Smarter sensors for a smarter grid

Transcription

1 Smarter sensors for a smarter grid Cleantech To Market Presentation May 7 th, 2010

2 An out-of-date electricity grid costs utilities and their customers billions of dollars each year Outages cost economy $billions Outages cost utilities $billions Customer outage costs for U.S. 2 (2001) Residential 2% U.S Total: $100 - $400 Billion 3 Industrial 26% Commercial 72% Utilities spend $15B - $24B annually on grid maintenance due to outages 3 Outages cost an average utility $7M annually in maintenance 4 New distributed resources will add further stress to grid The northeast blackout of 2003 resulted in $6B in economic loss to the region 1 Sun Microsystems estimates that blackouts cost the company $1M every minute 1 Electric Vehicles Rooftop Solar Source: 1 SmartGrid Primer, Thomas Weisel Partners LLC; 2 LBNL breakdown estimates for base case in 2001; 3 U.S. Department of Energy; 4 Smart Grid Micro Grid Energy T&D and Storage, SBI Energy 2

3 Utilities suffer from a blind spot in grid, where 90% of all faults occur Substations Robust, expensive sensors Distribution Lines 6.0M miles of distribution cable in U.S. 1 Few sensors -> enormous blind spot 90% of faults occur in distribution network 2 End Customers Smart meters coming online Source: 1 U.S. Dept of Commerce, U.S. Department of Energy. Calculated by SBI; Assumes distribution network accounts for 60% of overall sensor market; 2 Underground vs. Overhead Distribution wires, Edison Electric Institute 3

4 The market for distribution network sensors is growing rapidly Distribution network sensors market 1 Underground vs. above-ground market market size: Global: $13.7B U.S.: $3.5B Underground 20% Overhead 80% 18% Global CAGR 14% U.S. CAGR 2014 market size: Global: $54.7B U.S.: $14.0B Source: 1 U.S. Dept of Commerce, U.S. Department of Energy. Calculated by SBI; Distribution network accounts for 80% of overall sensor market; 2 Out of Sight, Out of Mind: Revisited, Edison Electric Institute (2009) 4

5 Microelectromechanical Systems (MEMS) technology is a breakthrough for current sensing MEMS technology Unique value of MEMS MEMS Piezoelectric Cantilever Cable Cable Magnetic Field Proximity sensing Voltage Enables multi-cable sensing Magnet Micron scale Not restricted by space requirements MEMS Sensor Self-powered Not an energy drain on the wireless sensor module 5

6 SmartSense MEMS sensors can be a disruptive technology in three markets 20% of cables in U.S. (1.2M miles) 1 70% of urban cables 1 2 are underground 2 Underground distribution Overhead distribution 80% of cables in U.S. (4.8M miles) 1 Industrial Retrofits Industrial machinery accounts for 30% of global electric power consumption Much of this machinery is aging and lacks power monitoring Source: 2 Out of Sight, Out of Mind: Revisited, Edison Electric Institute (2009); : 1 Underground faults in ConEd network, Hong, Russell and Mauro (1998) 3 6

7 MEMS sensors detect cable breakdowns that lead to costly underground failures Underground cable with concentric neutrals MEMS sensors predict faults via concentric neutrals Existing Sensors only detect faults via cable core Concentric Neutrals Insulation Conductor Faulted Circuit Indicator Water Tree Water Tree Failure 7

8 Installation across urban underground network will provide significant savings Calculations for ConEd s (NYC) underground network 1 Existing diagnostics Sensor costs IT costs No. of vaults 1 252k Cost/sensor $1,000 Sensor cost $252M Installation costs % of sensor cost 40% Total cost $101M Savings Diagnostic savings 1,2,3 Fault diagnostic costs $147M Savings % 70% Annual savings $103M Customer outage savings 4 Outage costs $320M Outage reduction % 20% Annual savings $64M Payback of 3.4 years 5 NPV of $306M over 10 years 6 Sources: 1 Underground faults in ConEd network, Hong, Russell and Mauro (1998); 2 Optimal Replacement of UG Distribution Cables, IEEE (2006); 3 Walter Zenger, PGE UG Principal Engineer; 4 Europcable estimates for high-voltage transmission lines (2008); 5 Assumes 9% discount rate 8

