Gianni Operto Advisory Board The Solar Night at Your Home Gianni Operto Advisory Board „Do you remember why the Internet was originally invented? US Military wanted to create a flexible and non-destroyable infrastructure for their IT. WE build the internet of electrical power with distributed Energy storage combined with PV generation.”

Solar Power - Cheaper than grid for German home owners PV levelized cost of energy (ct /kWh) PV levelized cost of energy excludes grid costs We Network the Sun 17/02/19

Solar Power - Cheaper than grid for German home owners Solar feed-in tariff Germany (ct/kWh) PV levelized cost of energy (ct /kWh) PV levelized cost of energy excludes grid costs We Network the Sun 17/02/19

Solar Power - Cheaper than grid for German home owners Solar feed-in tariff Germany (ct/kWh) PV levelized cost of energy (ct /kWh) 25ct End-user electricity cost (ct/kWh) PV levelized cost of energy excludes grid costs We Network the Sun 17/02/19

Today, about one Million PV units installed on private homes – at a total stock of about 18.7 Million single family homes Source: http://www.iwu.de/fileadmin/user_upload/dateien/energie/ake44/IWU-Tagung_17-04-2008_-_Diefenbach_-_Basisdaten.pdf We Network the Sun 17/02/19

1.515 Million PV units, with 50% between 3 and 10 kWp Distribution of PV units in Germany up to 1,000 kWp Status: August 2015 We Network the Sun 17/02/19

Home owners look for more independence Maximize self-consumption Independence from utility and from sunshine WYSIWYG Know your power source and hedge its cost Emergency Power In case of grid failure, storage will support power needs … but storage is currently hardly a profitable business left with just that application We Network the Sun 17/02/19

The Initial Problem Summary PV on private homes increasingly attractive for self-consumption Maximization of self-consumption essential Storage not profitable Is there any other problem maybe??? Can it be turned into a business? Grid stability increasingly challenging? We Network the Sun 17/02/19

Supply and demand need balancing < must always be equal > Demand The grid frequency of 50Hz will change if supply deviates from demand = We Network the Sun 17/02/19

Decentralized Energy Systems have accumulated risks, too Frequency deviation on 28/10/2013, storm ”Christian“ 50 Hertz Nominal frequency We Network the Sun 17/02/19

Supply and demand need to be matched every moment Power plant failure Frequency Containment Reserve Frequency Response Res. Replacement Res. We Network the Sun 17/02/19

5. Kostenwahrheit Increasing Demand for Flexibility

Weekly auctions, symmetric capacity market, 7x24h, pay-as-bid Frequency Containment Reserve Weekly auctions, symmetric capacity market, 7x24h, pay-as-bid Requires prequalification High price fluctuations, but y/y rising since >10 yrs We Network the Sun 17/02/19

Distributed and synched storage supports energy transition Autarchy and green feeling for home owner Reliable returns for investor Future proof service for grid operators (TSO) Caterva VPP We Network the Sun Unique combination of Distributed storage Connected to home owners PV and grid Synchronized on a second by second base by grid frequency (50 Hz) To optimize asset use for all stake holders Autarchy and green feeling for home owner Future proof service for grid operators (TSO) Dividends for asset investors 17/02/19

Virtual Power Plant Prequalified for FCR Caterva Control Center Monitoring Operations center Grid operator TenneT TSO UMTS We Network the Sun 17/02/19

Caterva provides entirely new business model to utilities Current situation Self-suppling consumer mostly lost for utility Utility marketing of PV unit and storage provide gross margin - once Caterva offer to utilities Sales of Caterva System generates recurring commission from existing customers Customer retention for 20 years Gross margins per household increasing We Network the Sun 17/02/19

Your 7x24h-Sun at Home Plain no-risk package and maximum benefit through lifelong free power One-stop solution combining PV, Caterva-Sun and maintenance agreement provide hassle-free security to customer Partnering with local utility Increases credibility Eliminates resistance Multiple benefits to original power suppliers Image: Innovation, customer focussed Services (distribution and sales/installation/maintenance) recurring commissions and long-term customer retention We Network the Sun 17/02/19

Successful participation in FCR market since August 2015 Prequalification We Network the Sun 17/02/19

Yes, we can! System- integrated photovoltaics Private customer Utility Customer retention Innovation New margins Private customer Free power Independence Supply from PV Maintenance included System- integrated photovoltaics Caterva Energy management Strong partnerships Grid operator (TSO) Cost-attractive FCR We Network the Sun 17/02/19

www.caterva.de Markus Brehler, CEO mb@caterva.de Gabriele Ellenrieder, IR ge@caterva.de Dr. Roland Gersch, CTO rg@caterva.de

Backup Slides We Network the Sun 17/02/19

Grid Frequency 2014-10-30 05:45h UTC

Long-term stable power supply needs assured power Nuclear power Others Bio mass Coal Gas Wind Lignite Water Solar Maximum load Germany We Network the Sun 17/02/19

flexibility today mostly provided by coal plants Source: Fraunhofer 2015 We Network the Sun 17/02/19

Complementary power is simple and provides maximum benefit Caterva offer to private customers PV unit is tailor-made for the individual annual power consumption Caterva-Sun – energy storage with secure m2m communication and smart controller Maintenance agreement Service agreement – Energy management Benefit of private customers through Caterva-Sun Time-independent supply up to self-produced energy – lifelong free power 20 years of maintenance Annual bonus payment Active contribution to energy transition We Network the Sun 17/02/19

Attractive gross margins from intraday-exchange Energy shift through storage enables sustainable gross margins at the EPEX Since May 2015, Caterva energy management is fully-automatically connected Intraday-trade with 15 minute-contracts Cost-optimized state-of-charge management Energy shift Analytics-based arbitrage business Inclusion of other flexibility assets foreseen We Network the Sun 17/02/19