7.17.15 M-WERC Presentation to WIDRC - website

What is M-WERC?• Energy, Power and Control EPC Industry ‒ Market & Industry Expansion ‒ Work Force & Talent Development ‒ Public Policy ‒ Strategic Collaboration M-WERC Sponsored $2.7

M-WERC Presentation to

WIDRC

July 17, 2015

Jeffrey E Anthony

Director of Business Development

Midwest Energy Research Consortium

What is M-WERC?

• Energy, Power and

Control (EPC) Industry

‒ Market & Industry Expansion

‒ Work Force & Talent

Development

‒ Public Policy

‒ Strategic Collaboration

M-WERC Sponsored $2.7M in Research $325K in Workforce Development

Key Benefits to Members

Technology Development & Open Innovation Strategic Roadmaps / Market Insights

Collaborative Energy Power, and Control Industry Eco-System and Business Development Forum

Why We Started in Wisconsin

The Midwest Has Expansive Capabilities in Energy, Power & Control

• Energy Power & Control in Wisconsin

– 900 Companies

– 100,000 Employees

– Over $38 Billion in Sales

• Expanding Collaboration in Key

Technology Sectors to Companies,

Universities and Partners Throughout

the Midwest Region +525,000 jobs

We Combine the Power of Wisconsin’s Top Four Engineering

Research Universities with the Power of Industry and the

Training Know-how of Leading Technical Colleges

Combining Technology Innovation, Workforce Development and Strategic

Collaboration to Promote Industry Expansion

M-WERC Academic Participants

M-WERC Industry Participants

Project PI / Inst / Partners Outcomes

UW-Milwaukee, UW-Madison

Micro Grid Labs

T Jahns , A Nasiri / Madison, UW-Milwaukee/

UW-RA, LEM, RB

• 25-200 KW AC/DC Microgrid Capability

• Aligned Labs Milwaukee, Madison

• $ 200k funds / $350 k Equipment Donations

Novel EMI/EMC Solutions for

Power Electronics with

Hybrid Energy Module

Development for

• 20-30% decrease in cost

• 50% improvement reliability

Development of Next

Generation Efficient Integrated

Power System for Higher

Power and Survivability

A Nasiri, R Cuzner, T

Jahns/ Milwaukee, Madison/ RA, DRS, LEM, S&C

UW-• 30% improvement in total system cost

• 50% improvement in survivability

Energy Storage, Demand

Response, and Renewable

Energy Interaction at Building,

Campus and District Level

D Ionel, A Nasiri, / Milwaukee, / JCI, LEM,

UW-• 30-40% improvement in total building operating cost

• 35% improvement installed cost

Modeling and Design

Optimization of High Efficiency

Permanent Magnet

Machine-Drive Systems

N Demerdash, D Ionel / Marquette, UW-Milwaukee/

RB, RA, Odyne

• 30-40% improvement in total system design cost & time

• 20 % improvement in ave system efficiency

Model of an NZE (Net Zero

Energy) Campus in a DERS

Environment

B Abushakra , D Ionel / MSOE UW-Milwaukee/

JCI , LEM , AOS

• 30-40% improvement in total system operating cost

• 20 % improvement in total system efficiency

TI / Research Projects

6

Core losses produced

by the field

Copper losses due

to the AC

PM current losses caused by PWM carrier frequencies

eddy-Core losses caused by PWM carrier frequencies

Flux distribution in a 12-slot 10-pole PM machine

0.00 5.00 10.00 Time [ms] 15.00 20.00 25.00 -1.00

0.25 1.10

Rev 3-1-15

No cost extensions until October 2015 have been granted to all projects

Modular Sub Station Gen III

• Smart Feeder Control

• Multiple u-grid segments

• Functional Cluster Controls

Modular Dist Gen Sub Station

• Modular Generator Houses

• Modular Energy Storage

• Pulse Load Power

Integrated Energy Storage Sub Station

• Modular Fast Switch Array

• Modular Energy Storage Rack

Energy-Power-Integrated Dist Generation and Power Processor Racks

• Modular Fast Switch Array

• Modular NG Generators and CCHP Control

Century City Microgrid Project

11

Technology Innovation Network

National Labs and Administrations University Lab/ Capabilities

UW-Engine Research UWM Innovation Lab

MSOE Rapid Prototype Marquette Mechatronics

Energy Innovation Center

New Technology Start-ups & Spin-offs New Products Joint Ventures

Participants External Institutions and Labs Processes

Industry Roadmaps

Tech Roadmaps

Start-ups Large/Mid-Size Corp

offs Acquisitions

Spin-Company Growth

New and Evolving Industry Architectures

M-WERC Will Be Expanding Open Innovation Activities,

At The Energy Innovation Center, and Expanding To Other States in 2015 and Beyond More Companies, More Knowledge, Greater Results and Growth Opportunities:

