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Summary of Slides
THANK YOU TO OUR SPONSOR
The Investment Landscape: Perspectives and Possibilities on Unlocking More Capital
CONVERSATION STARTERS
Moderator:
Richard Youngman CEO, Cleantech Group
Lou Schick Partner & CTO,
NewWorld Capital
Peter Davidson Co-Founder, CEO & Board
Member, Aligned Intermediary
Investing in the Energy Transition: Potential and Complexity in Abundance
Moderator:
Bob Zabors
Founder & CEO,
Enovation Partners
Investing in the Energy Transition: Potential and Complexity in Abundance
THOUGHTS ON “ABUNDANCE”
• The future energy market will struggle to adapt to unprecedented intermittent supply and fossil reserves - a world in which energy is free or more than free during many, but not all, times of peak demand
• Value in this model shifts from volumetric production to:
• Delivery • Control • Consumer brand/ relationship/ trust • Regulatory and political influence • Optionality
DER is not just about PV
Note: 2014 – 2023 are projected (P) values Source: Power Systems Research, SEIA, EGSA, Navigant, Enovation Partners
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2009 2010 2011 2012 2013 2014P 2015P 2016P 2017P 2018P 2019P 2020P 2021P 2022P 2023P
US
DG
Inst
alla
tio
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(MW
)
Diesel Gensets NG Gensets Solar PV Fuel Cells Small Wind
US Distributed Generation Capacity Additions 2009 - 2023
IOUs/REPs are rapidly building DER capability
Type Company Storage Date Amount
($MM) Description
Investments
8/2015 12.3 • A leading provider of grid-scale energy storage
software and integration solutions
6/2015 • Developer of fast-charging systems for lithium ion
batteries
1/2015 11.6 • Developer of learning software and energy storage
12/2015 18.3 • Provider of grid-scale energy storage software and
integration solutions
1/2015 12.6 • Producer of power generation, smart-storage and
distribution solutions for off grid applications
Project
Development
7/2015 • 25.6 megawatts of BTM storage providing demand
management in Southern California.
10/2014 • Partnership to deploy EV charging stations with
integrated batteries
M&A
5/2016 • 80% stake; incorporating storage into C&I and
public energy services offerings
2/2016 431 • General contractor EPC specializing in solar PV, but
with storage and other DG experience
7/2013 • Integrated C&I solar and DER developer and service
provider
Source: Enovation Partners and Cleantech Group analysis
Continued PV cost reductions make many residential and commercial projects viable within 10 years
Residential Rooftop
Residential Ground Mounted
Commercial Rooftop
Industrial Rooftop
2020 2025 2020 2025
2020 2025 2020 2025
Aggressive case: Installed cost decline of 12% per year
12.5+ Years 10.0 – 12.5 Years 7.5 – 10.0 Years 5.0 – 7.5 Years < 5.0 Years Not Assessed
Source: EIA, Enovation Partners analysis and DER models
• Financing – Direct system ownership more likely as costs fall and if alternative, low cost financing becomes available
• Regional vs. national footprint – Regional players are growing faster
• Cross-selling – Other providers may enjoy lower origination costs
• Multi-DER offer – Product innovation – hardware, software, contract design
• Channel competition – DIY/big box retailers offer lower installed cost
Large national PV installers are not realizing scale efficiencies in customer acquisition
Threats to core business model? Competition triumphs over scale
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New Customers
Sales and Marketing Expense for National PV Installers
($/New Customer, 2013 to 2015)
Source: Company reports, Enovation Partners analysis
1. Demand Management: C&I system designed lower demand charges 2. Frequency Regulation: C&I system designed to rapidly charge and discharge to provide frequency regulation 3. Demand Management + Markets: Large scale C&I system designed to provide capacity, spinning reserve, and non-spinning reserve in addition to demand management Sources: Lazard LCOS (2015); Enovation Partners analysis of: CA SGIP Handbook; PJM Data Miner; NSTAR rate schedules; CA IOU rate schedules; CA IOU DR Filings; ISO-NE FCM; NYISO ICAP; Con Edison DR Programs; ERCOT; PJM RTO/ISO Market Comparison (2015), PJM Market Monitor (2015)
Enovation Partners Estimates of Market Attractiveness for Behind the Meter Storage
Use Case
Standalone Stacked Standalone Stacked
Demand Mgmt1
Frequency Regulation2
Demand Mgmt. + Markets3
Demand Mgmt
Frequency Regulation
