1. BUSINESS VALUE STREAMS Gregg D. Ander, FAIA Vice President, Power and Efficiency Energy Foundation gregg.ander@ef.org

2. ENERGY FOUNDATION 2. ENERGY FOUNDATION 2.Business Value Streams DRIVERS Policies (EERS, RPS, decoupling, feed-in tariffs) Market (LEED, $/peak watt, PV business models) Legacy Regulations (ROE, rate base) New Regulations (building standards, Zero Net Energy Distributed Energy Resources (virtual power plants, microgrids)

3. ENERGY FOUNDATION 3. ENERGY FOUNDATION 3. AEE/MIT- IPC: Utility 2.0 ASU Utility of the Future Binz/Lehr Utility 2020 RMI eLab C2es: Power 2030 Resnick Institute Grid2020 CalCEF Clean Energy and Utility of the Future Edison Electric Institute: Focus on the Future Ceres: 21 st Century Electric Utility Energy Future Coalition: Utility 2.0 Pilot Great Plains Institute e21 FSU SUNGRIN Hoover Institute Taskforce on Energy Policy State of MA: Grid Modernization Working Group Michigan State Univ. State of NY Moreland Commission State of NJ Grid Resiliency Task Force NREL/Colorado State Univ. PNNL/Gridwise Gridwise Architecture 2020 State of HI Reliability Standards Working Group Business Value Streams BUSINESS MODEL ACTIVITY

4. ENERGY FOUNDATION 4. ENERGY FOUNDATION 4.Business Value Streams BUSINESS MODELS/REVENUE STREAMS/VALUE STREAMS Opportunities from distributed resources Value creation to enable innovation Evolve regulatory framework

5. ENERGY FOUNDATION 5. ENERGY FOUNDATION 5.Business Value Streams QUESTIONS/OBSERVATIONS/ OPPORTUNITIES What approaches, mechanisms, or policies would better encourage investment in DER assets? How would these resulting services be monetized? What is needed to open up these opportunities? What are key barriers to market participation? What opportunities exist in the “Distributed Energy Resources” space that non-utilities participate in that could be monetized and create revenue streams?

6. ENERGY FOUNDATION 6. ENERGY FOUNDATION 6.Business Value Streams EXAMPLES Distributed renewables for voltage support Establish performance and operational requirements of dispatchable resources (including locational value) to support grid operations Better access to consumer data to drive innovation (what would this yield?) Third party ownership of smart inverters to support grid reliability (reactive power provisioning and fault ride through)

7. ENERGY FOUNDATION