9 SmartSense MEMS sensors have a sustainable competitive advantage in underground market Fault Prediction Existing sensors No indication of worn cables or impending fault SmartSense sensors Detect cable damage before a fault occurs Pinpoint Fault Location Crews must check all vaults in area of outage, rather than be directed to the fault location Location of fault communicated to the control room before crews are deployed Widespread deployment Sensors can only be deployed at cable termination points MEMS sensors easily installed at any point along outside of cable 9

10 SmartSense also has a competitive advantage in two growing expansion markets: overhead and industrial Overhead distribution GridSense LineTracker Compact Form- Factor GridSense Current Group Cooper Power PowerSense SmartSense Power Scavenging Open Software Standard Price $6,250 Custom $1,800 $5000 <$1,000 Industrial equipment retrofit Sensors can be installed onto 3-phase industrial motor cables to: Monitor load current & phase mismatch Predict failures Sources: 1 Updated Study on Undergrounding of Overhead Power Lines, Edison Electric Institute (2009) 10

11 Description Potential Partners SmartSense to add value through the design of MEMS sensors and integrated modules for utilities Smart Grid Sensors Value Chain MEMS design & manufacturing Module design & manufacturing Software integration Communication network Selling & Installation Manufacture MEMS sensors using proprietary SmartSense design Perform MEMS R&D and optimization Design integrated sensor module Partner with: Software integrators Demand response providers Utilize utility s existing networks Partner with grid communications providers Install sensors across utility system SmartSense activity 11

12 Roadmap for product introductions and funding sought Completed Today Roadmap Funding $4M R&D $6M optimization $7M Go-tomarket Profitability Industrial R&D: TBD Overhead R&D, optimization & trials Commercialize Underground Prototype Research and development, optimization & trials Commercialize Year 12

13 Millions SmartSense offers healthy returns for investors $120 $100 $80 $60 $40 $20 $0 Revenue Net Income Cashflow $117M $26M $23M -$ Round Seed Round A Round B - - Exit Funding $4M $6M $7M Annual Return 70% 50% 30% Exit multiple 24x 8x 3x 13

14 Special thanks to our advisors! Special Thanks! Beverly Alexander, J.D. 7+ years as Senior VP at Pacific Gas & Electric (PG&E) Ran largest energy efficiency/demand response programs in US, which won over 75 awards from DOE and EPA. Richard White, Professor Emeritus, UC Berkeley Director of UC Berkeley Sensor and Actuator Center Sponsoring MEMS Sensors researcher (NAE member) Ken Lau, PG&E 32+ years at PG&E in electrical distribution and R&D System automation, distribution manager (4 US patents) Ron Hoffmann Senior advisor at CIEE Extensive experience starting new businesses in the energy sector Intellectual property Self-powered, wireless sensor node for AC electric current Method for fabricating microscale permanent magnets Self-calibrating proximity-based sensor for AC current Remote assessment of underground cable integrity Team members Eli Leland, PhD MechEng 09, UC Berkeley Co-inventor and lead researcher on MEMS sensors Energy efficiency and alternative energy specialist Postdoctoral researcher at UC Berkeley Erick Dean, MBA 11, Haas UC Berkeley BS in electrical & computer engineering 6+ years wireless device and semiconductor industries Marketing and applications engineering experience Ryan Hanley, MBA 11, Haas UC Berkeley BS and MS in civil engineering Experience in electricity efficiency sensor startup 3 years as a consultant at Bain & Company Devesh Khanal, PhD MatSci 10, UC Berkeley Expert on nano/microscale semiconductor properties Research experience at SunPower Corporation 4+ years experience at Berkeley Microfabrication Laboratory Alvaro Koechlin, MBA 11, Haas UC Berkeley 6+ years as project developer in energy industry Experience with project finance 14