $1.40 30%

Communication Networks $0.34 $0.41 $0.50 $0.58 $0.71 $0.86 $1.06 $1.38 $1.80 23%

Control System $0.32 $0.39 $0.50 $0.64 $0.78 $1.00 $1.30 $1.61 $2.10 26%

Sensors $0.14 $0.16 $0.23 $0.27 $0.33 $0.45 $0.59 $0.77 $1.10 30%

Other $0.25 $0.31 $0.35 $0.46 $0.61 $0.71 $1.00 $1.38 $1.70 27%

Total $1.70 $2.06 $2.50 $3.05 $3.72 $4.54 $5.89 $7.66 $9.98 25%


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Methodology

Zpryme utilized secondary research sources, publiclyavailable sources, government announced plans, and

Smart City, Smart Grid, and Building Efficiency plans to

analyze the Energy Management Systems (EMS) Market for

commercial and industrial users. In-depth industry

interviews were also conducted to better understand themarket drivers, demand, and opportunities. Qualitative

assessments were made by Zprymes research team that

take into account both the primary research

(meetings/interviews) and secondary research findings to

assess the market segments of interest.

Finally, time series forecasting was used to project market

values from the baseline data obtained from primary and

secondary research methods. Other variables accountedfor in our models include but are not limited to:

Energy demand Energy/fuel prices Economic growth (GDP growth) Government stimulus Government goals Renewable generation targets Private sector capital investment.


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Key Players and Solutions

Currently, Energy Management Systems for businesses are

offered by a group of specialty firms, as well as

multinational firms offering a range of services.

IBM: IBM has recently introduced its Smart Building andPower Systems Energy Management Program. IBM

integrates a building's diverse systems including security,

lighting, doors and windows, CO2 sensors, and even

badge readers into an illustrative analytics program

capable of making predictions and modeling decisions.The solution provides visualization of key benefits and goals

including reliability, efficiency, performance and

availability. IBM has been named one of the top four firms

leading the way in Enterprise Energy Management

Systems, and the firm's establishment in diverse sectors ofthe energy industry makes IBM one of the most trusted

firms in the field and its product is suitable for large firms

already utilizing IBM products.2

Another solution offered by IBM is IBM TRIRIGA. IBM TRIRIGAprovides a single system to manage the life cycle of

facilities. It delivers business analytics, critical alerts and

automated processes to increase visibility, control &

automation of real estate management, capital projects,space management, facility maintenance and energy

management. IBM TRIRIGA provides an integrated

workplace management system to increase operational,

financial and environmental performance of facilities.3

2 www-03.ibm.com/systems/power/software/energy/solutions.html3 www-01.ibm.com/software/tivoli/products/ibmtrir/index.html

IBM TRIRIGA Energy Optimization combines real-timesystems monitoring with facilities and event management.

It helps analyze and optimize facilities operations, reduce

energy expense, and improve asset management and

reliability.

Smarter Rebuilding in New Orleans

Tulane University's School of Architecture, a program

distinguished by its focus on community engagement and

environmental sustainability, has turned to IBM IntelligentBuilding Management and Johnson Controls to advance

its own smarter buildings evolution in the wake of

Hurricane Katrina's destruction six years ago. As the largest

private employer in the City of New Orleans, TulaneUniversity has made significant advances in rebuilding in

more environmentally sustainable ways.

The first IBM project is helping to transform the home of

Tulane's School of Architecture, the century-oldRichardson Memorial Hall, into a "smarter building living

laboratory," using IBM Intelligent Building Management

while maintaining respect for its historic status. The school

aims to arm a new generation of architects with

techniques that will allow historic buildings to be moreefficiently adapted for modern use.

The IBM project will bring together building technology for

heating, cooling, lighting and water to act in a moreholistic fashion for better results. The building will have

intelligence to monitor itself and communicate how it

should be most efficiently operated, significantly reducing

the natural resources it currently uses.4

4 www-03.ibm.com/press/us/en/pressrelease/34694.wss
http://www-03.ibm.com/systems/power/software/energy/solutions.htmlhttp://www-03.ibm.com/systems/power/software/energy/solutions.html


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IBM to Monitor 50 Federal Buildings

IBM has won a contract to develop and install smart

building technology in 50 of the U.S. federal governments

most energy-consuming buildings, and the resulting data

could help reduce operating costs across the General

Service Administrations entire inventory of nearly 182

million square feet.