Demand Mgmt. + Markets
California
ISO-NE
ERCOT
PJM
New York
IRR: >10% IRR: 3-9% IRR: <2%
2016 2020
Behind the meter energy storage economics are likely to improve substantially by 2020
Many players are integrating storage and solar
Solar Installer Storage Partner Developments
• 4/2015: SolarCity / Tesla turnkey residential solar battery backup system focused on greater savings for business and government customers
• 12/2015: Announced an agreement to market energy storage systems with REC Solar, a subsidiary of Duke Energy
• Initial market focus: Hawaii and California • Financing available from both REC and Green Charge
Networks
• 1/2016: Sonnen, SolarWorld, and PetersenDean announced partnership to offer residential solar-plus-storage for the U.S. market
• 1/2016: Sonnen and Sungevity announced a distribution partnership offering residential PV + storage to residential customers
• Offering initially available in southern Californiaadd
• 1/2016: Sonnen and Spruce (a merger of Clean Power Finance and Kilowatt Financial) announced a partnership to develop a financing product focused solely on energy storage
• Storage-only financing made available Q1 2016; PV + storage financing targeted for late 2016
• 1/2016: Announced a partnership to sell and install JuiceBox’s 8.6 kWh residential energy storage systems
Source: Enovation Partners and Cleantech Group analysis
Company Showcase
PRESENTING COMPANES
Michael Oster CEO, Eos Energy Storage
Bud Vos President & CEO, Enbala Power Networks
Sean Becker President, Sparkplug Power
Tom Stepien CEO, Primus Power
Michael Wyman CEO, Origin Solar
Eric Laufer CEO, Laufer Wind
Company Showcase
PRESENTING COMPANES
Michael Oster CEO,
Eos Energy Storage
` Eos Energy Storage | Introductory Presentation
October 2016
Market and Eos Background
15
• Strong Global Market Growth Defined by Need for Locational Capacity and Renewable Integration
• Massive global market for utility scale and behind-the-meter energy storage
• Industry-Leading Eos Aurora® 1000|4000 Product
• Low-cost, long-life, safe, efficient and compact zinc hybrid cathode (Znyth®) battery
• Developed to meet market needs through partnerships with major global utilities
• Partnerships with major global system integrators to provide a turnkey AC-integrated Eos solution globally
• Eos Scaling Up To Meet Massive Global Demand
• Since announcement of commercial availability in 2016, Eos has received >29 GWh (~$5B) of qualified inquiries with many now in active proposals
• Eos is partnering with multi $B contract manufacturer to achieve rapid, capex efficient scale-up enabled by uniquely simple battery design
Why Energy Storage?
Underutilized Grid Infrastructure
Grid infrastructure oversized to exceed peak demand, resulting in massive idle capacity
Energy storage can defer costly and inefficient utility infrastructure investment
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Sources: 1. “Electric Power System Asset Optimization.” NETL, March 2011; “The Power of Five Percent.” The Brattle Group, May 2007 2. “Renewable Energy Prospects: United States of America.” IRENA, January 2015
Growing Locational Capacity Needs
Growing demand in constrained areas creates acute need for locational capacity and flexibility
Estimated US upgrades in 2014-2035 ~$1.5T1
Increasing Intermittent Renewables
US renewable energy to reach 27% by 20302. Many countries have higher goals
Energy storage solutions must meet global market requirements and compete economically with conventional generation and infrastructure upgrades
There is a significant demand for energy storage today
Energy storage opportunity is business, not technology problem
1 2
3 Generation Transmission Distribution
US Average Utilization1 47% 43% 34%
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Rapidly Growing Demand at Eos Price
Eos Installed System Cost Unlocks up to 85 GW of Potential U.S. Peak Shaving Market by 2030, Equivalent to ~$70 B Market Opportunity1
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>$500 $300-500 $200-300 $150-200 $100-150 $50-100
PJMERCOTMISOSERCCanadaSPPWECCNYISOCAISOISONE
GW
Total Turn-Key Installed AC-integrated Cost (real 2014 $/kWh) Source: IHS
$B
(A
ssu
min
g $
25
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ost
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Current Eos cost
2020 Eos Cost
Total 2030 U.S. Peak Shaving Market Opportunity
Notes: 1. Assuming 85 GW total market opportunity, with a 4 hour duration and $200/kWh installed cost.
