T h e F u t u r e o f E n e r g y & M o b i l i t y S e p t - PowerPoint PPT Presentation

T h e F u t u r e o f E n e r g y & M o b i l i t y S e p t e m b e r 1 7 2 0 1 9 A u s t i n , T X w w w . p i v a . v c 1

E x e c u t i v e S u m m a r y § Illustrate technology trends through expert analysis and startups shaping the future § The presentation is focused on “The Future of Energy & Mobility” because after nearly 100 years of structural stability, the electricity and automotive sectors are being transformed, creating new opportunities to innovate and capture value in those sectors Westinghouse AC power plant at Chicago World’s Fair (1893) Ford Model T Production (1913) w w w . p i v a . v c 2

T h e v e r t i c a l l y i n t e g r a t e d u t i l i t y m o d e l h a s e x i s t e d s i n c e t h e a d v e n t o f e l e c t r i c i t y Regulated areas Profit pools Generation Transmission Distribution Customer • Monopolistic but regulated control of generation, transmission and distribution • Costs are “rate-based”, i.e., spread across ratepayers/ consumers to provide utilities with an allowed rate of return Limited role for • Services • Limited to no competition demand-side services • Weak incentive for innovation or customer service w w w . p i v a . v c 3

F o u r t r e n d s a r e r e s h a p i n g t h e p o w e r i n d u s t r y Trends Impact Power markets are opening up to new players with • Deregulation is advancing at different paces in • new strategies different regions, ultimately leading to more competition in generation, energy retailing and services The market demands solutions that complement solar • Environmental concerns and improving • and wind technology costs are driving a shift from fossil fuels to renewables The future power system is increasingly determined by • New technologies and a need for resilience • choices of end-customers v. utilities lead to a more distributed power system at the expense of centralized assets The number of assets in the power system is increasing • Proliferation of digital technologies enables a • and creating greater complexity more dynamic grid , more precise power management , and new customer value propositions w w w . p i v a . v c 4

T h e f u t u r e o f t h e p o w e r i n d u s t r y i s m o r e d y n a m i c a n d c u s t o m e r - f o c u s e d Regulated areas Profit pools Generation Transmission Distribution Customer Orchestration/ Trading Retail, Services, Distributed Storage Generation, Flexibility & Storage • Traditional vertically integrated utilities shift to become transmission and distribution “network” providers • Customer choice increases and demand-side solutions become more attractive • Going forward, the value will be created primarily in 2 main areas: ✔ The packaging of Distributed Energy Resources (DERs) as solutions to end customers - Electric vehicles, distributed generation assets, storage, demand flexibility ✔ The platform that enables the orchestration of those resources w w w . p i v a . v c 5

§ The transformation of the automotive sector is even more dramatic and surprising w w w . p i v a . v c 6

T h e c o n v e n t i o n a l a u t o m o t i v e s u p p l y c h a i n h a s e x i s t e d f o r a c e n t u r y Profit pools Raw Tier 2+ Tier 1 OEM Customer Materials Supplier Supplier Basic inputs like steel, Make sub-components Make major Assembles • • • • Fuel/ aluminum, for Tier 1’s components for OEMs components and Maintenance polyurethane Well-integrated into Highly integrated into produces automobile • • Tier 1 supply chain OEM supply chain Few/ specialized • Thin margins players • Critical link in value Consumer-facing • • chain brands selling parts, Drives industry services and fuels/ • innovation lubricants Strong consumer • brands w w w . p i v a . v c 7

F o u r k e y t r e n d s a r e r e d e f i n i n g t h e c o n v e n t i o n a l a u t o m o t i v e v a l u e c h a i n Trends Impact § Major OEMs are investing billions of dollars to § This sector is open to new entrants and disruption—the develop autonomous vehicle (AV) technology future value chain and business models are uncertain § Consumer mindset is shifting from buying a vehicle to § Advanced connectivity continues to penetrate buying mobility-as-a-service into new vehicles enabling future applications and monetization opportunities § Fleets serving multiple customers are becoming prominent, requiring new dedicated services § Most major OEMs have unveiled aggressive electrification plans § Demand is shifting from liquid fuels to electrons , creating opportunities to build infrastructure and optimize power flows § Didi, Uber, Lyft & other ride hailing companies have changed the way consumers access mobility and continue to grow rapidly w w w . p i v a . v c 8

T h e n e w m o b i l i t y v a l u e c h a i n i s s t a r t i n g t o c o m e i n t o f o c u s Fuel/ Charging Raw Tier 2+ Maintenance Materials Supplier Tier 1 OEM Provider Integrator Customer Profit pools ✔ Power is shifting from OEMs to mobility Providers and Integrators ✔ There’s a big opportunity to evolve fueling/charging and maintenance services from their current state to serve the fleets of the future w w w . p i v a . v c 9

E x e c u t i v e S u m m a r y § The energy and mobility sectors are both in an early phase of transformation § Electric mobility ties the two sectors together in a fundamental way w w w . p i v a . v c 1 0

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