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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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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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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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-board8/12/2019 FREE PREMIUM Energy Management 3.0 November 2012 Smart Grid Insights Zpryme Research
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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
$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
(figure 2, source: Zpryme)
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
(figure 4, source: Zpryme)
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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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*
Multinational corporations (60%)
Niche solution providers (30%)
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**
Multinational corporations (50%)
Niche solution providers (25%)
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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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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
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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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
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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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.
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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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/8/12/2019 FREE PREMIUM Energy Management 3.0 November 2012 Smart Grid Insights Zpryme Research
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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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/8/12/2019 FREE PREMIUM Energy Management 3.0 November 2012 Smart Grid Insights Zpryme Research
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Energy Management 3.0: Advanced Systems for Commercial and Industrial Users | November 2012
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