Washington, DC: Energy Storage Economics 2.0

6/20/2013 AGRION.ORG 1

June 19th, 2013 10:00am – 11:30am

Moderator: H.G. Chissell, Viridity Energy, Senior Vice President, East Panelists:

Scott Baker, PJM Interconnection, Sr. Business Solutions Engineer

John Battaglini, GE, Global Sales Leader- Energy Storage

Stephen Wemple, ConEd Solutions, Vice President

Doug Staker, Demand Energy Networks, VP of Business Development

Dan Nordloh, ZBB Energy Corp., EVP Global Business Development

@AGRION

PJM©2013 2 www.pjm.com

Performance Based Regulation (PBR)

PJM©2013 3 www.pjm.com

300 MW on the

system at peak.

July 21, 2011 – PJM New All-Time Peak

Future Opportunities for Storage

Capacity Peak Demand

Management Economic

Synchronized

Reserve Regulation

Notification Time 2 hours 1 week Up to previous day < 10 minutes < 5 minutes

Duration

Up to 6-10 hours 2-3 hours Typically 1-3

hours; determined

by customer &

market

< 30 minutes Continuous, if

available

Frequency

Up to 10 times/yr,

but changing to

unlimited

5-10 times/yr Determined by

customer

~35 times/yr As many hours as

possible

Automation Medium Medium Medium High Very high

Gross Financial

Benefit Potential*

$45,000/MW/yr $45,000/MW/yr $23,000/MW/yr $20,000/MW/yr $350,000/MW/yr

P&L Risk

Timing of

curtailment

determined by

outside party,

PJM

Low – voluntary

market

Low – voluntary

market

Low – voluntary

market

Low – attached to

asset that can

vary its load while

still completing

operational goals

*Varies by calendar year and geographic location

© 20112Viridity Energy Inc. All Rights Reserved

4

“Traditional” DR

“Traditional” Demand Response vs. Dynamic

Demand Response with Storage

Value Streams

Primary

• Frequency

Response

• Responsive

Reserves

• Voltage Support

• Fuel Savings

Secondary

• Energy Shifting

• Renewable

Smoothing

• Backup Power

• Demand

Response

Primary

• Peak

Management

• Responsive

Reserve

Secondary

• Frequency

Regulation

• Voltage Support

(VARs)

• Backup Power

Primary

• Ramp Rate

Control

• Responsive

Reserve

• Power Firming

Secondary

• Frequency

Regulation

• Energy Shifting

• Curtailment

Primary

• Backup Power

• Peak

Management

• Demand

Response

Secondary

• Energy Shifting

• Power Factor

Primary

• Peak

Management

• Demand

Response

• Energy Shifting

Secondary

• Backup Power

• Power Factor

Micro-grids T&D Optimization Energy

Management

Renewable Power

Integration Distributed Energy

@AGRION

6 Grid Connected Systems Overview

Q2 2013

Strategic Investment in Energy Storage

• World class manufacturing facility located at GE campus in Schenectady, New York

• Production commenced in September 2011

• Grand opening in July 2012

• 300+ employees / 220,000 ft2

• Footprint for 1+ GWh / year production at full capacity

• Capacity added as market dictates

7 Grid Connected Systems Overview

Q2 2013

Jobs for Durathon Energy Storage 9. Provide supply / demand balancing for

microgrids

10. Provide grid quality functions

11. Maximize PV to get lower cost than

existing DG solutions

12. Lower cost for end use through lower

demand charge

13. Lower cost of electricity for end user by

maximizing PV self consumption

14. Power backup for end user

1. Meet grid connection requirements to

connect RES plant

2. Increase plant revenue by capturing

more value

3. Increase plant revenue by avoiding

load value of curtailment

4. Extend life of aging substations

5. Lower cost by installing smaller

transformers

6. Provide network power quality

functionality

7. Provide temporary back up

power for substations

8. Provide black start / restart to

substations

Customer Side of the Meter / Energy Management

T&D Network

Renewable Power

Producers

8 Grid Connected Systems Overview

Q2 2013

Global Market Activity

250 kW / 500 kWh

Peak Shaving

200 kW / 400 kWh

(x4)

Wind Integration

50 kW / 100 kWh

(x5)

T&D Optimization

2 MW / 8 MWh

Peak Shaving,

Backup

2 MW / 10 MWh

Peak Shaving,

Backup

500 kW / 1 MWh

Peak Shaving,

Backup

1 MW / 2 MWh

Wind Integration

>100 MWh in bid

Solar Integration

500 kW / 1 MWh

T&D Optimization

500 kW / 1 MWh

Micro Grid

≥30 MWh to be commissioned by end

2013

9 Grid Connected Systems Overview

Q2 2013

Fully Integrated GE Solar Solution

10 | www.Demand-Energy.com

Distributed Intelligent Power Network

• In expanding deregulated markets, transactive control of distributed energy assets is how the future grid will be driven

• Storage is the enabler for

this new paradigm in edge energy management

• The ability to integrate,

aggregate, and intelligently control tens of millions of endpoints requires a revolutionary management platform

11 | www.Demand-Energy.com

Locational Value of Storage

12 Confidential • 12

Glenwood Properties Barclay Tower

Site 58 Story Barclay Tower Manhattan (Tribeca) NYC

Load Profile 550 kW Peak Demand Bldg. Common Load

Configuration 225kW/2MWhr Storage

Application TOU Peak Shift Demand Charge Reduction Demand Curtailment

Rate Program ESCO Day Ahead Pricing, Demand Capping

Payback 4.8 yrs

IRR 20%

Assumptions 5 yr. Accelerated Depreciation 35% Tax rate No Incentives

10 Barclay Project

13

• Charges

• At night

• Off- Peak

• 7 AM – 11PM

Building Demand Managment

• Generates

• Reduce Peaks

• 7 AM – 11PM

14 | www.Demand-Energy.com

Lishen 30kW: Tianjin, China

Grid Solar Battery

ZBB…optimizing energy availability

Campus Microgrid Project: Illinois Institute of Technology

CCG / IIT (IL) Galvin Institute “Perfect Power” demo microgrid 500kWh project

250kW Peak Shaving supply available for up to 2 hours

Designed for future directly connected PV and EV fast charging needs

Can ‘island supply’ emergency power for a single building in lieu of diesel gen set

Projects pending in California and New York

15

ZBB is a “first mover” in the campus micro-grid market

ZBB…optimizing energy availability

Visa Flagship Data Center

ZBB EnerSystem works seamlessly with existing DC based UPS systems

Integrates renewables, storage, grid input and DC output, includes LED lighting

Use of system during grid outages in place of diesel genset

Provides stable supply of power, particularly from renewables

>30% efficiency savings using DC sources

Creates an AC and/or DC microgrid

Dispatch stored energy at peak hours to avoid peak demand charges

16

• 25 to 200kW of PV

• 25 to 200kW wind

• 50 to 1000kWh of storage

• 380 VDC “UPS” output from all sources

ZBB EnerSystem expandable with needs