Walks through the construction of a framework to map how different technology trends interact with cleantech sectors of interest. Key areas of potential are highlighted.

1. Technology Trends Opportunity Assessment
5/18/2017
Max Tuttman
MBA Candidate, MIT Sloan School of Management
SM Mechanical Engineering Candidate, MIT School of Engineering
mtuttman@sloan.mit.edu
1

2. Agenda
• Project Approach
• Technology Overview
• Screening Approaches
– Value Mapping & Results
– Functional Mapping & Results
• Recommendations and Next Steps
2

3. Agenda
• Project Approach
• Technology Overview
• Screening Approaches
– Value Mapping & Results
– Functional Mapping & Results
• Recommendations and Next Steps
3

4. Project Approach: Evaluate technology trends against market needs and
impact investment criteria
Technology
SocietyMarket
6

5. Technology
SocietyMarket
Project Approach
• Create taxonomy for emerging
technologies of interest
• Identify use cases
• Qualify technology value
proposition
7

6. Technology
SocietyMarket
Project Approach
• Develop value chains and value
drivers for sectors of interest
• Identify functions of existing
sectors of interest
8

7. Technology
SocietyMarket
Project Approach
• Map technology value
propositions to market value
drivers
• Identify technology enabled
solutions to sector functions
9

8. Technology
SocietyMarket
Project Approach
• Identify market opportunities
where new technologies can
advance clean energy
objectives
10

9. Methodology
• Literature review
– Market reports
– Academic studies
• Seminar, conference, and presentation attendance
• Company deep dives
• Project stakeholder feedback
11

10. Key Takeaways
• Different frameworks must be used to evaluate a technology
depending on whether it adds value within an existing value chain,
or is seeking to disrupt it
• Funding opportunities appear to be available for companies
seeking to provide value within existing value chains – particularly
when the incumbents in those value chains are large and able to
make strategic investments and/or undertake internal development
• Startups attempting to use technology to disrupt existing value
chains require patient capital and support in navigating both public
and private stakeholders
12

11. Agenda
• Project Approach
• Technology Overview
• Screening Approaches
– Value Mapping & Results
– Functional Mapping & Results
• Recommendations and Next Steps
Technology
SocietyMarket
13

12. The current trend of technologies is in connecting the digital and physical worlds. The
taxonomy used for this analysis classifies creates groups that span the digital-physical
spectrum.
Data Analytics
Micro-
Segmenting
Predictive
Analytics
Sensory
Processing
Deep Learning
AR/VR
Virtual Reality
Augmented
Reality
IoT
Location
Tracking
Personal
Monitoring
Infrastructure
Monitoring &
Control
Manufacturing
& Logistics
Feedback
Environmental
Responsiveness
Robotics
Repetitive
Manufacturing
UAVs
Autonomous
Vehicles
Adaptive
Robotics
Additive
Manufacturing
Product
Development
Spares
Specialized
Components
*Materials
Digital Physical
14
*In order to limit the scope, materials
trends were not explored in depth

13. Technology
Trend
Trend Summary
• What are the subcategories of
applications within this trend?
• What are the specific use cases
within this subcategory?
(examples)
Sources
Value Drivers
• How this trend is providing value to customers or
end users?
Enablers
• What surrounding trends and technologies are
giving rise to this trend?
Barriers
• What hurdles stand in the way of further
development or penetration of this trend?
Current Use Cases
Legend
15

14. Data
Analytics
Transforming behavioral, transactional, environmental, geospatial, and textual data into
actionable information
• Micro-Segmenting
• Ad Targeting (Google, FB)
• Cross-Selling (Amazon, Netflix)
• Risk Estimation (Progressive)
• Predictive Analytics
• Predictive Service (IBM)
• Demand Forecasting (Zara)
• Fraud Identification (Palantir)
• Sensory Processing
• Item Recognition (Amazon Go)
• Voice Recognition (Echo, Siri)
• Deep Learning
• Optimization and Planning (DeepMind)
• Strategy (AlphaGo)
McKinsey. (2016). the Age of Analytics: Competing in a Data-Driven World, (December), 136.
Value Drivers
• Enhanced customer targeting and personalization
• Asset utilization and uptime
• Reduced product development costs
• Reduced transaction friction
• Efficient market-making
Enablers
• Data Availability
• Algorithm commoditization
• Falling costs of data processing and storage
• Scalability of cloud computing
Barriers
• Data integration
• Privacy concerns
• Lack of model transparency to end-user and/or
regulator
Current Use Cases
16