The GSA says this initiative will save taxpayers up to $15

million annually by connecting building managementsystems to a central cloud-based platform. In the first year,

50 buildings will be integrated on this building

management system. As additional federal buildings are

constructed and other facilities are upgraded, theplatform will manage those buildings, too.

Under the terms of the contract, IBM will develop a system

to monitor building performance nationwide and stream

data to a central facility. The technology will link majorbuilding controls, and when the system is fully integrated,

tenants will be able to view the performance of their

buildings on dashboards with real-time metrics on energy

savings. They will also see recommendations on how to

further increase efficiencies.

GSA says it will then use the data and analytics to save

energy and reduce costs across its entire fleet of buildings.

The contract is part of GSAs larger smart building strategy

to reduce energy use. The agencys plan to meet the

requirements of President Obamas Executive Order 13514

goal of reducing energy consumption in federal buildings

by 30 percent by 2015, using fiscal year 2008 as a baseline.

Emerson: Emerson Process Management, an Emersonbusiness, is a leader in helping businesses automate their

production, processing and distribution in the chemical, oil

and gas, refining, pulp and paper, power, water and

wastewater treatment, mining and metals, food and

beverage, life sciences and other industries. The companycombines products and technology with industry-specific

engineering, consulting, project management andmaintenance services. Its brands include PlantWeb,

Syncade, DeltaV, Fisher, Micro Motion, Rosemount,

Daniel, and AMS suite.

Emersons Ovation system with SCADA technology

integrates all processes, not only the control of

mechanical equipment such as turbines, boilers, pumpsand mills, but also the control of electrical equipment, all

performed from a common platform. The Ovationcontroller combines technologies and Ethernet networking

which enables an interface with multivendor equipment in

the low and medium voltage arenas. It includescapabilities for the automation, monitoring and control of

actuators, variable speed drives, automatic voltage

regulation, transformers and generator protection.

Ovation also supports specific protocols designed for thepower industry for data exchange between generating

facilities and dispatch centers, and can be installed in new

or existing enclosures. Emerson also provides a CSI 6500

Machinery Health Monitor which combines protection andprediction, with real-time performance monitoring and

process automation. Integrated with Ovation, it provides

the enterprise-wide information needed for real-time

decision making.


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Barking Power LTD., one of the largest independentlyowned generation plants in the UK, successfully installed

Emersons Rosemount wireless acoustic transmitters to

identify failed steam traps, leaking valves, and boiler tube

leaks to improve the efficiency of its Combined Cycle Gas

Turbine Power Station in London. Using the wirelessnetworks already in place, additional devices can be

added at a much lower cost than if they had to be wired-in individually.

Johnson Controls: Johnson Controls provides equipment,controls and services for heating, ventilation, air

conditioning, refrigeration and security systems to increase

energy efficiency and lower operating costs in buildings.

Their Metasys building management system, with IT-based infrastructure, software and wireless capabilities,

provides monitoring and control of all building systems,including comfort controls for temperature and humidity,

lighting, fire safety, and security equipment. In addition,

one of their strategies is to play a significant role in thegrowing market for demand response services by enabling

smart buildings to interface seamlessly into the grid.

To enhance their position in this market, the company

acquired EnergyConnect Group, Inc. to create a new

level of building intelligence. EnergyConnects demand

response technology and service platform provides

energy managers and facility operators with real-time

energy information and access to energy markets tomanage their energy use.

Johnson Controls engineered a $3.8 million facilities

upgrade for Pioneers Memorial Hospital in Brawley,

California to improve operational efficiency by reducing

the cost of natural gas, electricity and water that will payfor itself in 10 years. The upgrades included low-flow

fixtures to conserve water, enhanced lighting, retrofitted

heating, ventilation and cooling systems, and a new 630

panel photovoltaic system, all linked by the Metasys

building management system to monitor and control the

performance of Pioneers facilities.

