1 Confidential The information contained in this presentation is for the exclusive and confidential...

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Confidential

The information contained in this presentation is for the exclusive and confidential use of the recipient. Any other

distribution, use, reproduction or alteration of the information contained in this presentation, by the addressee or by any

other recipient, without the prior written consent of ENBALA Power Networks Inc. is strictly prohibited.

DSWG February 24, 2012

Smart Grid Solutions That Pay You

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Regulation Service – Demand Side Participation

Regulation Service in essentially provided by Generation in ERCOTLoads have passed the testing and are registered to participate Market reports indicate the Demand Side resources are not very active in the market

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Demand Side Regulation – North American Markets

Market Rules Permit Load

Participation

Active Loads

Permit Aggregation

Sub-Metering

ERCOT Y Y N N

PJM Y Y Limited Soon

MISO Y 1 – ALCOA Limited N

NYISO Y N No N

ISO-NE Y N Limited Y

CAISO Y/N N Limited N

IESO Y N N N

SPP not included as there currently isn’t a marketfor Regulation

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Load Management Universe Market maturity for demand-side assets to participate

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New DR products must be bi-directional

Regulation represents required balance in the gridAs likely to require the use of more power as curtailment

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Requires intelligent capture of inherent

flexibility in processes

Requires the ability to define constraints

such that operational priorities rank first

Cannot Impact the Customer

Requirements are more frequent and

have shorter notice

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Why Limited Load in Regulation Market?A load does a process or task. Participation in the Electricity Wholesale Market should not impact the process or taskTraditional DR has limited curtailment events and therefore limited impact on the loadRegulation requires the load to respond to 4 second control signalsRegulation as likely to require the load increase consumption as often as curtail consumptionVery few loads have the flexibility to respond in the short timeframe and bi-directionally Increased communication requirementsRules limit aggregation to create a network or fleet response

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A Network Approach

Generally a single Demand Resource can not respond to the a 4 second signalA group of Demand Resources acting as an intelligent integrated network can provide robust, reliable and efficient Regulation Service

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ENBALA Power Network

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What is ENBALA’s Grid Balance Program

• It provides moment by moment balance for the grid.• It works within Load defined operational parameters• It is an energy and capacity neutral program• It monetizes the flexibility inherent in Load processes• It requires an intelligently managed network of assets• It is complementary to demand response and other energy

management programs• It is NOT demand response• It is NOT an energy curtailment program• It is NOT intrusive to Load operation

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Benefits of Demand Side Regulation

Utilizes installed resources Frees generation to provide other services Increases the efficiency of the generation portfolioReduces cost Provides an additional revenue stream for the hostEnhances Regulation competition

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Market RequirementsMultiple QSE’s

– Allowing multiple technology providers to work with a load– Ensure compatibility– Crucial for much wider spread adoption

Sub-metering– To gain access to the specific characteristics of specific loads

Aggregation and Portfolio – Across sub zones– Lower aggregation requirements– Performance measurement at Portfolio not Resource level

Regulation offers without Energy offers ... Not an issue but needs to be considered when developing rules for Demand participation in the Nodal Market

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Next Steps

DSWG endorsement to investigate and implement rules that would enable a Network to effectively participate in the ERCOT market

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Thank You

Rob CoulbeckVP Regulatory Affairs

647-808-2120rcoulbeck@enbala.com

www.enbala.com

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ISO Signal

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Resource ResponseEPN Client Pool

beginning to respond to ISO

signal.

EPN Client Pool beginning to

respond to ISO signal.

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Resource Response

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Resource ResponseMore

participants from the Client

Pool are responding to

requests.

More participants

from the Client Pool are

responding to requests.

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Resource ResponseThe green line

is EPNs aggregated

response from the Client Pool.

The green line is EPNs

aggregated response from the Client Pool.

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Resource Response8 binary assets

(on/off) responding to

the EPN.

8 binary assets (on/off)

responding to the EPN.

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Resource ResponseThe 9th participating

load is a VFD – providing a continuous

response (ranging between 1000 kW –

1750 kW)

The 9th participating load is a VFD –

providing a continuous

response (ranging between 1000 kW –

1750 kW)

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Resource Response

The aggregate response of each resource in the

network is compiled to form a unified

regulation response.

The aggregate response of each resource in the

network is compiled to form a unified

regulation response.