Active Load Management and the MicroGrid June 24, 2010 Allen M. Freifeld SVP External Affairs Viridity Energy

Peak Shaving Load Shifting + Regulation Pre-Cooling Capacity Easy to Implement Low Barriers to Entry Primary DR Offering RequirementsCapacityEnergyEfficiency Metering TypeBasic UtilitySettlement GradeRevenue Grade Settlement/Data IntervalsMonthlyDaily – 15 minuteReal Time – 5 minute Notification , PhoneReal Time Software PlatformNone requiredAdvanced OptimizationNone requiredRequired NOCNone requiredRequired Consulting ServicesOptionalYesRequired Outsourced ServicesOptionalYesRequired Real-Time Energy Real Time Optimization & Control Daily Price Settlement Load Optimization and Microgrid Congestion Management Leverages storage assets High Barriers to Entry Efficiency Self-Balancing Microgrid Co-optimizes multiple markets Integrates Electrical Vehicles High Barriers to Entry Participation in the Real Time Markets Requires Advanced Operation and Software Capabilities

Smart Grid: an Integrated Solution A vision for the future – a self-balancing network of distributed resources driven by communication and intelligence Source: iTeres Energy generated at off-peak times could be stored in batteries for later use These can shut off in response to frequency fluctuations Wind Farm Offices Smart Appliances Central Power Plant Storage Industrial Plant Processors Execute special protection schemes in microseconds Generators Energy from small generators and solar panels can reduce overall demand on the grid Isolated Microgrid Detected fluctuations and disturbances can signal for areas to be isolated Sensors Demand Management Use can be shifted to off-peak times to save money Houses Disturbance in the grid Solar Panels

Viridity: Full Spectrum of Microgrid Services Viridity Energy RTOs Distr. Utilities Investor Owned Utilities Munis/Coops Microgrid asset owners Building Automation System providers End-users Utilities Reliability Delayed Capital Investments DR, Emissions Goals Virtual Power Dispatchable Load Economic Value Self-Sufficiency Reliability Sustainability Targets Customer s

StrengthsOpportunities Modular in NatureCarbon regulation Heterogeneous Power QualityExpanding renewables market Reliable Power (even during grid outage)Smart Grid Investment Flexible architectureInverter and Storage Technology Advances Multiple ownership modelsDeclining Cost of Curves Diverse applicationsTelecommunications Advances Integrated heating and coolingGrowth in developing world Broad global marketsPlug in hybrids WeaknessesThreats Incentives diffusePolitical power of incumbents Unclear road mapLack of clear standards Fragmented regulationCompeting business models Utility safety concerns Mi crogrid SWOT Analysis

Active Load Management and the Microgrid Microgrids Control Optimization

Control – Power Analytics As designed specifications and performance Actual Real time performance Protective device coordination; Power flow studies; voltage; fault analysis; reliability of system components What is vs. what if conditions. Collision avoidance; early warning

Active load Management and the MicroGrid Optimization Solutions based on operating and market data Constraints (environmental, comfort) considered Real time re-optimization

Integration Layer VPower Gateway SCADA EMS BMS SCADA EMS BMS UI Engine Displays` Forecast Data Feeds External Services Market Interfaces Generation Forecast VP Load Forecast CBL VP Load Forecast CBL Optimizer Model Builder PJM CBL Calculation Carbon Footprint Calcula tion Carbon Footprint Calcula tion PORTAL VPower TM – System Architecture 9 Settlement Power Analytics 9

Optimization Example Imported Power Solar Panels (2 MW) Solar Panels (2 MW) Battery (5 MWh) Battery (5 MWh) Gas Fueled Gen (5 MW) Diesel Generator (5 MW) HVAC 6/27/08 Case 0Case 1Case 2Case 3 T Optimized Solar2 MW Battery5 MWh Gas Gen5 MW Diesel Gen5 MW Fixed Load7 MW GT Gen Costs$75/MWh Diesel Gen Costs$247/MWh Retail Night$55.00 Retail Day$65.00 G + T$37.50 Import MWh Supply Savings $ - $ $ 1, $ 9, DR Revenue $ - $ 5, $ 8, $ 21, Fuel Costs $ - $ (12,092.02) Net Savings $ - $ 6, $ 10, $ 19,