Siemens: Siemens Totally Integrated Automation (TIE)concept for energy management offers the integration of

all types of products and solutions, including themanufacturing systems of other vendors. Their product

spectrum extends from automation and drive

technologies to system integration using industrial software

to technology-based customers. Their products allowcompanies to digitally plan and simulate entire production

plans and manufacturing processes to optimize them priorto commissioning.

Their SPPA-M3000 is an energy management suite ofmodules for power plants and fleets which provides

precise detection analysis along the entire workflow

processes. The suite consists of five modules: Plant

Management, Early Fault Warning, Generation Planning

and Monitoring, Business Performance Monitoring, andProcess Information Management.

Their b.data Energy Management product creates

transparency in infrastructure processes, makingheterogeneous system landscapes easier to navigate, due

to the provision of a source-related energy cost allocation

and the ability to transfer data into an accounting system.


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Schneider Electric: Schneider Electric provides a productcalled StruxureWare which is comprised of platform of

applications and software suites that allows companies

visibility into energy, other resource usage and business

needs across buildings, industrial plants, and data centers.

Each suite delivers seamless integration with third-partyoffers and legacy systems, as well as a scalable platform.

Their Resource Advisor module is an online carbon and

energy reporting portal. This enterprise level software-as-a-

service (SaaS) tool allows end-users to visualize energy costand resource usage data, capture and report carbon

emissions accurately, and manage all energy efficiency

projects in one location.

The Energy Operation module is also a SaaS tool which

transforms data into essential energy information toidentify areas of continuous improvement to reduce

operating expenses. The Building Operation module

provides integrated monitoring, control and managementof energy, lighting, fire safety, security and HVAC.

The Power SCADA Expert module is a real-time monitoring

and control software solution for large facility and critical

infrastructure operations. It provides real-time dataintelligence for power distribution through alarming and

graphical interface functions. The Process Expert module is

the software that integrates the control application, the

supervision, and the field devices in a single environment.In the fourth quarter of this year, Schneider Electric will

release the Security Expert module to encompass video,

access control and building management, as well as the

release of an Asset Operation module in 2013.

Honeywell: Honeywell provides energy and emissionmanagement solutions to help manufacturers monitor,

report, analyze, and reduce greenhouse emissions.

Honeywell experts combine their knowledge of radio

frequency fundamentals and wireless networks with their

experience in process control networks and cyber securityto provide the most secure and high performance wireless

network for a facility.

Their Energy Dashboard product provides a complete

integration with the overall information and workprocesses of a manufacturing facility.

Their SentientSystem is an integrated suite of modules

specifically designed to address boiler, boiler cleaning,turbine cycle and unit optimization to provide asset

management to utility companies.

Honeywells Experion PKS transforms process control

beyond traditional DCS functionality by unifying peoplewith process variables, business requirements and asset

management. Integrated with the Experion PKS, their

Digital Video Manager (DVM) product presents video as

the next generation process sensor to automate the

detection of events and improve the speed and accuracyof operator response to process upsets.

Honeywell also provides a highly scalable, integrated,

multi-server SCADA solution that incorporates applicationsfor human machine interface (HMI) to address complex

remote automation requirements. They also provide a

specialty quality control solution, the HC900, for the pulp,

paper and rubber industries.


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In the latter regard, Honeywell was selected on May 16,2012, by Mitsubishi HiTec Paper Europe GmbH, a leading

European specialty paper manufacturer, to replace its

current quality control systems with Experion MX at its

production facility in Bielefeld, Germany.

