1. Energy Storage Support for Aliso Canyon Alex J. Morris, Policy Director April 8, 2016 ©2016 California Energy Storage Alliance

2. 1 About CESA Board Members General Members 1 Energy Systems Inc. Alstom Energy Aquion Energy Bright Energy Storage Brookfield Renewables CA Environmental Associates Consolidated Edison Development Cumulus Energy Storage Customized Energy Solutions Demand Energy Dynapower Company Eagle Crest Energy EDF Renewable Energy Electric Motor Werks, Inc. Elevation Solar ELSYS Inc. Energy Storage Systems, Inc. Enphase Energy EV Grid Geli Gordon & Rees Green Charge Networks Greensmith Energy Gridscape Solutions Gridtential Energy Hitachi Chemical Company Ice Energy Imergy Power Systems Invenergy Johnson Controls JuiceBox Energy K&L Gates LG Chem Power LightSail Energy Lockheed Martin AES NEC Energy Solutions OutBack Power Technologies Panasonic Parker Hannifin Corporation Primus Power Princeton Power Systems RES Americas S&C Electric Company Saft America Sharp Electronics Skylar Capital Management Sony Corporation Sovereign Energy Sumitomo Electric SunEdison SunPower Trina Energy Storage Toshiba International Corporation Tri-Technic UniEnergy Technologies Younicos Making energy storage a mainstream energy resource to advance a more affordable, clean, smart, and reliable electric power system in California.

3. © 2016 California Energy Storage Alliance Supporting Aliso Canyon 2 California Energy Storage Alliance (CESA), Large-Scale Solar Association (LSA), and Solar Energy Industry Association (SEIA) documented lists of potential solutions 1 o Expedite all reasonable actions to accelerate reduction of LA Basin gas usage o 2016 focus – solutions also apply to Summer 2017 and beyond Energy Storage as a solution: o Many types – batteries, thermal, other o Available and highly deployable in-basin o Utility or 3 rd Party-owned. Can provide multiple services o Ramping by storage (in or out of basin) reduces ramping needs of gas- plants o Some energy storage already deploying in-basin Incentives and/or long-term contracts support financing Energy Storage Project Timeframes: o Manufacturing pipeline can be ramped up but takes 3-6 months o Interconnection and permitting processes can take many months 1. Joint CESA, LSA, SEIA Idea list available at www.storagealliance.org/content/storage-resourceswww.storagealliance.org/content/storage-resources

4. © 2016 California Energy Storage Alliance How Energy Storage Can Help 3 Illustrative Only. Other siting configurations and applications can apply.

5. © 2016 California Energy Storage Alliance Energy Storage Deployment/Development Capabilities – 4 By August 2016 By December 2016By Summer 2017 New Operational MWs 18 MW 136 MW Many 100s of MWs Next Slide shows the ‘support actions’ needed to drive these deployments Other Utility or ISO Actions CESA Identified Not quantified Potential Time 154 MW SOURCE: Based on April 2016 CESA collaboration w/ CESA Member Companies. Energy storage deployments could range in energy durations from 1-6 hours, targeting various applications such as peak shifting, ramping, and inertia.

6. © 2016 California Energy Storage Alliance Key ‘Support Actions’ for Energy Storage Deployments 5 For Aug 2016 Capacity to be online: o Expedited Interconnections and Permitting o CPUC ‘Go-Ahead’ for LCR Storage Contracts o Immediate utility contracts, incentives and/or cost-recovery for ‘repurposing’ For Dec 2016 Capacity, needs include: o Actions identified for Aug 2016 o Transmission system import capabilities and related details o Customer or site identification/acquisition support o Negotiated Term Sheets by the end of April w/ key information ( #MW, #hours duration, #cycles/day, agreed pricing and payment terms, etc.) Other Potential Actions: o Utility actions, including utility-office and sub-station sited storage o CAISO actions, including ‘Reliability Must Run’ storage For Summer 2017, need to plan NOW

7. © 2016 California Energy Storage Alliance Takeaways 6 Storage is a dispatchable and deployable solution that can help w/ Aliso challenge Storage projects can support operations this summer and winter Must act now before end of April to get these projects on-line Actions should include Summer 2017 planning too www.storagealliance.org