18 confidential
• Proprietary Znyth® (zinc hybrid cathode) chemistry employs abundant, low-cost materials
• Designed for simple, low-cost manufacturing
• Aqueous electrolyte enables system safety
• System supports daily 100% depth of discharge
• Wide operating temperature range mitigates need for dedicated heating/cooling
• Outdoor rated, plug-and-play Energy StackTM design reduces onsite installation cost
• Includes Battery Management System
Low Price $160/kWh (>10MW)
$200/kWh (<10MW)
Long Life 5,000 cycles (~15 years)
at 100% DoD2
Energy Dense 23 kWh/m3 (DC system level)
Efficiency >75% capable of daily
100% DoD
Safety Non-flammable electrolyte; non-
hazardous and non-corrosive when shipped
Eos Aurora® 1000|4000 DC Product is Uniquely Designed to Meet Market Needs for Energy Storage1
Pictured: 500 kW|2 MWh Subsystem
Aurora 1000|4000 System 1 MW|4 MWh DC battery system
The Aurora system can reduce cost and maximize profitability for utilities, project
developers and industrial end-users Notes: 1. Product specifications based on internally generated data 2. DoD – Depth of Discharge
19
40 kW|160 kWh (residential + commercial) UCSD San Diego, CA Q1 2017
California Energy Commission
Product Launch:
• OEM Partner Selection in Q4 2016
• Product Launch in H2 2017
Eos is working with original equipment manufacturers (OEMs) to package, distribute and service storage appliance products, using Eos’ safe, low-cost, long-life batteries
Eos Launches Leading Residential and Commercial/Industrial Product
Eos Wins $2M Project to Demonstrate Residential and C&I Systems at UCSD
Eos will select major OEMs for the Residential/C&I sector in 2016
Resi Product 3 kW|12 kWh
C&I Product 40 kW|160 kWh
Target Performance
Price $300/kWh (resi) $250/kWh (C&I)
Life 15 years
daily, 100% DoD
Density 23 kWh/m3
(DC system level)
Efficiency 75% at 100% DoD
Safety Non-flammable electrolyte;
non-hazardous, non-corrosive when shipped
Eos Battery and System Cost Lower Than Li-Ion with Growing Cost Advantage
confidential 20
0
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300
Eos ContainedLi-Ion
UsableContained Li-Ion
Today 2020
Cell cost
DC integration/pack cost
Eos Price
Eos Znyth Lithium-Ion
Ce
ll /
Bat
tery
Co
st
+ Abundant low cost materials; simple, easy-to-assemble design minimizes manufacturing capex
+ 100% DoD maximizes capacity utilization for lower $ per usable KWh
+ Manufacturing does not require clean room; uses commoditized equipment and processes
– Costly and scarce materials; Complex product design (potentially >100 parts)
– Typical 70% DoD results in greater cost per usable kWh
– Expensive and specialized facility, clean room for purity tolerances/safety; Significant capex for specialized equipment
Eos cost lower at lower volume and capex; DoD range widens gap in cost per usable kWh;
Safety and stack design reduce balance of system cost
Eos Price vs. Li-ion Usable Cost/kWh Comparison1
Eos Aurora Lithium-Ion
DC
Sys
tem
Co
st
+ Inherent safety allows for simple packaging, self-balancing and string-level monitoring; can eliminate HVAC & fire suppression costs; recyclable
+ Stack design minimizes wiring, racking & container costs
– Safety concerns require strong protective packaging and cell-level monitoring/BMS; Hazardous materials require costly disposal
– Risk of thermal runaway requires high cost HVAC, fire suppression and containerization
Notes: • Li-Ion cell cost publicly announced by GM • Li-Ion cost assumes 70% depth of discharge (DoD);
Eos cost assumes 100% DoD – all Eos kWh are usable • Eos cost validated by major contract manufacturers
and suppliers
Notes: 1. Based on Eos internal research and analysis
$/k
Wh
Eos Partnerships Leveraging Capability of Market Leaders
Utility and IPP partnerships to develop detailed business case analysis, product development, pilot demonstrations and commercial roll-out
Major Global Contract Manufacturers and Suppliers
• Manufacturing Services Agreements signed with major global Contract Manufacturing Partner; first batteries delivered in July 2016
Minimal Capex and Rapid Scale-Up
• Simple product design optimized for low cost manufacturing with standard equipment and facilities
Validated Low Manufacturing Cost
• Lowest cost battery system, major global Contract Mfg Partner, potential for significant further reduction
MANUFACTURING
Partnering with system integrators to provide turnkey, AC integrated products; collaborated on ~1 GWh of proposals
confidential 21
confidential 22
Global Qualified Sales Inquiries Predict Market
Qualified Leads by Region Qualified Leads Over Time
• 29.5 GWh of qualified utility scale interest represents ~$5 Billion in potential revenue
• Project leads coming from 6 continents; Eos Aegis partners to support global product deployment and service
MW
h
Leads continue to grow ~1,500 MWh per month with minimal marketing / PR
A qualified lead is defined as an active dialogue with a validated purchaser for a viable project where an NDA has been signed
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North America
32%
Europe 22%
Africa 16%
Asia 12%
South / Central America
6%
Other 5%
Australia 4%
Middle East 3%
Company Showcase
PRESENTING COMPANES
Michael Wyman CEO,
Origin Solar
Company Showcase
PRESENTING COMPANES
Bud Vos President & CEO,
Enbala Power Networks
We are creating a Clean, Sustainable and
Distributed Energy Future
Our grid is inverting.
