0 The Problem – Centralized generation is often dirty, costs are increasing and T&D is vulnerable to natural and man-made interruption – Distributed renewables are expensive and CHP is rarely optimized for grid support robust market participation Microgrids that integrate renewables and CHP are the answer: – The blended kWh rate of CHP and renewables delivers cost- effective energy – Balancing the technologies improves energy reliability – Can improve grid efficiency and reliability via ancillary services Overview

1 The U.S. Energy Information Administration predicts that 50GWs of coal-fired power plants will be retired by 2020* due the cost of maintaining aging infrastructure and the vulnerability of the current “hub and spoke” transmission/distribution model According to Pike Research**, these retirements “will require a range of technological options to provide electricity in a distributed fashion for local use or for grid support…  CHP installed capacity is projected to double by 2022 to 80 GW  Microgrid deployments will reach $17B by 2017 Trends & Outlook Source: U.S. EIA Annual Energy Outlook 2012

2 What is a Microgrid? Legacy Bulk Electrical SystemMicrogrids That Was Then… …This is Now

3 Generation  Reliable and cost effective renewables  CCHP & Fuels cells with waste heat recovery and optimization Bi-directional inverters Software  Sophisticated local management and integration with building automation  Grid aggregation and dispatch Energy Storage Fleet Electrification & Vehicle-to-Grid (V2G) Project finance and execution Operation and maintenance Anatomy of a Microgrid

4 From the outside, looks like a single power production facility… From the inside: – Independent, distributed energy resources are aggregated via a secure web-connected system – Optimization of generation, demand-side or storage resources maximizes profits for asset owners – At the same time, the system delivers extraordinary value and services to transmission and distribution (T&D) grid infrastructure for the proper balance of the electricity grid Pike Research – Hot Of The Press

5 Building Own/Operator – Improved energy reliability during natural or man-made grid interruptions – Cleaner electricity and reduced emissions – Reduction of demand and time-of-use charges Grid Operators – Renewables peak shifting – Renewables firming – Ancillary services Frequency regulation Demand response Spinning Reserve Distribution Utility – Reduced congestion on transmission and distribution infrastructure – Power factor correction – Voltage support Value Proposition of Microgrids When these benefits are fully monetized, the economic performance of Microgrids can increase by 10%+

6 Case Study – Fleet Electrification General Motors

7 Combines Energy Storage, Solar Generation, Electrical Vehicle Charging and building load management Can be operated both grid-connected and island-mode with full bumpless transfer Functionality includes renewable smoothing, peak shaving, VAR control and EV charge leveling Case Study – Electrical Training Institute (ETI) LA