ENERGY STORAGE OVERVIEW GE Renewables ENERGY STORAGE OVERVIEW Copyright © General Electric Company.

Energy Storage Systems Comparison 10 sec 15 min 30 min 1 hour 8 hour 10 kWh 100 kWh 1 MWh 10 MWh 100 MWh Energy Discharge Duration Lead Acid Lithium Ion Redox-Flow CAES Pumped Hydro Overview LCOE ($/MWh) >$300 >$100 >$250* (select sites) >$150 kWh/m3 50 - 100 200 - 300 20 - 30 2 - 10 0.5 Durations 0.1 – 1 hours 0.1 – 6 hours 4 – 8 hours 6 – 12 hours +12 hours Efficiency 75% – 85% 90% - 95% 60% - 75% 55% - 70% 80% Cycle life 300 - 800 1500 - 3000 10,000* +20 year Limitation & Challenge Low Cycle and calendar life Self discharge Lead toxicity Fire Protection Large scale controls Temp sensitivity Poor reliability Low energy density Acid & toxic materials Geology requirements Permitting hurdles Minimum size Water availability Permits So why why does this matter when we look at the grid and the impact that renewables are going to have the biggest thing I think most people are aware of is the darker fitness come out to California to California iso I’m in with us to really shows us how all of the solar generation with her at centralized or behind the meter can have a big impact on the operations of the grid so it’s a wait-and-see years during the day when there’s a lot of TV production you start to have more more generation potentially over generation and that extra power start to push on other resources and push them off-line weight when you look at the number two on the chart this is in the evening. Is the sunsets and you see similar challenges as the sun rises in the morning we are creating these very large transients on the system. The number 4 on this chart rep represents kind of the economic strain to get placed on the grid as the solar energy during the day and the wind energy at night starts to reduce the operating hours and the energy produced from the existing thermal assets are there left with less and less energy being sold on this dries up higher prices during the hours that you operate properly during the evening I’m in this introduces that arbitrage opportunity for moving that excess energy into this peak hours. Application and geography drive technology selection Li-Ion most feasible in many applications * Unsubstantiated © 2018 General Electric Company - All rights reserved

Summer day under 50% renewable conditions Battery Storage: Unprecedented Flexibility in Grid Optimization Baseload cause renewables to be curtailed Energy Storage is charged with free or negative priced energy 1 System Demand (MW) Time 00:00 06:00 12:00 18:00 24:00 -10 10 20 30 40 Summer day under 50% renewable conditions 2 Peak Load Energy Storage is discharged during peak demand periods 2 3 Fast Ramping Energy Storage is discharged to support on large load growth 3 5 1 Spinning Reserve Energy Storage discharges during dynamic events (clouds) 4 BASELOAD So why why does this matter when we look at the grid and the impact that renewables are going to have the biggest thing I think most people are aware of is the darker fitness come out to California to California iso I’m in with us to really shows us how all of the solar generation with her at centralized or behind the meter can have a big impact on the operations of the grid so it’s a wait-and-see years during the day when there’s a lot of TV production you start to have more more generation potentially over generation and that extra power start to push on other resources and push them off-line weight when you look at the number two on the chart this is in the evening. Is the sunsets and you see similar challenges as the sun rises in the morning we are creating these very large transients on the system. The number 4 on this chart rep represents kind of the economic strain to get placed on the grid as the solar energy during the day and the wind energy at night starts to reduce the operating hours and the energy produced from the existing thermal assets are there left with less and less energy being sold on this dries up higher prices during the hours that you operate properly during the evening I’m in this introduces that arbitrage opportunity for moving that excess energy into this peak hours. 4 Frequency Regulation Energy Storage continuously charges and discharges to maintain grid stability 5 Energy storage provides instantaneous local capacity, and continuous ancillary services with no fuel consumption or emissions © 2018 General Electric Company - All rights reserved

