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“Energy Means Business--Market and Workforce Development” Midwest Energy Research Consortium (M-WERC) Energy Sector UpdateMay 24, 2018
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OEI’s Energy Innovation Summit
Presentation Overview
1. Energy, Power, and Controls Sector
2. M-WERC Overview
3. Energy Sector Technologies
4. M-WERC Market Insights
5. Energy Sector Workforce Development
6. M-WERC Upcoming Events
Energy, Power, and Controls
Energy, Power, and Controls
M-WERC OverviewMidwest Energy Research Consortium www.m-werc.org
• Formed in 2009 as a non-profit research consortium• Eight-state regional cluster for energy, power & controls• Over 90 members, partners, and supporters• Opened Madison, WI office this month
M-WERC has Sponsored $3M in Research, $325K in Workforce Development
What Does M-WERC Do?Three Primary Lines of Business
• Technology Innovation
• Market Intelligence
• Engineering Entrepreneurs
Supporting Activities• Economic Development• Supply Chain• Workforce Development
Technology Focus Areas
Member-Driven Initiatives Focused on Energy Sector
Who is M-WERC ?
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Technology Innovation
UWM School of Freshwater ScienceGlobal Water Center M-WERC Member Labs
2018 Power and Automation Lab
M-WERC Energy Innovation CenterWisconsin Energy Institute/ Grainger Institute for Engineering
Nations First Research Network
Linking Energy Sector Research
Activities
M-WERC’s Energy Sector R&D Program
Distributed Energy• First Strategic Roadmap that M-WERC did focused on
Distributed Energy Resources and Systems (DERS)• The report predicted the emergence of microgrids and made
these market projections for revenues by 2019:• Data Centers - $737.5 million • Commercial Buildings - $628.5 million• Remote - $369.2 million • University Campuses - $277.5 million • Manufacturing - $257.0 million• Public Sector - $239.1 million• Hospitals - $237.5 million
• Solar PV market has exploded since then• Wind Growth has stayed in bulk power
Energy Sector Technologies
Energy Storage• Energy storage potential from a technology perspective
has been coming for many years• 2016, the U.S. added 221 MW of utility-scale battery storage as the cost of those projects
continued to drop. • Worldwide, more than 1,300 MW of grid-connected storage was deployed in 2016• Global annual growth rate is expected to riseto 4,700 MW by 2020 and to 8,800 MW by 2025.
• Prices for lithium-ion battery storage are expected to fall below $200 per kilowatt hour, and global storage capacity is projected grow from 4,000 MW today to 52,000 MW by 2025.
• Regulatory and policy has caught up• FERC Order 841, Feb. 15
Energy Sector Technologies
Energy Storage• Energy storage potential from a technology perspective has
been dropping in price and increasing in performance for many years Argonne National Lab:
• Long incubation period• Lithium-ion battery of 1991
looked nothing like the 1970s vision
• Many (most) good ideas fail• Multiple paths forward
are critical Two-day Energy Storage
conference in Milwaukee, WI, June 12-13, 2018
Li-ion
Li-ion
Development of Lithium Batteries
1970-2015
Gravim
etric Energy Density (W.h/kg)
Cost
(US$
/kW
. h)
3000
2000
1000
0
300
200
100
0
Year
20151970 1980 1990 2000 2010
Ni-MHNi-Cd
1971Conceptualization
1991Commercialization
Crabtree, Kocs, Trahey, MRS Bulletin 40, 1067 (2015)
20 year
incubation
LiAl−TiS2
Li−MoS2
Li−MnO2Li−V3O8
Energy Sector Technologies
Microgrids• M-WERC identified microgrids as a significant
emerging trend in 2013 and started working on microgrids at an early stage
• Century City Microgrid (CCMG) Project:• We Energies and Electric Power Research Institute
feasibility study and economic analysis wrapping up• Issued an RFI in late 2017, 17 responses• Respondents meeting in second half of May
Energy Sector Technologies
Microgrids• Navigant Consulting:• Several states have launched specific microgrids programs
• They range from New York and rest of eastern seaboard to California • Focus is on community resilience projects and/or utility/private sector
business models• Despite significant grant funding, many projects delayed due to regulatory issues
• Utilities and microgrids• Proposals for rate-basing of microgrids• Several unregulated arms of utilitiesinvesting in third-party microgridsoutside of own service territories
Energy Sector Technologies
Energy Energy• M-WERC covered building energy efficiency in one or our
first Strategic Roadmaps; now focused on Industrial Energy Efficiency
• MEEA: 7,690,760 MWHr of electricity saved in 2016• IL, IA, MI, MN, and OH are top five states for electricity savings• IL, IA, MI, MN, and WI are top five states for therms saved
• Industrial Energy Efficiency technologies• Lighting and Controls• Compressed Air Systems• Motors & Motor Controls • Pumps, Fans and Blowers • Process & Facility Heating and Cooling• Process & Facility Automation and Robotics
• April 19th Energy Efficiency conference
Energy Sector Technologies
Energy-Water Nexus• M-WERC has partnered with The Water Council to explore
the interaction of energy technologies and water technologies
• Completed roadmap identified numeroustechnology growth opportunities:
• Advanced Membranes• Leak Reduction/Infrastructure Replacement• Agricultural Water Efficiency• Water Recycling• Energy Efficiency Systems Integration• Energy Efficiency Self Generation• Flexible Combined Cycle Plant)• Variable Speed Drives
Energy Sector Technologies
Energy-Water Nexus• Global market for all EWN
related categories totaled an estimated $241 billion in 2015
• Total market values projected to increase to $496 billion in 2025.
