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EnergyStorage

Systems

in

EmergingSmartGridApplications

October22nd2009

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PresentationOutline

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A123SystemsOverview OurChallenge SmartGridVision RenewableSources CriticalBusinessIssues EnergyStorageRequirements DigitalInterfaceandControls Conclusion

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A123SystemsEnergySolutionsGroup

3

Whoweare Whatwedo Grid/Stationarysystems

FrequencyRegulation SpinningReserve WindandPVRamping

Transportation

EV

PHEV

HEV

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ExampleofCurrentSmartGridProduct

4

Clip 1.mov Clip 2.mov

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OurChallenge

5

EnablingenergyindependenceandCO2 reductionbyreducingfossilfuelconsumptionandfacilitatingmorerenewablesourcesonthegrid

Enteringamarketwithgamechangingtechnology

Marketisinastateofmajorchange/evolution(Regulatory,technologyandeconomic)

Business:Costofthetechnologyhastoprovidevaluetoenduser

Dependingontheregion,energydemandisrisingataratebetween2.2%and4.9%eachyear

Noclearunifiedstandards

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SmartGridVision

6

WhatisaSmartGrid? Whatdoesitdo? ThinkingaboutbuildingSmartGridsissimilarto

sayingthatwearegoingtobuildtheinternet Opportunitiesexpandandtechnologymatures Currentinfrastructurelimitswhatiscurrently

achievable

Costofcapitalinvestmentrequireslongtermdeploymentofsmartgridassets (Theinvestmentneedstobecapitalizedoveralongperiodoftime)

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SmartGridConcept,ElectricPowerResearchInstitute

7

Source:EPRI

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SmartGridConcept,AmericanElectricPower

8

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RenewableSources

9

Legislationisdrivingdeploymentofrenewableassets

Differencesinrenewablesourcesgeneratedifferentenergystoragerequirements. Someneedshorttermsmoothingandmostcoulduselongtermstorage.

Varietyofrenewablesourcespresentsasignificantchallengeforenergystoragesystems

Energystorageenablesthecreationofviablerenewablesolutions.

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RenewableIntegrationChallengesandSolutions(Japan)

10

From,Hara/HokkaidoUniv.,Nakama,/NEDO, 2008 SymposiumonMicrogrids,June22008

STORAGE for

PV Integration

STORAGE for

Wind

Integration

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RenewableIntegration,CAWindChallenge

11

Source:CaliforniaIndependentSystemOperator

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RenewableIntegration,AZPVChallenge

12

Source:TucsonElectricPower

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CriticalBusinessIssues

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Costofthetechnologymustprovidevaluetoeachconsumer.

Solutionsmustbeflexibleenoughtobecompatiblewithbothtodayssystemsaswellastomorrows. (Assetlifecycle)

Dynamicbuy/sellpriceswillsignificantlyimpacthowtechnologyisdeployed

Federalincentiveshavetheabilitytobeasignificantcatalystinthedeploymentofnewenablingtechnologies

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CostofRenewableTechnology

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FromRenewableEnergyDataBook, DoE EERE,Sept.6,2008

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CostofRenewableTechnology

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FromRenewableEnergyDataBook, DoE EERE,Sept.6,2008

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EnergyStorageRequirements

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Ramping prepeakdemandintoandthroughpeakdemand(Energy/Cyclelife)

FrequencyRegulationforgridfrequencystability(Power)

SpinningReserve(Power,Energy,andLife) Intelligenceofnewbatterysystemsallowfor

increasedavailabilityandaccessibilitynotpreviouslyleveragedinlegacybatterysystems.

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DigitalInterfaceandControls

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Digitalprotocol Lackofstandard HWlayer SWlayer

Reachor

control

of

local

networks.

Security

Digitalboundariesmaynotbethesameaspowertransmissionorbusinessboundaries

Eachtypeofresourcedeployedwithhaveafiniteresponsetimeandenergycapability.

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Conclusion

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Systemsapproachrequiredtosuccessfullyidentifyandmapoutfutureenergystoragesystemrequirements.

Energystorageassetsmustbeflexibleenoughtowithstandtherapidevolutionof SmartGridtechnologies.