15. Delivering immersive experiences that simulate or enhance the physical world
• Virtual Reality
• Gaming (Oculus Rift)
• Prototyping (Raytheon CAVE)
• Product demonstration
• Training
• Augmented Reality
• Training
• Heads up navigation (BMW)
• Maintenance Support (Atheer)
Sherman, E. (2016). The road ahead for augmented reality, (1), 1–8.
Baya, B. V. (2016). Five ways virtual reality delivers business value.
PWC. (2016). For US manufacturing, virtual reality is for real, (January).
Value Drivers
• Enhanced productivity with real-time hands-free
information
• Reduced travel costs
• Shortens time to market
• Hands-free access to contextual information for
workers
Enablers
• Headset/smartglass cost reduction
• Smartphone to VR conversion
Barriers
• Workflow reconfiguration
• Worker training
• Ecosystem fragmentation
• Benefit quantification
Current Use Cases
AR/VR
17

16. Connecting previously unconnected people, processes, data, and equipment through
internet enabled devices
• Infrastructure Monitoring & Control
• Smart Grid (Schneider, ABB, Itron)
• C&I Building Integration (GE Current)
• Smart Home (Nest, Sense, Wink)
• Vehicle Charging (Tesla)
• Personal Monitoring
• Fitness Tracking (Fitbit)
• Connected Medical Devices
• Manufacturing & Logistics Feedback
• Equipment Health Tracking
• Inventory Tracking (Amazon)
• Environmental Responsiveness
• Agriculture (OnFarm)
• Location Tracking
• Fleet Telematics (Fleetmatics)
• Ridesharing (Uber)
Manyika, J., Chui, M., Bisson, P., Woetzel, J., Dobbs, R., Bughin, J., & Aharon, D. (2015). The Internet of Things: Mapping the value beyond the hype. McKinsey Global Institute, (June), 144. Joseph Bradley,
Barbier, J., & Handler, D. (2013). Embracing the Internet of Everything To Capture Your Share of $ 14 . 4 Trillion. Cisco Ibsg Group, 2013.
Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard Business Review, (November 2014).
Value Drivers
• Increased Asset Utilization/Optimization
• Employee Productivity Gains
• Logistics Improvement
• Enhanced Customer Experience
• Reduced Time to Market
• Increased Process Yield
Enablers
• Falling cost of basic hardware (MEMS, RFID,
batteries, data coms)
• Enhanced data communication networks
Barriers
• Privacy concerns
• Security
• Platform compatibility/interoperability
• Slow turnover of capital equipment
Current Use Cases
IoT
18

17. Automating physical tasks with intelligent hardware
• Autonomous Vehicles
• Conditional AV (Tesla)
• AV fleet services (Uber)
• UAVs
• Precision Agriculture (Agribotix)
• Public Safety (humanitarian response)
• Infrastructure Management (Cyberhawk)
• Delivery (Matternet, Amazon)
• Adaptive Robotics
• High Hazard (Boston Dynamics)
• Picking and Packaging (Amazon Robotics)
• Co-Bot (Baxter)
• Repetitive Manufacturing
• Assembly (automotive, medical devices)
• Testing and Inspection
• Food and Beverage
Jenkins, D., & Vasigh, B. (2013). The economic impact of unmanned aircraft systems integration in the United States, (March), 1–40.
McCutcheon, R., Pethick, R., Bono, B., & Burak, M. (2014). The new hire: How a new generation of robots is transforming manufacturing. PwC and the Manufacturing Institute, (September), 1–16. Baya, V.,
& Wood, L. (2015). Technology Forecast: Service robots - The next big productivity platform: PwC. PwC, (2).
Value Drivers
• Safety
• Resource efficiency
• Enhanced inspection capabilities
• Labor reduction
Enablers
• Machine Vision
• AI/Deep Learning
• Environmental sensors
• IoT connectivity
• Modular platforms
Barriers
• Politics of labor reduction
• Regulation and standard setting
• Cybersecurity
• Infrastructure adaptation
• Cost of configuration and support
Current Use Cases
Robotics
19