• This is equivalent to a compound annual growth rate (CAGR) of 7.5% overall.
• This rate of increase suggests a strong overall growth rate; however, this growth rate is not uniform across all sectors, with some categories showing rates well in excess of this average.
2015 2025
Energy CycleWater CycleProcess Improvement EnergyWater EfficiencyProcess Improvement WaterCross CuttingEnergy Efficiency
Energy Sector Technologies
Smart Cities / Smart Buildings / Smart Factories• Advent of sensors and internet-of-things is changing the way
buildings, manufacturing, and even urban life is evolving Smart factories are revolutionizing manufacturingby enabling a 7X increase in overall productivityby 2022. Smart buildings – “we’re working to rebuild
Milwaukee from the inside out. With energy efficiency projects, our historic existing buildings can save money, create local jobs, and contribute to a more vibrant community.” Smart cities -- a municipality that uses
information and communication technologies to increaseoperational efficiency, share information with the public to improve the quality of gov’t services and citizen welfare.
Energy Sector Technologies
Energy Sector TechnologiesGrid Modernization• Grid Modernization and Smart Grid technologies for electric
utilities now at the forefront of many PUC / PSC and utility plans.
• EEI – “the growth of distributed energy resources (DER) at scale is transforming the use and operation of the electric grid.
• In order to integrate DER into the grid, while preserving reliability and power quality, the grid needs to be redesigned to give it new functionality:
• replacing distribution lines and deploying new technologies (e.g., distribution management systems, high speed communications, advanced sensors, energy storage) to provide new capabilities to enable a clean energy future”
• Grid Modernization effortsMinnesota – often ranked in Top Five
states, e21 Initiative, PUC docketWisconsin – no active docket, but PSCW
conducted a survey and interviewingutilities and stakeholders
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Strategic Roadmaps• M-WERC did market research with our members /
research consultant to gain insights into key technologies in 2013-2017
• Completed roadmaps: Distributed Energy – 2013 Energy Efficiency – 2014 Energy Storage – 2015 Energy-Water Nexus – 2017
• Shift to Working Groups…
Market
Analysis
Product/
Customer
Segmentation
Opportunity
Assessment
Gap Analy
sis
Action
Planning
M-WERC Market Insights
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M-WERC Market InsightsWorking Groups• Key M-WERC Activity to engage our members in our
key focus technology areas:• 20-80 members per working group; meeting monthly or
alternative months• Focus on delivering continued & updated market intelligence
to our members• Creation technical conference, whitepapers, webinars and
reports
Working Groups• Key M-WERC Activity to engage our members in our
key focus technology areas:• 20-80 members per working group; meeting monthly or
alternative months• Focus on delivering continued & updated market intelligence
to our members• Creation technical conference, whitepapers, webinars and
reports
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M-WERC Market Insights
Working Groups• Key M-WERC Activity to engage our members in our
key focus technology areas:• 20-80 members per working group; meeting monthly or
alternative months• Focus on delivering continued & updated market intelligence
to our members• Creation technical conference, whitepapers, webinars and
reports
22
M-WERC Market Insights
Working Groups• Key M-WERC Activity to engage our members in our
key focus technology areas:• 20-80 members per working group; meeting monthly or
alternative months• Focus on delivering continued & updated market intelligence
to our members• Creation technical conference, whitepapers, webinars and
reports
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M-WERC Market Insights
Working Groups• Key M-WERC Activity to engage our members in our
key focus technology areas:• 20-80 members per working group; meeting monthly or
alternative months• Focus on delivering continued & updated market intelligence
to our members• Creation technical conference, whitepapers, webinars and
reports
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M-WERC Market Insights
Working Groups• Key M-WERC Activity to engage our members in our
key focus technology areas:• 20-80 members per working group; meeting monthly or
alternative months• Focus on delivering continued & updated market intelligence
to our members• Creation technical conference, whitepapers, webinars and
reports
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M-WERC Market Insights
M-WERC Market InsightsWorking Groups• Key M-WERC Activity to engage our members in our
key focus technology areas:• 20-80 members per working group; meeting monthly or
alternative months• Focus on delivering continued & updated market intelligence
to our members• Creation technical conference, whitepapers, webinars and
reports
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Engineering EntrepreneursWERCBench Labs • Launched in 2015 as a program to aid
new start-up companies in the energy sector.
