Echelon

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Echelon

• Making Devices Smart and the Grid Smarter

GSA Expo October 2009
2

• US buildings account for 72 of electricity
  consumption

3

• US utilities experience peak demand just 2 of
  the year
• To serve customers on such days, utilities incur
  15 of the total costs for the year

4

• Did you know that 40 of the average US citys
  electricity for lighting is consumed by its
  streetlights?

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How are Buildings, Streetlights and Utilities
Connected?
Theyre part of an emerging energy network called
The Smart Grid
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The Smart Grid Connects Everything Powered
Bank Branch
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What Makes the Grid Smart?

• Two-way communication connects utilities to smart
  devices
• Provides better, more accurate and timely
  information to users
• End-to-end encryption and authentication
• Automatically and remotely detects and resolves
  problems
• Pricing options, energy efficiency incentives,
  monitoring
• Cost-effective operation through insight and
  control of usage
• Adapts to next-generation technology and storage
  options
• Crosses traditional application boundaries to
  integrate decision making in real time

Interactive
Secure Reliable
Accelerates Innovation
Flexible
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The Smart Grid Evolution

• Today
• (AMI)
• Integrate existing services into new grid
• Applications
• Meter reading
• Net metering
• Time of use
• Basic outage detection
• Large load demand limiting

• Long term
• (Smart Grid 2.0)
• Enable future services and foster innovation
• Applications
• Micro-grids/distributed generation
• Intelligent street lighting
• Vehicle to grid /grid to vehicle
• Storage/distribution of renewables (wind, fuel
  cells, solar)
• Fault prediction/outage prevention
• Energy asset management
• Other future applications

• Short term
• (Smart Grid 1.0)
• Transform existing services using advanced
  communication
• Applications
• Pre-paid metering
• In-home displays
• Intelligent disconnect
• Fine-grain load control
• Advanced outage management
• Bi-directional metering (renewables)
• Automatic demand response

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Smart Grid Market Focus
Branch Energy Mgmt
Demand Response
Building Automation
Smart Metering
Lighting
Energy
3.7B WW Hardware
.9B WW Hardware
11B WW Meters/SW
526M US Solar
150M US
3.7B WW Hardware
2B WW Streetlights
11B WW Meters SW
235M US
900M WW Hardware
526M US Solar
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Business Drivers

• Growing focus on Alternative Energy and Clean
  Tech
• Increased public awareness of the green movement
• Businesses and consumers actively participating
  in efficient use of energy
• Global governmental policy and regulation
• Incentivizing energy efficient buildings and
  homes
• Economic stimulus and incentives to improve the
  smart grid
• Growth in emerging energy markets
• Demand response, branch management,
  streetlighting and smart metering

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US Stimulus Package Update

• Smart Grid - 3.9B for modernization of the
  nations electricity grid
• Maximum project allocation increased from 20 to
  200M, making larger utilities projects more
  viable
• Added trial deployments up to 20M
• Aligned smart grid interoperability and security
  standards through NIST
• Upcoming funding milestones second round of
  applications due in November distribution of
  funds expected 30-90 days later
• 70B in funding targets energy efficiency, energy
  research, clean energy generation,
  transportation, energy tax and investment credits

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Clean Air Bill Update

• Transition US to a clean energy economy
• Utilities must generate 20 of their electricity
  through renewable energy and energy efficiency by
  2020
• Sets new energy efficiency standards
• 50 higher energy efficiency building codes by
  2016
• Higher standards ratings programs such as Energy
  Star for lighting and appliance efficiency
• Invests 90B in energy efficiency and renewable
  energy by 2025
• Status Approved by House Senate to review this
  fall

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Smart Grid Implications

• Communications and computation capacity must
  increase dramatically!
• Geographically disbursed, renewable energy
  sources with variable energy output must be
  balanced with demand
• Energy supply from renewable sources must be made
  predictable in the near term
• Demand must also be managed in real time
• Buildings and residences must shed peak loads
• Shift to electric and hybrid transportation will
  change energy usage patterns and demand cycles

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Semiconductor Industry Impact

• Sensors will be deployed where none exist today
• Monitoring energy, sunlight, wind, power quality,
  etc.
• Survive in a harsh environment with a long life,
  while achieving high reliability, and low power
  consumption
• Load shedding devices will be added to buildings
  and homes
• Monitoring the smart grid for curtailment signals
• Everything that consumes power will be metered or
  at least have its energy consumption monitored
• Losses and unexpected usage will be known and get
  fixed

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Key Semiconductor Growth Sectors

• Communications networking
• Wide area and local area or neighborhood
• Carrier class networks, both public and private
• SOCs providing power measurement, control and
  communications
• Making every large electrical load an active,
  intelligent member of the Smart Grid

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Timeframe

• Smart grid is a new, nationwide infrastructure
• Building it will take time
• Installing it will take even more time and labor
• Not like the run of a consumer product after a
  great CES introduction!
• Integrating the systems and making them all work
  together will require pilots and trials
• Some are underway now, many more will need to
  follow
• Assuming stable supply of capital
• A long period of sustained, non-cyclical, growth
  in semiconductor production

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Conclusion

• Todays grid handles peaks in demand, but peaks
  are inefficient and costly
• Todays grid cannot cope with a large base of
  renewable sources
• Todays grid cannot manage demand effectively
  from buildings and residences
• Governments in the U.S. and around the world know
  that they must reduce energy consumption while
  maintaining their economies
• Confluence of these realities will drive IC
  deployments in new applications at high volumes