1. November 20, 2015
Challenges of Storage Development - Advanced Rail Energy Storage (ARES) Prepared for Bulk Storage Conference, Sacramento
November 20, 2015

2. Today’s Discussion ARES Technology Hurdles for a Start-up
November 20, 2015
ARES Technology
Hurdles for a Start-up
Project Development Challenges

3. ARES Ridgeline Technology
November 20, 2015
Pumped storage on rails
78 % round-trip efficiency
No degradation with cycling or over the project lifetime
Load-following, regulation and long-duration (8 hours +) storage capabilities
50 MW to 1000 MW +

4. ARES Nevada ARES’ First Commercial Regulation Facility
(Adhesion-Drive Technology)
Specifications
Charging Capacity 57MW
Discharging Capacity 44MW
Storage Duration 15 min
Elevation Differential 2,000’
Average Grade 6.9%
Maximum Grade 8.0%
Track length 5.5 mi.
Number of Trains 6
ROW Size 72 acre
Ramp Rate MW/min
On-Line Date Sept 2019
System Life 40+ yrs
November 20, 2015

5. ARES’ Significant Advantages
Scalability -- ARES Energy Storage facilities are scalable from small ancillary services facilities up to large regional energy storage systems.
Extensive Site Options -- ARES sites are abundant in many arid regions with wind and solar resources.
Variable Output at a Constant Efficiency -- An ARES system operates at a constant high efficiency over its full range of power output regardless of discharge state
Higher Efficiency – ARES’ round-trip energy storage efficiency is 78.3% – its round-trip Ancillary Services efficiency is up to 84%
Lower Capital Cost – ARES’ cost is approximately 60% of an equivalent power pumped storage hydro facility
No Use of Water
No Emissions
No Environmentally Troubling Materials (e.g., lithium extraction)
November 20, 2015

6. Key Hurdles to Manage Acquire financing for ARES Nevada project
Based on market revenue forecast
Improvements are needed for pay-for-performance rules for regulation and mileage
Demonstrate capabilities by building a large demonstration project
In discussion with 3 utilities
Secure long-term contracts or licensing revenues from utility-owned projects
Stay funded during start-up period
November 20, 2015

7. Storage Project Development Challenges In California
November 20, 2015
Storage Project Development Challenges In California

8. FERC Order 755- Pay For Performance
Existing regulation resources have poor regulation accuracy and slow ramp rates which cause:
depressed regulation and mileage prices, and
a reduced incentive for new fast ramping resources to enter the market
November 3, 2015

9. Energy Storage Procurement Targets
Project Development Challenges –
Energy Storage Procurement Targets
Storage Grid Domain
Point of Interconnection
2014
2016
2018
2020
Total
Southern California Edison
Transmission 50 65 85
110
310
Distribution 30 40
185
Customer 10 15 25 35
Subtotal SCE 90
120
160
210
580
Pacific Gas & Electric
Subtotal PG&E
San Diego Gas & Electric 22 33 80 7 23 55 3 5 8 14
Subtotal SDG&E 20 45 70
165
Total – all 3 Utilities
200
270
365
490
1,325
November 20, 2015
Issue – Procurement quantities are small relative to the optimal size of rail storage systems

10. Project Development Challenges
Timeline from project site selection to an approved contract is lengthy
(If you were to be short-listed in an RFO)
November 20, 2015
Project Development Timeline
CPUC Contract Approval
Site Selection
Build Project
Project Design
EIR
Up to 3 Years
RFO Timeline

11. November 20, 2015
Questions?