Store Loads, Save Loads A way to manage your energy profile and pocketbook
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Transcript of Store Loads, Save Loads A way to manage your energy profile and pocketbook
OAP AssessmentThursday, March 6, 2008
Team: Giant SlayersTeam Members: Drew Bennett, Christopher Hain, Nick
Liao, Jeffrey Spehar, Eric Wan
The Opportunity
Opportunity Lever: Time of Use ratesProduct: Energy storage to manage your time of use
The Target MarketRequirements:
A utility bill with a “Time of use” rate optionSmall energy consumption
Target CustomerResidential single-family homesFocus first on Northern CA
5.2 Million PG&E Residential CustomersGrowth
Annual Energy demand growth: 1.25%Annual Peak Energy demand growth: 1.35%
Source: California Energy Commission Energy Report 2007
Future Markets: NJ, CO (favorable regulatory environments)
Business AnalysisCustomer Analysis (Best Case):
$2480/yr $1730/yr
Peak demand (storage req.): 12 kWh
The Battery: Lead-Acid Technology
Volum. density: 70 Wh/LEfficiency: ~80%# of cycles: 500-800 Cost of energy: 10 Wh/$
Load shift with storage
Savings: $750/yr
To meet peak demand, we make a product that…- is the size of a small refrigerator - costs $1200 to make - lasts at least 5 years.
Business ModelCost per unit:
$1,200 + $300 overhead, delivery, and services = $1,500Revenue per unit:
3-year payback at $750/yr = $2,250Add value of surge protector and backup power
“generator”: $250
Profit projections:$1000/unit in best case customers, $100/unit in worst
case Size is customizable depending on kWh need of customer Energy savings has close relationship with kWh need
5M PG&E customers at 10% penetration rate = 500,000 customers
~$60M market in Northern California alone
Challenges and RisksTechnicalStandard risks with taking a product to market
R&D, Manufacturing and Production, Sales and Marketing IP risk: anyone can copy our product
Lead-acid technology is relatively matureDistribution and Installation infrastructureSafety concerns
MarketRate disparity drives our opportunityRates are not under our control
Rates are set by California Energy Commission and Utilities Possibly Mitigate by Political Lobbying or Partnering with
Utilities
Competition and ProxiesGridPoint Technologies
Raised $88.5 million investment. Named top 100 technology pioneers
by Davos World Economic Forum 2008 Key Differentiations:
Market: Commercial vs. Residential Control given to utilities vs. residents
The Utilities: “Load-Leveling” Store and use old EV batteries in a
leveling bank Store off-peak energy and release on-
peak Potential conflict: who has the control?
Utilities or Households? Potential Distribution Partnership Also Potential Competition
Growth OpportunitiesExpansion after pilot in Northern CA
Almost all American utilities have Time-of-Use rates
“Plug and Play” Energy Platform Integrate third-party energy efficiency and distributed
generation systems Open Source software to designers of:
Photovoltaics Cogeneration products
Smart use and energy distribution Generate and report user statistics
ConclusionThis is a bona fide opportunity.The market is growing and so is consumer
awareness.The technology is simple, flexible, and gives
the consumer control.Long-term market risks exist, but development
of platform standard will mitigate these risks.
Questions?