Active Load Management and the MicroGrid

June 24, 2010

Allen M. Freifeld SVP External Affairs Viridity Energy afreifeld@viridityenergy.com 443-878-7155

Peak Shaving Load Shifting

Load Shifting+ Regulation

Pre-Cooling Pre-Cooling

Capacity• Easy to Implement• Low Barriers to Entry• Primary DR Offering

Requirements Capacity Energy Efficiency

Metering Type Basic Utility Settlement Grade Revenue Grade

Settlement/Data Intervals Monthly Daily – 15 minute Real Time – 5 minute

Notification Email, Phone Real Time Real Time

Software Platform None required Advanced Advanced

Optimization None required Required Required

NOC None required Required Required

Consulting Services Optional Yes Required

Outsourced Services Optional Yes Required

Real-Time Energy• Real Time Optimization &

Control• Daily Price Settlement• Load Optimization and

Microgrid Congestion Management

• Leverages storage assets• High Barriers to Entry

Efficiency• Self-Balancing Microgrid• Co-optimizes multiple markets• Integrates Electrical Vehicles• High Barriers to Entry

Participation in the Real Time Markets Requires Advanced Operation and Software Capabilities

Smart Grid: an Integrated Solution

• A vision for the future – a self-balancing network of distributed resources driven by communication and intelligence

Source: iTeres

Energy generated at off-peak times could be stored

in batteries for later use

These can shut off in response

to frequency fluctuations

WindFarm

Offices

Smart Appliances

Central Power Plant

Storage

Industrial Plant

Processors

Execute specialprotection schemes

in microseconds

Generators

Energy from small generators and solar

panels can reduce overall demand on the grid

Isolated Microgrid

Detected fluctuations and disturbances can signal for

areas to be isolated

Sensors

Demand Management

Use can be shifted to off-peak times to save money

Houses

Disturbance in the grid

Solar Panels

Viridity: Full Spectrum of Microgrid Services

ViridityEnergy

RTOs

• Distr. Utilities• Investor Owned

Utilities• Munis/Coops

• Microgrid asset owners

• Building Automation System providers

• End-users

Utilities

• Reliability• Delayed Capital

Investments• DR, Emissions

Goals

• Virtual Power• Dispatchable Load

• Economic Value• Self-Sufficiency• Reliability• Sustainability• Targets

Customers

Strengths Opportunities

Modular in Nature Carbon regulation

Heterogeneous Power Quality Expanding renewables market

Reliable Power (even during grid outage)

Smart Grid Investment

Flexible architecture Inverter and Storage Technology Advances

Multiple ownership models Declining Cost of Curves

Diverse applications Telecommunications Advances

Integrated heating and cooling Growth in developing world

Broad global markets Plug in hybrids

Weaknesses Threats

Incentives diffuse Political power of incumbents

Unclear road map Lack of clear standards

Fragmented regulation Competing business models

Utility safety concerns

Microgrid SWOT Analysis

Active Load Management and the Microgrid

• Microgrids

• Control

• Optimization

• Control – Power Analytics

• As designed specifications and performance• Actual Real time performance

• Protective device coordination; Power flow studies; voltage; fault analysis; reliability of system components

• What is vs. what if conditions.• Collision avoidance; early warning

• Active load Management and the MicroGrid

• Optimization• Solutions based on operating and market data

• Constraints (environmental, comfort) considered

• Real time re-optimization

Integration Layer

VPower Gateway

SCADAEMSBMS

UI Engine

Displays`

Forecast Data Feeds

External Services

Mar

ket I

nter

face

s

Generation Forecast

VP Load Forecast

CBLOptimizer

Model Builder

PJM CBL Calculation

Carbon Footprint

Calculation

PORT

AL

VPowerTM – System Architecture

9

Settlement

Power Analytics

9

Optimization Example

Imported PowerImported Power

Solar Panels (2 MW)

Battery(5 MWh)Battery

(5 MWh)

Gas Fueled Gen (5 MW)

Diesel Generator (5 MW)

Diesel Generator (5 MW)

HVACHVAC

6/27/08 Case 0 Case 1 Case 2 Case 3

T Optimized √ √ √ Solar 2 MW √ √

Battery 5 MWh √ √ Gas Gen 5 MW √

Diesel Gen 5 MW √Fixed Load 7 MW √ √ √ √

GT Gen Costs $75/MWh $75/MWh $75/MWh $75/MWh $75/MWhDiesel Gen Costs $247/MWh $247/MWh $247/MWh $247/MWh $247/MWh

Retail Night $55.00 $ 55.00 $ 55.00 $ 55.00 $ 55.00 Retail Day $65.00 $ 65.00 $ 65.00 $ 65.00 $ 65.00

G + T $37.50 $ 37.50 $ 37.50 $ 37.50 $ 37.50 Import MWh 226.24 214.77 202.31 63.64

Supply Savings $ - $ 969.64 $ 1,817.59 $ 9,893.02 DR Revenue $ - $ 5,986.45 $ 8,247.70 $ 21,376.18 Fuel Costs $ - $ (12,092.02)

Net Savings $ - $ 6,956.09 $ 10,065.29 $ 19,177.18

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