Sanjeev Choudhary SunEdison Advanced Solutions · SolarCity Confidential Slide 10 DemandLogic –solar + storage for demand charge reduction. 12 PM Your system is at full production,

Sanjeev Choudhary

SunEdison Advanced Solutions

P. 2 | SunEdison Confidential

Solar Focus 2015

Topics

Introduction to SunEdison

What makes a viable energy storage market opportunity?

Solar Plus Storage

SunEdison storage application examples

Q & A


World’s Largest Renewable Energy Developer


Active Across Entire Renewable Energy Value Chain


Long History Integrating Storage with RE and Grid

Wind Plus Storage

Solar Plus Storage

• Residential

• Commercial

BTM Storage Capacity

Minigrids/Rural Electrification


Solar Focus 2015

Topics



Solar Plus Storage


Q & A


Energy Storage in the News


But Risk and Doubt Remain


Energy Storage

Applications Viable Today

Applications not yet Viable

What we think Storage Does

Everything else Storage Can Do

Value we can monetize

Value we cannot yet monetize


Drivers of Viability

Typically

Multiple Drivers

Required

However, One

Driver May

Dominate and

Be Sufficient


Generation Services

Intermittent Resource Integration (Ramping & Voltage Support)

Variable Energy Resource Shifting, Voltage Sag, Rapid Demand Support

Supply Firming

Transmission/Distribution

Peak Shaving: Load Shift

Transmission Peak Capacity Deferral

Transmission Operation

Transmission Congestion Relief

Distribution Peak Capacity Deferral

Distribution Operation (Voltage/VAR Support)

Grid Optimization Creates Opportunities for Storage

Market Services

Electric Energy Time-Shifting

Frequency Response

Frequency Regulation Up

Frequency Regulation Down

Ramping

Real-Time Energy Balancing

Synchronous Reserve (Spin)

Non-Synchronous Reserve

Black Start

Capacity Products

System Electric Supply Capacity

Local Electric Supply Capacity

Resource Adequacy

Additional Grid Benefits

Reduced fossil fuel use

Increased renewables

Grid Reliability

Faster build time

Modularity/incremental build

Mobility

Flexibility of purpose

Optionality

Locational flexibility

Multi-site aggregation

Demand charge reductionUPS / Reliability

Self-consumption

Multiple applications and revenue streams, few can be fully monetized today

Monetizeable today


Global Energy Storage Markets Today

Australia/NZ

RSC – Self Consumption

DG – Demand Charge

Reduction

California

1.3GW Mandate by 2020

DG - Demand Charge

Reduction, SGIP $1.90/W

Canada

UTL – Ancillary

Service Pilots

Chile

UTL – Ancillary

Services, Spinning

Reserve

India

Rural Electrification

Microgrids

Resiliency

Japan

RSC – DG & Self

Consumption

Europe

RSC – Self

Consumption in FIT

Markets

UTL - Pilots

Korea

UTL – 250MW

Frequency Regulation

PJM

DG – Backup Power

UTL – Freq Reg

Energy Storage Market opportunities emerging globally across multiple markets and applications


North American Energy Storage Markets

CALIFORNIA

Application:

DCM, BTM Capacity, DR

Incentive: SGIP $1.42/W

Market Size: AB2514

(1.3GW)

2013-2020 outlook: $3.1B

PJM

Application: Frequency Regulation

Market Size: >500 MW

NEW YORK:

Application: DCM

Incentive: $2.1/W

2013-2020 outlook: $300M

PUERTO RICO:

Application: Ramp Controlviable market

near term market

ONTARIO

Application: Grid-scale storage

Market Size: 50 MW

2013-2020 outlook: $100M

HAWAII

Application: Ramp Control

Market Size: > 200MW

TEXAS / ERCOT:

Application: Frequency Regulation

5 GW Announcement ?

2013-2020 outlook: $300M

1Bloomberg New Energy Finance Energy Storage Forecast 2013 - 2020

mid-term market

NE-ISO:

Application: FR, Capacity

firming, DCM

2018-2025 outlook: TBD

MISO:

Application: FR, Ramp

Control, Deferral/Retirement


Solar Focus 2015

Topics



Solar Plus Storage


Q & A


Application: DG Solar + Storage in PJM

Integrated BTM Solar + Storage system using common inverter

Value to host customer and grid


Application: DG Solar + Storage in California

DG Solar reduces customer’s energy drawn from grid (kWh)



DG Solar reduces energy charges, but…

Demand charges increasing

Demand vs Consumption charge over time

• Demand charges have risen

significantly for commercial

customers 2008 to 2013

• As more renewables are added,

demand charges are expected

to continue to rise



Adding storage reduces demand by peak shaving

Customer now saves on energy (kWh) and demand (kW) component of bill

12am 3am 6am 9am 12pm 3pm 6pm 9pm 12am

Load after SolarLoad Solar + Storage

85 kW max

139 kW max

Load with SolarLoad with

Solar + Storage

Total peak demand is reduced

Higher value capture for developer

Greater savings for customer

Lo

ad

(kW

)