Power Measurement Limited: The company has been

awarded a $3 million grant from the Government ofCanada to participate in a pilot project at the British

Columbia Institute of Technology. The company installed

Ion Enterprise, an enterprise energy management systemwith advanced forecasting, emergency power systems,

functionality allowing load side management and robust

security. Total consumption is forecasted to decrease

energy 10-25%, and illustrate the extent in which businesscustomers will decrease consumption based on energy

management system usage, as well as the ability ofintegration with dynamic pricing models, and is a suitable

option for multi-building facilities, such as universities.5

JouleX: JouleX offers the JouleX Energy Manager thatoffers a scalable solution for businesses. The sensorlesssystem integrates office equipment including VOIP

phones, copiers, servers, as well as distributed facilities into

a central system. Through cloud computing, the product

offers remote management, real-time feedback, demand

response, and green initiative support. Their primarycustomers are large office buildings.6

C3 Energy: C3 Energy offers its Energy and EmissionsManagement Software as a part of a portfolio of services

for business clients. C3 Energy's product monitors,

5 www.nrcan.gc.ca/energy/science/programs-funding/20506www.joulex.net/enterprise-energy-management/

analyze, visualize, and benchmark energy consumptionacross operations, including offices, data centers, plants,

equipment, and other assets.7 The product offers

advanced analytics and modeling features, as well as

offering real-time interaction and facility-wide analysis. C3

has won numerous awards, including Company of theYear from Going Green Global 200 and Platts Global

Energy Award's Award of Excellence.8

CA Technologies:CA Technologies offers the CA EnterpriseEnergy and Sustainability program to help firms manage

and track their energy consumption to meet company

goals, including sustainability, carbon footprint, resourcemanagement, government compliance, water usage,

and waste generation. One key feature is the CA

ecoDesktop, which reduces the energy consumed by

computers. The product is scalable and able to identifyconsumption from the entire firm to the smallest asset,

relying on advanced metrics and analytics to make

predictions. CA Technologies has also won numerous

awards, including being named one of the four leaders in

the Enterprise-Scale Energy Management System field.

Carbon Systems: Carbon Systems has also been namedone of the top four leaders in the Energy Management

System field, deploying their Enterprise Sustainability

Platform in over 45,000 locations worldwide. The web-based platform analyzes and reports information on

energy, environmental, and carbon consumption as wellas progress on social responsibility goals. In addition, it

provides detailed information on return on investment and

energy cost reduction.

7www.c3energy.com8Ibid.
http://www.nrcan.gc.ca/energy/science/programs-funding/2050http://www.nrcan.gc.ca/energy/science/programs-funding/2050http://www.joulex.net/enterprise-energy-management/http://www.joulex.net/enterprise-energy-management/http://www.joulex.net/enterprise-energy-management/http://www.nrcan.gc.ca/energy/science/programs-funding/2050


24/35




Verisae: Verisae offers its Energy Information System toenable upgrades and support firms that are already

involved in energy management and have already

experienced the cost savings that basic, low cost

improvements bring. The second level of improvements

focus on energy supply and demand, and optimization ofenergy projects, as it suggests opportunities for

improvement and potential energy savings. The energysolutions primary components include utility bill processing

and meter data management for energy spend analysis,

energy alerting and review through flagging dataanomalies, energy analytics, executive dashboards for

reporting and performance scoring, and energy validation

for exception management.9 Their solution is uniquely

suited for the large scale industrial customers that haveimplemented previous improvements, thus looking for

upgrades to existing systems within the next 10 years.

Emerging Companies to Watch

Retroficiency:Retroficiency is a start-up firm founded fromMIT. They focus on expanding the capabilities of theenergy management for businesses, including managing

several buildings from one location. The on-site program

allows access to every energy consuming area, and

partners with utilities to not only strengthen business energy

management, but also the Smart Grid as a whole. Thesolution is best suited for firms with many locations.10

eCurv: eCurv is a privately-held start-up company basedin Cambridge, Massachusetts. The company focuses on

9 www.verisae.com/energy-information-systems/Energy-Systems-Overview/10 energy.aol.com/2012/07/23/building-energy-efficiency-options-in-a-dynamic-environment/

niche industries, but primarily mobile telecom operatorswith cellular shelters. Their patent-pending IP-based system

optimizes peak and non-peak power consumption by

using proprietary algorithms. eCurv reports utility cost

reductions in excess of 11% without the costs or impact of

a major infrastructure overhaul, and savings of over$2,000/month for each megawatt under their

management. The company has future plans to market tocommercial customers with large footprints and large

fleets of appliances, including hotels, hospitals,

government buildings, universities, institutional buildings,

and eventually, EVs.

