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Smart Grid in the USA

Hiroshi Yagi, Ph.D.IMAnet, Inc.

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・ About IMAnet, Inc.・ What is Smart Grid?・ Smart Grid Players・ Smart Grid Standards・ Smart Grid Regulations・ Smart Grid = Disruptive Technology?・ Smart Grid Asian Opportunities

Agenda

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・ Founded 2001 in Silicon Valley・ Office ＠ Santa Clara、CA www.imanetinc.com

・ Cross Border Business Consulting- Technology Research- Market Research- Patent Search- US Government and Business Watch- Business Alliance and M&A

IMAnet, Inc.

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・ 2003 PartnerThe University of Tokyo Silicon Valley Office

・ 2004 Founded JUNBA Body www.junba.org（Japanese University Network in the Bay Area)

・ 2008 Connect NIST and a Japanese firm・ 2009 Create joint work between the firm and NIST・ 2010 Pacific Rim Security II Japan Representative.・ 2010 Co-Founded JABI

（Japan America Business Initiatives www.JABI-SV.org)

IMAnet, Inc. A Short History

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What is Smart Grid?

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A next generation power grid,where multiple IT networks andother advanced technologies areaggregated.

Smart Grid: 2 Major Challenges

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SmatSmat GridGridNext GenerationNext Generation

Power GriPower Gridd

ManageManagegrowing demandgrowing demand

renewablerenewableenergyenergy

ITIT

We areHere

Urgent and Important

Important issue

Traditional GridTraditional GridOld and notOld and not

SecureSecure

optimumenergy grid

withIT networks

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Conceptual Model (by NIST)

Smart Grid Framework

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Business Applications

Computing/IT

Energy Infrastructure

CommunicationsInfrastructure

Source: PG＆E

Req

uire

ssi

gnifi

cant

new

inve

stm

ent

Power Layer

(Transmissionand distribution)

Communication Layer

Applicationand ServiceLayer

Req

uire

ssi

gnifi

cant

rein

vest

men

t

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Smart Grid/ Utility vs. Interface

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Smart Grid Layers - Players

10 Source: GTM Research

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AMI System Capital Deployment

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100%

0%Source: RBC Capital Market Research and Company Reports

20%

40%

12%

6%

10%

12%

AMI Core/NetworkCommunication

Meter Hardware

Back-End Software

Consulting/Syst.Integrator

Demand Response

Deployment/Other

The largest capital expenditure requirements are the metering and core AMI technologies. Companiessuch as Itron, GE, Silver Springs Networks & Landis+Gyr will benefit most from Core AMI technologyintegrations.

Source: Silver Springs website

Smart Grid Market

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North America Smart Grid Market

In $Billions Source :Merriman Curhan Ford

2008 2010E 2013E 2030E

AdvancedMetering &DemandResponse

1.6 1.9

TransmissionInfrastructure

8.7 10.3

Total 10.3 12.2 40 100

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Smart Grid Initiative

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Cisco is trying to provide an end-to-end, highly secure IP-based SmartGrid communications infrastructure.The head count in the Smart Gridteam exceeds 100.

With ample experience in IT andpublic projects, they provideconsultation and system integrationservices in Smart Grid. They areworking with major public sectors.

Oracle has the Utility Global BU mainlythrough M&As. e.g. They bought SPLWorld Group, provider of managementutility software in 2006, and Lodestar,energy operation solutions in 2007.

Microsoft has developed ‘MicrosoftSmart Energy Reference Architecture’(SERA) for utilities. Beta version of MSHohm, web-based energy monitoringsoftware is now available in the US.

Future Smart GridBy Utility Company

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Project opportunities IUtility Location Meters Electric End

PointsAMI CoreSystem

MeteringHardware

ManagementSoftware

NetworkBackbone

HAN Consulting/SIer

Demandresponse

NorthernCalifornia

9,300,000 $2.2B SilverSprings

GE &Landis

EcologicAnalytics

SilverSprings

SouthernCalifornia

6,000,000 N/A RFPSolution

SouthernCalifornia

5,300,000 $1.6B Itron Itron eMeter Itron EnerNOC

GA, AL, FL,MS

4,300,000 $725M Sensus Sensus Sensus Sensus

Detroit 3,300,000 $800M SmartSynch

Itron Itron Itron Comverge

Dallas 3,000,000 $686M Landis Landis EcologicAnalyicseMeter

IBM

Houston 3,000,000 $640M Itron Itron eMeter GE(WiMax)

IBM

San Diego 2,300,000 $572M Itron Itron Itron Itron Capgemini RFP

Missouri 2,040,000 N/A Landis

OH, IN, NC,SC

1,921,000 $1B Echelon &SmartSynch

Echelon Echelon EchelonAmbient

Wisc,Michigan

1,530,000 N/A Landis

SothernFlorida

1,400,000 $700M SilverSprings

GE SilverSprings

SilverSprings

Cisco

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Project opportunities IIUtility Location Meters Electric End

PointsAMI CoreSystem

MeteringHardware

ManagementSoftware

NetworkBackbone

HAN Consulting/SIer

Demandresponse

WI, IA, MN 1,400,000 $200M Sensus Sensus eMeter Sensus

Connecticut 1,200,000 $250M Comverge

Oregon 850,000 $175M Sensus Sensus Sensus Sensus

Arizona 800,000 $200M Elster Elster Elster

Hawaii N/A $100M Sensus Sensus Sensus Sensus

Oregon &Idaho

N/A $71M ESCO Landis Powerline

North East N/A $475M SilverSprings

GE &Landis

IBM Comverge

France N/A $3.5B Landis?