Application: Wind + Storage in Hawaii

72 MW of wind projects on 200MW Maui grid

Without storage, 16.5% of total wind generation will be curtailed*

*Maui Energy Storage Study, SAND2012-10314

Kaheawa Pastures (KWP2)

• 14 Wind turbines, 21 MW

• Capacity Factor of ~50%

• ~10% of 200MW peak capacity on Maui

• Ramp Rate limits

±2.0 MW/min from 4:00 am to Midnight

± 1.0 MW/min from Midnight to 4:00 am.

Battery Storage Facility

• 10 MW/20 MWh

• Limits ramp-rate in wind output

• Mitigates curtailment

• Multiple values to the grid operator:

Up/Down Reserves, Frequency Regulation,

Frequency Response

10MW/20MWh

Energy Storage


Application: BTM Capacity in California

Southern California Edison awarded 160 MW of BTM energy storage

• Advanced Microgrid Solutions awarded 50 MW/200 MWh battery storage

• SunEdison and Advanced Microgrid deploying these systems through 2018

*Maui Energy Storage Study, SAND2012-10314

Projects I/II

• 10MW/40MWh

• COD Q1 2017

• Addressing capacity south

of Johanna/Santiago

substations

Projects III/IV

• 40MW/160MWh

• COD Q1 2018

• Addressing capacity north

of Johanna/Santiago

substations


Application: BTM Capacity in California

Hybrid Electric Buildings provide dispatchable capacity to utility

• Advanced Microgrid aggregates “fleet” of buildings

• Once called, the fleet shifts in real-time from grid to battery to ease demand

• Meters confirm load drop that correlates to battery discharge

Thank You!

Sanjeev Choudhary| [email protected]

Simply More Energy

Solar + Storage :: The TenK approach in under 10 minutes

• No question of whether storage, only when

• What order will storage solutions come to market ?

–Functional (non-economic) – “I just want backup”

–Regionally/application specific economic –managing demand costs

–Sea change – solar+storage costs less than energy off the grid

How we think about it

2

Where is the economic crossover?

Energy savingsFrom PV+BatteryVs Grid

3

Eliminate as much cost as possible from additional BOS, install, O&M, etc:

–All DC storage connection (no special equipment needed for battery)

–Add battery at any time in future

–Allow high DC to AC ratios (extra DC can charge battery on sunny days, needs no extra inversion or equipment for charging)

PV Electrical Architecture for Storage

4

• Software control optional but without control, battery’s natural behavior is to:

–Charge at night

–Discharge during day to supplement PV as needed

–Charge during day if excess PV energy available (high DC/AC ratio)

PV Electrical Architecture for Storage

5

Bus voltage automatically managed by embedded PV Electronics < 60VDC

240/277/480VAC

6

tenK RAIS® Low-Voltage, Parallel Architecture

BatteryWith BMS

This design allows a 48V battery bank to exist on a common busDC charging and discharging.

No additional BOS needed. Also the

Electrical design allows very high DC/AC ratios, to allow simultaneous Battery charging and AC energy export

System Architecture – Simplest BOS for Solar+Storage

DC Bus

BMS

Redundant assembly of inverters, bi-directional capable

Battery unit with integrated Battery Management System

All embedded into array

7

PV + Storage Control Using AC Export Limits

PV Radiation High, AC Export Set High“Min” < Bus Voltage < “Max”

Result: 100% PV + Storage Import or ExportDC Bus Voltage Falling or Rising

Export PVPlus Stored

8

PV + Storage Control Using AC Export Limits

PV Radiation High, AC Export Turned Off“Min” < Bus Voltage < “Max”

Result: 100% PV Gen, All StoredDC Bus Voltage Rising

PV Radiation High, AC Export Set High“Min” < Bus Voltage < “Max”

Result: 100% PV + Storage Import or ExportDC Bus Voltage Falling or Rising

PV Radiation High, AC Export Set LowBus Voltage at “Max” (i.e., Storage Full)

Result: Modules Limit DC PowerDC Bus Voltage Stable at Max

PV Radiation Low, AC Export Set High“Min” < Bus Voltage < “Max”Result: PV + Storage Export

DC Bus Voltage Falling

No PV Radiation, Set to AC Import“Min” < Bus Voltage < “Max”

Result: Storage ChargingDC Bus Voltage Rising

PV Radiation Low, AC Export Set HighBus Voltage at “Min”

Result: Inversion Output Self-LimitsDC Bus Voltage Stable at Min

StorageCharging

Export PVPlus Stored

ExportingStored Only

Storage FullGrid Off

Grid Charging(Night)