• New Business Start-Ups

• Corporate and Academic Research Labs

Energy Innovation Center

M-WERC ENERGY INNOVATION CENTER

• Seven floors – Start Up Build, Prototype & Test Facility,

Advanced Research Labs, Light Mfg and Office Space

• Two Year Buildout – Sept 2014 to Oct 2016

Energy Innovation Center

• Century City Tower - seven

floor research building

Research Labs (3 planned)

Energy Innovation Center (EIC) – located in Century City

Tower – at the north end of the 30th Street Industrial Corridor

M-WERC’s Energy Innovation Center

M-WERC Business Start-Up Initiative

Hybrid business model aligning M-WERC member needs for innovation and growth in EPC cluster

with new, disruptive start-ups:

1 Early stage new start-up businesses

focused on disruptive hardware, and

new technologies, processes

2 “Mid-stage” businesses start-up

needing access to prototyping, testing,

and lab space; in process towards full

commercialization

3 Co-located academic and industrial

R&D labs building on M-WERC

roadmaps to meet business challenges

M-WERC - WERCBench Labs

Business Start-Up Initiative

Technology Focus

✓ Energy, Power, and Controls – largest economic

cluster in the State for growth; focus

for M-WERC members

✓ Technology Focus Areas – focus of

M-WERC Roadmaps to date

✓ Adjacent Technologies – AR/VR, 3-D Printing,

Robotics, Drones, Advanced / Smart Manufacturing, Internet of Things, etc

Business Start-Up Initiative

WERCBench Labs Overview

• Real-time Minimum Viable Products (MVPs)

• 12-Week Training Program

• Lean Start-Up Curriculum

• Want teams of builders with a customer-driven

disruptive product / amazing technology to change the world…

WERCBench Labs Launch

• April: Opened one-month application window

WERCBench Labs program

underway; at half-way point

point this week

– Engaging Mentors on a Weekly Basis,

– Working with Individual Teams

– Presentations and Open Innovation Events

– Access to Start-Ups

– Lean Start-up Learning

– Private Accelerators

• Open Innovation Workshops

M-WERC - WERCBench Labs

Weekly Activities & Events

during Summer 2015

• Wednesdays – intensive training day

• Tuesday and Thursday – related events

• Informal mentor meetings / lunch n learn events

• More formal workshops, 2- and 4-hour events

• Getting more of our members to participate in events and share information in other ways

M-WERC - WERCBench Labs

WERCBench Labs –

Demo Day & Wrap-Up

19

• July 16 th – M-WERC

Open Member Meeting –

halfway point – start-up

teams will present

Technology and

Strategic Roadmaps

Technology Focus Areas

• Distributed Energy Resources

and Systems (DERS)

• Building Energy Efficiency

• Energy Water Nexus

Industry Road Map Process

Market Analysis

Product/

Customer Segmentation

Opportunity Assessment

Gap Analysis

Action Planning

DERS Roadmap Summary

Distributed Energy Resources and Systems (DERS)

• DERS Market Growing

 From $1Billion to $3Billion / Year By 2019

 Energy Efficiency Projects Will Drive Over 50% Market

• Region Uniquely Qualified

Generation, Grid Products, &

Leading Research Institutions

 Have Funded Two Microgrid Labs

& Four Microgrid Research Projects

• Opportunities for M-WERC

Members:

 Innovation Research Park

 Demonstration Sites (Century City

Business Park) and Elsewhere

• Trends Driving Growth

– The system adaptability, efficiency, and modularity of DERS

• Modularity allows expanding capability into a DERS with lower initial investment and complexity

• Supports the integration of renewable sources into an existing DERS circuit.

– Smart technology employing control and automation saves

energy – A solution for large, high growth vertical segments (i.e., critical facilities, and healthcare facilities)

– Energy Efficiency Resource Standards (EERS) and Renewable Portfolio Standards (RPS)

– Improves interoperability of communication and control as

smart grid mobilization continues – Infrastructure upgrades

DERS Roadmap - 2013

• Impediments to Growth

– Restrictive Interconnection standards – (e.g voltage

regulation, frequency regulation prohibited) – Industry Suppliers primary focus is on components of DERS

• Lack of system integrators – Lack of Common Language

• Many implementations of DERS have been described as a collection of discrete components

• If utilities and regulators do not view DERS solutions as proven and low risk, they may not be adopted.

– Waiting for Smart Grid…

• Smart grid is composed of advanced metering, automated substation control, and common IT and communications technology

– Current lack of interoperability of communications and

information technology

DERS Roadmap - 2013

• Classic Market Research analysis from Frost and Sullivan utilizing customer reports and data on critical enabling

• Due to declining costs of solar PV

– High Reliability: 12.1% CAGR

• This is the average across all DERS segments

– Energy Efficiency (including DR) 16.7%:

• Fastest growing segment due to FERC’s DR orders

• In Pike’s recently published Military Microgrid report, show >100% growth over next 6 years, due to low current capacity and growing interest in funding DERS upgrades via capture of DR revenues at bases

– Utility T&D: 14.1% CAGR

– Remote DERS: 13.1% CAGR

DERS Roadmap - 2013

IEE Roadmap Summary

Industrial Energy Efficiency (IEE)

 Energy Efficiency Market Growing From $150 Billion To

$250 Billion / Year By 2020 Industrial EE Is A Key Target.

