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• The Problem

– Centralized generation is often dirty, costs are increasing and T&D is vulnerable to natural and man-made interruption

– Distributed renewables are expensive and CHP is rarely optimized for grid support robust market participation

• Microgrids that integrate renewables and CHP are the answer:

– The blended kWh rate of CHP and renewables delivers cost-effective energy

– Balancing the technologies improves energy reliability

– Can improve grid efficiency and reliability via ancillary services

Overview

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• The U.S. Energy Information Administration predicts that 50GWs of coal-fired power plants will be retired by 2020* due the cost of maintaining aging infrastructure and the vulnerability of the current “hub and spoke” transmission/distribution model

• According to Pike Research**, these retirements “will require a range of technological options to provide electricity in a distributed fashion for local use or for grid support…

CHP installed capacity is projected to double by 2022 to 80 GW

Microgrid deployments will reach $17B by 2017

Trends & Outlook

Source: U.S. EIA Annual Energy Outlook 2012

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What is a Microgrid?

Legacy Bulk Electrical System Microgrids

That Was Then… …This is Now

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•Generation Reliable and cost effective

renewables CCHP & Fuels cells with

waste heat recovery and optimization

•Bi-directional inverters•Software

Sophisticated local management and integration with building automation

Grid aggregation and dispatch

•Energy Storage•Fleet Electrification & Vehicle-to-Grid (V2G)

•Project finance and execution

•Operation and maintenance

Anatomy of a Microgrid

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• From the outside, looks like a single power production facility…

• From the inside:

– Independent, distributed energy resources are aggregated via a secure web-connected system

– Optimization of generation, demand-side or storage resources maximizes profits for asset owners

– At the same time, the system delivers extraordinary value and services to transmission and distribution (T&D) grid infrastructure for the proper balance of the electricity grid

Pike Research – Hot Of The Press

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• Building Own/Operator– Improved energy reliability during natural or man-made grid

interruptions– Cleaner electricity and reduced emissions– Reduction of demand and time-of-use charges

• Grid Operators– Renewables peak shifting– Renewables firming– Ancillary services

• Frequency regulation• Demand response• Spinning Reserve

• Distribution Utility– Reduced congestion on transmission and distribution

infrastructure – Power factor correction– Voltage support

Value Proposition of Microgrids

When these benefits are fully monetized, the economic performance of Microgrids can increase by 10%+

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Case Study – Fleet Electrification General Motors

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• Combines Energy Storage, Solar Generation, Electrical Vehicle Charging and building load management

• Can be operated both grid-connected and island-mode with full bumpless transfer

• Functionality includes renewable smoothing, peak shaving, VAR control and EV charge leveling

Case Study – Electrical Training Institute (ETI) LA