Short Discharge (High Power) Long Discharge (High Energy) Services That Battery Energy Storage can Provide Short Discharge (High Power) Long Discharge (High Energy) Infrequent Use Frequent Use Shifting Increase Capacity Factor Peak Management TOU Rate Optimization Schedule Capacity Backup Power Non-Spinning Reserve Spinning Reserve Ramp Rate Curtailment Avoidance Frequency Response Demand Charge Management Power Factor Correction Fast Frequency Regulation (FFR) Voltage Regulation Frequency Regulation (AGC) UPS (Critical Loads) Blackstart Synthetic Inertia Solar Load Following Capex Savings Revenue Savings Value VALUE TYPE Firming Reactive Energy Contingency SERVICE CLASS Stacking of services may be required to realize full value

Flexible Storage solutions for multiple business cases Stand-alone Storage Hybrid Solar & Wind Hybrid EGT Microgrids Delivering high reliability High Frequency Applications Power Applications for Frequency Regulation Grid Stability Optimized system sizing Riding the degradation curve Service Contracts Long term svs contracts System modelling expertise Utility & Behind the Meter Energy Applications for Peak Shifting / Arbitrage Increase load factor (avoid grid upgrade costs) Avoid curtailment Increase predictability (Higher P90) Power Applications for Ramp Rate Control LM6000/2500 Upgrade Option Optimize Asset utilization Electric Gas Turbine: 10MW battery with integrated controls Unit Fuel and emission savings Synthetic inertia features Next Gen Hybrids: Jenbacher Units Simple/combined Cycle Frame Units Lowest cost of energy Prosumers buying & selling new energy services Mature markets: Maximize energy efficiency in more and more constrained networks Managing growing complexity in distribution networks due to multiplication of electrical needs & distributed energy sources Emerging markets: Non-connected architecture Access to energy, Security of supply in remote areas with renewables potential So why why does this matter when we look at the grid and the impact that renewables are going to have the biggest thing I think most people are aware of is the darker fitness come out to California to California iso I’m in with us to really shows us how all of the solar generation with her at centralized or behind the meter can have a big impact on the operations of the grid so it’s a wait-and-see years during the day when there’s a lot of TV production you start to have more more generation potentially over generation and that extra power start to push on other resources and push them off-line weight when you look at the number two on the chart this is in the evening. Is the sunsets and you see similar challenges as the sun rises in the morning we are creating these very large transients on the system. The number 4 on this chart rep represents kind of the economic strain to get placed on the grid as the solar energy during the day and the wind energy at night starts to reduce the operating hours and the energy produced from the existing thermal assets are there left with less and less energy being sold on this dries up higher prices during the hours that you operate properly during the evening I’m in this introduces that arbitrage opportunity for moving that excess energy into this peak hours. Hybrid Solutions with storage: Optimal sizing + Optimal operation © 2018 General Electric Company - All rights reserved

Successful completion in 2 sites in California EGT : The world's first battery storage and gas turbine hybrid OPTIMIZING GENERATION FLEETS … LM6000 gas peaker SCE SUCCESS, FROM PILOT TO REPLICABLE INNOVATION Gas Turbine Energy Storage Digital Controls EGT Successful completion in 2 sites in California EGT, GE’s Hybrid Electric Gas Turbine prospects Working to replicate success in Australia, US and Europe on LM6000 and other GT models Southern California Edison (SCE), a longstanding GE customer with many thermal units. Reduced System Energy Costs EGT benefits Immediately Responsive contingency reserve 50MW of GHG-free ZERO fuel burn when non operational Power GE EGT TM Center Site Turbine Storage + Grapeland Site So why why does this matter when we look at the grid and the impact that renewables are going to have the biggest thing I think most people are aware of is the darker fitness come out to California to California iso I’m in with us to really shows us how all of the solar generation with her at centralized or behind the meter can have a big impact on the operations of the grid so it’s a wait-and-see years during the day when there’s a lot of TV production you start to have more more generation potentially over generation and that extra power start to push on other resources and push them off-line weight when you look at the number two on the chart this is in the evening. Is the sunsets and you see similar challenges as the sun rises in the morning we are creating these very large transients on the system. The number 4 on this chart rep represents kind of the economic strain to get placed on the grid as the solar energy during the day and the wind energy at night starts to reduce the operating hours and the energy produced from the existing thermal assets are there left with less and less energy being sold on this dries up higher prices during the hours that you operate properly during the evening I’m in this introduces that arbitrage opportunity for moving that excess energy into this peak hours. Revenues Enhanced Reliability Spinning Reserve High Speed Regulation Hybrid Generation Improved Dispatch Lower fuel use Lower GHG emissions Less thermal stress Costs Time © 2018 General Electric Company - All rights reserved