18. Constructing physical objects from digital designs through the precise layering of
materials
• Product Development
• Concept modeling (Automotive)
• Rapid prototyping (Consumer goods)
• Spares
• Low volume replacements
(Aerospace)
• Out of production parts
(Manufacturing)
• Specialized components
• Highly engineered designs
(Aerospace)
• Personalized products (Healthcare,
fashion)
HP Seminar - In the Digital Age 3D Printing Revolutionizes Manufacturing
PWC. (2014). The future of 3-D printing: Moving beyond prototyping to finished products. Additive Manufacturing, (2), 68.
Cotteleer, M., Holdowsky, J., & Mahto, M. (2014). The 3D opportunity primer: The basics of additive manufacturing. A Deloitte Series on Additive Manufacturing, 1–17.
Value Drivers
• Inventory reduction
• Assembly efficiency
• Part reduction
• Increased design complexity
• Customization
• Decreased time to market
• Waste reduction
Enablers
• Material development
• Cost reductions
Barriers
• Industry standardization
• Entrenched engineering practices
• Scalability
Current Use Cases
Additive
Mfg
20

19. Agenda
• Project Overview and Scope
• Technology Overview
• Screening Approaches
– Value Mapping & Results
– Functional Mapping & Results
• Recommendations and Next Steps
Technology
SocietyMarket
21

20. Different stages of technology and market maturity require different
evaluative frameworks
22
Existing
technology
New
technology
Newer
technology
TechnologyPerformanceImprovement
Cost/Time of Development
Value Mapping evaluates
impact of a technology trend
within existing value chains
Functional Mapping evaluates
the ability of a technology
trend to reshape a value chain

21. Agenda
• Project Overview and Scope
• Technology Overview
• Screening Approaches
– Value Mapping & Results
– Functional Mapping & Results
• Recommendations and Next Steps
Technology
SocietyMarket
23

22. Each sector in the energy space can be decomposed into a chain by which that sector
has traditionally delivered value to customers
Distributed
Generation
Customer
Acquisition
Deployment Production O&M
Utility Scale
Generation
Project
Development
Procurement Construction Interconnection Production Inspection O&M
Transmission Planning Construction Operation Maintenance Inspection
Distribution Construction Operation Maintenance Inspection
Storage Manufacturing Installation Production O&M
Transportation Acquisition Operation Maintenance End of Life
Built
Environment
Construction Maintenance Operation
Manufacturing
Upstream
Supply Chain
Operations
Downstream
Supply Chain
End of Life
Generation
Delivery
Usage
24

23. Businesses operating within traditional value chains are focused on driving performance through one of a handful of
factors. One way of identifying these factors is by decomposing ROE through a DuPont analysis. The basic DuPont
formula is ROE = Asset Turnover x Profit Margin X Financial Leverage, and these three factors can be broken down
further to better understand a firm’s operational performance.
25
Return on
Equity
Asset
Turnover
Revenue
Assets
Fixed
Assets
Working
Capital
Profit
Margin
Revenue
Net
Income
Revenue
Volume
Price
Costs
COGS
IT&D
LeverageOperating Parameter
(Tech Impact)
Financial Parameter
(No Tech Impact)

24. We can further assess the mechanisms, or levers, by which these business metrics can be improved.
These levers will be used to connect value chains to technology value drivers.
26
Capital
Time
Output
Efficiency
Product
Differentiation
Labor Other OpEx
Risk
Financial Parameter
(No Tech Impact)
Return on
Equity
Asset
Turnover
Revenue
Assets
Fixed
Assets
Working
Capital
Profit
Margin
Revenue
Net
Income
Revenue
Volume
Price
Costs
COGS
IT&D
LeverageOperating Parameter
(Tech Impact)

25. An Example of Connecting Industry Value Chains to Technology Value Drivers
27
Distributed
Generation
Customer
Acquisition
Deployment Production O&M

26. The analysis is performed at the level of a step in the value chain, in this case DG
production
28
Distributed
Generation
Customer
Acquisition
Deployment Production O&M

27. Within that step, the primary drivers of performance are identified
29
Distributed
Generation
Customer
Acquisition
Deployment Production O&M
Output Efficiency
Production phase value is largely driven by
the ability of assets to produce at optimal
capacity. For example, maximizing kWh
produced by a PV system.

