A New Way of Looking at Energy - From Expense To Strategic Asset

A New Way of Looking at Energy: From Expense to
Strategic Asset
Phil Adams, President and COO
World Energy
Last December I Asked …
Q. Is your energy consumption

an expense or an asset?
Copyright © 2009 World Energy Solutions, Inc. 2

And Today…
Q. Are your energy consumption

and environmental footprint
expenses or assets?

A. Assets to be Optimized.

Extremely Challenging Times
Change in GDP
4
2
0
-2
-4
-6
-8
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09
Unemployment Rate
10
8
6
4
J F M A M J J A S O N D J F M A M
2008 2009

Extremely Challenging Times

Significant Changes as a Result…




Precedent-Setting Fiscal Stimulus
American Recovery and Reinvestment Act of 2009
 $100bb aimed at energy and the environment

 Energy Efficiency
– Consumer
– Business
– Government
 Renewable Energy
– Wind
– Solar
– Geothermal
 Plug-in Hybrids
 Smart Grid

Megatrends
Sustainability, Cap and Trade Price Volatility, Smart Grid
& Energy Independence & Energy Efficiency

McKinsey Abatement Analysis

McKinsey Abatement Analysis

What Do I Do?
Understand Your
Current Situation
You Are Here

What Do I Do?
Identify Your
Future Objective
Desired State
Understand Your
Current Situation
You Are Here

What Do I Do?
Identify Your
Future Objective
Develop an Action and Investment Plan

Desired State
Understand Your
Current Situation
You Are Here

What Do I Do?
You Are Here Desired State
Energy Procurement Buy from the Utility Optimized Portfolio

Energy Consumption Use What I Use Efficient User
Energy Management Simple Smart Systems with
Infrastructure Dashboards
Energy Efficiency None Executing in ROI
Initiatives Order
On-Site Generation None Renewable
Carbon No Tracking Tracking, Reduction,
Brand Leverage

What Do I Do?

Initiatives Order
Brand Leverage
Decision-Making Facilities Management C-Suite Involvement

What Do I Do?
 Do you know the local regulatory and competitive dynamics for

each of your facilities?
 Do you run the most competitive procurement process possible?
 Do you utilize a paper or technology-based process?
 Do you use a third party or do-it-yourself?
 Are you in the market on a regular basis to understand the ever-
changing supplier dynamics?
 Do you take a portfolio approach to procuring energy?
 Is your process Sox compliant?

What Do I Do?
 Do you benchmark your consumption? Like facilities within your

portfolio? Across industry benchmarks?
 Do you understand your time of day use patterns?
 Do you understand how to impact your capacity charges?
 Do you have a prioritized list of strategies to reduce demand and
shape load?

What Do I Do?

 Do you have any advanced technologies in your asset base?
 Smart meters?
 Building Management Systems?
 Dashboards to control machinery and equipment?
 Do you have analytic tools to support usage optimization?
 Do you have the tools to support participating in demand response
programs?

What Do I Do?

Initiatives Order
 Do you have a prioritized list of energy efficiency projects?
 Do they also reduce carbon?
 Are you aware of coming opportunities to bid in efficiency projects
into ISOs and utilities?
 If these initiatives reduce carbon, do you know how to structure
the project to create carbon credits you can sell?

What Do I Do?
 Are you contemplating co-generation?

 Are you contemplating renewable?
 Are you aware of all the incentives available for such projects?
 Do you know how to structure the project to create carbon credits
you can sell?
 Do you have access to capital?

What Do I Do?

Brand Leverage
 Are you aware of coming regulation to require certain emitters to
track and report their carbon?
 With coming regulation, do your CEO and Board fully understand
their potential liabilities?
 Do you have a strategy for managing and reducing your carbon?
 … for leveraging being greener to reduce costs?
 … for introducing green products into the market?
 … for enhancing your brand with your employees, customers and
other stakeholders?

What Do I Do?
Decision-Making Facilities Management C-Suite Involvement
 Where are your decisions being made?

 How involved is your C-Suite?
 Is your CEO a climate leader?

World Energy Solutions
 Trusted advisor to Commercial, Industrial, Government, Utility and

ISOs
 Unparalleled technology platforms, market knowledge and process
skills
– Leading auction-based exchange for procuring energy
– Leading green credits auctioneer worldwide
 Program manager for pioneering Regional Greenhouse Gas Initiative
 Energy buyer for the US Federal Government and 8 of the 12
deregulated electricity states
 Serve 40+ utilities
 Clients have won over 10 awards with our green and energy products
 Dual Listed on NASDAQ (XWES), April ’09, IPO on TSX (XWE), Nov ‘06

Questions & Discussion
Thank you
Phil Adams, President and COO

padams@worldenergy.com
508.459.8100
www.worldenergy.com
Copyright © 2009
2007 World Energy Solutions,
Solutions Inc.
Inc.

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A New Way of Looking at Energy: From Expense to

Q. Is your energy consumption

Copyright © 2009 World Energy Solutions, Inc. 2

Q. Are your energy consumption

Copyright © 2009 World Energy Solutions, Inc. 3

Copyright © 2009 World Energy Solutions, Inc. 4

Copyright © 2009 World Energy Solutions, Inc. 5

Copyright © 2009 World Energy Solutions, Inc. 6

Copyright © 2009 World Energy Solutions, Inc. 7

Copyright © 2009 World Energy Solutions, Inc. 8

Copyright © 2009 World Energy Solutions, Inc. 9

Copyright © 2009 World Energy Solutions, Inc. 10

 $100bb aimed at energy and the environment

Copyright © 2009 World Energy Solutions, Inc. 11

Copyright © 2009 World Energy Solutions, Inc. 12

Copyright © 2009 World Energy Solutions, Inc. 13

Copyright © 2009 World Energy Solutions, Inc. 14

You Are Here

Copyright © 2009 World Energy Solutions, Inc. 15

You Are Here

Copyright © 2009 World Energy Solutions, Inc. 16

Develop an Action and Investment Plan

You Are Here

Copyright © 2009 World Energy Solutions, Inc. 17

You Are Here Desired State

Energy Procurement Buy from the Utility Optimized Portfolio

Copyright © 2009 World Energy Solutions, Inc. 18

You Are Here Desired State

Energy Procurement Buy from the Utility Optimized Portfolio

Copyright © 2009 World Energy Solutions, Inc. 19

You Are Here Desired State

Energy Procurement Buy from the Utility Optimized Portfolio

 Do you know the local regulatory and competitive dynamics for

Copyright © 2009 World Energy Solutions, Inc. 20

You Are Here Desired State

Energy Consumption Use What I Use Efficient User

 Do you benchmark your consumption? Like facilities within your

Copyright © 2009 World Energy Solutions, Inc. 21

You Are Here Desired State

Energy Management Simple Smart Systems with

Copyright © 2009 World Energy Solutions, Inc. 22

You Are Here Desired State

Energy Efficiency None Executing in ROI

Copyright © 2009 World Energy Solutions, Inc. 23

You Are Here Desired State

On-Site Generation None Renewable

 Are you contemplating co-generation?

Copyright © 2009 World Energy Solutions, Inc. 24

You Are Here Desired State

Carbon No Tracking Tracking, Reduction,

Copyright © 2009 World Energy Solutions, Inc. 25

You Are Here Desired State

Decision-Making Facilities Management C-Suite Involvement

 Where are your decisions being made?

Copyright © 2009 World Energy Solutions, Inc. 26

 Trusted advisor to Commercial, Industrial, Government, Utility and

Copyright © 2009 World Energy Solutions, Inc. 27