Global Outlook Europe United States India Latin America Australia Existing ancillary services markets: UK, Germany, Spain, Italy Existing fast frequency response markets: UK Free competition of BESS with other technologies United States Existing Fast Frequency Response Markets: PJM and CAISO Existing real-time Market Other Market mechanisms also available: capacity, day-ahead, ... Free entry into the market Specific targets for Energy Storage installed base India Pilot tendering on PV+BESS Hourly spot Market Weak transmission grids Low cost of renewables (wind and solar) Latin America Ancillary Services Markets: Mexico, Chile, Colombia No specific regulation for BESS: no products specific to BESS (e.g., FFR) Capacity markets: Mexico Some countries already suffering renewables curtailment: Brazil, Uruguay, Guatemala Emerging BESS Markets: Mexico and Chile So why why does this matter when we look at the grid and the impact that renewables are going to have the biggest thing I think most people are aware of is the darker fitness come out to California to California iso I’m in with us to really shows us how all of the solar generation with her at centralized or behind the meter can have a big impact on the operations of the grid so it’s a wait-and-see years during the day when there’s a lot of TV production you start to have more more generation potentially over generation and that extra power start to push on other resources and push them off-line weight when you look at the number two on the chart this is in the evening. Is the sunsets and you see similar challenges as the sun rises in the morning we are creating these very large transients on the system. The number 4 on this chart rep represents kind of the economic strain to get placed on the grid as the solar energy during the day and the wind energy at night starts to reduce the operating hours and the energy produced from the existing thermal assets are there left with less and less energy being sold on this dries up higher prices during the hours that you operate properly during the evening I’m in this introduces that arbitrage opportunity for moving that excess energy into this peak hours. Australia Short-term opportunities in balancing and peaking capacity market Potential shift for “firm renewables” with specific auctions for hybrid power plants © 2018 General Electric Company - All rights reserved 7

Lessons Learned & Best practices Stacking of services Allows for more cost-effective solutions 1 Stimulate hybrid technologies (solar, wind, batteries, gas, ...) Allows to solve issues closer to the source and more cost-effective solutions 2 Mix shorter and longer duration services Allows more cost-effective solutions 3 Integrated expansion and operations planning One deals with more granular events, defining which assets to use, and the other defines the new assets needed by the grid 4 So why why does this matter when we look at the grid and the impact that renewables are going to have the biggest thing I think most people are aware of is the darker fitness come out to California to California iso I’m in with us to really shows us how all of the solar generation with her at centralized or behind the meter can have a big impact on the operations of the grid so it’s a wait-and-see years during the day when there’s a lot of TV production you start to have more more generation potentially over generation and that extra power start to push on other resources and push them off-line weight when you look at the number two on the chart this is in the evening. Is the sunsets and you see similar challenges as the sun rises in the morning we are creating these very large transients on the system. The number 4 on this chart rep represents kind of the economic strain to get placed on the grid as the solar energy during the day and the wind energy at night starts to reduce the operating hours and the energy produced from the existing thermal assets are there left with less and less energy being sold on this dries up higher prices during the hours that you operate properly during the evening I’m in this introduces that arbitrage opportunity for moving that excess energy into this peak hours. Be open to all technologies Build an open market environment so all technologies can compete, and let the most efficient technology win 5 © 2018 General Electric Company - All rights reserved