28. A technology trend is then evaluated against the identified factor(s) of interest
30
Distributed
Generation
Customer
Acquisition
Deployment Production O&M
Output Efficiency
The IoT value drivers here are taken from the
previously performed technology overview
• Increased Asset Utilization/Optimization
• Employee Productivity Gains
• Logistics Improvement
• Enhanced Customer Experience
• Reduced Time to Market
• Increased Process Yield
IoT Value Drivers

29. The degree of overlap between a technology’s value drivers and the importance of
those drivers within a particular value chain determines the potential for impact
31
Distributed
Generation
Customer
Acquisition
Deployment Production O&M
Output Efficiency
• Increased Asset Utilization/Optimization
• Employee Productivity Gains
• Logistics Improvement
• Enhanced Customer Experience
• Reduced Time to Market
• Increased Process Yield
IoT Value Drivers
IoT can help DG maximize value in the production phase by increasing
output through the utilization of assets (e.g. responding to real time
price signals), and increasing process yield (e.g. maximizing uptime)

30. Data
Analytics AR/VR IoT Robotics
Additive
Mfg Materials
Distributed Generation
Customer Acquisition 6 4 3 2 3 1
Deployment 2 2 3 3 2 0
Production 6 0 6 4 0 2
O&M 0 2 3 4 3 1
Utility Scale
Project Development 9 5 4 4 4 1
Procurement 4 0 4 0 2 0
Construction 3 5 3 3 3 1
Interconnection 6 4 3 2 3 1
Production 6 0 6 4 0 2
Inspection 0 2 1 3 1 0
O&M 0 2 3 4 3 1
This analysis can be done quasi-quantitatively and condensed into a heat map that indicates the
pairings of highest potential. The map shown here is for energy generation, with the result of the
previous example circled.
32
Generation
Tech/Sector
Overlap
High
None

31. Illustrative Deep Dives
• The heat map can be used as a general guide as to where
to look for opportunities
• A general logical filter should be applied on top of the
score as high scores only indicate that the given
technology can provide value within that segment of the
value chain
– Value is not necessarily created in a manner consistent with
the investor mandate
– Technology may already be widely adopted within that value
chain (e.g. supply chain analytics)
• The following slides will walk through a number of
illustrative applications that were chosen for both their
high scores and potential to address relevant challenges
– Heat maps have been divided into Generation, Delivery, and
Usage
33
Technology
SocietyMarket

32. • Improve asset performance by detecting and
resolving system issues
• Enhancing PV performance and value through
smart inverters and modules
• Optimizing wind farm maintenance strategy to
improve reliability and availability, and increase
annual energy production
Data
Analytics AR/VR IoT Robotics
Additive
Mfg Materials
Distributed Generation
Customer Acquisition 6 4 3 2 3 1
Deployment 2 2 3 3 2 0
Production 6 0 6 4 0 2
O&M 0 2 3 4 3 1
Utility Scale
Project Development 9 5 4 4 4 1
Procurement 4 0 4 0 2 0
Construction 3 5 3 3 3 1
Interconnection 6 4 3 2 3 1
Production 6 0 6 4 0 2
Inspection 0 2 1 3 1 0
O&M 0 2 3 4 3 1
IoT systems can monitor and optimize the production from renewable resources, thereby
increasing reliability and reducing LCOE
Generation
Space largely being dominated by major players at this point, especially in large facilities. May not be an appropriate
space as significant funding and competition is already present in this area.
Smart Inverters/ModulesSolar Monitoring Wind Monitoring
Illustrative Opportunities
34

33. • Improve market access, streamline regulatory
hurdles, and help reduce soft costs
• Use multiple information sources to overcome
informational barriers that lead to high non-
monetary costs during the purchase process
• Reduce marketing costs by predicting with accuracy
which customers are good targets based on their
consumption patterns and lifestyles
Data
Analytics AR/VR IoT Robotics
Additive
Mfg Materials
Distributed Generation
Customer Acquisition 6 4 3 2 3 1
Deployment 2 2 3 3 2 0
Production 6 0 6 4 0 2
O&M 0 2 3 4 3 1
Utility Scale
Project Development 9 5 4 4 4 1
Procurement 4 0 4 0 2 0
Construction 3 5 3 3 3 1
Interconnection 6 4 3 2 3 1
Production 6 0 6 4 0 2
Inspection 0 2 1 3 1 0
O&M 0 2 3 4 3 1
Using data analytics to reduce soft costs that currently account for as much as 64% of the total
cost of a new solar system
Generation
Several companies are operating around this space, but still at the edges. The current activity is largely around
aggregation and integration, not analysis. Many of the original Sun Shot grant recipients in this area have pivoted which
may indicate that they were too early, or that value capture in this space is a challenge.
Aggregators Data IntegratorsProject Management/Design Tools Pivoted Sun Shot Companies
Illustrative Opportunities
35

