The market for building energy management and procurement solutions is vast and today’s large electricity customers are exposed to an increasingly complex array of opportunities. A growing number of new solutions and upgrades continue to promise enhanced energy consumption and awareness, streamlined day-to-day business processes, and improved operational efficiency. Apart from proven applications such as demand response or commercial solar, an emerging class of utility and wholesale programs further offer energy managers new options to optimize their investments and realize positive project cash flows. As we build out our C&I Customer Network and coverage into energy procurement and management for large energy consumers, we expect to produce more content in these areas. We’re happy to include folks in this space and take briefing from solution providers including vendors, developers, ESCOs and utilities. Please do reach-out.

1. Five Trends Re-Shaping C&I Energy Management
Emerging Technology and the Changing Role of Large Energy Users
GTM Research
C&I Customer Network
February 25, 2016

2. 1GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Steve Propper
Director, Grid Edge
GTM Research
propper@gtmresearch.com
Today’s Presenters
Omar Saadeh
Senior Analyst, Grid Edge
GTM Research
saadeh@gtmresearch.com
Moderator
Presenter

3. 2GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Discussion Topics
• Announcing GTM Research’s Grid Edge Customer Network
• Five Trends Re-Shaping Large Commercial and Industrial Energy Management
• Upcoming Program Developments & How to Get Involved
• Q&A

4. GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
GTM Research’s Grid Edge Customer Network

5. 4GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
GTM’s Grid Edge Research Coverage

6. 5GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Existing Grid Edge Ecosystem
The current Grid Edge Executive Council consists of more than 100
stakeholders impacting the future electricity system, including:
• Utilities
• Technology Providers
• Regulators & Policy Makers
• Trade Organizations
• Developers & Integrators
• Consulting & Advisory Firms

7. 6GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Launch of the Grid Edge Customer Network
The world of options for large C&I customers is quickly becoming
complex – new technologies and investment opportunities abound
Customer Network Members will include:
• Big Box and Luxury Retailers
• Real-Estate Investment Firms
• Cities and Municipalities
• Heavy Industry & Manufacturing
• Data Centers & Warehouses
• Campuses (Hospital, Academia, Etc.)
• Other Large Energy Users
Existing market analysis provides insight specifically for:
• Energy management and optimization
• Building, facility or campus operations
• Corporate sustainability efforts
• Renewable or alternative energy sources

8. GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Five Market Trends Re-Shaping Large C&I Energy
Management

9. 8GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Five Market Trends Re-Shaping C&I Energy Management
1 Corporations Go Solar – Fragmented Developer Landscape Continues to Mature
2 Commercial Storage Value Tied to Demand Charge Management and Time-of-Use Shifting
3 Microgrids Heats Up, Adoption Dependent on Facility Goals and Local Incentives
4 Vendors Build Upon Proven Capabilities
5 Emerging Wholesale Regulatory Changes Open Door to Transactive Market Opportunities

10. GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Corporations Go Solar – Fragmented Developer
Landscape Continues to Mature
1

11. 10GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Walmart Leads All Corporations as the Top Solar Adopter
Top 15 Companies by Distributed Solar Capacity (MWdc)
14.2
14.32
14.32
14.62
14.94
17.34
17.76
18.44
20.78
41.41
50.21
50.75
60.73
97.54
141.99
0 20 40 60 80 100 120 140 160
Berry Plastics Corp
Verizon
Intel
FedEx
Target
Bed Bath & Beyond
Johnson & Johnson
Hartz Mountain
Macy's
IKEA
Kohl's
Costco
Apple
Prologis
Walmart
Total On-Site Installed Solar Capacity (MWdc)
Source: Solar Means Business 2015, SEIA (December 2015)

12. 11GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Commercial Turnkey System Pricing Dropped >60% Since 2010
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
2007 2008 2009 2010 2011 2012 2013 2014 2015E
TurnkeyEPC/InstallerPrices($/Wdc)
Residential Commercial Utility
Source: GTM Research
U.S. National Turnkey EPC and Installer PV System Pricing ($/Wdc)
>55% reduction in utility-scale pricing over past 5 years
>60% reduction in commercial pricing over past 5 years

13. 12GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Shift to Third Party Ownership Expected to Continue
National Commercial Solar Installations by Ownership Structure
Note: The above graphic is based on solar data preceding the announced ITC extension, however, only minor adjustments are expected.
Source: GTM Research/SEIA, U.S. Solar Market Insight

14. 13GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
A Fragmented Market; Top 3 Installers Represent Only 27% of the Commercial Market
Non-Residential Installers, Q1-Q3 2015
Source: GTM Research U.S. PV Leaderboard Q4 2015
Emerging National Commercial Solar Providers
13%
8%
6%
SolarCity
SunPower
SunEdison
Borrego Solar Systems
G&S Solar
Cenergy Power
Ameresco
EnterSolar
JKB Development
Conergy Projects
All Others