OutSmart Power Systems: OutSmart, based in Natick,Massachusetts, is the latest company launched byManifold, a firm that spins off tech start-ups to

commercialize products developed by outside investorsand its own engineers. It consists of a network, including

hardware and software that monitors energy usage,

building occupancy, and other activities in each room ofcommercial properties. The network includes nodes

designed for installation in electrical breakers, outlets, and

switches. The nodes are equipped with electronics that

calculate electricity consumption and use existing wires in

a building to feed that information into a controller. Thecontrollers are linked to servers, where the information can

be accessed and viewed over the Internet. The company

also plans to sell sensors that connect with the existing

electrical infrastructure in buildings to detect motion,temperature, and other conditions. In addition to owner

occupied commercial properties, their current marketing

and sales efforts focus on the domestic food vertical

markets including grocery stores, cold storage and
http://www.verisae.com/energy-information-systems/Energy-Systems-Overview/http://energy.aol.com/2012/07/23/building-energy-efficiency-options-in-a-dynamic-environment/http://energy.aol.com/2012/07/23/building-energy-efficiency-options-in-a-dynamic-environment/http://energy.aol.com/2012/07/23/building-energy-efficiency-options-in-a-dynamic-environment/http://energy.aol.com/2012/07/23/building-energy-efficiency-options-in-a-dynamic-environment/http://www.verisae.com/energy-information-systems/Energy-Systems-Overview/


25/35




distribution facilities, data centers, and pharmaceuticallaboratories.

Powerhouse Dynamics: Powerhouse Dynamics, based inNewton, Massachusetts, is the developer of the eMonitor,

a hardware solution that provides circuit level monitoringof all uses and sources of energy while controlling energy

intensive equipment by way of a cloud-based userinterface to provide energy management systems for

small commercial entities such as schools, restaurants,

food and convenience stores, and residential homes. OnAugust 6, 2012 it was announced that Ingersoll Rand has

made a strategic investment in Power Dynamics. The

integration of Power Dynamics eMontior into Ingersoll

Rands Nexia Home Intelligence that leverages the

advanced technologies of Trane and Schlage will

enhance customers ability to control their energy usage.

VCharge: VCharge, founded in 2009 and headquarteredin Cranston, Rhode Island, provides high-efficiency, low-cost heating with its SmartBricks Thermal Storage

technology. The SmartBricks system connects electric

thermal storage heaters to local electricity markets,

transforming the thermal storage into a resource for

renewable energy integration. Their mission is to preparefor 70-80% wind, nuclear, and solar generation through

economic improvements in managing Transactive Loads.

VCharge uses decentralized, market-based principles to

enable residential electric thermal storage heaters, EVs,

and other Transactive Loads to respond dynamically to

grid conditions and demand response. The company is

currently active in the energy and ancillary services

markets in New England, the Mid-Atlantic, with a special

focus on serving retail customers in Pennsylvania.

In May of 2012, Pennsylvanias Public Utilities Commissionapproved an application from VCharge to become an

Electric Generator Supplier (EGS) within PPLs service area,

allowing VCharge to provide electricity to up to 250

customers in PPL territory.

Zome Energy Networks (Changing name to ColorPower):

Zome Energy Networks, based in Cambridge,Massachusetts, provides a software and hardware

platform for utilities and energy suppliers to forecast,

simulate, monitor and ultimately control real-time energydemand and supply conditions on the distribution network.

Zomes product offerings utilize algorithms which operate

under a framework known as engineered self-

organization computing which uses distributed,

probabilistic, and spatial computing paradigm (Proto-

amorphous) to achieve response times a fraction oftodays Demand Response systems, while simultaneously

reducing Automated Metering Infrastructure (AMI)

network traffic by an order of magnitude. The algorithmsand computing framework together serve as the optimum

energy applications, such as Demand Response, EVs, and

distributed storage and generation integration, layer for

use over constrained smart metering infrastructures

SCIenergy, Inc: SCItrack is a cloud-based energymanagement solution that provides real-time actionable

insights into building performance through benchmarking,

automated monitoring and targeting, data visualization,and reporting. Building operators and owners can

leverage SCItrack to capture energy data across

disparate metering technologies to visualize and

demonstrate building and portfolio performance.

