Tennessee Valley Authority · NYSE:TVC
Tennessee Valley Authority — Investor Presentation (May 2014)
58 slides from Tennessee Valley Authority's investor presentation, May 2014
Slide 1: TVA Smart Communities: Summary of Benchmarking Study
TVA Smart Communities Summary of Benchmarking Study May 2014
Slide 2: Table of Contents
Table of Contents TVA Overview Objectives Study Approach Extreme Energy Makeovers • Market Overview • Business Models • Key Findings Smart Energy Technologies • Market Overview • Business Models • Key Findings Next Steps 1 Copyright © 2014 Deloitte Development LLC. All rights reserved.
Slide 3: TVA is the nation's largest public power company
TVA is the nation’s largest public power company • TVA operates fossil-fuel, nuclear, and hydropower plants, and also produces energy from renewable sources. • TVA manages the nation’s seventh-largest river system (41,000-square-mile watershed) • TVA’s power-service area covers 80,000 square miles i
Slide 4: Objectives
Objectives
Slide 5: Each part of the project has distinct objectives
Each part of the project has distinct objectives Extreme Energy Makeovers (EEM) TVA defines an “Extreme Energy Makeovers” project as one that Achieves a 25% reduction in each home’s electric energy use with an estimated total project savings of 1,000 MWh/year at approximately $10/square foot Focuses
Slide 6: TVA has identified key design elements for EEM projects
TVA has identified key design elements for EEM projects Benefit to Participants Creates positive impact on Consumers, Utilities/Local Power Companies (LPCs), and other Participants Community Engagement Involves community leaders and organizations in the design, launch, and management of the program
Slide 7: TVA has identified key design elements for SET projects
TVA has identified key design elements for SET projects Behavior Change Improves consumer attitudes toward energy efficiency and/or utility control of home devices Benefit to Participants Creates positive impact on Consumers, Utilities/Local Power Companies (LPCs), and other Participants Ease of Imp
Slide 8: Questions?
Questions?
Slide 9: Study Approach
Study Approach
Slide 10: The Study was created through four phases of work
The Study was created through four phases of work Market Research and Insights Analysis Conducted Desktop Performed Explored Business Compiled Key Research Interviews Models Findings Reviewed 100+ Selected programs Identified primary Compiled insights smart grid and home and additional busin
Slide 11: Extreme Energy Makeovers
Extreme Energy Makeovers
Slide 12: We began with a national review of programs
We began with a national review of programs For Extreme Energy Makeovers, we reviewed more than 60 programs related to home energy retrofits. 11 Copyright © 2014 Deloitte Development LLC. All rights reserved.
Slide 13: We broke down the market into its key elements
We broke down the market into its key elements At its core, a home retrofit project must include three elements: engagement, delivery, and management. Engagement Delivery Management Engagement Delivery Management Awareness Participation Contractor Home Audits Retrofits Program Savings Management Ove
Slide 14: Each key element is broken down into sub-components
Each key element is broken down into sub-components Awareness Engagement Approach to increasing consumer awareness of the program and interest in participating. Includes messaging, consumer education, marketing channels, and marketing spend. Participation Eligibility required for participation (e.g.
Slide 15: Business Models
Business Models
Slide 16: There are a few dominant models in the retrofit market
There are a few dominant models in the retrofit market The Study includes a description of three business models to provide a sense of the primary delivery models used in the home retrofit market. Utility/LPC Led • Utility/LPC-branded program • Utility/LPC partners with local community organizations
Slide 17: Key Findings
Key Findings
Slide 18: Key Findings: Awareness
Key Findings: Awareness Awareness Participation Contractor Home Audits Retrofits Program Savings Management Oversight Key Findings Key Takeaways • Focus on consumer needs, such as comfort, for Consumers Respond Best to Messaging program messaging Centered on Their Pain Points • Tailor messaging to s
Slide 19: Key Findings: Participation
Key Findings: Participation Awareness Participation Contractor Home Audits Retrofits Program Savings Management Oversight Key Findings Key Takeaways Low Income Threshold Should Be Defined • Minimize administrative burden by aligning to Streamline Verification Process eligibility with existing low-in
Slide 20: Key Findings: Contractor Management
Key Findings: Contractor Management Awareness Participation Contractor Home Audits Retrofits Program Savings Management Oversight Key Findings Key Takeaways • Design program based on local industry Program Design Should Take into Account circumstances, such as availability of accredited Industry Cap
Slide 21: Key Findings: Home Audits
Key Findings: Home Audits Awareness Participation Contractor Home Audits Retrofits Program Savings Management Oversight Key Findings Key Takeaways • Allow for multiple pathways in which different type of companies (including contractors) can A Flexible Audit Implementation Process perform audits Can
Slide 22: Key Findings: Retrofits
Key Findings: Retrofits Awareness Participation Contractor Home Audits Retrofits Program Savings Management Oversight Key Findings Key Takeaways • Create a clear policy and procedure for dealing Leading Programs Have a Method with health and safety issues to Address Safety Issues • Consider partneri
Slide 23: Key Findings: Program Oversight
Key Findings: Program Oversight Awareness Participation Contractor Home Audits Retrofits Program Savings Management Oversight Key Findings Key Takeaways • Create a stakeholder committee that includes local Involving Key Stakeholders Can Improve government, contractors, community Program Design and O
Slide 24: Key Findings: Savings
Key Findings: Savings Awareness Participation Contractor Home Audits Retrofits Program Savings Management Oversight Key Findings Key Takeaways • Consider long-term program goals when Measuring Actual Savings determining energy savings methodology Is More Challenging and Costly • Consider using a pro
Slide 25: Questions?