15. 14GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
ITC Extension Breathes New Life into the U.S. Market
0.0
5.0
10.0
15.0
20.0
25.0
2014 2015E 2016E 2017E 2018E 2019E 2020E
AnnualInstalledCapacity(GWdc)
Pre-ITC Extension Post-ITC Extension
10 GW of
additional demand
Rushed projects
spillover into 2017
Source: GTM Research/SEIA U.S. Solar Market Insight Q3 2015
The Effect of ITC Extension on U.S. PV Installed Capacity (GWdc)

16. GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Commercial Energy Storage Value Tied to Demand
Charge Management and Time-of-Use Shifting
2

17. 16GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Storage Economics Remain Behind-The-Meter
Storage Economics: Significant Regional Regulatory Differences Provide Diverse Customer Value Propositions
Renewables SmoothingAccess Higher PPA Prices
Income
Opportunity
DR RevenuesMarket DSM/DR Up/Down Flexibility
Electricity SalesEnable DG Market Participation (VPP, DER Marketplace)
Ancillary ServicesVolt/VAR Support; Frequency Regulation and Load-Following Services
Cost&Risk
Reduction
Power Quality Improve Power Quality
Shift Excess Solar Generation for Future Use at Higher Time-of-Use Tariff
Resiliency
Fuel Costs Reduce Backup Generator Operation and Cut Fuel Costs (Natural Gas and Diesel)
Backup Generation; Islanding During Outages
Time-of-Use Shifting
Peak Demand Charges Reduce Electricity Bill by 20% to 50% With Peak Demand Shaving

18. 17GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Importance of Connecting Value of Energy Storage with Customer Load Profiles
Sample Large Hotel Consumption Profile Sample Hospital Consumption Profile
A large hotel profile generally has
two distinct peaks and is well suited
for demand reduction using storage.
Hospitals exhibit relatively flat load
profiles but do have lengthy periods of
high usage throughout much of the day.
Source: EIA, GTM Research, Open EI

19. 18GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Storage System Prices Continue to Decline
Storage System Pricing Ranges ($/kWh)
System prices continue to see downward movement, enabled by higher deployment volumes and driven by the following factors:
o Reduction in battery-pack costs, including batteries, wiring, racking and battery management systems
o Improvements in system integration, required to get batteries running with the power conversion systems and the grid
o Reduction in balance-of-system costs, more recently driven by improvements in EPC costs
Source: GTM Research / ESA U.S. Energy Storage Monitor (Q2 2015)

20. GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Microgrids Heats Up, Adoption Dependent on
Facility Goals and Local Incentives
3

21. 20GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Firstly, What is a Microgrid?
GTMR Microgrid Definition:
A microgrid is an independently operable part of the distribution
network, including distributed energy sources, loads and network
assets, that is controlled within clearly defined geographical
boundaries and can operate in grid-connected or islanded mode.
Defining Features:
• Coordinated DER control
• Heat and/or electricity co-optimization
• Islanding capabilities
• Close proximity of generation and load
Source: GTM Research
Customer-Sited Microgrids Can Deploy a Range of Grid-Edge Technologies
Backup Gensets &
Uninterruptible Power
Sources
Behind-the-
Meter DERs
DER Aggregation &
Market Participation
Across Facilities
Control,
Management &
Optimization
Microgrid

22. 21GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Cost Reduction and Reliability Are Dominant Drivers
University, R&D
Military Installation
City, Community
Public Institution
Commercial
Remote Community
Island
Strong Weak
Cost Reduction High Reliability (Labs, Campus) R&D, Emissions Reduction
High Reliability (Mission-Critical) Cost Reduction Less Risk (Supply, Security), R&D
Reliability (Critical Infrastructure) Energy Policy Targets Defer Investment
Reliability (Public Safety) Cost Reduction Emissions Reduction
Cost Reduction Emissions Reduction Environmental Stewardship
Renewables Integration Investment Deferral Reduce Supply-Chain Risk
Cost Reduction Reduce Supply-Chain Risk Renewables Integration
Medium
Source: GTM Research
Ranking Microgrid Drivers

23. 22GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
The Northeast Commits Close to $500 Million in Microgrid-Related Funding Opportunities
Extreme Weather Triggers State Reliability Initiatives
New York
• NYSERDA’s NY Prize to allocate $40M over 3 rounds
• $20M commercial microgrid program, RISE-NYC
• The state launches a new 10-year, $80M energy
storage program
New Jersey
• NJ’s Energy Resiliency Bank to provide $200M in federal
disaster relief funds
• $10M, 4-year energy storage program focused on critical
infrastructure
Connecticut
• The state’s DEEP microgrid grant and load
program consists of 3 rounds and has
committed $78M in total support
Vermont
• $12M state- and DOE-supported
microgrid includes solar & storage
Massachusetts
• DOER Post-Sandy Resilient Power
Program provides $40M in state
solicitation; funded 18 municipal projects
Maryland
• Game Changer
Program
• Resiliency through
microgrids study
Over the past three years, state-managed funds in the
Northeast U.S. have committed almost $500M in
microgrid-related developments.
Specific Northeast Drivers:
• Extreme weather events and power outages
• PJM’s frequency regulation market
• State policyand incentives(greenbanks,grid
modernizationefforts)
• Favorablerate structures(DR participation,demand-
chargereduction)

