Rob Bearman Global Energy and Utility Alliances June, 2010 Better Place Presentation to the National Town Meeting on DR and Smart Grid

“How do you make the world a better place by 2020?” End oil... Accelerate the transformation to a sustainable electric automotive solution 2

Better Place addressing EV needs 3 Customer NeedSolution Ease of use Better Place installs personal and public charge spots making it easy to charge up wherever you are Extended range Battery switch stations to provide fully charged batteries on long distance trips Affordability Better Place pays for and owns the battery, reducing upfront cost and technological risk; customers pay an affordable monthly fee Positive ownership experience Full battery every morning and when going home after work, zero emissions driving satisfaction Energy supplyManaged EV services aligns electricity supply and demand

Better Place solution elements 4 At home, work, and out and about: charge spots and battery switch stations Access to charging when and where you park Ability to drive long distances by providing fully charged batteries on the road Working with utilities and customers to monitor and manage energy supply and demand In hand, in the car: driver services Behind the scenes: managed EV services In-car and remote access to your EV’s energy information, trip planning and other services Rendering Better Place network members pay monthly for all inclusive service

Global market will see first wave of EVs by end of “Overall, we believe by 2020, 17% of the global automobile market could be comprised of HEVs, PHEVs, and full EVs, up from 1% today” – Deutsche Bank, November 3, 2010 Fisker Karma Ford Transit Connect Ford Focus EV CONFIDENTIAL © 2010 Better Place Mitsubishi iMievNissan Leaf GM Volt Toyota Plug-in Prius Trial Tesla Roadster Tesla Model S Audi A1 PHEV BYD e6 EV Volvo V70 PHEV ZENN EV Mini e EV trial

If we succeed on the 1 million plug in cars by 2015 goal, what are the implications for the electric grid? If the average plug load for a PEV or PHEV is 5 kW, 1 million cars represents a maximum of 5,000 MW of connected load “Existing capacity is sufficient to power up to 73% of light duty vehicles…smart charging could mitigate the extent and severity of grid emergencies” - Pacific Northwest National Lab

An EV network operator can turn EVs into a grid asset 7 Grid Side Battery State Driving Profile Over- rides Constraints Supply / Pricing Driver Side Smart Charging Algorithm Demand Forecast CS / Roaming Driver Needs Asset Optimization Renewables Integration Emissions Reduction Enhanced Revenue Benefits Load Management

Wind production – not all that predictable 8

Grid balancing services enable integration of more renewable energy to meet Renewable Portfolio Standards 9 Managed Charging 60 Hz Frequency Regulation Charge cars during time of high renewable resource availability Wind production profiles generally match EV charging demand Use EV battery storage to integrate renewables – a faster, more efficient, and cost effective way to provide frequency regulation vs. spinning metal MW Spinning Reserve Demand Response

“How do you make the world a better place by 2020?” Use electric vehicles as a networked energy asset - they can help us meet our Renewable Portfolio Standards goals  Decrease oil consumption, increase renewable generation 10

What policies and government actions are necessary to achieve mass adoption of EVs? Create an open, competitive market in EV services that will draw innovation and private sector investment in mass deployment of EV's and the associated grid-side services Don’t forget the ABCDs – Autos, Batteries, Charging, Demand EV’s should be viewed as a system – need all components of the system (ABCD) to make it work Stimulus package invested heavily in A and B – now we need C and D to create market for those products and scale adoption Electric Vehicle Deployment Act of 2010 (S. 1493) is good first step in scaling up EV markets and consumer adoption in US Regional competition for funding to deploy model EV ecosystems Includes opportunities for energy storage via EV batteries 11 “Keep up with the Joneses!” Governments around the world, especially in the EU and China are farther along in encouraging EV adoption!

CONFIDENTIAL © 2010 Better Place