Questions?
Slide 26: Smart Energy Technologies
Smart Energy Technologies
Slide 27: We began with a national review of programs
We began with a national review of programs For Smart Energy Technologies, we reviewed more than 40 programs related to the smart grid and the smart home. 26 Copyright © 2014 Deloitte Development LLC. All rights reserved.
Slide 28: Telecommunications Providers Security
Telecommunications Cloud Providers Home Security Automation & Climate Lighting Theatre Control Control Security Cloud Companies Security Automation & Climate Lighting Control Control Appliance Cloud Manufacturers Home Security Automation & Climate Lighting Audio, Mobile Theatre Control Control Cloud
Slide 29: Methods of connecting the smart home to the smart grid
We researched the different methods of connecting the smart home to the smart grid Paths of Smart Home Connectivity via Communication Network via Smart Meter Network • Wi-Fi, Cellular, Broadband over • Advanced Metering Infrastructure power lines, etc. (AMI) • Enables interconnection and • Enables i
Slide 30: We broke down the market into its key elements
We broke down the market into its key elements At its core, a SET community must include three elements: a smart home, a smart grid, and a communications network that connects the home to the grid. Smart Smart Home Grid Communications network Smart Home Smart Grid Engagement Product Product Use Comm
Slide 31: Each key element is broken down into sub-components
Each key element is broken down into sub-components Engagement Approaches to increasing consumer awareness of the products and services available in the marketplace, including how to target consumers. Product Purchase Smart Home Process of getting smart devices into customer homes, whether provided
Slide 32: Business Models
Business Models
Slide 33: Business models and market players are diverse
Business models and market players are diverse The study includes a description of seven business models. This list is not inclusive of all models being used, but it shows the diversity of players and value propositions in the smart energy technologies market. Specialized Device Utility Centric Mode
Slide 34: Utility-Centric Model
Utility-Centric Model Utility sets up and controls a branded service Utility Utility Utility Customer Sign Up Installation Interface Perspective Utility provides a utility-branded smart thermostat, along with gateway and modem, installation, and consumer interface. Utility Utility Home Operational P
Slide 35: Bring Your Own Device Model
Bring Your Own Device Model Utility facilitates connectivity of consumer devices Utility or Self-Install or Third Party Manufacturer Customer Perspective Manufacturer Sign Up Contractor Installation Interface Customers can choose from a number of thermostat models and sign up via utility or manufact
Slide 36: Specialized Manufacturer Model
Specialized Manufacturer Model Specialized manufacturer sells directly to consumers Self-Installation or Retail Manufacturer Manufacturer Customer Purchase Interface Installation Perspective Manufacturer handles marketing, installation (or self-install), and consumer interface. Utilities may offer r
Slide 37: Telco Model
Telco Model Telco adds home automation to other services Customer Purchase Telco Telco Perspective from Telco Installation Interface Telco markets a bundled service to consumers, performs the installation, and hosts a branded consumer interface. Third-Party Utility Cloud Potential DRMS Integration O
Slide 38: Big Box Retailer Model
Big Box Retailer Model Retailer bundles devices controlled by its branded app Retail Customer Purchase Self-Installation Retailer Interface Perspective Retail offers bundled packages of smart appliances. Customers self-install the products, with support from retailer’s DIY videos. Consumers use reta
Slide 39: Electric Vehicle (EV) Model
Electric Vehicle (EV) Model EV manufacturer’s interface schedules charging times Manufacturer Vehicle Manufacturer Installation of Purchase Interface Customer Charging Station Perspective EV charging station is installed by the manufacturer’s certified installer before the consumer purchased the car
Slide 40: Diversified Manufacturer Model
Diversified Manufacturer Model Diversified manufacturer integrates control of devices ... Self-Installation or Retail Manufacturer Manufacturer Purchase Interface Customer Installation Perspective Diversified manufacturer sells a variety of devices that can be integrated and controlled through the m
Slide 41: LPCs can use these examples to think of new business models
LPCs can use these examples to think of new business models that fit their area Specialized Device Utility Centric Model Manufacturer Model Utility “Bring Your Diversified Own Device” Model Manufacturer Model Telco Model Electric Vehicle (EV) Model Big Box Retailer Model 40 Copyright © 2014 Deloitte
Slide 42: Questions?