34. • Provide greater access to capital for borrowers
through a efficient and standardized loan
application process
• Increase market liquidity by creating publicly
available investment vehicles
• Reduce project risk by synthesizing multiple
dimensions of performance
• Properly value distributed energy resources with
geospatial analytics
Data
Analytics AR/VR IoT Robotics
Additive
Mfg Materials
Distributed Generation
Customer Acquisition 6 4 3 2 3 1
Deployment 2 2 3 3 2 0
Production 6 0 6 4 0 2
O&M 0 2 3 4 3 1
Utility Scale
Project Development 9 5 4 4 4 1
Procurement 4 0 4 0 2 0
Construction 3 5 3 3 3 1
Interconnection 6 4 3 2 3 1
Production 6 0 6 4 0 2
Inspection 0 2 1 3 1 0
O&M 0 2 3 4 3 1
Using data analytics to reduce risks and improve access to capital in the project development
process
Generation
The application of data analytics in the FinTech space has spilled over into project financing for large renewable
generation projects. Applications like that of SunShot grant recipient Kevala’s that use analytics to identify how projects
interact with existing grid infrastructure may be early enough to be of interest.
Illustrative Opportunities
Siting Analytics FinTech
36

35. Data
Analytics AR/VR IoT Robotics
Additive
Mfg Materials
Transmission
Construction 5 3 4 0 3 1
Operation 6 0 6 4 0 2
Maintenance 3 2 4 6 4 1
Inspection 6 2 3 7 3 0
Distribution
Construction 5 3 4 0 3 1
Operation 6 0 6 4 0 2
Maintenance 0 4 4 7 4 1
Inspection 3 4 3 8 3 0
Storage 6 0 6 4 0 2
Resilience 6 0 2 4 2 0
Delivery
Similar heat maps and analyses were performed for the remaining sectors of interest.
Here delivery is shown.
37

36. Delivery Data
Analytics AR/VR IoT Robotics
Additive
Mfg Materials
Transmission
Construction 5 3 4 0 3 1
Operation 6 0 6 4 0 2
Maintenance 3 2 4 6 4 1
Inspection 6 2 3 7 3 0
Distribution
Construction 5 3 4 0 3 1
Operation 6 0 6 4 0 2
Maintenance 0 4 4 7 4 1
Inspection 3 4 3 8 3 0
Storage 6 0 6 4 0 2
Resilience 6 0 2 4 2 0
Robotics allow for lower cost, safer, and more regular inspection of grid assets, allowing
grid operators to ensure reliability in aging assets, and respond to weather events
• Replace helicopter and ground based 3rd party
services for line inspections and maintenance,
storm damage assessment and more
• Identify easily avoidable problems, such as
loosening electrical cables, missing screws, etc
• Ensure worker safety in a high hazard environment
Fixed line robots have been deployed for inspection several regions. Recent FAA rules make the use of drones likely to
grow significantly and may create opportunities for higher value activities to be layered onto image capturing.
Line-Fixed Robots UAVs/ROAVs
Illustrative Opportunities
38

37. Data
Analytics AR/VR IoT Robotics
Additive
Mfg Materials
Transportation
Acquisition 2 0 2 0 1 0
Services 0 2 3 4 3 1
Operation 4 2 9 7 6 6
Built Environment
Construction 6 3 5 0 4 4
Maintenance 0 2 1 3 1 0
Operation 3 0 5 3 2 2
Manufacturing
Inbound Supply 10 4 7 2 5 1
Operations 6 2 9 8 3 3
Outbound Supply 10 4 7 2 5 1
Usage
Lastly, a map for energy usage sectors was created.
39

