Utility Scale Energy Storage and Microgrid Solutions 6th U.S.-China Climate Change Working Group Smart Grids Workshop JJ Dai, Director of Renewable Energy Applications APAC, Eaton Corporation November 2, 2016, Shenzhen, China Tips: Title on this slide should be kept short. Transparency bar is separate piece behind text. Please copy and paste the one in this slide to re-create. Headlines should be set with an initial cap (sentence case) and the rest in lower case. Only product names or acronyms in the headline should begin with a capital letter.

Backup power protection Control and automation Structural solutions and wiring devices Engineering services Lighting and security Power distribution and circuit protection Eaton: One brand with solutions for the entire power system and expertise spanning seven core competencies Solutions for harsh and hazardous environments Residential Data centers Industrial Utility Commercial Machine building At Eaton, we have the expertise and technology to provide electrical power management solutions across a broad range of market segments through our seven core competencies: Power distribution and circuit protection Structural solutions and wiring devices Backup power protection Solutions for harsh and hazardous environments Lighting and security Control and automation Engineering services Image: Created by Jack Morton for ES. Used with permission.

Power XpertTM Solar/Storage Utility-Scale Inverter Typical Energy Storage System for Utility-scale installations

Eaton Utility scale 5 MW battery storage - Oregon General Electric EXISTING Distributed Generation 6 total generators totaling 5.7 MW

Utility battery storage system components Batteries 1 MW / 1.25 MWh EnerDel Lithium-Ion battery blocks and battery management system (x 5 for total of 5 MW) Inverters 20 Eaton PowerXpert 250 kW inverters, adapted for battery storage application Associated AC Power System Low-Voltage switchboards Step-up transformers Medium-voltage switchgear, metering, protection UPS (for control) Storage Master Control System Integration services to coordinate and regulate operation of multiple inverters and battery banks and interface with utility control system One of the first Li ion projects of this size, active since 2012

Utilizing both new and second life EV Batteries Energy storage solution for Buildings - Existing customer installation example As mentioned earlier, Eaton is partnering with Nissan as a core supplier of lithium ion technology for the battery storage. Nissan is not just an expert in making Li-ion batteries, but like Eaton is a stable company that can support the products over the long term. For example, with Nissan, recycling Li-Ion at the end of life is built into the offer. Eaton + Nissan together provide customers certainty that the solutions will be supported not just today, but over the life of the product. This is important as Li-Ion batteries are expected to perform for 10 years In typical use cases. Here we see a model of the first product Eaton and Nissan have built together. The 93PM is a modified UPS that allows power up to 200KW. In this case, to the left of the UPS, we show a Nissan battery pack directly out of a vehicle. As we speak, we are developing in addition modular battery racks of both used and new Li-Ion batteries to increase the flexibility of what can be offered. In COP-21 in Paris, Eaton supplied a real system at the Nissan Pavilion that was fully running key circuits for the building from 10am to 3pm each day. This was a simple demonstration of how such a control system can run. For more on this product, please see the people and videos. Utilizing both new and second life EV Batteries

Energy Storage System for Commercial / Buildings – Some technical details Storage Capacity From 12 kWh to MWhs using strings of battery packs Battery pack capacity based on battery modules: 4,2 kWh - Second life batteries 6 kWh - New batteries 7,5 – 9,6 kWh – New batteries available 2017 Output 230/400V, 3~ + N Power From 10kW to several MW Installation Fits in 19 inch standard racks (EIA-310-E) Up to 10 battery packs per 42U rack Operating temperature 5°C – 40°C Battery life ~10 years - Estimate based on 1 daily full cycle usage Efficiency Online (on utility grid): >96% Battery mode: >95% UPS features Up to 97% efficiency in double conversion >99% efficiency with Energy Saver System Compact footprint Battery packs in rack plus Inverter platform

Energy Storage Systems can help New ways to offset energy costs to rate payers Revenue opportunities such as demand management Uninterrupted, high quality power Protection of critical loads Integration of renewables into the energy supply Flexibility to adapt to an ever-changing environment

Energy storage delivers tangible benefits across the energy chain Centralized / Distributed Generation Utility T&D Large Commercial / industrial Generate additional revenue +++ ++ Cost savings on electricity and operational expenses + Optimize use of renewable energy Defer utility system investment Maintain resiliency Save money on electricity and operational expenses Peak shaving Self-consumption of PV Load shifting / demand management Protect against power quality fluctuations/outages Regulatory compliance Optimize use of renewable energy Minimize curtailment at the grid level Maximize consumption of onsite generation Defer utility system investment Optimize existing generation assets Fast peaking power capability Use of black start for additional capacity Maintain resiliency Backup power supply in case of natural disaster Enable black start of diesel gen sets Protect sensitive equipment from damage Generate additional revenue 24/7 peak capacity alternative Enable demand response programs Frequency regulation services (grid stability during peak demand hours)

The Microgrid Energy System Concept Local “Grid Within a Grid” Delivers Power Resilience, Reliability and Uptime Distributed Energy Sources Backup Generation In-House Co-Gen CHP (Combined Heat and Power) On-Site Renewables and Fuel Cells Energy Storage (Batteries) Microgrid Applications Islanding & Synchronization Black Start Generation/Load Balance Control Battery Energy Storage & Frequency Regulation Wind Utility Back-up Generation Facility Loads Battery (Critical Loads) Solar In-House Co-Gen Imagery ©2015 Google, Map data ©2015 Google A group of generating assets and defined loads that can operate within the utility grid or islanded from the grid, as a self-sufficient stand alone application Requires Control System “Glue” to Achieve System Performance

Eaton Menomonee Falls’ Microgrid

Eaton Microgrid for a hospital

Eaton’s Microgrid Energy Management System Lowest cost Renewable optimization System balance Frequency and voltage control Black start Seamless islanding System Design To SCADA/Customer System Controller Local Controller Generators Energy Storage Photovoltaics Buildings HVAC HMI & Data Historian PCC Legacy Communication Protocols IEC 61850 Communication Protocols Proprietary Communication Protocols Metasys® Breaker Relay Meter To Substation The microgrid control provides operator interface and control, including access to alarms, history, and trending Reporting functions verify the system configuration, optimization, and other key characteristics Graphical system representation provides operators a window into the microgrid status and configuration. The interface provides a secure method of changing system parameters ranging from asset costs and optimization targets, to controlling individual assets.

Guangdong Nansha Microgrid System This is a Microgrid demo system, collaborated by China Southern Power Grid (Guangzhou Power Supply Co. Ltd.) and Eaton Corporation. The system will be able to operate solely depending on renewable energy to achieve zero CO2 emission; to seamlessly connect and disconnect with the power grid; to sustainably handle power outages during extreme environment conditions. The learned experience and module system design and construction will be applied to commercial Microgrid solutions within China Southern Grid and entire China. 1MWh Storage Ship-Shore Power Supply Control Center 100kW Wind 200kW Solar 200kW Solar EV Charger Ice Storage AC 100kW Wind Ground-source Heat Pump

Nansha Microgrid System Conceptual Design