 M-WERC Has Developed A Technology Roadmap And Benchmarked It Against Several National Organizations

 Formation of the “Midwest Industrial EE Working Group”

Number Of EE Projects In Region

 Opportunities for M-WERC Members:

 Discovery Lab on IEE in Energy Innovation Center

 Participate in IEE Working Group

ESS Roadmap Summary

Energy Storage and Systems (ESS)

 Energy Storage Market Growing From $5 Billion To $26 Billion / Year By 2025 Industrial Market Is A Key Target

 Region Uniquely Qualified Due To Leadership In Battery Technology & Argonne Lab National Battery Energy

Storage Lab

 M-WERC Has Funded Two Energy

Storage Research Projects to Date

 M-WERC Member Opportunities:

Organizations To Demonstrate Energy Storage

in Century City Business Park & Demo Areas

 Connecting With Leading National Energy Storage Organizations

• Market analysis = global scope.

• Global markets can be roughly broken into mature and developing

economies:

– Mature economies = US/Canada, Western Europe, Japan, Australia, etc – Developing and transition economies = China, most of Southeast Asia,

Brazil, etc.

• Mature economies – more extensive existing infrastructure.

– Fewer, very large scale projects (such as PHS)

– More R&D

– More residential, small commercial than in developing economies

• Developing economies – developing infrastructure, fewer regulations.

– Large scale projects – PHS more common

– Industrial/large commercial also common

• Fuel cost – analysis assumes that, on the whole, fossil fuel prices will continue to rise at a low to moderate rate.

Confidential Information: May Not Be Shared Without Express Written Permission of M-WERC

ESS Roadmap - 2015

• North American markets are not broken out explicitly in model, but are considered.

– Assumes continued growth in renewables.

• Natural gas likely to remain low cost through at least 2020.

• Most other fossil fuel prices will increase incrementally per global markets.

– UPS markets large in the region.

– PHS will remain difficult to permit in North America.

– Load growth may remain limited in some areas.

Confidential Information: May Not Be Shared Without Express Written Permission of M-WERC

ESS Roadmap - 2015

Confidential Information: May Not Be Shared Without Express Written Permission of M-WERC

Final Market Findings / Segment Growth 2013-2025

ESS Roadmap - 2015

Proposed Formation of an M-WERC

“DERS / ESS Working Group”

M-WERC DERS/ESS WG

• M-WERC has had very good success in 2014-15

with our new “Industrial Energy Efficiency

Working Group” Based on this success, and

results from our Strategic Planning activities:

 Proposed creation of a “Distributed Energy / Energy

Storage Working Group”.

 Need to position Midwest as a leader in DERS and ESS –markets dominated by companies on the coasts in this country

 M-WERC and partner organizations to act as “catalysts” to convene, develop and support the formation of the DERS / ESS Working Group organizations to further our mission

Proposed Initial Focus of WG

1 Identify prime DERS and ESS barriers and develop

proactive remedial strategies

2 Streamline, coordinate, focus and better support

on-going regional DERS and ESS project development efforts and activities in Wisconsin and eventually the Midwest.

3 Develop programming, support materials, processes

and activities to accelerate DERS and ESS project development activities across the region with our corporate members.

4 Partner with Wisconsin organizations and then expand

to Midwest footprint.

M-WERC Events

Upcoming M-WERC Events

JOIN US!

Upcoming M-WERC Member Meetings – providing opportunities for

networking, education, and release of information for our members:

September M-WERC Member Meeting

– Thursday, September 17 th , 9:00am – 1:00pm – Topic: The Energy-Water Nexus

– Location: Downtown Milwaukee

– In Conjunction with The Water Council

M-WERC Technology Innovation Symposium

– Thursday, November 19 th , day-long event with travel time by bus – Topic: Technology Innovation Research Projects

– Sessions on: Energy Storage, Energy-Water Nexus, Smart Manufacturing – Location: TENTATIVE: Argonne National Lab, Chicago, IL

Upcoming M-WERC Events

JOIN US!

Upcoming M-WERC Events:

(WIDRC members Invited, too):

Supply Chain Management Workshop

– Wednesday, July 22 nd , 2:00pm – 4:00pm

– Organized in conjunction with The New North

– Presentation by: Anthony D Ross, Founding Director, Supply Chain

Management Institute, UW-Milwaukee

– State of the Art Supply Chain Management Best Practices

Webinar: “Policy Strategies to Catalyze the Energy Technology Innovation

System in Wisconsin and the United States”

– Tuesday, August 11 th , 1:00pm – 1:45pm

– Presentation by: Gary Radloff, Wisconsin Energy Institute

– Research Project Results on Technology Innovation in Energy Industry

Upcoming M-WERC Events

WERCBench Labs DEMO DAY

Demo Day will wrap-up the first class of WERCBench Labs with final presentations from all start-up teams

 (Free Beer, too)