1. Integrated Firm, Reliable, High Quality Energy Using Variable Energy Renewable Resources

2. The Altresco Approach  Altresco has never sold or been in the power plant business - we have always sold “total reliability and lowest cost energy.”  We have over 25 years of providing low cost reliable energy and electricity solutions for customers.  Our first client was the General Electric Complex, Pittsfield, MA (where the first AC transformers were manufactured).  Altresco sells reliable energy solutions not equipment  In 2005, we looked at the fleet of emerging uncontrollable generation sources and asked “How can we integrate this source to improve the efficiency and reduce the carbon footprint of customers?”  Since that time this has been our base business.

3. Microgrids - a small-scale, flexible, reliable source of electricity  In the search for more reliable ways to provide electricity and to incorporate renewable energy sources such as solar and wind — much attention is focusing on the Microgrid  What is a Microgrid?  A small-scale power system that uses a combination of generation, load and storage devices to serve local customers  The power is generated by the community for the community, and any excess is fed directly into the power grid  Size of the Microgrid may range from homes to municipal regions to industrial parks

4. Microgrids - Components  Components of a Microgrid?  Distributed Generation  Loads  Storage devices  Controls  Point of Common Coupling

5. Design of Microgrids LAP™  A major challenge (and opportunity) is deciding what components to choose and then how best to operate them to meet demand  LAP™ Location Adaptation Protocol. This allows each Microgrid to be designed using optimum resources and provide optimum benefits.  The system should run as much as possible on its renewable technologies, using the diesel generators or batteries when more power is needed  The system should provide perfect reliability—that is, it should never fail to meet total customer demand

6. Design of Microgrids  Key design questions:  How much generating capacity in solar PV panels and wind generation?  What do I need in diesel generators and batteries or other storage sources for backup?  What mix will provide the necessary performance at the least cost, or with the lowest possible emissions, or with some mix of the two?  Integration challenges:  Voltage, frequency and power quality are three main parameters that must be considered and controlled to acceptable standards while the power and demand are balanced

7. Design of Microgrids  Integration challenges:  Resynchronization with the utility grid is complex and operation must be seamless and automatic: o when the power system shuts down, the microgrid may need to ramp up generation and possibly cut service to some customers; and o when the power system comes back on, the microgrid must resynchronize  Microgrid protection is one of the most important challenges  Electrical energy stored in battery banks or other storage devices will require more space and maintenance  Issues such as standby charges may present barriers for Microgrid

8. Microgrids - a small-scale, flexible, reliable source of electricity  Microgrids are flexible  Can provide electricity to remote loads or communities  Can be connected to a central power system, selling and buying electricity as needed and increasing reliability to customers by continuing to operate even when the central system goes down  Microgrids can support integration of intermittent energy sources (wind and solar)  When the sun doesn’t shine or the wind doesn’t blow, microgrid operators can get power from batteries or diesel generators, they can buy it from their utility, or they can reduce demand by cutting service to self- selected customers or loads

9. Challenges with large scale integration of Wind Supply-demand balancing – wind can be unpredictable, increase or decrease rapidly and patterns can be correlated or counter to load (at night) Limits to system flexibility – need access to flexible resources considering physical limits (ramping and start up times) Reliability issues – need mitigating measures, resources and the scale/costs can escalate Market Impacts – can increase variability and uncertainty Transmission – upgrades are necessary to interconnect wind resources Supply Demand

10. Variable Fuels Must Be Used When Available Variable generation often does not positively correlate with electricity demand Wind & Solar Electricity Production Appears Complementary Only 8 – 26% of wind’s “nameplate” capacity is available at times of peak demand for electricity “Ramps” in output can challenge grid operators Microgrids can assist with the integration of variable intermittent generation resources

11. Microgrids assist renewables integration  Power may be stored and shaped and conditioned  Use of batteries or energy storage devices can allow use of otherwise curtailed wind energy to be reused at times of peak  Microgrid may make use of low cost wind energy when it is surplus to the power system and assist system operators who may be dealing with supply surplus conditions at night  Microgrid control may also assist system operators with severe ramping conditions caused by large scale integration of renewables  Microgrid controls can be designed to support the region and the grid with voltage, frequency and power quality

