1. John Bobrowich Executive Director & CEO WERC Roadmap for Energy, Power and Control Growth in Wisconsin

2. Why Is Energy Vital ? America Uses $1.3 Trillion in Energy/Yr ($440 B in Foreign Oil) $4,000+ for Every Man, Woman and Child in America We Spend More on Energy than Almost Anything Else We Use Energy for Everything –Transportation, Health Care –Lighting, Heating, Cooling, Internet –TV, Cell Phones, Notebooks, I-Pads –Food Production, Water, Manufacturing and Defense

3. We are Wasting Too Much…

4. Energy Efficiency is the KEY ~60% of our Energy is WASTED An Incandescent Light Bulb Wastes 90% of its Energy, a Fluorescent Wastes 40% and LED 25% Major Opportunities for Savings –Electric Production Wastes 68% –Transportation Wastes 75% –Industry Wastes 20% + Elec Loss –Residential Wastes 20% + Elec Loss –Commercial Wastes 20% + Elec Loss ACEEE Says US Market is Projected to Grow from $300 to $700B/yr

5. Clean Energy Will Contribute 5

6. The Sixth Wave of Innovation? 6 Research and Innovation will Develop the Roadmap The Current World is Becoming Unsustainable The Population will Grow by 2B by 2050 According to Moody and Nogrady, the next wave of innovation will be Resource Efficiency We will go from “Green vs. Gold” to “Green is Gold” 1 st Wave- Water Power & Textiles, 2 nd Wave- Steam Engine & Railroads 3 rd Wave- Internal Combustion Engine 4 th Wave- Aviation Electronics & Space 5 th Wave- IT, Internet, Biotechnology

7. The Future in 2020* Solar and Wind Resources 20-30% of Electricity Generation Capacity Explosive Growth of Millions of Grid-connected EV’s The Eventual Death of Compact Florescent Favoring LED Technology Low-cost, Competitive Green Buildings that Produce More Energy then they Consume Waste Streams Becoming a Common Feedstock for New Materials and Energy Production 7 * Source: Clean Edge Study - 2011 Clean Tech Trends/Projections

8. Wisconsin is Well Positioned Approx 700 EPC Firms Over 950 Locations Over 61,000 Employees Largest Clusters in M-7, Dane County and Fox Valley Wisconsin is #4 in Clean Tech Jobs and #3 in Clean Energy Jobs on a Per Capita Basis Wisconsin Has a Critical Mass of Energy, Power & Control Firms

9. But… Behind in Innovation 9 Research and Innovation is the Key to Success in this Fast-Growing Industry 2008 Academic StateR&D ($1k) CA 7,026,354 NY 4,044,815 TX 3,744,182 PA 2,604,118 MA 2,271,757 NC 1,980,833 IL 1,972,752 OH 1,827,042 MI 1,593,654 FL 1,591,774 GA 1,521,486 WI 1,117,152 WA 1,058,170 VA 1,052,601 IN 954,188 CO 924,073 NJ 876,698 TN 787,122 MN 698,920 OR 594,945

10. WERC To Accelerate Innovation Wisconsin to Become the Leading US Region: –For Energy, Power & Control Industries and Employment – For Research & Innovation in Energy, Power and Control Research & Technology WERC to Become an Internationally Recognized: –Energy, Power & Control Technology Research and Industry Development Consortium We Are Focused on Becoming the US Leader in Energy, Power and Control

11. WERC Technology Cluster Energy Energy + Renewable Fossil Nuclear Bioenergy Storage Conservation Power Power + Transmission Distribution Efficiency Conversion Quality MonitoringControl Industrial Automation Building Automation Wind & Solar Control Energy Management SMART Grid We Are Creating the Future of Energy, Power & Control