38. Data
Analytics AR/VR IoT Robotics
Additive
Mfg Materials
Transportation
Acquisition 2 0 2 0 1 0
Services 0 2 3 4 3 1
Operation 4 2 9 7 6 6
Built Environment
Construction 6 3 5 0 4 4
Maintenance 0 2 1 3 1 0
Operation 3 0 5 3 2 2
Manufacturing
Inbound Supply 10 4 7 2 5 1
Operations 6 2 9 8 3 3
Outbound Supply 10 4 7 2 5 1
Usage
IoT applied in the transportation sector can increase vehicle utilization and decrease
emissions associated with congestion
• Vehicle positions can be tracked in real time and
routed for maximum efficiency
• Drive behavior can be monitored and altered for
increased fuel efficiency
• “Smart Cities” advances can decrease emissions
associated with idling and searching for parking
IoT represents an incremental improvement in the transportation operations space as data collection and processing can
now be streamlined for telematics with wireless connectivity and congestion conditions can be reported in real time.
Telematics Congestion management
Illustrative Opportunities
40

39. Value Chain Mapping Summary:
High risk investments are not critical to accelerating the deployment of
trending technologies within existing value chains
• Several trends explored here are receiving active investment from incumbents who
have strong incentives to maintain healthy internal and external development pipelines
• In scenarios where technologies can provide benefit within an existing value chain,
value should be realizable early in a company’s lifecycle
• Grant programs, small investments, and network access can enable young startups in
this space to form and secure a first customer or partner
• The interaction of emerging technologies and existing value chains should be actively
monitored by for gaps that may arise

40. Agenda
• Project Overview and Scope
• Technology Overview
• Screening Approaches
– Value Mapping & Results
– Functional Mapping & Results
• Recommendations and Next Steps
Technology
SocietyMarket
42

41. Distributed
Generation
Reduce Variable
Energy Costs
Gain Grid
Autonomy
Showcase
Sustainability
Utility Scale
Generation
Produce Low Cost
/ High Value
Energy
Transmission
Connect
Generation with
Consumption
Distribution
Deliver Energy to
End Users
Receive Energy
From DERs
Storage
Align Energy
Production with
Consumption
Transportation Move Goods
Conduct Face to
Face Business
Recreational
Travel
Intra-City
Mobility
Built
Environment
Provide Comfort
to Occupants
Deliver Visual
Aesthetics
Manufacturing
Transform
Materials to
Products
In functional mapping, the sectors of interest are broken down into the
customer functions that they perform
Generation
Delivery
Usage
43

42. Distributed
Generation
Reduce Variable
Energy Costs
Gain Grid
Autonomy
Showcase
Sustainability
Utility Scale
Generation
Produce Low Cost
/ High Value
Energy
Transmission
Connect
Generation with
Consumption
Distribution
Deliver Energy to
End Users
Receive Energy
From DERs
Storage
Align Energy
Production with
Consumption
Transportation Move Goods
Conduct Face to
Face Business
Recreational
Travel
Intra-City
Mobility
Built
Environment
Provide Comfort
to Occupants
Deliver Visual
Aesthetics
Manufacturing
Transform
Materials to
Products
Uber exemplifies a case that is be difficult to identify in value chain mapping,
but can be readily seen as an alternative mechanism for Intra-City Mobility
Generation
Delivery
Usage
44

43. Distributed
Generation
Reduce Variable
Energy Costs
Gain Grid
Autonomy
Showcase
Sustainability
Utility Scale
Generation
Produce Low Cost
/ High Value
Energy
Transmission
Connect
Generation with
Consumption
Distribution
Deliver Energy to
End Users
Receive Energy
From DERs
Storage
Align Energy
Production with
Consumption
Transportation Move Goods
Conduct Face to
Face Business
Recreational
Travel
Intra-City
Mobility
Built
Environment
Provide Comfort
to Occupants
Deliver Visual
Aesthetics
Manufacturing
Transform
Materials to
Products
Similarly, the functional map can reveal opportunities for technology trends
to enable new ways to deliver existing functions
Generation
Delivery
Usage
3D
Printing
AR/VR Robotics
/IoT
DER+Analytics/
IoT
3D
Printing
IoT
DER+Analytics/
IoT
45

