1. ACCELERATING INNOVATION AND INVESTMENT Microgrids: Engaging the Customer

2. 2 Power System Slow to Change – CCCT/CHP – Wind Generation, million MWh Carbon, billion mtons Energy Information Association

3. 3 Improve Competitiveness of Cities by Eliminating Waste Waste TypePerformanceWasted $, Billions Wasted Fuel35% Efficiency~ $70 Market Inefficiency~ 2₵/kWh~ $100 Outages/RepairSAIDI 2 hrs.~ $150 Emissions Cost High CO 2, SO 2, NOx, HAP ~ $70 Total Waste~$400 or 8¢/kWh PPI Report, Grid Modernization: The Case for Empowering Consumers, Communities, and Utiltieis

4. 4 The Pursuit of Perfection or Perfect Power “The pursuit of new measures and perfection changes your perspective, revealing gaps in performance that were hidden; thereby enabling innovation and levels of performance not before thought possible.” – Bob Galvin, Founder of the Galvin Electricity Initiative and Perfect Power Institute, former CEO and Chairman, Motorola, Inc. 4

5. 5 Reading the World Technology Policy Economics Demographics Learning will inspire you: Fifth Discipline Environmental Engineering America’s Founding Secret The Idea of Ideas Made to Stick

6. 6 Perfect Power Transformation Area Substation Local Substation Central Power Transmission Area Substation Smart Switch Renewable, CHP Clean DG Backup/DR Natural Gas Smart Switch Microgrid 2

7. Systems Approach Gaining Leverage 2

8. 8 Home Automation Advanced Meter Energy Management System TV, Router, Cable Box Internet/ Cloud Mobile Devices Applications

9. Backup, CHP, Solar, UPS Smart Switch Smart Loop Smart Meter 10 MW IIT Microgrid Prototype Minigrids in a microgrid Smart Switch Loops

10. 10 New Products and Services Core power and thermal Distribution of power and thermal Automation and intelligence – Distribution/substations – Buildings Loops, smart switches, self-healing, physical protection, cyber security Smart meters and intelligent aps Master controller, intelligent monitor, trend

11. 11 Utility is at the Heart of the Future Grid Entrepreneurs Customer Microgrids/ Power Refiners Power Suppliers Distribution Utility Private Invest Rate Payer Invest Local Government

12. Utility Investment How will reliability be improved? SUB Smart Switches After-Self Healing SUB Before

13. 13 Underground Intelligent Switches Out of sight Controllable

14. Overhead Intelligent Switches

15. 15 Role of Private Investment Power suppliers – Carbon free power – Financed solar – Financed back-up generators tied to real-time Entrepreneurs – Home automation for demand response and EE – Financed permanent EE – Virtual home inspection and failure detection Microgrids – Ice storage for load shifting – Power quality refining – Island capability

16. Restructured electricity markets Replace with REC Version ELECTRICITY SYSTEM

17. Siemens Gearless Wind Turbine (3 to 10MW) Gearbox Eliminated by Permanent Magnet Generator

18. Strategies and Technology GE New CCCT – 60% Efficient GE FlexEfficiency* 50 Combined Cycle Power Plant http://www.ge- energy.com/products_and_services/products/gas_turbines_heavy_duty/flexefficiency_50_combined_cycle_power_plant.jsp

19. MARIN ENERGY AUTHORITY POWER CONTENT LABEL RESOURCES MEA2008 CA Eligible Renewable27%2% Large Hydroelectric46%18% Natural Gas12%42% Coal10%33% Nuclear 1%5% Other 3%0% TOTAL 100% Private Investment Power Supplier

20. Private Investment Entrepreneur

21. 21 Home Becomes a Power Source

22. 22 Uninterruptible Power Supplies (UPS) Units 60 seconds ride through Eliminates 99% of all power quality issues 98% energy-efficient

23. Community Energy Storage (CES) Pad-mounted Transformer CES Unit

24. Backup Gen Private Investment Microgrid - Princeton University Base-load Tri-generation and district energy (in lieu of boiler) Base-load Procurement On-peak tri-gen Number of hours at the demand level Elect. Storage Ice Storage DR Gas Gen 5 10 25 30 35 40 20 15 8760 Solar On-peak Procurement MW

25. 25 8,760 4,000500 Demand/ Price $/Mwh # of Hours at the Demand Level Flatten the Curve – Lower Prices and Need for New Capacity Demand Response Price Transparency Ancillary Service Payments Price Transparency Electric Vehicles PJM secures 11 GW in DR and capacity auctions

26. 26 Microgrid Services? Conserve to save money and energy Flatten load curve to lower costs for everyone – Leveraging technology Provide grid services in return for payments – Demand response, voltage support, VAR’s, capacity Install cleaner more efficient power to meet peek demand Recycle waste heat to generate power as a (turbine in lieu of a boiler) Improve local reliability and power quality

27. 27 Add 2,000 MW by 2016 Institutional/Campus Muni/Utility Community – Poor reliability pockets – Japan, Connecticut, Developing Countries Military Remote/Off Grid Commercial/Industrial – Big Data – Google Developments/Planned Community Virtual microgrids

28. 28 Role of Private Investment Power suppliers – Carbon free power – Financed solar – Financed back-up generators tied to real-time Entrepreneurs – Home automation for demand response and EE – Financed permanent EE – Virtual home inspection and failure detection Microgrids – Ice storage for load shifting – Power quality refining – Island capability

29. 29 Q&A

30. 30 References Grid Modernization IIT Mesa del Sol Illinois Policy Framework ?