Questions?
Slide 43: Key Findings
Key Findings
Slide 44: Key Findings: Engagement
Key Findings: Engagement Engagement Product Product Use Communication Monitoring & Utility Savings Purchase Pricing Programs Key Findings Key Takeaways • Undertake customer segmentation analysis Messaging Benefits is Most Effective When • Focus messaging on consumer benefits for each It Combines Sav
Slide 45: Key Findings: Product Purchase
Key Findings: Product Purchase Engagement Product Product Use Communication Monitoring & Utility Savings Purchase Pricing Programs Key Findings Key Takeaways Consumers Prefer to • Allow consumers to choose between a short list of interoperable, accredited devices Choose Their Own Devices, • Offer di
Slide 46: Key Findings: Product Use
Key Findings: Product Use Engagement Product Product Use Communication Monitoring & Utility Savings Purchase Pricing Programs Key Findings Key Takeaways Access to a Simple Display • Include smart phone/tablet display as a program Can Improve Results component • Have a clear view on what devices are
Slide 47: Key Findings: Communication
Key Findings: Communication Engagement Product Product Use Communication Monitoring & Utility Savings Purchase Pricing Programs Key Findings Key Takeaways Open Communications Standards • Encourage use of open standards • Consider technologies, such as standard ports, Are Best for Programs, that allo
Slide 48: Key Findings: Monitoring & Pricing
Key Findings: Monitoring & Pricing Engagement Product Product Use Communication Monitoring & Utility Savings Purchase Pricing Programs Key Findings Key Takeaways • If smarter pricing schemes are pursued, make Consumers Prefer Smarter, them simple and straightforward for consumers but Simpler Pricing
Slide 49: Key Findings: Utility Programs
Key Findings: Utility Programs Engagement Product Product Use Communication Monitoring & Utility Savings Purchase Pricing Programs Key Findings Key Takeaways Back Office Infrastructure • Include necessary back office capabilities (e.g., May Need to Be Upgraded meter data management, billing, demand
Slide 50: Key Findings: Savings
Key Findings: Savings Engagement Product Product Use Communication Monitoring & Utility Savings Purchase Pricing Programs Key Findings Key Takeaways • Create energy savings calculation methodology Energy Savings Has Not Been a Focus of • Balance energy/emissions savings with other Many “Smart” Proje
Slide 51: Questions?
Questions?
Slide 52: Next Steps
Next Steps
Slide 53: The Benchmarking Study will be used during the RFP process
The Benchmarking Study will be used during the RFP process Now that we have it, what do we do with it? • How TVA Smart Communities Team will use the study Extreme Energy Makeovers • How you can use the study • How Project Teams will use the study Smart Energy Technologies 52
Slide 54: The TVA Smart Communities Team will use the Study to write the RFP
The TVA Smart Communities Team will use the Study to write the RFP and evaluate responses Benchmarking Study TVA Smart Communities Team Actions Describes findings to address Use concepts to write request for major components of successful proposals that solicit the best project programs concepts to
Slide 55: The Project Teams will use the Study to guide their project concepts
The Project Teams will use the Study to guide their project concepts Benchmarking Study Project Team Actions Describes findings to address Create new project concepts that major components of successful represent the best combination and programs balance of these leading practices and business model
Slide 56: Key dates and communications guidelines
Key dates and communications guidelines Key RFP Dates Extreme Energy Makeovers (EEM) • Pre-RFP webinar – June 4, 2014 2:00 pm – 3:00 pm CT • EEM RFP release – June 6, 2014* Smart Energy Technologies (SET) • Pre-RFP webinar – July 31, 2014 2:00 pm – 3:00 pm CT • SET RFP release – week of July 28, 201
Slide 57: Questions?
Questions?
Slide 58: EPA climate zones map link
http://www.epa.gov/iaplus01/pdfs/climate_zones_map.pdf 57
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