Frost & SullivanEnergy & Environment

Innovations in Energy & Cleantech: What’s hot and what’s attracting investment?

John Raspin, Partner, Energy & Environment

BusinessOulu Industry SummitOulu, October 2017

Top 10 Converging Factors Defining the Future of Energy“Connectivity and integration are driving new energy technologies, industry structures and business models with sustainability at the core”

Source: Frost & Sullivan

GlobalEnergy

DemandEnvironment

EnergySupply & Costs

Sustainability

Carbon Reduction

Market De-Centralisation

New Business Models

E-Mobility

Internet of Things

Energy Efficiency

Water Stress

Circular Economy

Smart Cities

Big Data

Capacity Optimisation

Connectivity& Integration

Efficiency &Intelligence

The Future of Energy … the 3Ds “Energy will be cleaner, more accessible, intelligent, connected and responsive; Digital transformation will converge with business transformation”

Source: Frost & Sullivan

DECARBONISATIONShifting generation, transmission, distribution and usage towards a lower carbon future. Renewable energy, e-Mobility, energy efficiency, new and future fuels, demand side management, etc.

DECENTRALISATIONNew DG models with a proliferation of distributed and connected generation, closer to the point of use.Distributed generation, energy storage, microgrids, prosumers, VPPs, P2P, etc.

DIGITALISATIONDigital technologies to provide infrastructure for more flexible, intelligent, connected & responsive energy systems.Smart grid, asset optimisation, demand response, automated trading, active energy management, etc.

44% of global generating capacity from renewables by 2025

1,600 GW of renewables capacity added between 2017 & 2025

12% of global generating capacity from DG by 2025

65% of DG investments will be distributed Solar PV

50 Billion connected devices –or ‘things’ - globally by 2025

>$1 Trillion economic value of IoT impact in energy by 2025

Areas of Innovation in Energy & Environment TodayMajor focus areas of innovation efforts around the world

DigitizationMeter data, online sales, IoT & Big Data analytics

Connected LivingSmart homes & customer

engagement

Energy StorageGame changers in utility

scale, I&C and residential

E-MobilityCharging infrastructure,

storage, V2G

New DG ModelsVPP, 3rd party, Leasing,

Hybrid power etc.

Smart CityConnected energy, water,

mobility, buildings, W2E etc.

Services 2.0Next gen EMS, performance

contracting, XaaS

Water 4.0Smart technology in

treatment, networks, usage

Source:Frost&Sullivan

Emerging High Impact Areas of Strategy & Innovation Focus for Energy

The Cognitive EraLooking beyond machine

learning to an AI future in the management, control and

usage of energy and resources

RobotsThe Rise of Intelligent,

Autonomous & Collaborative machines to be deployed

across the Energy value chain

BlockchainEvolution of Blockchain

technology to support trading, sharing, contracts, payment,

peer 2 peer models, prosumer engagement etc.

Industrial IoTIndustry 4.0, IIoT, energy

optimisation and the future of industries

Source:Frost&Sullivan

Business Models: The Next Wave of Innovation in Energy“We’re already seeing an accelerating shift from supply-driven to customer-centric and technology enabled business models”

Source: Frost & Sullivan

Virtual Power PlantsConnectivity enabling

aggregation and trading

Anything as a ServiceGrowth in XaaS Models

Peer to PeerP2P energy sharing and

trading by prosumers

Distributed EnergyOn-site power and ’Prosumer’ models

Performance ContractingGuaranteed efficiency

outcomes

Demand ResponseAutomated management of

demand profiles

Cloud ServicesDigital transformation and

data analytics

MicrogridsFacilitating growth in distributed generation

Top 5 Innovation Areas in Energy“Innovation will continue to focus on converging technology, business models and customer engagement, while ensuring the highest levels of data and system security”

Source: Frost & Sullivan

Big Data, IoT, cloud, artificial intelligence & machine learningalgorithms for automation and energy management

Connection and integration of energy prosumers, grid assets, electric vehicles, energy storage and electricity demand

Cyber Security for managing and securing smart/digital energy systems and networks

New business models for renewables, storage, energy efficiency, asset management, smart networks, buildings and homes

Customer engagement tools for a new energy future

1.

2.

3.

4.

5.

Digital Energy Innovation Hotspots

Source: Frost & Sullivan

Generation TradingTransmission & Distribution Retail Consumption

Big Data, IoT, cloud, AI & machine learning

Connection & integration

Cyber Security

New business models

Customer engagement tools

The Increasingly Complex Energy Management EcosystemConvergence of Technology & Competition among Leading Players

Source: Frost & Sullivan analysis

HEMS& BEMS

Energy & Sustainability

Software

Building Automation Data Analytics

IoT & Cloud Services

Energy Management

Controls and Devices

Micro-generation & Renewable

Energy

DemandResponse

Communication & M2M

Smart Metering &

GridsFacility

Management/ Performance Contracting

Energy Management & Accelerating InnovationRecent Examples of Emerging Companies, Start-Ups and New Entrants

Source: Frost & Sullivan analysis

HEMS & BEMS

Energy & Sustainability

Software

Building Automation Data Analytics

IoT & Cloud Services

Energy Management

Controls and Devices

Micro-generation & Renewable

Energy

DemandResponse

Communication & M2M

Smart Metering &

GridsFacility

Management/ Performance Contracting

Start-Up, Scale-Up and SME Landscape & Ecosystem (1)

BuildingAutomation

Controls&Devices

DataAnalytics,IoT &CloudServices

SmartMetering&Grids

DemandResponse

Source:Frost&Sullivan

Demandresponse,demandsidemanagement,

aggregation,balancingetc.

Buildingautomationsolutions,homeautomation,smart

windows,BMShardwareandsoftware

Metering,datamanagement,customerengagement,

networkoptimisationetc.

Connectedlighting,HVAC,smartcontrols,thermostats,

etc.

Segment

SaaS,buildingperformanceplatforms,CMMS*,data

science,buildingscienceetc.

Start-Up,Scale-UpandSME ExamplesExampleSolutions

*CMMS=Computerisedmaintenancemanagementsystem

Start-Up, Scale-Up and SME Landscape & Ecosystem (2)

Communication&M2M

Micro-generation&RenewableEnergy

HEMS&BEMS

FM&PerformanceContracting

Energy&SustainabilitySoftware

Source:Frost&Sullivan

Dataacquisition,analytics,reporting,benchmarkingetc.

Connectivity,networking,M2M,blockchain,peerto

peer,etc.

Energyservices,CAFM,FManalytics,smartworkplace,booking/schedulingsoftware

Renewabletechnologies,optimisationsoftware,etc.

Segment

Energymanagementsolutionsforhomesandbuildings(hardware&software)

ExampleSolutions Start-Up,Scale-UpandSME Examples

Conclusions and Lessons so FarInnovation must focus on the digitalisation of energy, new customer-centric business models and holistic productivity solutions

Source: Frost & Sullivan

2After a period of unprecedented technology innovation and advancement, the emphasis is shifting to business model innovation to bring technology to life and maximise impact. The highest impact will be seen in customer-centric service business models based on guaranteed outcomes, typically enabled by IoT.

3Partnership, collaboration and co-creation of services will be key to meeting the growth objectives and sustainability visions of customers. The factors defining productivity are unique to each company and success depends on the definition, capture, management and optimisation of core performance data across the enterprise.

1The energy management world is moving beyond TCO and energy efficiency. Next generation solutions are focused on convergence of digital energy technology and services to deliver value propositions to enhance total business productivity, with energy at the heart.