3Q 2018

Driving Improved DER Financing with New Software Platform Capabilities

The global electric power industry is facing a fundamental shift from centralized generation toward a mix of distributed energy resources (DER) and smart grid solutions known as the Energy Cloud. Commercial and industrial (C&I) energy users will increasingly seek to deploy these new DER solutions to reduce energy use and spend without CAPEX or a negative impact on their day-to-day operations.

Navigant Research anticipates the continued growth of DER project finance asset classes will be required to support the need for the deployment of customer-sited DER at C&I facilities without CAPEX. Further, intelligent building and DER software platforms will need to demonstrate improved integrated analytics, operational control, and optimization capabilities for customer-sited DER. These capabilities will become key to meeting the DER financing needs of C&I energy users, DER financiers, DER solutions providers, project developers, utilities, energy service providers, and energy suppliers.

This Navigant Research report examines how new DER solutions can be financed to avoid CAPEX and meet the sustainability and operational efficiency needs of C&I energy users. The study explores trends related to C&I utility customers seeking broader energy savings via innovative DER financing. It also examines the integrated DER software platform capabilities required to meet stakeholder needs and efforts to develop and drive these capabilities, as well as improved DER financing.
Pages 17
Tables | Charts | Figures 10
  • Utilities and energy suppliers
  • Energy service companies and project financers
  • DER technology providers, systems integrators, and financiers
  • EV technology providers
  • C&I solar PV project developers, systems integrators, and financiers
  • C&I demand response (DR) technology manufacturers, systems integrators, and financiers
  • C&I microgrid and virtual power plant technology manufacturers and financiers
  • Intelligent buildings software companies
  • Investor community

Spark

Context

Recommendations

C&I Utility Customers Seek Broader Energy Savings

Overcoming the Customer Payback Challenge

The Rise of Integrated DER Solutions to Meet Customer Needs

New Demand for Financed DER Solutions

Energy Project Financiers Seek New Markets

Assessing DER Project Financing Risks

New DER Project Finance Asset Classes

DER Project Finance Risk by Instrument Class

Integrated DER Software Platform Capabilities Required to Meet Stakeholder Needs

The Evolution of Building Energy Management Systems

The Rise of Intelligent Buildings Role in the Energy Transformation

Future Required DER Software Platform Functionality

Barriers to the Development of Integrated DER Software Capabilities

Stakeholder Efforts Drive Improved DER Financing and Software Platform Capabilities

Explore How New DER Solutions Can Be Financed to Avoid CAPEX

Intelligent Building and DER Software Platform Technology Providers: Work Together to Improve DER Financing via Integrated Analytics

Utilities, Utility Service Companies, and DER Solutions Providers: Work Together to Implement Integrated Software Platform Capabilities Direct

  • C&I Customer Expectations
  • Customer Payback Challenge
  • New Integrated DER Solutions
  • DER Project Delivery Value Chain
  • DER Project Transaction Options
  • DER Finance Risk by Instrument Class
  • Market Transformation from Linear to Sustained Engagements
  • Required Integrated DER Software Platform Capabilities
  • Overview of DER Project Finance Risks
  • Overview of DER Project Finance Asset Classes
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