Smart Consumption Solutions

1. Smart Consumption Solutions Siemens Industry, Inc. Building Technologies

2. Agenda • What exactly is the Smart Grid? • Smart Buildings and Smart Consumption • Intelligent Load Management (ILM) the Next Generation in Demand Response • MicroGrids • LEED Points

3. What Exactly is theSmart Grid?

4. Smart Consumption is driven by US market trends • Motivating factors – energy cost savings, enhanced public image and attracting new customers • LEED certification Green/Energy - part of corporate strategic planning Buildings need to integrate energy generation capabilities • Alternative and renewable energy • Distributed generation and micro-grids • Net Zero Buildings: e.g. CA legislation Governments mandate energy efficiency • 15% energy reduction by 2015 • Cut emissions 28% by 2020 • DoD new construction after 2015: Net Zero Energy • Green power is the #1 Venture Capital (VC) investment beating IT and Biotech with 27% of all VC investments Green/Energy Efficiency is attractive for investment • Decision makers attention up 71% year-over-year • Buildings consume 40% of worldwide energy Decision makers are focused on energy efficiency - $ reduction • Dept of Energy $3.4 billion investment in technology • New rules and business models - aggregators Smart Grid

5. Smart Grid:Yesterday and Today Before • One-way limited communication • One-way power flow • Centralized generation • No electric vehicles • Few sensors and analog control • Little to no consumer choice • Reactive maintenance • Limited usage transparency

6. Smart Grid: Tomorrow’s Integrated Grid • Bi-directional and instantaneous communication and metering • Bi-directional power flow • Millions of electric vehicles • Applications • Pervasive monitoring and digital control • Self-monitoring & high visibility • Many consumer choices • Condition-based maintenance • Proliferation of numerous applications After Power Information TODAY The transition has begun, with peak-demand management (demand response, ILM), and dynamic pricing (e.g. critical peak pricing programs)

7. Smart Grid adds full communications, intelligence and transparency to the grid Virtual Power Plant Grid management Generation Transmission Distribution Consumption Negawatts

8. Intelligent Load Management (ILM) Price of electricity supply Supply P Price reduction PDR Peak demand reduction Quantity QDR Q Smart Grid - Smart Consumption - Smart Buildings Optimizing • Energy storage • Pricing • CO2 reduction • Energy efficiency • E-car integration Balancing the grid Smart Consumption • Avoid investments in new power plants • Increase power quality • Integrate volatile renewable energy • E-Car charging Demand Supply Consumption to grid 24h 0h Consumption follows GenerationThere is no Smart Grid without Smart Buildings

9. Smart Building Applications 3 1 • Two-way communication with utilities • Proactive energy management / smart consumption • Energy sources with onsite generation assets • Storage capacity for added flexibility • Active carbon management 1 2 2 3 4 5 5 4

10. Control strategies Onsite generation Storage Consumption to grid Base load Demand 24h 0h Smart consumption infrastructure Transparency infrastructure Energy management applications OpenADRZigBeeBACnet Efficiency built into building systems and integration into the Building Automation System Smart Building: Infrastructure Smart Building Smart grid infrastructure

11. Smart Building: Monitoring, Analysis and Reporting Analysis & Reporting Real-time Monitoring Public Interface • Energy Monitoring & Control (EMC) • Remote database • Historical data • Web based • Integrated Data Sources • Executive Dashboard • Detailed Analysis • Built for public viewing • Web based • Building Performance Dashboard Facilities / Engineering, Energy / Utilities + Financial, Green / Sustainability Primary Users Primary Users Primary Users Visitors, Employees, Occupants, General Public Facilities / Engineering

12. Intelligent Load Management (ILM) The Next Generation of Demand Response

13. Why do we need demand response? An oversold or undersold flight is similar to the electrical grid at capacity…. Every Person who gives up their seat is a “Negawatt” and will receive compensation for giving up a seat. In other words the utility company will pay you to reduce your load during peak demand

14. Intelligent Load Management • Leverages existing BAS equipment to generate cash payments through automated load management • Allows building operators to participate in Demand Response, Critical Peak Pricing and Smart Grid programs through local utilities • Balances multiple factors: • Corporate standards • Efficiency • Financial • Site conditions • The technology leader in multi-site load aggregation with proven financial results

