Team Intelli-heat: Guilherme Aguiar, Sissi Du, Karan Goel, Marty Johnson, Soshi Kumamoto, Robert Murphy, Steven Near, Andrea Odle, Matt Staniszwski, David Stoyanov, and Grace ControllerElectric Hot-Water TankGrid Power Production Opportunity

Source: Peter Christensen from PNNL

If system becomes unbalanced, blackouts or brownouts occur Study by PNNL 50 Residential Electric Water Heaters and 150 Dryers in OR, WA Resulted in 5-35 kW load reduction depending on time of day Participants not inconvenienced

Simulations show that the power grid could be effectively controlled with only 20% of the total market consisting of Grid- Friendly Appliances

Smart Water Heaters Built for grid demand response, smart thermostats Monitors tank health, controls backup Varies temperature based on programmed range Grid FriendlyTM Water Heater System made to attach to existing heaters Autonomous control via frequency regulation Can shift heating to off-peak hours Chip monitors grid stability, controls load management Can be part of home energy system, respond to regulation signals

This technology is most financially attractive to utility companies for Frequency and voltage regulation. Ultimately, a payment method must be identified that most efficiently compensates the Value Chain for adding Grid-Friendly technology Currently assessing the value of grid regulation to utilities?

Recent recession has increased the significance of energy efficient water heaters Single greatest influence on consumer decisions is the cost of purchase and installation Manufacturer rebates work the best, as it benefits the customers on the spot

Utilities profit from increased grid efficiency Retailer charges premium for Grid Friendly Water Heater Consumer Manufacturers install Grid Friendly Hardware on new water heaters and passes cost to retailer IntelliHeat sells hardware to transform Dumb water heaters Rebate

Consumer is not impacted in day-to-day activity Cost savings for initial purchase Cost savings in long-run electrical costs

 Utilities savings: What is the value of this Frequency/Voltage regulation over the 15 year life of the appliance?  How much could a Consumer save on replacement cost of water heater… long-term energy costs?  Recurring Cost to manufacture and interfaces with Water Heater Manufacturer?  Preliminary cost of research/design/implementation?  Existing data to support/deny venture?  Impact of future “Smart Grid” technology?  Partners beyond PNNL available?  Competitors and existing IP?  Potential profit to our enterprise?