Customers often achieve up to 5% energy savings simply


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by gaining clarity into building performance and workinghand-in-hand with a dedicated energy analyst.

GridNavigator: GridNavigator Energy ManagementSystem (EMS) is a highly sophisticated metering and

modularized control system designed to help monitor,analyze and control facilities to optimize efficiency and

minimize cost. The cloud based platform consists of acombination of real-time benchmark alerts, dynamic

reports and control capabilities, connecting different

facilities and multi-site energy endpoints for continuousenergy savings opportunities. The typical payback period

for most GridNavigator customers is within 18 to 24 months,

resulting in operational savings of 20% or more annually.

By offering integrated software and hardware solutions,

they allow clients to create smart electricity networks thatcan monitor and control anything from heavy-load

machinery to a single light switch. They also offer remote

facility management services, and can monitorconsumption levels at the individual appliance level to

guarantee clients maintain optimal energy performance

and undergo minimal expenditures at all times.

The GridNavigator integration server (GridXchange Server)is a turn-key solution for real-time read and write from

BACnet data points. This approach eliminates the

unnecessary sub-metering endpoints that are already

monitored by the Building Management System (BMS) andlowers the overall metering and monitoring cost.

Telkonet: Telkonets EcoSmart offers a product suitecapable of creating an in-room energy management

network that can be configured to meet the requirements

of most building environments. Telkonet can provide andinstall any combination of intelligent thermostats,

occupancy sensors, door contacts, and plug load control

devices. All products can be networked to enhance

energy efficiency and provide remote monitoring

capability.11

Panoramic Power: Panoramic Powers P3E energymanagement system provides users with real-time

granular, asset-level energy measurement, anomaly

detection, and failure prediction through customizedalerts.12 The solution combines miniature, wireless sensor

technology with a powerful cloud-based analytics

platform, offering complete visibility regarding the energy

consumption of individual assets. The solution detectshidden inefficiencies and waste, and identifies problems

and risks early, before they lead to high energy costs andunexpected equipment failures.

Panoramic Power has partnered with AtSite, which will use

Panoramic Powers P3E to provide its clients including

the U.S. Green Building Councils headquarters inWashington, DCwith real-time energy usage feedback.

AtSite says it has deployed the EMS at restaurants,supermarkets and retailer facilities. Its clients include

Adventist HealthCare, which AtSite says is on target to

reduce its expenses by $2.9 million by 2014, while reducing

its carbon footprint by 16 percent, by collecting andanalyzing energy data streams.13

11 www.telkonet.com/datasheets/EcoSmart-Quicksheet.pdf12www.panpwr.com/company.php?nodeID=1013 www.environmentalleader.com/2012/06/13/panoramic-and-atsite-monitor-us-green-building-council-buildingiq-and-nv-energy-trial-commercial-hvac-efficiency/


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Major Government Initiatives

Fuji Electric Co., Ltd., DENSO Corporation, Toyota Tsusho

Corporation, FamilyMart Co., Ltd., Takamiya Corporation,and Yamato Transport Co., Ltd. have collaborated to

conduct a demonstration test in Kita Kyushu City, Fukuoka,

Japan. The project focuses on the development of a

Building Energy Management System (BEMS), which will

help realize smart stores that will contribute to leveling

regional electric load, creating a low-carbon society, and

using energy more effectively. The demonstration test was

planned to start in June 2012 and end in December 2014.

In Japan, Kita Kyushu City is designated as an

experimental city for next-generation energy sources andsocial systems. The program is being promoted by JapansMinistry of Economy, Trade and Industry since April 2010.14

In 2010, it was announced that Power Measurement Ltd., asubsidiary of Schneider Electric, will receive up to $3 million

through the Government of Canadas Clean Energy Fund,to demonstrate a Smart Grid electricity system. The energy

management business intelligence platform will determine

the ability of a Smart Grid electricity system to optimizeenergy resources, including renewables, in an institutional

building complex at the British Columbia Institute of

Technology (BCIT). The project will also determine theability of commercial customers, at sites in Calgary and