• Based on the “Lean Start-Up” Curriculum, the program identifies new entrepreneurs in the energy and engineering space and accelerates them to achieve success.
• 33 companies have participated in the program, 30 have successfully completed the program
• Fourth year begins in September
M-WERC Workforce Development Committee• 2013-15 active committee active as we wrapped up
Strategic Roadmaps to leverage recommendation contained in each roadmap on workforce development1. Industry workforce trends and requirements2. Dynamic and productive workforce pool development3. Industry recruiting activities support4. Academic degree, certificate programs and related
curricula alignment5. Grant funding for industry workforce and continuing education
activities6. Strategic workforce development partnerships
Energy Sector Workforce Development
Energy Innovation Center – 2016Added Proposed Training Facility – 2018
• Launching an initiative this year to build out the second floor in our building, M-WERC Energy Innovation Center
• Lab and Prototyping Space• Power and Automation Facility• Dedicated Training Facility
- Electronics and assembly trades (Foxconn)- Line worker training (MATC)- other training needs in energy sector (TBD)
Energy Sector Workforce Development
Wisconsin Jobs Project• Report issued earlier this year, and
presented at our event in Madison, WI at the end of January
• Advanced energy is already producing $1.4 trillion in annual private-sector revenues
• Wisconsin is well placed to take advantage of that growing market through advanced energy sensors and controls
• Wisconsin could capitalize on its strengths in sensors and controls to drive economic growth and support over 44,000 jobs annually.
• Full report: The Wisconsin Jobs Project: A Guide to Creating Jobs in Sensors & Controls for Advanced Energy http://americanjobsproject.us/ajp-state/wisconsin/
Energy Sector Workforce Development
What’s Changed Since 2013-15:• Growing work force needed to support Energy Sector associated
with explosion in IIOT and Smart "Everything" and Advanced Power Electronics
• Grid Modernization & Smart Grid advances / Aging Utility Workforce• Succession Plan for retiring baby boomers is required• Grid Modernization including solar, wind, microgrids and energy
storage driving demand for talent
• Foxconn Impacts • OEM (Foxconn) and expanded supply chain requirements• Other electrical and assembly houses need to recruit for future attrition
Energy Sector Workforce Development
Energy Sector Workforce DevelopmentNext Steps on Workforce Development• Poll / Interview our Members on Workforce Development Needs• Include in our Strategic Plan for 2018-2020 and in FY19 Budget• Accelerate Efforts on our “Energy Sector Training Facility”• Expand our Working Relations with Academic Partners
• UWM, UW-Madison, MSOE• Milwaukee Area Technical College, Madison Area Technical College• Gateway Technical College, Waukesha County Technical College, and
Northwest Wisconsin Technical College• other Technical Colleges in the State• other Academic Institutions outside of Wisconsin
• Work closely with State Agencies• Wisconsin Energy Workforce Consortium
Join Us !! 2018 M-WERC Events
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• January 25 - M-WERC Member Meeting - covering Grid Modernization and Smart Grid topics (Madison, WI)
• April 19 - M-WERC Member Meeting – covering Energy Efficiency and City of Milwaukee Better Buildings Challenge (Milwaukee, WI)
• June 12-13 – 2nd Annual Energy Storage Systems Technical Conference (Milwaukee, WI)
• July 19 - M-WERC Member Meeting – covering Sensors, Controls, Smart Cities and Industrial Internet of Things (Milwaukee, WI)
• September 27 – M-WERC Member Meeting – covering Economic Development, Supply Chain, and Workforce Development (Madison, WI)
• October 18 - 2nd Annual Microgrids Technical Conference (Appleton, WI)• November 8 - Energy-Water Nexus Technical Conference (TBD)
