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Confidential and Proprietary Information of Ohmconnect, Inc. Confidential and Proprietary Information of Ohmconnect, Inc.

The Business of Using IoT to Build Virtual Power Plants at Home by Curtis Tongue of Ohmconnect

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Confidential and Proprietary Information of Ohmconnect, Inc.Confidential and Proprietary Information of Ohmconnect, Inc.

Confidential and Proprietary Information of Ohmconnect, Inc.

1. Demand Response Primer

2. IoT Business Model

3. Ohmconnect Demo

Agenda

Confidential and Proprietary Information of Ohmconnect, Inc.

Birth of DR: California energy crisis of 2000/2001

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• Rolling blackouts in June 2000

• Demand outstripped supply

• Needed immediate solutions to prevent further blackouts

Confidential and Proprietary Information of Ohmconnect, Inc.

Demand response flavors: past, present, future

4

Confidential and Proprietary Information of Ohmconnect, Inc.

Economic explanation behind rolling blackouts

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Pri

ce o

f E

lect

rici

ty

Quantity of Electricity

Pri

ce o

f E

lect

rici

ty

Quantity of Electricity

Prior Peak Period S&D curves Blackout S&D curves

Confidential and Proprietary Information of Ohmconnect, Inc.

DR was born from CEC’s plan to combat blackouts

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• California Energy Commission’s (CEC) Art Rosenfeld led a call for “Demand Relief” programs• OBMC – optional binding mandatory curtailment

• EPRI, Silicon Valley, Cisco, HP, IBM, others participated to show that they can shave off 10MW out of 100MW

• How?• Lighting, Air conditioning, Refrigeration, others

Confidential and Proprietary Information of Ohmconnect, Inc.

Implementing DR in 2001 – Oracle

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Confidential and Proprietary Information of Ohmconnect, Inc.

Smart meters

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• Monthly readers

• AMR (Automatic Meter Reading)

• AMI (Advanced metering infrastructure)

Confidential and Proprietary Information of Ohmconnect, Inc.

“Locational” Marginal Price (LMP) markets

9

Pri

ce

Quantity

Pri

ce

Confidential and Proprietary Information of Ohmconnect, Inc.

The result is much more granularity and insights into when energy is expensive

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Utility Price

15% of costs come from <1% of hours

Confidential and Proprietary Information of Ohmconnect, Inc.

1. Demand Response Primer

2. IoT Business Model

3. Ohmconnect Demo

Agenda

Confidential and Proprietary Information of Ohmconnect, Inc.12

Confidential and Proprietary Information of Ohmconnect, Inc.12

OhmconnectWholesale

EnergyMarkets

User

1. Demand reduction 2. IoT load reduction

3. Market compensation20% retained by Ohmconnect

4. 80% of revenues delivered to utility fordistribution to users

Business Model Value Chain

Confidential and Proprietary Information of Ohmconnect, Inc.13

Confidential and Proprietary Information of Ohmconnect, Inc.1313

99% of time: no biddingdevices use electricity as normal

1% of time: bids clear into CAISOWhen wholesale energy prices spike, Ohmconnect automatically turns down non-critical IoT loads in homes.

These reductions can occur in increments as short as 15, so personal comfort is not an issue.

IoT Device Timing

Confidential and Proprietary Information of Ohmconnect, Inc.

1. Demand Response Primer

2. IoT Business Model

3. Ohmconnect Demo

Agenda

Confidential and Proprietary Information of Ohmconnect, Inc.15

Confidential and Proprietary Information of Ohmconnect, Inc.

Empower homes to respond to price

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Reduce Energyvia residential

demand response

Sell Reductionsinto energy markets as

generation

Rewardusers with financial

incentives

Confidential and Proprietary Information of Ohmconnect, Inc.17

Text alerts

Email alerts

Weekly Email Summaries

Social energy comparisons

Cash out DR earnings

Web Tool f

$ Donate to non-profit

Word of mouthmarketing

Continued engagement

Customer Experience

Confidential and Proprietary Information of Ohmconnect, Inc.

What do Customers Think?

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“Ohmconnect's innovation is combining the micro-information from my personal energy use in my home with the macro-information of energy production and distribution to make better decisions and usage for society, the environment and for me personally. It doesn't get better than that.”

- Stephen Schwerdweger, Palo Alto CA

"Getting paid to reduce my environmental footprint? Count me in."- Adam Foster, Concord CA

"The easiest home energy analysis tool out there. I especially like the way it can automatically reduce my energy consumption during periods of high usage (or cost) and in most cases I don't even notice. If everyone started using it, we would be able to stop using expensive and dirty "peaker" plants.”

- John Overstreet, Los Altos, CA

Confidential and Proprietary Information of Ohmconnect, Inc.

Thank You

[email protected]

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