Toronto, to voluntarily reduce their demand based on real-time price signals.15

In February 2012, under a strategic alliance, Siemens and

Boeing, together with a team of partners, were awarded a

14DENSO Europe15NRCAN

project funded by the U.S. Department of Defense (DOD)under its Environmental Security Technology Certification

Program (ESTCP). Using Siemens and Boeing's cyber-secure

energy savings technology, the DOD will realize up to 40

percent savings in energy costs at this one installation. The

team, which also includes the University of California atBerkeley and KEMA Services Inc., will implement intelligent

energy-management solutions that include integratedcontrols for cooling and heating systems, lighting,

ventilation and plug loads. The upgrades will help improve

DOD infrastructure energy security and reduce its facilityenergy costs. Siemens and Boeing have formed a

strategic alliance for DOD energy modernization. Under

the alliance, the companies will develop and market

"Smart Grid" technologies to improve energy surety andsecurity for U.S. military installations.16

In the U.S., President Obama created the Better Building

Initiative, which encourages companies to reduce energy

consumption by 20% by 2020.17 Also, the U.S. D.O.E. hasencouraged business to participate in the ISO 50001

certification program, internationally established standards

that serve as best practices and aim to benchmark

energy efficiency of commercial facilities. In addition, the

mandatory California's Energy Efficiency and Co-BenefitsAssessment Regulation has encouraged the performance

of an energy audit, as well as the identification of highenergy consumption areas, and includes the possible

installation of energy management systems.18

16 www.prnewswire.com/news-releases/siemens-and-boeing-strategic-alliance-secures-dod-contract-140536583.html17 www.whitehouse.gov/sites/default/files/bbi_factsheet_final_clean_12-1-2011.pdf18 enhesa.wordpress.com/2011/08/18/from-voluntary-to-mandatory-energy-management-systems-in-the-united-states/
http://denso-europe.com/fuji-electric-denso-toyota-tsusho-familymart-takamiya-and-yamato-transport-to-conduct-demonstration-test-of-energy-management-systems-for-commercial-facilities-in-fukuoka-japan/http://www.nrcan.gc.ca/energy/science/programs-funding/2050http://www.whitehouse.gov/sites/default/files/bbi_factsheet_final_clean_12-1-2011.pdfhttp://enhesa.wordpress.com/2011/08/18/from-voluntary-to-mandatory-energy-management-systems-in-the-united-states/http://enhesa.wordpress.com/2011/08/18/from-voluntary-to-mandatory-energy-management-systems-in-the-united-states/http://enhesa.wordpress.com/2011/08/18/from-voluntary-to-mandatory-energy-management-systems-in-the-united-states/http://enhesa.wordpress.com/2011/08/18/from-voluntary-to-mandatory-energy-management-systems-in-the-united-states/http://enhesa.wordpress.com/2011/08/18/from-voluntary-to-mandatory-energy-management-systems-in-the-united-states/http://www.whitehouse.gov/sites/default/files/bbi_factsheet_final_clean_12-1-2011.pdfhttp://www.nrcan.gc.ca/energy/science/programs-funding/2050http://denso-europe.com/fuji-electric-denso-toyota-tsusho-familymart-takamiya-and-yamato-transport-to-conduct-demonstration-test-of-energy-management-systems-for-commercial-facilities-in-fukuoka-japan/


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Major Regional Projects

Governments and businesses are focused on finding and

implementing energy management solutions that canreduce energy usage and the amount of carbon dioxide

in the atmosphere. Following are some of the projects

have been undertaken in this regard:

North America

In May 2012, nine Japanese companies Shimizu

Corporation, Toshiba Corporation, Sharp Corporation,

Meidensha Corporation, Tokyo Gas Co., Ltd., Mitsubishi

Heavy Industries, Ltd., Fuji Electric Co., Ltd., FurukawaElectric Co., Ltd. and The Furukawa Battery Co., Ltd.

launched a demonstration study for the Albuquerque

Business District Smart Grid Demonstration Project. Thisproject was consigned to them by the New Energy andIndustrial Technology Development Organization (NEDO),

to be carried out as part of its Japan-U.S. Collaborative

Smart Grid Demonstration Project. The project will be

completed

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