15. How does it work? Completely Automated DR Solution An event notification is received via a change in event status from the Demand Response Automation Server - Siemens high-tech approach facilitates reliable participation in short notice programs. - Due to our real-time visibility Siemens is able to shield the customer, and itself, from penalty risk. Our Intelligent Software Aggregation Engine acknowledges an event is being called <1 Minute Response Telemetry Our Aggregation Engine relays signal to onsite communicators and notifies the customer simultaneously Within 1 minute of initial dispatch, load begins to ramp down at customer sites

16. We work to make sure your building stay within set parameters to minimize impact and maximize revenue… Buildings can provide capacity to the grid during peak events- by reducing consumption where it is curtailable for a period of time. This capacity is valuable, and we help our customers to make the most of it. $ In many areas, “ratchet clauses” increase a customer’s electricity rate for the whole year if their demand exceeds a given kW threshold at any time. Peak demand “event” on the grid: • kWh prices are high (dynamic pricing, CPP programs) • Utility pays bonuses to consumers who can curtail load. Basically, power can be “sold back”

17. Real Time Monitoring Dashboard for Demand Response

18. Real Time Monitoring Dashboard for Demand Response

19. Comparison of ILM to Traditional Demand Response Traditional DR ILM ™ Manual Demand Response Semi-Automated Demand Response Fully Automated Demand Response Siemens Intelligent Load Management Description • Labor-intensive • Manually turn off • or change set • points on each • asset node • Pre-programmed response is initiated by a person • Person uses centralized control system • No human interaction • External Communication signal • Overrides of nodes or systems are possible • Logic that sits at a layer above Fully Automated Demand Response system • Override of node or • systems are possible • Continuous management of load Reliability of Capacity • Unreliable • Process dependent on human interaction and ability to make changes at a given point in time • Unreliable • Process dependent on human interaction and ability to make changes at a given point in time • Verifiable • Overriding nodes hard to project / plan • Verifiable • Diversified, redundant • and managed • Load balanced across multiple sites / enterprise Speed • Very slow • Possibly slow • Fast • Fast, 2 minutes or less Pricing Efficiency • Poor, capacity not reliable • Poor, capacity not • reliable • Moderate, reliability is questionable or is • discounted due to • possible overrides • Efficient, loads are managed and reliable which reduces the discounting of capacity • or price

20. ILM Technology Features and Benefits Unique Technology Features Benefits • New source for incentives • Intelligent automation • Reduced energy expenses • Earn LEED points • Improved Corporate Social • Responsibility (CSR) • Carbon negative power • generation • 100% automated response • No on-site personnel needed to implement response measures • Capacity on-demand • Internet based • “Light Touch” – loads are shed gradually and dynamically, according to customer priorities

21. Dynamic Building/Campus Optimization with MicroGrids

22. Large campus customers are seeking advanced solutions Stages in energy infrastructure maturity Stage 1Focus on core operations Stage 4Continuous demand/supply optimization based on internal & external factors 75% Stage 3Energy reduction using advancedand/or basic dynamic strategies 50% % of market 30% 15% 15% 2015 Stage 2Energy savings via conventional demand side energy strategies 5% 5% 2010 Source: Customer interviews, Smart Consumption – large commercial team

23. Microgrids have higher reliability, economic & ecological benefits Functions and Benefits of Microgrids A microgrid power system Key Functions • Clean electricity, heating and cooling generated by local energy source, e.g. solar, geothermal, natural gas, etc. • Realize high level energy self-sufficiency through advanced energy management system • Continuous operation in islanding mode when external network faults • Optimal energy management achieve both economic and ecological targets Benefits • Improved energy efficiency • Integrated renewable power generation • Supply and demand balancing • High electricity reliability • Safe, easy-to-operate and modular solutions that may be upgraded as required

24. The Smart Energy Box allows buildings or groups of buildings to react flexibly to the Smart Grid • Uses Energy Plus to simulate alternative control strategies / schedules, then chooses the best control strategy • Communicates with the Smart Grid, reacting to Dynamic Pricing and Demand Response signals • Communicates with field devices via BACnet and plug-load protocols (JADE) • Keeps the building within operational parameters • Integrates weather forecasts and occupancy inputs into its optimization • Allows the building to re-schedule activities dynamically in response to changes in weather or energy cost • Pilot projects at UC Berkeley and Carnegie Mellon, US Air Force Academy

25. Higher Education Building Technologies Council Demand Response and LEED

26. Points Available Demand Response Credit

27. Thank you for your time! QUESTIONS??