AR, IN, KY,LA, MI…

N/A $750M GE?

Italy N/A €2.1B Echelon Echelon Echelon Capgemini

Ontario N/A $320M Landis GE Trilliant Capgemini Landis

MD N/A $250M Sensus Sensus Sensus Sensus

VA N/A $600M Elster Elster Elster

16 Source: RBC Capital Market Research and Company Reports、Merriman Curhan Ford

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Technology Matrix I

Itron (ITRI)

Echelon (ELON)

Landis + Gyr

Sensus

Elster

ESCO (ESE)

Silver Spring

Eka Systems

SmartSynch

Tantalus

Trilliant

GE (GE)

Comverge (COMV)

IBM(IBM)

eMeter

Ecologic Analytics

Tendril

Cisco (CSCO)

Oracle (ORCL)

SAP (SAP)

Siemens (SI)

Gridpoint

Control417

AMI CoreSystem*

TraditionalMeteringHardware

Back-EndManagement

Software

NetworkCommunications

Backbone

Energy control/Monitoring

Devices

User InterfaceSoftware

Consulting/System

Integrator

DemandResponse/ Load

management

Technology Matrix II

Milsoft Utility

Ambient (ABTG)

Grid net

AT & T (T)

Verizon (VZ)

T-mobile

Hughes Networks

Tropos Networks

Arch Rock

Energate

Onzo

EnergyHub

Agilewaves

Google (GOOG)

Intel (INTC)

Greenbox**

Accenture (ACN)

Capgemini

EnerNoc(ENOC)

Cpower

EnergyConnect

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AMI CoreSystem*

TraditionalMeteringHardware

Back-EndManagement

Software

NetworkCommunications

Backbone

Energy control/Monitoring

Devices

User InterfaceSoftware

Consulting/System

Integrator

DemandResponse/ Load

management

*Note: AMI Core System includes AMI Network Gateway, AMI Metering Hardware & AMI System Software

Source:RBC Capital Markets Research

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Today’s Smart Grid-What is AMI?

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Utilities are integrating existing services to newplatformsForming two-way communication enabling systems

with deployment of smart meters.Upgrading outdated power grid systems.

Advanced Metering Infrastructure (AMI) willbridge the communication gap between utilitiesand end-users.

Major private companiesfor AMI・Demand response

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Company Business HQ Founded: Total Raised:

Silver Spring Networks AMI core system Redwood City, CA 2001 $280.8M

Trilliant Networks AMI Redwood City, CA 2004 $40.0M

SmartSynch SG using Common line Jackson, MS 1998 $81.0M

Tendril Home power control introducingthermostat system

Boulder, CO 2004 $50.0M

Eka Systems AMI Germantown, MD 2000 $31.0M

eMeter SM S/W San Mateo, CA 2000 $56.29M

GridPoint Platform enabling connection withrenewables

Arlington, VA 2003 $222.35M

Grid Net Intel, GE Energy Financial Services San Francisco, CA 2006 $20.59M

GreenBox Interactive Energy Management San Bruno, CA 2007 $1.0M

Cpower Energy Managing System New York, NY 2000 $33.7M

EnergyHub SG interface for Home Brooklyn, NY 2007 非公開

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AMI System Major Vendors I

Company Meter MCI MDM ①Revenue ②Major Customers ③Other info URL

Itron ①$1.6B ②San Diego（0.9M meters）、Edison（5.3M）、CenterPoint Energy（2.4M）、DTE Energy(2.6M)

http://www.itron.com/

eMeter ①Nonpublic （$11M?/2007）②Edison、Center Point Energy 、ONCOR、 Alliant Energy ③Signed contract: over 23M meters

http://www.emeter.com/

Sliver SpringNetworks

①Nonpublic （Over $100M in 2009?）②PG&E（10M meters),FPL（4.5M）, Pepco Holding（1.9M）

http://www.silverspringnetworks.com/

Tendril ①Nonpublic ②Nonpublic ③Partner with Itron, GE, Intel, SilverSpring Networks

http://www.tendrilinc.com/

GridPoint ①Nonpublic ②Nonpublic ③Storage pilot with Xcel Energy,PHEV pilot with Duke Energy

http://www.gridpoint.com/

Eka Systems ①Nonpublic ②Hartley bay city (Canada), http://www.ekasystems.com/

Elster,Germany

①1.3Ｂ€②Salt River Project http://www.elstermetering.com/

Trilliant ①Nonpublic (Crossed the $100M revenue mark in 2008) ②Hydro One(0.75M)

http://www.trilliantinc.com/

SmartSynch ①Nonpublic ②Texas-New Mexico Power (Pilot), Duke Energy(Pilot) ③Officially partnered with AT&T

http://www.smartsynch.com/

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AMI System Major Vendors II

Company Meter MCI MDM ①Revenue ②Major Customers ③Other info URL

Ambient ①12.6Ｍ (2008) ②Duke Energy ③Partnered with Verizon http://www.ambientcorp.com/