44. Distributed
Generation
Reduce Variable
Energy Costs
Gain Grid
Autonomy
Showcase
Sustainability
Utility Scale
Generation
Produce Low Cost
/ High Value
Energy
Transmission
Connect
Generation with
Consumption
Distribution
Deliver Energy to
End Users
Receive Energy
From DERs
Storage
Align Energy
Production with
Consumption
Transportation Move Goods
Conduct Face to
Face Business
Recreational
Travel
Intra-City
Mobility
Built
Environment
Provide Comfort
to Occupants
Deliver Visual
Aesthetics
Manufacturing
Transform
Materials to
Products
Several illustrative case studies were explored
Generation
Delivery
Usage
3D
Printing
AR/VR
DER+Analytics/
IoT
DER+Analytics/
IoT
46

45. Distributed
Generation
Reduce Variable
Energy Costs
Gain Grid
Autonomy
Showcase
Sustainability
Utility Scale
Generation
Produce Low Cost
/ High Value
Energy
Transmission
Connect
Generation with
Consumption
Distribution
Deliver Energy to
End Users
Receive Energy
From DERs
Storage
Align Energy
Production with
Consumption
Transportation Move Goods
Conduct Face to
Face Business
Recreational
Travel
Intra-City
Mobility
Built
Environment
Provide Comfort
to Occupants
Deliver Visual
Aesthetics
Manufacturing
Transform
Materials to
Products
For example, we can explore how analytics and IoT enable DERs to deliver
the low cost, high value energy associated with large controllable generators
Generation
Delivery
Usage
DER+Analytics/
IoT
47

46. Increase Value Use Smarter
Enhance Flexibility
Virtual Power Plants:
DER, data analytics, and IoT producing controllable, low cost, high value power
• Enable owners of DERs, demand response assets, and EVs to
maximize revenue while allowing system operators to maintain
the proper balance of the electricity grid
• Can reduce emissions through an optimized scheduling of a
diversity of assets
• Current trends in transportation and residential electrification
can further drive the robustness of VPPs
Global VPP implementation is expected to reach $2.1 billion annually by 2025. In 2016 Sunverge deployed a $15 million
virtual power plant pilot with ConEd pilot which outfit about 300 homes with over 1.8 megawatts of solar power and
about 4 megawatt hours of battery storage. This industry may develop organically, but there is still plenty of room for
growth as smart meters begin widespread deployment and DER regulations modernize.
Opportunities
48

47. Distributed
Generation
Reduce Variable
Energy Costs
Gain Grid
Autonomy
Showcase
Sustainability
Utility Scale
Generation
Produce Low Cost
/ High Value
Energy
Transmission
Connect
Generation with
Consumption
Distribution
Deliver Energy to
End Users
Receive Energy
From DERs
Storage
Align Energy
Production with
Consumption
Transportation Move Goods
Conduct Face to
Face Business
Recreational
Travel
Intra-City
Mobility
Built
Environment
Provide Comfort
to Occupants
Deliver Visual
Aesthetics
Manufacturing
Transform
Materials to
Products
Transportation in the business sector can be reduced through new
methods of telecommunication
Generation
Delivery
Usage
AR/VR
49

48. Enhanced Teleconnection:
AR/VR reducing transportation energy use by improving the effectiveness of remote
meetings
• AR/VR and other advanced communication solutions can
reduce business travel by allowing for nuanced nonverbal
communication, including proper eye contact and subtle cues
such as interpersonal distance
• Knowledge-intensive business services in particular can
benefit from replacing physical travel that currently occurs for
tasks such as internal management and coordination, training,
marketing and sales, and delivering business outcomes
The VR and AR market, worth an approximate $4.5 billion in 2015, is expected to grow around 2,500% by 2020 to $105.2
billion, but it is not generally applied as a sustainability driver or workplace tool.
OpportunitiesUse Less
VR Social Platforms Collaboration Platforms Augmented Reality Local Incubation
50

49. Distributed
Generation
Reduce Variable
Energy Costs
Gain Grid
Autonomy
Showcase
Sustainability
Utility Scale
Generation
Produce Low Cost
/ High Value
Energy
Transmission
Connect
Generation with
Consumption
Distribution
Deliver Energy to
End Users
Receive Energy
From DERs
Storage
Align Energy
Production with
Consumption
Transportation Move Goods
Conduct Face to
Face Business
Recreational
Travel
Intra-City
Mobility
Built
Environment
Provide Comfort
to Occupants
Deliver Visual
Aesthetics
Manufacturing
Transform
Materials to
Products
By moving data instead of goods, shipping energy use can be reduced
Generation
Delivery
Usage
3D
Printing
51

