Kern County Energy Summit

November 13, 2013

Bakersfield, CA

Andy Atiyeh, MS, JD A2 Consulting, LLC www.a2ccorp.com

About A2 Consulting For Renewable Energy and Transmission Projects, performs:

Environmental Permitting Support.

Project Siting and Acquisition Due Diligence.

Field Surveys, and post-construction monitoring.

All environmental disciplines and GIS.

Utility Scale Project Development:

Wind (On-shore and Off-shore)

PV Solar (Ground Mounted and Rooftop)

Thermal Solar

Small Hydro

Energy Storage

Kern County Experience from Wind to PV Solar

Most recent: Pioneer Green Solar Project.

Energy Storage: The “Holy Grail” Touted as the next Holy Grail for Clean Technology

Global Industry Analysts, Inc. comprehensive global report on Utility-Scale Renewable Energy Storage markets.

Global market for Utility-Scale Renewable Energy Storage Technologies projected to reach $33.6 billion by 2018, primarily driven by the growing contribution of solar and wind energy to a utility’s energy mix.

IMS Research expects market will grow from under $200 million in 2012 to $19 billion by 2017.

Energy Storage Drivers CA changing energy mix

to drastically lower carbon

Beyond 33% RPS implementation

AB 32, ARB GHG Goals

California Energy Storage Bill - AB 2514

FERC Order 784

Ramping, firming rules

San Onofre early retired

Once Through Cooling mandated requirement

Interconnection/ Distributed Generation

Utility long-term procurement plans

Case for Energy Storage Strategic buffer to level generation and load, reducing unevenness and raises overall system efficiency and reliability.

Increased penetration of intermittent wind, solar, and other RE causes grid operators to search for additional power balancing technologies.

Consumers increasingly demanding emergency backup for power outages.

Greenhouse Gas regulations Energy Storage needed to replace Gas Turbines used for rapid balancing of load and generation.

Classes of storage at each type of grid connection point: Transmission, Distribution, and Demand Side.

Result: more efficient, reliable, and cleaner electrical system.

Storage as Alternative to Peakers Energy Storage a Cleaner Alternative to Gas-Fired Peakers

Grid storage displaces less efficient, dirtier peaker generation by time-shifting more efficient, cleaner base-load generation to peak periods.

Substantial system-wide air quality benefits.

Storing remotely dispatched locally generated power, has huge long term benefits for reliability and low costs.

Energy storage = more affordable, secure, and reliable.

Smart grid improves value & cost effective.

Historical Perspective

Relationship to Renewable Power Wind energy developers have

reduced financial return from their heavy investments due to high curtailment costs when wind is highest and demand is low.

Sun is already going down when grid demand causes highest energy prices, solar projects are not able to capture highest value energy prices at peak.

Energy storage allows both wind and solar to be much more valuable clean energy sources.

Source: CAISO

Relationship to Carbon Reduction

Development of Storage Prices for renewable energy technology dropping as

volumes of wind and solar development increase.

Regulatory Policy is recognizing the importance of energy storage to make clean renewable energy and transmission investments more valuable.

Grid operators need stability and are willing to pay.

Small developers seek the support of large companies AND multinational conglomerates looking for the hype and innovation found in startups.

Maturity of Energy Storage

Storage Today

Regulatory Developments CPUC Long Term Procurement Decision 2/13/2013 required

50MW of storage for SCE local capacity needs.

Assigned Commissioner’s Ruling (ACR) on June 10, 2013 - energy storage procurement targets for IOUs totaling 1,325 MW by 2020.

CPUC decision adopting Energy Storage Procurement Framework - October 17, 2013.

H.R.267 Hydropower Regulatory Efficiency Act of 2013 – FERC to look into shorter licensing time for Pumped Storage Projects.

Buying into Storage Key stakeholders — regulators and policymakers — are

beginning to see that storage is part of the equation.

Clarity: FERC Order 784 revises regulations governing sales of frequency regulation services.

Permits enterprises other than large utilities to sell “ancillary services”.

Power sources that can be tapped quickly when needed to meet a rapidly-changing supply or demand situation.

Economics of Energy Storage

Example Bulk Storage Technologies

Chemical Storage (Batteries)

Bulk Gravitational Storage (Pumped Storage)

Thermal Storage

Mechanical Storage (Flywheel)

Below Ground Compressed Air

Energy Storage Example Projects Southern California Edison’s 8MW Li-Ion Battery for

Wind Power Storage

Solar Reserve’s Rice Solar Thermal Energy Storage Project

Ice Energy Distributed Thermal Energy Storage

Beacon Power Flywheel Energy Storage at Tehachapi Wind Farm

Eagle Mountain Pumped Storage

Bison Peak Pumped Storage Project

Bison Peak Pumped Storage Project Strategically located in the Tehachapi Mountains away

from populated areas, near existing major transmission.

1000MW project would compliment Kern County existing and planned wind and solar projects.

High head requires much less water than other projects in development.

Peaking cycle of six to eight hours creates valuable clean energy capacity from Kern County.

Bison Peak Storage Project Team The Alton Energy Team Members were the

Originating Developers of the 1,550 MW Alta Wind Energy Center.

Contributed heavily to the accomplishment of the 4,500 MW TRTP.

Played industry recognized role building successful clean energy projects since the early days of renewable energy in California, dating back to the mid-1980’s.

Advancing Renewable Energy in Kern County.

Benefits to Kern County The County is centrally located and has set a goal to see

10,000MW of renewable resources developed by 2015.

Already more than 2,700 MW of wind capacity in operation

Some of the world’s largest photovoltaic solar projects, with 3,000 MW approved.

Large scale storage, such as Pumped Hydro Storage, which would convert the 10,000 MW of Kern County Wind and Solar into a Firm Dispatchable Resource of extremely high value to CA.

Large hydro pumped storage project is a $2 Billion investment over many years = major tax revenue and jobs to Kern County.

Conclusion AB 2514 articulates the overall objectives for energy

storage:

"Energy storage has the potential to transform how the California electric system is conceived, designed, and operated. In so doing, energy storage has the potential to offer services needed as California seeks to maximize the value of its generation and transmission investments: optimizing the grid to avoid or defer investments in new fossil-power plants, integrating renewable power, and minimizing greenhouse emissions."