1. 1 © 2012 Lockheed Martin Corporation, All Rights Reserved Intelligent Microgrid Solutions Efficient, Reliable and Secure Solutions for Today’s Energy Challenges Rich Godlasky Sr. Manager, Intelligent Microgrid Solutions Lockheed Martin richard.j.godlasky@lmco.com

2. 2 © 2012 Lockheed Martin Corporation, All Rights Reserved Microgrid Overview Definition: An intelligent energy system optimizing operation of electrical loads and distributed power sources, including renewables, connected to the utility grid or islanded Benefits: Increases Energy Efficiency Reduces fuel consumption Simplifies renewable integration Decreases electricity cost (peak shaving) Improves Power Reliability Real-time monitoring/control Optimally manage resources Ensures Energy Security Advanced cyber solutions Bulk grid independent capability Applications: Generators Wind Fuel Cells Solar Vehicles Energy Storage Microgrid Controller Utility Grid Critical Loads Non-Critical Loads Remote Installations Fixed Installations FOBs Islands Military Bases Medical Business Campus

3. 3 © 2012 Lockheed Martin Corporation, All Rights Reserved Adaptively Meets the Needs of a Wide Variety of Customers Key Characteristics of an Intelligent Microgrid  Intelligent centralized and distributed control  Algorithms to optimize operation  Fast and secure communications  Resilient fault coordination and recovery  Plug-and-play integration of sources and loads  Multi-mode operation based on customer requirements  Meets cyber security requirements of NIST Pub 800-53

4. 4 © 2012 Lockheed Martin Corporation, All Rights Reserved How Installation Microgrids Operate Distributed Controls Microgrid Control System Sub-Station Utility Installation Loads Typical Ops New Microgrid Control System − Manages Distributed Assets Efficiently − Provides Un-Interrupted Power − Increases Stability/Surety − Islands as Required − Decreases Costs (Peak Shaving) − Communicates with the Local Grid − Meets IEEE 1547.4 standards − Meets cyber security requirements Distribution

5. 5 © 2012 Lockheed Martin Corporation, All Rights Reserved Module Apps For Customization of Installation Microgrids Power Generation Optimization Grid Tie Island Operations Peak Shave (Econ Source Dispatch) Load Shed Building Controls Integration Renewable Energy Integration Energy Storage (Transient Control) Energy Storage (Basic Efficiency/Peak Shaving) Forecasting for Source Shifting/Optimization System Awareness & Circuit Protection (Prognostics) Additional Services –Regional Solutions –Power Line Communications –DIACAP/CON Cert's –Cyber Security

6. 6 © 2012 Lockheed Martin Corporation, All Rights Reserved ESTCP Fort Bliss BCT Microgrid Energy Security via Grid Tied and Grid Independent Operations Features –Grid-tied or islanded –Renewable integration with legacy power –Grid services using onsite power sources (peak shaving and reactive power control) –Energy storage integration for renewable energy smoothing, arbitrage, and reactive power control Benefits –Reduced electricity costs (≥10%) –Generator fuel usage reduction (≥20%) –Lower operating cost of legacy power generations assets (≥10%) –Overall reduced carbon emissions –Lower capital expenditure by energy source optimization –Enhanced energy security Status –Commissioning Dec 2012, Demonstration through Jul 2013 –Fort Bliss DPW investigating expanding using 2013 ECIP funds

7. 7 © 2012 Lockheed Martin Corporation, All Rights Reserved Microgrid Development Center  Diverse set of prog. sources & loads  Renewables & energy storage  Real-time monitoring & control  Integrated with simulation Validate & Test Comprehensive Microgrid Architectures – Mitigates Customers Risk

8. 8 © 2012 Lockheed Martin Corporation, All Rights Reserved Partners to Help Customers Meet Their Defining Moments Capability Summary Microgrids provide efficient, reliable and secure power Provide power via grid tied and islanded operations Customized solutions tailored to a customer’s needs Allow for optimized and autonomous operations