50. Virtual Supply Chains:
Additive manufacturing reducing energy consumption by moving and storing goods
digitally, not physically
• Additive Manufacturing can reduce the transportation,
warehousing, and packaging needs of physical goods
• Parts and process designs can be optimized in new ways for
sustainability
The AM industry grew by 17.4%, to $6.063B, in 2016 and is forecasted to reach $40 billion by 2027. While discussion about
supply chain impacts have been ongoing, sustainability minded startups have yet to emerge to capture this opportunity.
the value is not in the existing players, but in the potential for a new entrant to work with them to optimize services for
sustainability
Opportunities
Use Less
Local (MA) 3D Printing Ecosystem
52

51. Distributed
Generation
Reduce Variable
Energy Costs
Gain Grid
Autonomy
Showcase
Sustainability
Utility Scale
Generation
Produce Low Cost
/ High Value
Energy
Transmission
Connect
Generation with
Consumption
Distribution
Deliver Energy to
End Users
Receive Energy
From DERs
Storage
Align Energy
Production with
Consumption
Transportation Move Goods
Conduct Face to
Face Business
Recreational
Travel
Intra-City
Mobility
Built
Environment
Provide Comfort
to Occupants
Deliver Visual
Aesthetics
Manufacturing
Transform
Materials to
Products
Connections previously made with wires can be made though blockchain
enabled marketplaces
Generation
Delivery
Usage
DER+Analytics/
IoT
53

52. Blockchain enabled DER markets:
DER, data analytics, and IoT connecting generation and distribution
• Reliably and cheaply record and validate financial or
operational transactions across a distributed network with no
central point of authority
• Create highly granular real-time locational pricing and enable
automated demand response through smart contracts
• Enable a real-time capacity market that provides flexibility
and efficiency benefits for grid operators
Siemens and next47-backed LO3 Energy are collaborating to jointly develop the Brooklyn Microgrid project which will
operate on a blockchain system. This application may be too early for some investors, but is important to continue
tracking, particularly in the context of moving beyond NEM regulation
Opportunities
Better Connect Generation and Consumption
54

53. Functional Mapping Summary:
Patient capital and networks can be leveraged to accelerate businesses
that operate outside of existing value chains
55
• Technology applications outside of existing value chains provide no
immediate value to industry incumbents, and are therefore less likely
to be developed internally or strategically funded by those companies
• Investor resources can be applied to:
– Spotlight technologies that are gaining traction in other industries but are
currently underexplored for energy and conservation applications, like
blockchain and AR/VR
– Support complex business models, like VPPs, that bridge new technologies
with changing regulations and energy consumption trends
– Catalyze system level innovation, like additive manufacturing supply chains,
designed to transform emerging technologies into sustainability tools

54. Agenda
• Project Overview and Scope
• Technology Overview
• Screening Approaches
– Value Mapping & Results
– Functional Mapping & Results
• Recommendations and Next Steps
Technology
SocietyMarket
56

55. Recommendations
• While emerging technologies can be successfully applied within existing value
chains currently, there does not appear to be a funding gap for most of these
applications
– Use a value mapping framework to identify potential impact areas and verify that
development is currently being supported
– Aim to incubate young startups in these areas through grant programs as well as
customer and partner matchmaking
– Monitor for aggressive growth funding opportunities
• Technologies applied to deliver value outside of existing value chains have the
potential for significant impact, but require patient capital
– Seek investments in ambitious companies applying emerging technologies to transform
the way that energy and energy intensive services are delivered
• Promising opportunities include:
– Transformation of the electricity sector though applying analytics and IoT to DER assets
– Reducing transportation and industrial energy use through the digitization of physical
goods and services 57

56. Next Steps
• Use value chain and functional maps as a starting point for
collaborative sessions that can lead to internal consensus
• Engage electricity sector stakeholders including regulatory bodies
and system operators to coordinate technology investment activity
with regulatory and market development strategy
• Facilitate discussions with local 3D printing cluster and AR/VR
communities to develop sustainability strategies and identify
opportunities
58