Energy Storage Project IHG - Stem Harry Hobbs Area Director of Engineering InterContinental Hotels of San Francisco San Francisco Hotels InterContinental SF and Mark Hopkins Hotel • Intercontinental Hotels Group – North America: 2,800 sites – Global: 4,400 sites • Responsible for SF hotels engineering San Francisco Hotels InterContinental SF and Mark Hopkins Hotel • IC San Francisco: – 5-year old building – 32 stories – 550 guest room – LEED® EBOM Gold Certified • Largest of existing CA buildings • 3rd largest in U.S. San Francisco Hotels InterContinental SF and Mark Hopkins Hotel • IC Mark Hopkins: – 85-year old building – 380 rooms – EnergyStar rating of 69 Beginning of project IHG and Stem, Inc. • Met in Spring 2012 via SF Community Power – DR aggregator – Mark Hopkins hotel is member of DR pool • Signed up SF hotels for SGIP – “Hybrid energy” concept in line with hotel philosophy • Stem showcase at two hotels – Applicable to both new and old buildings Launch Event IHG and Stem, Inc. • Conducted launch event at MH in Nov 2012 • In conjunction with VERGE / GreenBuild events Launch Event IHG and Stem, Inc. 100+ attendees Strong press coverage Stem System IHG and Stem, Inc. Business Case IHG and Stem, Inc. • 2 hotels • 54 kW system each • Expected savings: $11k per year per hotel Business Case (cont’d) IHG and Stem, Inc. Capital Savings • $75K per installation (2 at IC Mark Hopkins). • Confirmed 16 hotels • Capital savings (SGIP rebate) of $1,200,000. Operational Savings • 50/50 split of the ongoing electric utility monthly savings • Received initial estimate of $130K to $150K per year • for all properties where rebates were applied. Process (cont’d) IHG and Stem, Inc. • Legal reviews – Review by corporate legal department in Atlanta – Familiarity with energy purchasing • PPAs, energy buying contracts, risk management, etc. • Installations completed in Q4 2012 Bumps along the way … IHG and Stem, Inc. • Expected: interconnection not needed – Currently designed to cover co-generation assets – No form available to cover small systems – Stem system doesn’t backfeed; sits on customer side of meter • Actual: interconnection needed – Permission to operate rejected – PG&E very cooperative – Expedited interconnection in time for launch event Bumps along the way … IHG and Stem, Inc. • Initial test system – On one branch rather than main • Delays – Initially planned for installation in April – Likely Summer • Software delays – Battery status visibility missing Relationship evolution IHG and Stem, Inc. • Began conversation with InnSupply – IHG corporate procurement group • 15 properties signed • Worked through holiday season to meet SGIP deadline Relationship evolution IHG and Stem, Inc. • 15 properties signed: Brand Hotels Approved in 2012 InterContinental 2 Next Steps: Crowne Plaza 2 Investigate opportunity Holiday Inn 2 to expand to 200 Indigo 1 InnSupply CA properties Staybridge Suites 5 Candlewood Suites 4 • 15 – 16 hotels; 54 kW systems: – Expect $200 – 300k total savings per year Next steps IHG and Stem, Inc. • Installation of third party meter • Independent verification of results Summary / Learnings Summary • Key component of energy strategy • No operational changes: – No change to hotel operations – No operator or training required • Machine learning: – Additional improvements over time Learnings • New technology means that existing processes may not fit • Education within IHG paved the way for acceptance • Technology will evolve and be fine-tuned over time • Strong communication between vendor/customer is critical .