DISTRIBUTED ENERGY RESOURCES BRIEF SUMMARY

The worlds of sensors, automation, machine learning, computing and communications are each changing rapidly, while at the same time converging into an entirely new competitive arena: smart distributed energy systems and infrastructure.

Volatile energy prices, painful strain on infrastructure, rapidly growing use of renewable energy sources and concern for the environment are creating the need for a transformed power system. The required technology to improve power generation, distribution, and usage through the enabling of a smarter and more interoperable power grid is available.

Years of engineering developments are resulting in affordable technology solutions that, connected by the Internet, will lower power costs and increase its efficient use. New services are emerging that can quickly change how electric service providers increase revenues, and how consumers of power can better manage costs. These new services will rely on distributed, networked power devices that can be automatically monitored, controlled and managed to adjust to power cost, availability, and usage requirements.

The motivation for developing a smart grid lies in added efficiency of distribution and increased reliability of energy services, both from the point of view of the utility firm and the customer. Power customers are increasingly demanding higher quality, cleaner power with no disruption or downtime, and lower prices. Utility firms are looking for ways to reduce expenditures, maintain system stability, and offer customized services. Achieving these quality, reliability, service, and price demands will become increasingly difficult without a new more distributed and interoperable architecture.

Key findings explored in this enterprise growth opportunity brief:

1. The electrical power industry is facing several challenges as renewable and distributed energy sources and new technologies are increasingly adopted by power suppliers and consumers alike
2. Future energy systems, enabled by new intelligent power technologies and smart systems technologies, will need to account for the uses and users of the energy and adjacent applications
3. With new power and Smart Systems technology disrupting the traditional revenue streams, electric utilities and OEMs must expand their view of revenue opportunities or risk displacement
4. Electrical power and related assets are critical infrastructure of cities, making Smart City opportunities potential areas of growth and business model evolution for utilities

5. OEMs, software and service providers must decide whether to collaborate with utilities or to work directly with end customers to enable future smart energy systems and related applications

DISTRIBUTED ENERGY RESOURCES BRIEF
TABLE OF CONTENTS

1. Intro to Smart Systems and Internet of Things Growth Strategy
2. Current State
3. Distributed Energy Resources Growth Opportunities
4. Distributed Energy Summary Findings
5. Framing Trends, Applications and Use Cases
   1. Energy Systems Sit at the Intersection of Smart Systems Applications
   2. Innovative Power Technologies are Changing the Electricity Industry
   3. Electrical Infrastructure is Critical for Smart City Applications
   4. DER Challenges for Utilities
6. Evolving Competitive Structure and Business Models
   1. Energy Systems Are Facing Unprecedented Challenges Across the Globe
   2. The Value Chain of Energy Systems Is Undergoing Profound Transformation
   3. Smart Power Systems will Drive a Distributed Energy Future
   4. Utilities & OEMs Must Find New Opportunities To Capture Value
   5. Major Participants are Moving To Harness and Manage Smart Power Systems
   6. Bold Moves Are Required to Capture and Extract Value
   7. The DER Market Represents An Attractive Opportunity for Acquirers
   8. The Timing  is right….for DER
7. Dimensioning and Targeting Growth Opportunities
   1. The Opportunity Trifecta: Resiliency, Sustainability and Digitization
   2. Utilities Can Address Many New Applications and Use Cases
   3. Electrical Power is a Huge Slice of the Smart Cities Opportunity
   4. Many Market Participants are Partnering to Invest in the Future of Smart Power
   5. Utilities Are Deploying Significant Amounts of Capital in Technology & Startups
   6. Utility Strategies for Digital Technology Procurement and Digital Expertise
   7. Innovators Are Maneuvering to Enable Future Energy Systems
   8. Growth Drivers in DER
   9. The Global Market for Distributed Energy Resources Totals $130 Billion
8. Market Development Challenges and Opportunities
   1. Strategic Maneuvers Dictate Utilities’ Role in Future Power Systems
   2. The Evolving Power Space Impacts Suppliers Serving Utilities Today
   3. Utilities Can Position Themselves as a Smart Cities Platform
   4. Capitalizing on the Opportunity
   5. Next Steps for Further Analysis and Opportunity Capture
9. Innovation Profiles
   1. BlocPower
   2. TerraPower
   3. NuScale
   4. Uncharted Power
   5. Uplight
   6. stem
   7. Volt Energy
   8. Power Ledger
   9. ambibox
   10. Form Energy, Inc

HARBOR’S METHODOLOGY

A Brief Overview of Our Standard Research Methodologies

Primary Research

Harbor conducts first-hand conversations with subject matter experts, potential buyers, and insiders. These conversations also give insights into the nuances of different customer needs and expectations.

Secondary Research

Harbor uses secondary sources, such as research reports and global databases to contextualize costs and benefits to different circumstances, scales, regions, and/or industries.

Academic Research

Oftentimes, the most accurate statistical findings that we leverage come from large university research departments, especially those with strong ties to private sector research and development.

Competitor and Sector Research

A decent portion of the information needed to position a certain technology for success can be found by analyzing competitor offerings and gaps. Knowledge about competitors within a sector and their selling habits gives Harbor unique insights into market and growth strategies.

Competitor Pricing Analysis

Price comparisons are a natural part of a client’s decision-making process. Insight into competitor pricing helps you identify the correct selling points to convey in your calculator.

Case Studies

Case Studies are great for understanding context and use-case applicability. They also provide qualitative insights into how certain technologies have benefitted their users.

Comparable Technologies

When you have a category-breaking new product or solution on the market, it is difficult to draw apples-to-apples comparisons with other deployments. In these circumstances, value-based comparisons come into play and comparable technologies should be considered.