The document discusses trends in customer energy management and the grid edge. It notes that residential and non-residential solar PV installations are expected to reach almost 60 GWdc by 2024 in the US. Energy storage deployments are forecasted to hit 500 MW annually in 2021, driven by grid services and solar-plus-storage projects. Utilities are increasingly investing in data analytics platforms and customer engagement applications to optimize operations and monetize customer data from advanced metering infrastructure. Several case studies provide examples of programs utilities are implementing to encourage adoption of distributed energy resources and flexibility services.

1. woodmac.comTrusted intelligence
Grid Edge Innovation Summit:
What’s Next for Customer Energy Management
Fei Wang
Senior Analyst, Grid Edge
Fei.Wang@woodmac.com

2. woodmac.comTrusted intelligence
Grid edge innovation brings utilities new challenges and opportunities
Source: Wood Mackenzie Power & Renewables
UTILITY

3. woodmac.comTrusted intelligence
Residential PV and non-residential PV expected to reach almost 60 GWdc by 2024
Source: Wood Mackenzie Power & Renewables/SEIA, Solar Market Insight Q2 2019
2019YTD: > 2 Million
0.0
0.5
1.0
1.5
2.0
2.5
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000 Pre-2010
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019E
2020E
2021E
2022E
2023E
2024E
CumulativePVinstallations(Millions)
Annualcapacity(MWdc)
Residential PV Non-Residential PV Utility PV Cumulative U.S. PV Installations
U.S. PV installations and capacity

4. woodmac.comTrusted intelligence
Grid services, demand charge management and solar-plus-storage push the market to hit the 500
MW mark in 2021
U.S. annual non-residential energy storage deployment forecast
Source: Wood Mackenzie Power & Renewables/ESA, Energy Storage Monitor Q2 2019
0
100
200
300
400
500
600
700
800
900
2012 2013 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E
MW
Arizona California Colorado Florida Hawaii Massachusetts Nevada New Jersey New York PJM (excl. NJ) Texas All Others

5. woodmac.comTrusted intelligence
California, Hawaii, New York and Massachusetts continue as leading states because of supportive
incentive programs and storage mandates
U.S. annual residential energy storage deployment forecast
Source: Wood Mackenzie Power & Renewables/ESA, Energy Storage Monitor Q2 2019
0
200
400
600
800
1,000
1,200
2012 2013 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E
MW
Arizona California Colorado Florida Hawaii Massachusetts Nevada New Jersey New York PJM (excl. NJ) Texas All Others

6. woodmac.comTrusted intelligence
Americans continue to favor BEVs over PHEVs creating need for charging options
Source: Wood Mackenzie Power and Renewables, InsideEVs.com
of EVs sold in 2018 were
battery electric vehicles,
up from 51% in 2017.
64 Percent
passenger electric vehicles
will be on US roads by 2023.
4.75 Million
public chargers in the United
States in 2023, a 283%
increase from end of year
2019.
454 Thousand

7. woodmac.comTrusted intelligence
Evolving role of customers requires utilities to enhance digitalization efforts
Source: Wood Mackenzie Power & Renewables, Utility Digitalization With Customer Centricity
Customer
touchpoints
Predictive
analytics
Descriptive
analytics
Data
organization
• Access
• Clean-up
• Storage
• Management
• Customer segmentation
• Load disaggregation
• Historical outage
analysis
• Customer DER analytics
• Load forecasting
• Predictive outage
• DER forecasting
• Remote auditing
• Flexibility orchestration
• Rate/pricing
optimization
• DER marketplace

8. woodmac.comTrusted intelligence
Current AMI installations: utilities have access to key information
Cumulative AMI installed by parent utility
Source: Wood Mackenzie Power & Renewables, Grid Edge Data Hub
0
5
10
15
20
25
30
35
40
45
<2010 2010 2011 2012 2013 2014 2015 2016 2017
Millions

9. woodmac.comTrusted intelligence
Europe and Asia continue to lead in AMI spending
Global AMI annual spend forecasts, 2017-2024E
Source: Wood Mackenzie Power & Renewables, Grid Edge Data Hub
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
2017 2018 2019E 2020E 2021E 2022E 2023E 2024E
Millions$
Asia USA Latin America Europe Canada Oceania Africa

10. woodmac.comTrusted intelligence
Utilities increasingly investing in data analytics platforms and applications to monetize customer and
operations data
Annual utility deployments of customer and grid analytics applications, 2010-2018
Source: Wood Mackenzie Power & Renewables, Grid Edge Data Hub
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013 2014 2015 2016 2017 2018
Shareofdeployments
DER Marketplace Energy Efficiency Engagement Outage Communications
Rate & Pricing Optimization Distribution O&M Forecasting
Predictive Outage & Reliability Switching VVC

11. woodmac.comTrusted intelligence
Energy majors continue to build integrated packages to provide flexibility services
Select M&A and investment activity by energy majors
Source: Wood Mackenzie Power & Renewables, Grid Edge Data Hub
*investment
DR aggregation
E-mobility
Energy storage
*

12. woodmac.comTrusted intelligence
Utilities are exploring voice-activated applications as a new engagement channel
Select utilities and vendors with voice-activated customer engagement solutions
Source: Wood Mackenzie Power & Renewables, Insight: Implications for Utilities’ Voice Strategies
Utilities Vendors
Retailers Regulated utilities

13. woodmac.comTrusted intelligence
The residential sector holds significant potential for behind-the-meter flexibility
Cumulative potential for behind-the-meter residential flexibility
Source: Wood Mackenzie Power & Renewables, Residential Flexibility Potential in the U.S.
0
20
40
60
80
100
2017 2018 2019E 2020E 2021E 2022E 2023E
GW
72

14. woodmac.comTrusted intelligence
Regulated utility
Vendors
Thermal storage can play a key role with technological hurdles to overcome
Green Mountain Power’s eWater program
Source: Wood Mackenzie Power & Renewables/ESA, Energy Storage Monitor Q2 2019
Lessons learned
• Demand response signals
• Smart meter data & engagement
• Customer experience

15. woodmac.comTrusted intelligence
APS implements rewards programs to encourage technology adoption with alternative rate
structures
3 programs offer incentives to absorb more solar generation during the day
Cool Rewards Storage Rewards Reserve Rewards
• Manage customer expectations
• Establish foundation for fleet optimization

16. woodmac.comTrusted intelligence
Con Edison hopes to make sense of perception of connected home customers via the smart home
rate demonstration project
Budget breakdown, 2018-2021
Source: Smart Home Rate REV Demo Project Implementation Plan & Quarterly Progress Reports
Delivery charges:
• Customer charge
• Daily demand charges
• Subscribed demand charges
• Critical peak distribution event charges
• Critical peak transmission event
charges
$3.8
25%
$2.8
19%
$2.7
18%
$2.6
17%
$0.9
6%
$2.2
15%
Technology platforms
Customer outreach & recruitment
Equipment & installation
Project management
Measurement & verification
Billing system upgrades
$15 million

17. woodmac.comTrusted intelligence
More customer engagement efforts will focus on assessing how multiple customer-side resources
impact the grid
16
Tomorrow’s Decarbonized and Decentralized Power Market
A bi-directional energy network with new technologies and actors at every node reshaping power market planning and operations
Dispatchable
Generation
Transmission Distribution End Customers
Renewable
Generation
Energy
Storage
Advanced
Metering
Infrastructure
Distributed
Generation
Electric
Vehicles
Connected
Devices
Demand Side
Management

18. woodmac.comTrusted intelligence
Thank You!
Fei Wang
Senior Analyst, Grid Edge
Fei.Wang@woodmac.com