Distributed Energy InsightsRMEL Renewables 2019

Dustin J. Rogge, P.E.Microgrid Solutions Manager, Power

16 October 2019

Dustin J. Rogge, P.E. – Missouri, Oklahoma

2

EducationUniversity of Missouri-Columbia; B.S. Computer Engineering, B.S. Electrical EngineeringKansas State University; M.S. Electrical Engineering

ExperienceMultiple large new combine cycle plants

Controls & Instrumentation for all major processes including Black Start Emergency Diesel GeneratorsPropose, Design, Procure, Field erection, Commissioning and Startup

Industrial automation, robotics and process data acquisitionDesigned multiple factory assembly machines and lines, Integrated power distribution and robotic systemsCollected, stored and design assembly process database, data flows, storage solutions and presentationMaintained and troubleshooting of all automation and controls for facility

Microgrids, Arc Flash, Switchgear, Relaying and Control System RetrofitsMultiple Microgrids, DERs, and Backup Power Systems ProjectsDesigned multiple switchgear and protective relaying upgradesExtensive power system modeling and analysis

B&V Roles: Global Distributed Energy – Microgrid Solutions ManagerMicrogrid Projects Execution including Operations and Maintenance of WHQ MicrogridMicrogrid Controls, Arc Flash and Freeze Protection Subject Matter Specialist

+1 913-458-8882RoggeDJ@bv.comhttps://www.linkedin.com/in/Dustin-Rogge-Microgrid/

Black & Veatch

3

11,000+ Professionals

110+ offices

Six continents

7,000 active projects worldwide.

$3.5 Billionin revenue in 2018.

Safety Performance

0.35 Recordable Incident Rate

0.08Lost Time Incident Rate

Power, Oil & Gas, Water, Telecommunications, Federal, Management Consulting, Atonix, Diode, Growth Accelerator Data Centers, NextGen Ag, HyperLoop, …

Infrastructure Infographic

WHY ARE DERS CONTAGIOUS? DER DRIVERS:

Reliability / Resiliency

Reliability / Resiliency

EconomicEconomicSustainabilitySustainability

• Maintain operations for mission critical facilities

• Resiliency of community facilities (police, fire, medical, etc.)

• Cost competitive industries seeking competitive advantages

• Hedge against future rate increases

• Lower cost generation for Remote locations

• Corporate commitments to sustainability

• Customer demand for greater renewables

• Triple bottom line

DERs = Distributed Energy Resources

6 6Slide #89 from U.S. Energy Information Administration #AEO2019 www.eia.gov/aeo

Rene

wab

les a

re c

omin

g

7 7From U.S. Energy Information Administration #AEO2019 www.eia.gov/aeo

Rene

wab

les a

re c

omin

g

8

From “A Critical Review of Tradeoffs Between Centralized and Decentralized Resources” Burger etal, IEEE Power and Energy Magazine

Locational Value of DERs to Grid Varies WidelyKey Take-Away:

The “Locational Value” of DERs correlates with the level of adoption electrically near it.

Location can swing from a benefit to a system detriment.

Lithium Ion Batteries has seen continuous improvement

Battery costs trending downward, resembling solar PV“Learning curve” as installed capacity doubles, costs reduce ~20%

9

Battery Pricing Trend

1010

11

From “A Critical Review of Tradeoffs Between Centralized and Decentralized Resources” Burger etal, IEEE Power and Energy Magazine

Economies of Scale applies to Projects Too

Shell Technology Center Houston (STCH) Microgrid

12

Landing Page with video link – https://www.bv.com/our-work/shell-microgrid-doubles-research-lab-testing-new-energy-solutions

YouTube link to the video: https://www.youtube.com/watch?v=mjRjevdX4NA

Li Ion Batteries has have high energy and power densities

Dr. William Walker “Short Course on Lithium Ion Batteries”https://www.nasa.gov/mediacast/short-course-on-lithium-ion-batteries-fundamental-concepts-heating-mechanisms-and [*Flow Batteries Ovals were added/estimated by DJR] 13

* FlowBatteries

Copyright of Shell International

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Royal Dutch Shell plc and subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

This presentation contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition’, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this [report], including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this [report] are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2017 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this presentation and should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, May 22, 2019. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation.

We may have used certain terms, such as resources, in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.

Copyright of Shell International

Shell Technology Center- HoustonMicrogrid Specifications

Turnkey System (Black & Veatch)

North of shipping building at STCH

Specifications

Ground-mount solar PV - 300 kW AC

Li-ion battery — 250 kW / 1050 kWh

Load bank - 250 kVA

127 kW gas genset

Timeline

NTP Q1 2017

Design and procurement — Q1 to Q3 2017

Construction — Q3 to Q4 2017

Commissioning — Q4 2017

Li-ion battery commissioning — Q2 2018

15

Microgrid solutions provided ~1,300 MWh of power per year to the Black & Veatch World Headquarters

Black & Veatch

Link to virtual microgrid tour: Black & Veatch Microgridhttps://www.youtube.com/watch?v=KBwKj5LKL0M&t=

16

Copyright of Shell International

B&V WHQ Ramp-rate Control + Peak ShavingBattery Use Cases Battery Only

Demand management

Peak shaving

Load shifting

Demand response

Ancillary services

Frequency regulation

Fast frequency response

Genset

Optimization via BESS

PV �

Genset integration

PV ramp rate control via BESS

Increased self consumption of PV

Power quality

Stacked use cases — what is practical?

17

Ramp-rate control � Peak Shaving

Early evening to sunset

Copyright of Shell International

STCH Load Following Example

18

BESSBESS

Take-Aways• Consider Future Use Cases

• Anticipate Desire for Controls Changes

• Consider LTSA for More Complex Systems

• Consider Redundancy

• The best projects solve specific and multiple problems

• Structured properly, batteries are cost competitive

19

Acknowledgments• Shell

• Jon LaFollett, Dave Burns, Erik Daniel, Mike Fish, Jay Harikumaran, and Jamie Smith

• Black & Veatch• James McDaniels, Cory Rawlings, and Art Smith

20

QUESTIONS?

21

“I was gratified to be ableto answer promptly, and I did. I said I didn’t know.”

− Mark Twain (Samuel Langhorne Clemens)American author and humorist

1835-1910

Microgrid Solutions Manager, Power – Renewable Energy – Distributed Energy11401 Lamar, Overland Park, KS 66211+1 913-458-8882RoggeDJ@bv.com

linkedin.com/in/dustin-rogge-microgrid

http://www.bv.com/markets/microgrids

Dustin J. Rogge, P.E. 20 June 2018

22

Some Battery Chemistries

23

Sources: Manufacturers Literature and US DOE Energy Storage database

Vanadium based Sodium SulfurVanadium Redox Sodium Nickel ChlorideVanadium Redox Lithium basedVanadium Flow Graphite/Nickelate

Zinc based Graphite/Iron PhosphateZinc Iron Graphite/Manganese SpinelZinc air (hybrid cathode) Li-Titanate/High Voltage NickelateZinc bromine Li Alloy/High Voltage Positive

Iron Chromium Li/SulfurLead Acid Li Metal/Li-ion Polymer

Lead Acid Carbon Nickel Cadmium / Nickel Metal Hydride