1. © 2008 REGEN Energy Inc How to approach DR Implementation DR-Expo 2008 Toronto © 2008 REGEN Energy Inc

2. How to approach DR Implementation DR-Expo 2008 Toronto What is Demand Response? Management of electrical consumption Active alleviation of grid stress Load Shedding during peak demand periods Controlled Load Shedding / Balancing Decreased Grid Stress Demand Response Financial Incentives

3. © 2008 REGEN Energy Inc How to approach DR Implementation DR-Expo 2008 Toronto The Shocking Truth… DR is more than a nice to have, it is a necessary tool for a reliable grid It is estimated that a 5% lowering of demand would result in a 50% price reduction during the peak hours of the Californian electricity crisis in 2000/2001. If demand continues to grow unabated, to meet future demand will require 1,300 new power plants supplying 400 GW by 2020. Its not just big corporations driving up demand… Its you too! Source: Schneider Electric and Peter Schwartz & Associates 2008

4. © 2008 REGEN Energy Inc How to approach DR Implementation DR-Expo 2008 Toronto Developing a Comprehensive Energy Strategy is useful for all corporations, well beyond DR alone Energy Efficiency Demand Management Demand Response Alternate Energy

5. © 2008 REGEN Energy Inc How to approach DR Implementation DR-Expo 2008 Toronto Eliminating complications are key to customer acceptance Easy Simple Reliable Demand Response Should Be: Demand Response Implementation: Manual Demand Response Actions Automated Demand Response Systems

6. © 2008 REGEN Energy Inc How to approach DR Implementation DR-Expo 2008 Toronto Pros and cons exist for different DR implementation methods Manual Methods Automated Systems Pros No financial outlay for equipment Cons Relies on the human component vulnerable to distractions, error Electrical loads are either On or Off No dialling down duty cycles DR times can be unpredictable disruptions to peoples schedules Difficult to gather reporting Pros Increased reliability Some can dial down duty cycles Should have auditing and reporting capabilities Cons Easy to get wrapped up in nice to haves Expense

7. © 2008 REGEN Energy Inc How to approach DR Implementation DR-Expo 2008 Toronto IP edge devices simplify making the invisible… visible!Critical for successful DR testing, event confirmation Real-Time Control and Reporting down to the level of each load is a must have to confirm activity

8. © 2008 REGEN Energy Inc How to approach DR Implementation DR-Expo 2008 Toronto From Theory to Practice: Consumers are more likely to accept DR if it is simple, quiet, unobtrusive Top 3 consuming load types HVAC Lighting Refrigeration Principles to Shed by: HVAC easiest to shed to avoid noticeable disruption Avoid thermostat setbacks that can induce unnecessarily high peaks Occupant comfort can be reasonably maintained if dialing down duty cycles

9. © 2008 REGEN Energy Inc How to approach DR Implementation DR-Expo 2008 Toronto EnviroGrid captures the simplicity and features that drive customer DR acceptance Easy, fast to deploy in an entire facility in hours Patent-pending swarm logic methods reduce demand, not comfort Provides full real-time control and reporting to confirm DR activity Automated DR capabilities without the need for complex operator training and monitoring