Integrating Smart Buildings to the Smart Grid: Creating Greater Value on Both Sides of the Meter Ron Zimmer, CABA President & CEO January 22, 2018

Vision and Mission About CABA Vision Mission The Continental Automated Buildings Association (CABA) is a leading international, not-for-profit, industry organization that promotes advanced technologies in homes and buildings. Vision CABA advances the connected home and intelligent buildings sectors. Mission CABA enables organizations and individuals to make informed decisions about the integration of technology, ecosystems and connected lifestyles in homes and buildings.

Appointment of CABA Board of Directors

Intelligent Buildings

Technological Evolution of BUILDING AUTOMATION SYSTEMS IT Standardizing Information Presentation Models Wireless Interfaces and Email Alarms Growing Convergence of BAS and IT Internet/Intranet BACnet/Lon Revolution Direct Digital Controls Evolution of Systems that may Integrate all Building Services on Standard IT Infrastructure Personal Computers Mini Computers Electronic Controls Electric Controls Pneumatic Transmission Copyright Frost & Sullivan

Smart Buildings Networked. Intelligent. Adaptable. 6

The Architecture of a Building Automation System (BAS) 7

Smarter Building / Property Lighting High Speed Internet / Wireless Elevator Ambient Music / TV 24/7 Monitor Audio – Video Conf IP Telephony HVAC Fire Visitor management The new IP infrastructure provides in principle two great opportunities. First, the network helps to make the user more productive while intensifying the use of your real estate By converging and providing among other technologies, high speed internet, telephony, visitor management (remote receptionist), audio and video conferencing, web-conferencing, rich media, and digital signage, one can support collaboration and productivity of the workforce and users of the building. The network helps you to connect people with people, and people with machines to get the most out of the network in terms of voice, video, and data services and any other productivity technologies. The features will add tremendous value to the user, operator, and owner of the building—resulting in a positive impact on the value of the physical assets. This is more than a IP technologies pitch…the technologies make it possible to re-think the utilization of space; and achieve higher occupancy or revenue per square foot, while optimizing productivity and effectiveness of everyone that is using the environment. We want to help you put forward a comprehensive IP communications solutions in support of innovative space planning and optimized utilization. Again, the features can be chosen in order of relevance that best accommodates your business needs/goals. Video surveillance Interactive media Digital signage Access Energy Future Applications Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved.

Commercial Buildings Energy Use Source: 2008 Department of Energy Buildings Energy Databook

Typical Building Cost Over A 40 Year Life Cycle Building Intelligence Tour Typical Building Cost Over A 40 Year Life Cycle Sample: Workshop on Intelligent Building Planning

Convergence of Green and Intelligent Buildings www.caba.org/CABA/DocumentLibrary/Public/Bright_Green_Buildings.aspx?WebsiteKey

Integration of IT and Energy Technology Evolution is similar to computer technology Two-Way communication with “Smart” devices Emerging network of devices - Switches, routers and software Devices will have unique IP addresses

Too Many Protocols and Standards!

Grid Modernization Expands Smart Grid Core Technologies Smart Sensors Smart Protection Gear Smart Meters Smart Components & Power Electronics Smart DR & Load Control Gear Energy Storage Advanced Computing Communications GIS Security Transmission Distribution Wide Area Mgmt Systems Energy & Distribution Mgmt Systems Market Settlement Meter Data Management Source – Jesse Berst SmartGrid News

The History of the Term “ Internet of Things” Source: CABA Intelligent Buildings and the Impact of IoT 15

Internet of Things Hierarchy Source: CABA Intelligent Buildings and the Impact of IoT 16

Key Trends in IoT and Commercial Building Technology Markets Near-term effects of the sluggish global macroeconomic environment due to a slow housing market and constrained CapEx Development of appropriate business models (for each market subsector) Consumer acceptance and decreasing costs of connected devices IPV6 implementation Long-term evolution (LTE network upgrades) Advances in processor technologies. 17 Source: CABA Intelligent Buildings and the Impact of IoT

Opportunity Stretches Across Building Types & Systems Source: CABA Intelligent Buildings and the Impact of IoT 18

What is All This Stuff Going Source: CABA Intelligent Buildings and the Impact of IoT 19

Sensors…Everywhere and in Everything 20 Source: CABA Intelligent Buildings and the Impact of IoT

Self-Powered Sensor Networks Source: CPEIA Flexible & Printable Electronics Workshop, 2017 CABA Forum 21

Smart Windows Source: CPEIA Flexible & Printable Electronics Workshop, 2017 CABA Forum 22

Organic Photovoltaics Source: CPEIA Flexible & Printable Electronics Workshop, 2017 CABA Forum 23

Connected Home IoT Energy Roadmap The following 12 CABA Members funded this CABA Landmark Research Project: More info available at: www.caba.org/Researc h Contract to:

Key Market Drivers and Trends Energy saving applications Open system Integration and IT convergence Increase in energy retrofit Consolidation will continue Compete in the knowledge in buildings and BAS applications Controls contractors migrate to system integrators In terms of trends, we believe: The demand in energy saving applications will increase Trend on open system, integration and IT convergence will continue. But how quickly, it really depends on if the industry can breakthrough the obstacles. The demand for energy retrofit will increase. There are lots of consolidation happening in the last decade. Few years ago, merger and acquisition happened between large companies. Now, we predict consolidation will happen but will be for smaller companies with special products and capabilities to be acquired by large companies. In terms of competition, the competition on the technology side will cool down as the technology of BAS is pretty mature. Now, is to compete in Contents. The ability to apply BAS and deliver tangible return to the end users. As we expect more integration will be required, controls contractors will gradually raise their capabilities and migrate to a SI position.

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