Entrepreneurship, Independent Power Producers, and Distributed Energy Storage

Currently, many electricity markets in the United States are becoming increasingly decentralized in terms of electricity generation and distribution. “Behind-the-meter” (BTM) energy storage can bridge the gap between onsite generation and utility services in multiple ways. The aim of this capstone project was to advise the client, Next Era Energy, Inc (NEE) on defining its market strategy in this distributed BTM energy storage space.

NEE is a Fortune 200 energy company and one of the largest electric power producers in North America with 42,500 MW of generating capacity in 26 states in the U.S. and 4 provinces in Canada. It is also the largest generator of renewable energy from wind and sun in North America.

In response to the client’s preference, the team looked into four key electricity markets: California, New York, Hawaii, and PJM Interconnection LLC (a regional transmission organization including service areas in 14 states). Work started with researching each market (supply and demand, key players, electricity generation mix, relevant policies and incentives, and existing BTM storage projects) and evaluating market potentials through a SWOT-Analysis [1]. After this, the team conducted a cross-market comparison and formulated regional entry strategies for NEE. Entry potentials were ranked and scored across the regions.

Based on thorough analysis, the final report concludes that California and New York are the most attractive BTM storage markets for NEE to enter. Recommendations for potential next steps round up the evaluation and give an outlook on NEE’s possible future activities in each of the four markets.

[1] Strengths-Weaknesses-Opportunities-Threats