2500 R Midtown Sacramento Municipal Utility District Lupe Jimenez Manager, Demand Response and Energy Storage May 4, 2017

Residential Energy Smart Community Demonstration Overview Research Goals SMUD, Pacific Housing and Sunverge Energy Partnership 34 single-family new construction homes 25% below T24 Testing ability to monitor and control energy storage, intermittent solar generation, demand-response technologies combined with dynamic pricing Demonstrate integration of disparate smart grid technologies into a residential package Evaluate the benefits that these technologies provide to SMUD and our customers Evaluate the possibility of scale benefits such as: Spinning and non-spinning reserve capacity Demand response Renewable resource firming Regulation support Voltage support Renewable energy time shifting The Sunverge system captures solar energy and stores it using lithium ion batteries, thereby shifting electrical loads, flattening peak electricity demand and maximizing return on renewable energy investments.

2500 R Street Demonstrated Consumer Model Zero Net Energy Homes PCT Online customer portal: Generation, consumption, storage, billing, HVAC data Thermostat controls Optional TOU-CPP + NEM Renewable energy time shifting DR pre-cooling and temperature offset Modlets received signals to turn off plug-loads at specified locations The Sunverge system captures solar energy and stores it using lithium ion batteries, thereby shifting electrical loads, flattening peak electricity demand and maximizing return on renewable energy investments. SIS Unit components include: Hybrid Inverter Charger Distribution Panel Gateway Computer Solar Charge Controller Battery Modules

Hardware Hybrid Inverter Charger Distribution Panel Gateway Computer The SIS Unit consists of standard components that have each been certified and tested. Hybrid Inverter Charger Distribution Panel Gateway Computer Solar Charge Controller Battery Modules

Uninterruptible Power Source 2014 Use Case Test Findings Average 1.35 kW/system base savings during daily peak period Fleet operation was confirmed Peak Load Shifting Average 1.31 kW/system incremental savings on Conservation Days above peak load shifting Demand Response Functioned according to algorithm Recommended to adjust smoothing period for partly cloudy conditions PV Smoothing Performed one simulated, non-integrated regulation test Response time less than 4 sec. and within 100 W of the requests. Regulation Critical load panel appliances continued to operate. Uninterruptible Power Source Maintained power quality in accordance with interconnection guidelines. Power Quality SMUD Benefits: Understanding value of zero-net-energy homes to SMUD and our customers Determining value regarding: Peak demand management Regulation support Intermittent resource support Improving system reliability Gaining experience installing and interconnecting this technology Quantifying utility, customer and system benefits Understanding grid impacts of multiple residential energy storage systems on the distribution system Customer Benefits Very low electricity costs Enhanced Reliability Improved power quality Recovery during power outage Electricity arbitrage Buy low, sell high Peak shifting Avoid peak prices for consumption Sell generation at peak prices Possible Future Use Cases: System load reduction – reduce customer loads when dispatched by utility based on system conditions (e.g. CPP) Distribution load reduction – minimize feeder/substation peak load when dispatched by utility Backflow – reduce peak PV generation flowing on to grid (individually or in aggregate) PV Firming– smooth PV generation at customer site and/or in aggregate across all SIS units (I know we’d have to define exactly what “smoothing” is) Regulation- Demonstrate use of Energy Storage to provide ancillary benefits to SMUD or to the CAISO (e.g. fast frequency regulation) Spinning Reserves- Demonstrate ability and value of spinning reserve Voltage support – charge/discharge battery to reduce magnitude of voltage fluctuations on grid Power Factor – maintain power factor within set limits at customer site

Benefits SMUD Benefits Customer Benefits Determining value regarding: Peak demand management Regulation support Intermittent resource support Improving system reliability Gaining experience installing and interconnecting this technology Quantifying utility, customer and system benefits Understanding grid impacts of multiple residential energy storage systems on the distribution system Very low electricity costs Enhanced reliability Improved power quality Recovery during power outage Electricity arbitrage Buy low, sell high Peak shifting Avoid peak prices for consumption Sell generation at peak prices

Lupe Jimenez Program Manager, Demand Response Research and Development lupe.jimenez@smud.org

Use Cases and Benefits Application Benefit Approach Time-Of-Use Energy Cost Management Reduced electricity losses (utility/rate payer) Reduce grid load during high cost time-of-use daily Reduced electricity cost (consumer) Peak Load Reduction Forecast day-ahead load shifting requirements based upon historical load, weather, PV output, etc. and optimize storage dispatch to shave peak load Reduced electricity cost (utility) Voltage Support Using feeder and transformer monitoring voltages, dispatch storage to maintain voltage within set limits Phase Balancing Using feeder and transformer monitoring voltages, demonstrate ability to change loading on a particular phase Renewables Capacity Firming Reduced CO2 Emissions (society) Using SCADA to monitor feeder output during net excess PV output, and local solar irradiance to estimate diminished PV output, vary energy storage discharge to firm PV generated power Reduced SOx, NOx, PM-2.5 Emissions (society) Renewables Energy Time Shift Charge energy storage with PV power during times of excess output, then discharge energy storage later for peak shaving on the distribution system