1. © 2008 REGEN Energy Inc

2. What is Demand Response? Management of electrical consumption Active alleviation of grid stress Load Shedding during peak demand periods Controlled Load Shedding / Balancing Decreased Grid Stress Demand Response Financial Incentives

3. © 2008 REGEN Energy Inc The Shocking Truth! It is estimated that a 5% lowering of demand would result in a 50% price reduction during the peak hours of the California electricity crisis in 2000/2001. If demand continues to grow unabated, to meet future demand will require 1,300 new power plants supplying 400 GW by 2020. It’s not just big corporations driving up demand… It’s you too! Source: Schneider Electric and Peter Schwartz & Associates 2008

4. © 2008 REGEN Energy Inc Developing a Comprehensive Energy Strategy Energy Efficiency Demand Management Demand Response Alternate Energy

5. © 2008 REGEN Energy Inc Case Study of a Wireless DR Installation HVAC, DHW, Lighting loads in an office building EnviroGrid™ controllers use swarm logic to reduce and smooth demand Integrated IP-based reporting and DR control 7x24 Peak DM as an additional benefit even when DR not invoked

6. © 2008 REGEN Energy Inc Communication enables efficient energy use EnviroGrid’s swarm logic ensures that loads: Communicate and cooperate with each otherUse energy efficiently while maintaining occupant comfort

7. © 2008 REGEN Energy Inc IP enabling edge devices leads to energy efficiency The EnviroGrid™ Controller is an IP-enabled edge device which can be easily integrated into an existing network infrastructure. Built-in On-Demand portal to report and manage operations of HVAC (edge device) equipment – API’s to integrate with BAS Monitor and manage fine grained load energy information Organizations can better understand energy use of individual nodes (HVAC) on the network, schedule usage times, monitor efficiency and proactively maintain the infrastructure

8. © 2008 REGEN Energy Inc Swarm methods for Demand Response Self configuring mesh network uses swarm logic to load balance all connected loads with minimal to no impact to occupant comfort Building 1 Building 2 Report and Audit DR Management Swarm Optimized Networks No need to worry about thermostat setbacks, swarm logic is adaptive and self configuring

9. © 2008 REGEN Energy Inc IP “edge devices” simplify making the invisible… visible!Critical for successful DR testing, event confirmation Real-Time Control and Reporting down to the level of each load is a “must have” to confirm activity

10. © 2008 REGEN Energy Inc Specific lessons from case study Implementation costs – and benefits can vary dramatically by type of load Real-time control and verification of DR activity is key Invasive DR causes negative occupant reactions Swarm load-balancing less invasive than thermostat setbacks IP-based connectivity simplifies & reduces implementation costs Baseline DR