Building a Sustainable Energy Future Distributed Energy Models & Technology Needs Confidential & Proprietary

Confidential & Proprietary The Problem Distributed Energy Resources are rapidly proliferating the distribution grid AEP is in the process of decommissioning 11 coal plants, representing approximately 6,500 MW . Distributed Energy Resources is growing 3 times faster than centralized generation Among 400 utility stakeholders, 90% of survey respondents believe that the growth of DER will force a major shift in utility business models. Confidential & Proprietary

DER Operational Models ISO/RTO Generator Capacity / Regulation Aggregator/ Retail Utility / Wires Distributed Energy Assets Confidential & Proprietary

DER Operational Models ISO/RTO Generator Capacity / Regulation Aggregator/ Retail Utility / Wires Distributed Energy Assets Confidential & Proprietary

DER Operational Models ISO/RTO Generator Capacity / Regulation Aggregator/ Retail Utility / Wires Capacity / Regulation / Voltage / Reliability Distributed Energy Assets Confidential & Proprietary

Co-optimization of Diverse Assets Complexity Simplicity Non-Constant “Control” and “Storage” Characteristics Storage Real Power Real Energy Reactive Power Ramp In/Out Rates Tariff ...and more Optimizing & Coordinating Diverse Assets Inverters/Storage Lighting Dynamic Operational Constraints & Control Operations CHP Network Response Loads (e.g. pump) Confidential & Proprietary

Multi-Layer Control / Optimization Optimization for Power Response and Market Conditions Local Resource Optimization Network Level Optimization Regional Level Optimization Grid Level Optimization Grid Level Optimization for Grid/Service level objectives (i.e. Grid Regulation, Capacity) Collection of Networks Optimizing for the Network Scale objectives (i.e. Substation or Region) 2 Second Action Collection of Local Resources into a Network Level Optimization (i.e. Campus, Feeder etc.) Optimization for Power Response and Local Resource Conditions The different levels of optimization can be prioritized in different ways. For example, local optimization can be higher priority than network optimization, or the priorities can be the other way around. Local Constraint Based Optimization of the Objective based on Local Conditions and Operations (i.e. DER, Load, System)

Application: Constraint Based Solar Firming & DR The Problem: Highly Variable Solar Increased Capacity Reserves Higher Reliability Concerns Constrained Renewable Deployment The Solution: Create a Flexible Network of Resources Individual Assets In the Network The Symphony Platform is Co-Optimizing between the local constraints of the customer assets to firm the Solar Output for reliability & respond to a Demand Response Event. Simultaneous Optimization. Result after Enbala Control of a network of assets Effect of Solar on Substation

Application: Constraint Based Solar Firming & DR Utility Benefits: Improved Capacity Reduced System Losses More Renewable Capacity Customer Benefits: Improved reliability Improved asset utilization Greater energy insights ESP Benefits: Greater Renewable Penetration Improved Controllability Improved CapEx recovery The Symphony Platform is Co-Optimizing between the local constraints of the customer assets to firm the Solar Output for reliability & respond to a Demand Response Event. Simultaneous Optimization. Result after Enbala Control of a network of assets Effect of Solar on Substation

Confidential & Proprietary Arthur (Bud) Vos President & CEO Enbala Power Networks bvos@enbala.com Confidential & Proprietary