Our resources will be variable.
Local Grids (late 1880s)
Electric Companies (late 1900-1930s)
Transmission (late 1930-1970s)
Wholesale (late 1980s-2000s)
Grid Edge (today)
Confidential & Proprietary
Confidential & Proprietary
In 20 years, the electric industry as we know it
will no longer exist.
32% of Utility Executives
believe their utilities will become
service providers and network operators
84% of our Energy
will be derived from distributed
and variable generation sources
Confidential & Proprietary
Which conductor would you rather listen to?
Thank you
Arthur (Bud) Vos
President & CEO
Enbala Power Networks
Confidential & Proprietary
Company Showcase
PRESENTING COMPANES
Sean Becker President,
Sparkplug Power
Company Showcase
PRESENTING COMPANES
Eric Laufer President,
Laufer Wind
Radar Controlled Obstruction Lighting for Wind Farms
Aircraft Detection System (ADS)
October 20th, 2016
Laufer Wind Proprietary
Major Impacts 2017-2018
Increase at the state and county level in the mandatory use of radar lighting on wind farms
Multi-use deployment of radar systems on wind farms
– Radar Lighting
– Eagle Tracking
– Air Traffic Control in-fill
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Laufer Wind Proprietary
Addressing #1 Impediment to Wind Development
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The FAA and other international Civil Aviation Authorities mandate that tall structures, including wind turbines, must be marked with flashing obstruction lights to prevent aircraft collisions.
Obstruction lights create a visual nuisance, the #1 cited impediment to wind farm development.*
*Iberdrola Study: A Statistical Analysis of Opposition to Wind Farms & Successful Outreach Techniques
Laufer Wind Proprietary
Our Solution
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Our Aircraft Detection System (ADS) is a radar-controlled lighting technology that allows obstruction lights to be illuminated only for the small fraction of time (typically <2%) when low-flying aircraft are nearby.
For less than 0.5% of Total Project Cost, a Laufer Wind ADS can be the difference between a developer being granted or denied a permit to build a $100MM+ wind farm.
A Laufer Wind ADS is currently operational at the
US National Renewable Energy Lab (NREL).
Laufer Wind Proprietary
Current Status
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Laufer Wind ADS components being installed on a turbine.
Mature technology – Commercial design complete
and field tested
Fully certified: – FCC, CE, ETL
Successful FAA demonstration
– DNV GL and FAA Technical Notes published
Contracts in place: – Total: $1.5M
First wind farm installation
happening: – Completion 2016Q4
Laufer Wind Proprietary
Market Outlook
Market Number of Farms
with Radar
Lighting Needs
Australia 1
Canada 24
Germany 13
Italy 1
Norway 4
South Africa 2
Sweden 43
United States 68
Total 157
Since 2012, we have tracked a 76%
CAGR in wind energy projects with a need
for radar lighting. We observed a 104%
increase in demand between 2015 and
2016.
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Laufer Wind Proprietary
In February 2016, Laufer Wind, NREL and Auburn University collaborated on taking radar measurements with trained golden and bald eagles.
Laufer Wind radar is capable of detecting and tracking birds to greater than 3.5 km.
Eagle Tracking R&D
38
Laufer Wind Proprietary
Thank you for your time and consideration
Laufer Wind
270 Lafayette St
Suite 1402
New York, NY 10012
39
Eric Laufer, President
Office: 212-792-3912
Cell: 646-285-2247
Company Showcase
PRESENTING COMPANES
Tom Stepien CEO,
Primus Power
Roundtable Discussions
TOPICS
Implications of a maturing
grid energy storage market
Roundtable Host: Bob Zabors
Founder & CEO, Enovation Partners
Innovation for a majority-
renewable electric grid
Roundtable Host: David Henshall
Deputy Director for Commercialization,
ARPA-E
How the C&I customer
experiences energy
Roundtable Host: Kristin Barbato
Managing Director of Enterprise
Development, Edison Energy
How grid modernization will
change the economics of DERs
Roundtable Host: Josh Gould
Department Manager, Utility of the Future,
Con Edison