24. 23GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Commercial Microgrid Feasibility Grows; Majority of Projects Sub-1MW
0
5
10
15
20
25
30
2008 2009 2010 2011 2012 2013 2014 2015
ProjectCount
<1 MW 1-10 MW >10 MW
49%
31%
20%
<1 MW 1-10 MW >10 MW
Microgrid Sweet Spot: <1 MW
The accelerated deployment of small-scale microgrids is increasingly evident. In the period 2013-2015, small-scale microgrids represented 54.7% of newly
commissioned microgrid projects., however only represent 2.6% (8.6 MW) of total deployed microgrid generation capacity.
AnnuallyCommissionedMicrogrids Categorizedby GenerationCapacityRangeand Year Operational Microgrid Projects by Generation Capacity Range

25. 24GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Microgrid Capacity to More than Double by 2020, Exceed 2.8 Gigawatts
0
500
1000
1500
2000
2500
3000
2014 2015E 2016E 2017E 2018E 2019E 2020E
CumulativeMicrogridOperationalCapacity*
(MW)
Military Installation University/Research Facility City/Community Public Institution Island Remote Community Commercial
* Cumulative microgrid operational capacity includes generation and energy storage
Source: GTM Research
U.S. Microgrid Capacity Growth by End User Under Base-Case Forecast
GTM Research expects the U.S. microgrid capacity to exceed 2.8 GW (generation and storage) by the end of 2020, more than doubling an expected 1,282 MW by end of
2015. This represents a five-year 127% cumulative capacity increase, equivalent to an additional 1,573 MW over the 2016-2020 time period.

26. GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Vendors Build Upon Proven Capabilities4

27. 26GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Solar-Plus-Storage Partnerships Begin to Blossom
Solar-plus-storage systems have moved out of the joint-development and pilot phase into commercialization across the residential and C&I segments. More partnerships were
announced in the first four months of 2015 than during all of 2014.
Development/pilot
Commercial offering
Acquisition
Non-Residential
Residential
Source: GTM Research

28. 27GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Micro-Generator
Microgrid Vendor Landscape Spans All Grid-Edge Market Segments
Analytics & Applications
Microgrid Control & Energy Management Modeling/Feasibility Analysis
BEMS/HEMS, Automation Switching, Protection, Inverters & Grid Interconnectors
Energy Storage Storage Management
Project Development, EPC, Engineering Services
Capital Providers
Control, Management & Modeling
DER-Level
Source: GTM Research
Microgrid Vendor Taxonomy

29. 28GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Vendors Aim to Develop Microgrid Controllers
Source: GTM Research
Microgrid Vendor Segmentation: Control and Energy Management
GridProvider
Microgrid-Specific
EnergyManagement
Defense
Microgrid Control &
Energy
Management
BEMSDER

30. GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Emerging Wholesale Regulatory Changes Open
Door to Transactive Market Opportunities
5

31. 30GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Three ISOs Target Increased DER Wholesale Market Participation
CAISO Holds Highest Wholesale Market
Regulatory Transformation:
DER Definition:
3rd-Party Aggregation:
DER Market Rules:
Geographic Dispersion:
DER Telemetry Requirements:
Regulatory Transformation:
DER Definition:
3rd-Party Aggregation:
DER Market Rules:
Geographic Dispersion:
DER Telemetry Requirements:Regulatory Transformation:
DER Definition:
3rd-Party Aggregation:
DER Market Rules:
Geographic Dispersion:
DER Telemetry Requirements:
FavorableUnsupportive

32. 31GTM Research Webinar: Five Trends Re-Shaping C&I Energy Management
Concluding Remarks & Glimpse at What’s to Come
• Distributed Energy Resources increasingly offer opportunities for large C&Is, as system costs decline and
positive cash flows become more clear for some applications
• A fragmented market, with many vendors and third-party intermediaries, is leading to a complex
landscape that many facility and and energy managers have to navigate
• Upcoming Grid Edge Customer Network market analysis will focus on demystifying this market for large
energy users, focusing efforts on synthesizing state and local incentives, comparing technologies and
vendor offerings, and providing deeper economic fundamentals of new investments in DERs (such as
solar, energy storage, co-generation, etc.)
• To learn more or get involved, please visit: http://www.greentechmedia.com/research/subscription/grid-
edge-customer-network

33. Interested in other GTM Research products and services? Please visit www.gtmresearch.com or contact sales@greentechmedia.com
Thank You!
February 2016