12. WERC Mission Research – Conducting innovative basic research projects that will lead to breakthroughs in the energy, power and control fields Workforce & Industry Development – Training a dynamic workforce of engineers, scientists and technicians that will become the next generation of leaders – Developing and recruiting complementary new energy, power and control companies to expand our COE for EPC Strategic Partnering – Develop strategic partnerships between Academic Institutions, Industry, Government and NGOs to grow our industry and improve our best practices and competitiveness

13. WERC Combines the Power of Wisconsin’s Top Four Engineering Research Universities with Industry and the Training Expertise of Technical Colleges Over 100 Principle Investigators and Over $100 Million in Annual Energy Research Our Academic Members

14. 14 UWM Battery Test System Marquette Borg Wind Tunnel MSOE Hydraulic Simulator Testbed UW-Madison Electric Machines Lab University Lab Facilities

15. Our Industry Members Working Together to Advance Wisconsin’s Energy, Power and Control Industries

16. WERC Focus Areas Energy Efficiency Electric Vehicles Renewable Generation SMART Grid & Microgrid Energy Water Nexus Biofuels Energy Storage

17. How Is Wisconsin Performing? 17 Wisconsin13 76,8582.69%4 Washington10 83,6762.79%2 Tennessee14 76,0312.79%3 Minnesota18 58,2322.11%9 New York2 185,0382.13%8 Oregon17 58,7353.45%1 Illinois5 106,3751.85%17 New Jersey8 94,2412.41%5 Pennsylvania4 118,6862.07%11 Massachusetts16 63,5231.95%13 Colorado20 51,0362.20%6 Ohio6 105,3062.04%12 Georgia9 83,7072.10%10 California1 318,1562.15%7 Virginia15 66,7721.74%18 Wisconsin 33,154 2,858,2371.16%3 Washington 35,602 3,003,4461.19%1 Tennessee 31,632 2,722,1981.16%2 Minnesota 26,172 2,763,7400.95%7 New York 94,790 8,691,3101.09%4 Oregon 17,149 1,702,9571.01%5 Illinois 56,347 5,753,1100.98%6 New Jersey 36,532 3,905,5530.94%8 Pennsylvania 52,471 5,736,3940.91%9 Massachusett s 26,870 3,252,5860.83%10 Colorado 18,350 2,324,0440.79%11 Ohio 40,575 5,157,0030.79%12 Georgia 29,984 3,993,6550.75%13 California 108,525 14,811,7320.73%14 Virginia 23,307 3,839,6780.61%18 All Clean Tech #4Clean Energy Segment #3

18. Attributes of Leading States Strong Energy Research and IP Development –DOE, State and Private labs, University Consortiums Supportive Clean Energy Policy & Funding –RPS and Energy Efficiency Standards, Research Funding, Project Funding, Industry & Market Development Clusters, Technology Incubators Historical Energy-Related Manufacturing Base Strong Engineering and Science Universities and Secondary Math and Science Education Supportive Venture Capital Funding, Incubators & Workforce Development Programs 18

19. Leading State Public Policies Financially Supporting Organizations like WERC and Funding Applied Research to Develop the EPC Technology of the Future Moving SEOs to DoCs or Economic Development Organizations to Align SEP and State Green Energy Companies & Job Growth (e.g. MI, MN, IA, IL,NC) Targeting the Development of in-state Energy EE & RE Resources to Create Jobs, Energy Independence, Competitiveness and Wealth Driving Both EEPS and RPS at 1-2 % a Year and Have a 20-40% EEPS for State-Owned Buildings 19

20. Roadmap for Wisconsin Wisconsin will grow in EPC by: –Expanding EPC Basic and Applied Research and Obtaining Greater Federal and State Funding –Developing Public Policy Which Is More Supportive of the EPC Market –Improving Alignment and Coordination between US and WI Government EPC Programs & WERC –Expanding Availability of Venture Funding for EPC –Developing an EPC- Focused Incubator –Developing and Attracting Companies to Fill our Product Line Gaps 20

21. Thank You Any Questions? Come visit us at www.energywercs.org