EMA Conference Raj Chudgar rchudgar@pogens.com 832-722-6388 - - PowerPoint PPT Presentation

www.pogens.com

EMA Conference Raj Chudgar rchudgar@pogens.com 832-722-6388

www.pogens.com

Power Generation Services, Inc. 2014 Confidential

Industry in Transformation

• Position: Proliferation of Distributed

Energy Resources (DER) requires the rethinking of the traditional electric paradigms

– Decentralization trend vis-a-vie small scale renewable and self-controlling resources – Customers desire greater control and ZNE – Customers are designing greater local resiliency (e.g. microgrids) – Distribution systems are not modeled to understand multi-directional flows, resource diversification, and the new fundamental load behavioral changes – Distribution utilities (DISCO) are facing behind the meter energy, and reduces net revenue and net margin – Dispatchable or controllable DER could provide additional value to DISCO through reduced outage management times and prioritization during emergencies

• Regulatory uncertainty provides a

further transformation to the grid

The legacy one-way power industry is changing…. are we thinking the right way ?

D Bulleit, 2014

Power Generation Services, Inc. 2014 Confidential

Industry Potential New Model

• Position: A new market entity is

required to obtain additional value from the system and customers

• Distribution Asset System Operator

(DASO)

– Current DISCO does not have the staff, expertise, or regulatory coverage to provide market services to customers – Customers do not know how to monetize their assets – System architecture needs to be updated to

• btain greater value from assets

– Upgrading integration standards will greatly ease transition to new operations – Reliability metrics for portfolio or aggregated assets are being refined – Cyber Security management of the grid

• Numerous models could be developed

and the ones that provide the highest value to the customers should win

DASO

• L. Kristov, CAISO, 2014

New Concepts, New Risks, New Uncertainty

Power Generation Services, Inc. 2014 Confidential

Industry New Opportunities

• Position: New industry model provides

new opportunities for increased financial return, bankable projects, and reliability

– Moving beyond KWH/KW savings and RECs – Wholesale market access opens up numerous financial opportunities – New “fast acting” markets are opening (e.g. RegD) – Regulatory framework and reliability metrics need to become standardized to minimize risks – Lack of communication infrastructure barrier is rapidly diminishing – Internet of Things is supporting these

• pportunities
• Today’s opportunity: working with the

premise of highest value to customers and the grid, systems designed to provide those products will evolve

Is Power the next “Minutes of Use” Or will Selling KW/KWH will evolve to products for customers

D Bulleit, 2014

Power Generation Services, Inc. 2014 Confidential

Power Generation Services

• Headquartered in Raleigh, NC
• 4+ years in planning & development; backed by M-South on the basis that

the electric industry will change like Telecom

• Differentiator Thesis:

– Develop revenue generating strategy with little to no risk for small to mid-size generators – Distributed Generators – Provide all the capabilities for REPs/Muni/Co-ops to enable Demand Response (DR) within their portfolio as a “white label” – Provide a vehicle for customers to upgrade assets and have their costs greatly reduced or eliminated through market programs and financing

• Create end to end services for DR and DG
• Make it easy for customers to leverage their assets into markets for higher

reliability and economic benefits