Echelon ①134Ｍ (2008)②Danish Utility Energoauditcontrol (Russia) http://www.echelon.com/

OsiSoft ①Nonpublic ②RWE npower、T&D Utility ③Partnered withMicrosoft、Cisco、SAP、IBM

http://www.osisoft.com/

Landis + Gyr ①$1.36B (2008) ②PG&E、Arizona Salt River Project、FrenchUtility EDF

http://www.landisgyr.us/

GE Energy ①$38Ｂ（GE Energy Infrastructure/2008）②Hydro One、FPL、Peoco Holdings、American Electric Power

http://www.gepower.com/

Sensus ①$670Ｍ (FY2009) ②Southern Company、Portland GeneralElectric、Hawaiian Electric Company

http://www.sensus.com/

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Meters : Besides electricity meters (including those capable of wireless transmission of data), this term includes metercomponents and devices such as thermostats that are used to control electric devices

MCI : Meter Communication Infrastructure; Networking and communications infrastructure, including communicationdevices and network management software, to collect and transmit meter information

MDM : Meter Data Management; Manage and analyze meter information

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Venture Capital Investment inSmart Grid

Year VC Funding in Smart Grid Firms

2005 $60M

2006 $281M

2007 $419M

2008 $461M

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Source: GTM Research

Smart Grid Applications & MarketSector Timeline

Application/Market 2010 2015 2020AMI The first large-scale

deployments underwaySubstantial and growing marketpenetration and networkinfrastructure build-out

Significant and wide-rangingImplementation

Demand Response Limited reach (Mainlycommercial and industrialcustomers)

Substantial market penetration forresidential, commercial andindustrial

Commonplace with a widevariety of end-user serviceprograms

Grid Optimization A handful of utilities beginningdistribution/substationautomation projects

Sensor technology embedded on thedistribution network; automationbecoming routine

Dynamic Sensingeverywhere: Grid becomesan intelligent Utility network

Distributed GenerationIntegration

Nascent Maturing, but still a small % of powergeneration

Approaching MainstreamMore substantial presence:

Energy Storage A few pilots among progressiveutilites

Expected technology advancementand increased DistributedGeneration penetration will booststorage’s role

Vital role in supportingDistributed Generation

PHEV N/A Smart Charging V2G(Vehicle to Grid)

Consumer EnergyManagement Systems

Successful pilots continue tohighlight cosumer demand

Gaining traction as set it and forgettechnologies make energymanagement simple and use andcost-effective

Routine, Web-based

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・ Electric Power Research Institute（Palo Alto、 CA）

・ >90% Utility firms are Involved・ Prism Portfolio enables to follow Energy

Efficiency Road Map

EPRI： Collaboration

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Gov. NIST Standard/Security

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・ AMI (Automated Metering Infrastructure)・ DR （Demand Response)・ PEV （Plug-In Electric Vehcles)・ Cyber Security・ WASA （Wide Area Situation Awareness)・ Market Communications・ DG （Distributed Generation and Energy

Storage)

NIST Standard Road Map

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Gov.DOE Funding/R&D

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DOE Smart Grid Budget

2009 ARRA Budget ：$ 45Bil

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・ NREL ： A Year of Energy Transformation・ Department of Homeland Security

Infrastracture Security

Gov. DOE, DHS

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Security

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・ Utility companies are small and big innumber

・ Regulation is under Local Gov.

Local Gov.

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Local Regulation Status

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・ 30 years agoDEC mini-com overtake Main FramePC was immature to mini-com

・ 15 yeas agoPC Surpass mini-comDEC was merged by PC maker Compaq

・ Current Big Power House ＝ Main Frame(Micro)Smart Grid ＝PC

Disruptive as PC

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・ Start from off-grid Power Supply (PC)ie （small）Solar、Wind、PHV

・ Incremental connections will generatesignificant Power (Mini-com)

・ Lowering cost(in 2025 Grid Parity occurs in PV)

・ Connected Perfomans/Cost < <Current Power Plant in10-20 Years

Micro Smart Grid

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Smart Grid in the USA

By Engage Consulting

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Asia Smart Grid China、India

By Engage Consulting

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・ India TiE（The Indus Entrepreneurs）TiE Con 2010 @Santa Clara

May. 14-15 http://www.tiecon.org/

・ China CINA（Chinese Information and Networking Association）

・ High-tech Companies / Smart People・ Venture Funding・ Californian Open and Collaborative Culture

Asian and Silicon Valley

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・ Smart Grid Technology has just started・ Opportunities are

Micro smart gridBusiness with AsiaWatch and Learn Big players in the USA

・ Start from Silicon Valley is a SMART choice

Conclusion

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Contact Information

Hiroshi Yagihy@imanetinc.com

+1-408-368-6082 (US)Twitter: Hiroshi_SV_CA

Thank you!