12. Microgrids for Islands and Remote locations  Microgrid 2001

13. National Renewable Energy Laboratory Innovation for Our Energy Future St. Paul, Alaska Airport and industrial facility on the island of St. Paul in the Bering Sea Owned and operated by TDX Power High-penetration wind-diesel system; all diesels are allowed to shut off One Vestas 225-kW turbine installed in 1999 and two 150-kW diesel engines with a synchronous condenser and thermal energy storage Current average load ~70kW electrical, ~50kW thermal Since 2003, net turbine capacity factor of 31.9% and a wind penetration of 54.8% System availability 99.99% in 2007 In March 2008, wind supplied 68.5% of the facility’s energy needs and the diesels only ran 198 hours ~27% of the time. Estimated fuel savings since January 2005 (3.5 years) is 140,203 gal (530,726 l), which at $3.52/gal is almost $500k Annual fuel saving between 30% and 40%

14. National Renewable Energy Laboratory Innovation for Our Energy Future Coral Bay, Western Australia A small settlement of about 200 people on the western coast of Australia with high seasonal load High penetration wind-diesel system using a flywheel and low load diesels Diesels remain on consistently Three Vergnet, 275-kW hurricane-rated turbines, a 500-kW PowerCorp flywheel and 7x320-kW low-load diesel engines Installed in summer 2007 by PowerCorp Australia in collaboration with Horizon Power and Verve Energy Average penetration for the first 10 months of operation was 55% In September 2007, wind supplied 76% of the community’s energy needs with instantaneous penetrations consistently above 90% Photo Credit: PowerCorp Australia

15. National Renewable Energy Laboratory Innovation for Our Energy Future Mawson, Antarctica Plant that powers the Australian Antarctica Research Station Installed in 2002-2003 Four 120-kW diesels with heat capture Two Enercon E30, 300-kW turbines Flywheel used to provide power conditioning, although a diesel always remains operational Electrical demand: 230 kW average Thermal demand: 300 kW average Total fuel consumption of 650,000 l per year Average penetration since 2002 is 34% Best monthly penetration is 60.5% in April 2005 Turbine availability 93% Average fuel savings is 29% Power station operation Web site: http://www.aad.gov.au/apps/operations Photo Credit: PowerCorp Australia

16. Microgrids for Data Centers Diagram of a potential configuration and components. Data Center Campus Ice Storage Hot Thermal Storage and generation Grid Connection Firm Generation source Gas or LF Synchronous condenser Data Center Substation

17. Microgrids for Water, Food, Electricity and Energy This illustration is an example of one way to achieve Maximum efficiency with minimum carbon using a single interconnect system. This system architecture could facilitate name plate wind generation of up to 100%

18. Microgrids - Benefits  What are the benefits?  Microgrids can provide electric service to regions and communities that are currently unserved.  The use of both electricity and heat permitted by the close proximity of the generator to the user can increase the overall energy efficiency  Can provide substantial savings and cut emissions  Microgrid can facilitate the use of renewable energy sources  Power generation units are small and are located in close proximity to load  Can provide high quality and reliable energy supply to critical loads  Large land use impacts are avoided  Large transmission build out may be reduced and transmission losses can be reduced

19. IGLB™ Microgrids for Efficiency and Reliability  Microgrid meets Major Grid  Creating a firm electricity supply and subordinate load balancing area with a single interconnect.  Bidirectional electricity flow allowing ancillary services on both absorption or voltage support.  Creates power product rather than single plant output.  Can add power quality to both grid and “behind the fence” loads.

20. Microgrids for India  Microgrids for India  Eliminates energy poverty  Integrates renewables  Integrates storage  Creates new forms of consumer participation  Improves quality of life

21. Microgrids and IGLB™ Microgrids can provide extraordinary energy and electricity benefits for customers and communities For more information on details and possible configurations of the system, or information specific to individual site and/or specific projects please contact: William Ross Williams Altresco Integrated LLC 12925 N Sierra Cir Parker, CO 80138 303 888 0380 bill.williams@altresco.com www.altresco.com 21

22. The Team Altresco’s diverse team includes highly qualified members with significant experience in each of the key areas of generation, transmission, dispatch, gas, wind, solar, energy storage and grid management:  William Ross Williams - 35 years in industry and power development  Warren Frost - Electrical engineer with 34 years in utility operations, NERC Variable Generation Task Force  Dr. Thomas Sladek - Chemical engineer with Analysis Consulting experience on every continent.  Jerry Gotlieb - 40 years Power Engineering, management, operations.  Jeff Whitham - Control system designer with 20 years control system design experience  Dave Perry - Engineer and project manager with project management experience in 7 countries.  Bill Shanner - Utility advisor and creator of several DSM, Data Center, and No Fail Energy systems  Fred Buckman, Jr. – Advisor Specialist in system efficiency Improvements 22