StorageEmpty

9

-1500

-1000

-500

0

500

1000

1500

2000

2500

3000

10:30:00 11:00:00 11:30:00 12:00:00 12:30:00 13:00:00 13:30:00 14:00:00

-10

0

10

20

30

40

50

60

Pow

er

[W]

Syst

em

Voltage [

V]

Time

Trial 2015.10.13

PV off PV onPV off ------> PV on ------->

Inverter Power

PV Power

Battery Power

System Voltage

Example: High DC:AC w/ Battery Support (Actual Data)

Battery Feeding Inverters/Grid with PV Disconnected

Constant Output Power:PV Ripple EliminatedWithout ComplicatedControl Algorithm

PV Back on;Now Feeding Grid and Charging Battery

10

Solar + Storage Solutions

Solar Focus 2015

November 17, 2015

Betty Watson, Deputy Director

Policy & Electricity [email protected]

SolarCity Confidential Slide 2

What is wrong with this picture?

Supply

Demand

Quantity

Price


Optimizing the Demand Side.

+ +


SolarCity, the #1 full-service Residential and Commercial solar provider in America*

1,800+ Commercial projects

1,400+ MW installed

340+ Batteries deployed

19 States currently served

9 Years of experience

12,000+ Employees

$9 Billion+ Of solar projects financed

The national leader in solar, SolarCity

has**:

75+ Facilities

* According to the Q1 2015 GTM Research U.S. PV Leaderboard.

260,000+ Customers

** “States served” data as of 8/10/15; “Facilities” and “Employees” data as of 6/30/15; “School installations” data as of 9/24/14; “MW installed”

and “Customers” data as of 6/30/15; “Commercial projects” data as of 4/22/15; “Solar projects financed” data as of 10/27/15.


Leader in storage technology.

SolarCity has worked with Tesla for 4+ years on batteries

Developed suite of battery products + internal software

Fully integrated grid scale and distributed storage

Over 340 batteries deployed by SolarCity

Powerpack

250kW /500 kWh blocks

Fully scalable

Powerwall

7kWh and 10kWh


Distributed energy resources can offset system

peak load.Johanna and Santiago Load, 2022


The value of load shifting.

Source: Potomac Economics, “2013 State of the Market for the New York ISO Markets,” (May 2014),

https://www.potomaceconomics.com/uploads/nyiso_reports/NYISO_2013_SOM_Report.pdf


Battery charges from solar panels, even during grid outages

Backup power service.

During the day, solar energy charges your battery

while it powers your home.

As the day transitions to night, your battery backup

system keeps things running smoothly, so if the grid

does down, the essential devices in your home will not.


“For utilities and grid operators, the technology is designed to enable remote-aggregated control of solar battery systems.”

- Peter Rive, SolarCity Co-Founder and CTO

The future of solar + storage.

TomorrowToday


DemandLogic – solar + storage for demand

charge reduction.

12 PM

Your system is at full production,

charging your battery and

reducing your need for utility

power.

5 PM

As solar production decreases,

the battery is intelligently

discharged to reduce peak

demand charges.

10 PM

You draw power from the utility

company at night at lower off-

peak demand rates.


K-12 – Original Load Profile.

SCE Ratepayer – Example School – Original Load Profile


K-12 – Load Profile after DemandLogic.

SCE Ratepayer – Example School – Load Profile After PV + DemandLogic


K-12 Economic Overview


Establish programs to increase penetration and gain experience with storage

‒ Identify value of load shifting

‒ Value energy capacity (kWh installed)

‒ Use declining block incentive programs

Proactively streamline interconnection and permitting

Clarify the status of solar+storage systems in existing programs, especially net metering

Establish programs and markets to capture long-term avoided cost savings

‒ Flexible Resource Rates

Encourage third-party participation

Recommendations for encouraging energy storage

and DERs.


California Energy Storage Mandate

1,325 MW of energy storage to be procured by PG&E, SCE, and SDG&E by 2020

Energy storage procurement equal to 1% of peak load by 2020 for community choice aggregators and electric service providers

California Self-Generation Incentive Program

Rebate of $1.46/W to customer-sited energy storage projects, with 2-hour minimum runtime requirement

Projects count toward utility procurement targets

144 MW of storage projects reserved or in progress

Oregon Energy Storage Mandate

5 MWh of energy storage to be procured by electric utilities by 2020

Vermont Energy Transformation Requirement

Energy Transformation Projects provide energy-related goods or services, not consisting of the generation of electricity, that result in a net reduction in fossil fuel consumption by customers, including storage of renewable energy.

Requires 2% of each retail provider’s annual retail electric sales to be met through energy transformation projects beginning in 2017 and reaching 12% in 2032

State requirements for energy storage.


Our Vision To create the most compelling energy

company of the 21st century by

delivering cleaner, cheaper power

through distributed generation.

Documents

Sanjeev Choudhary SunEdison Advanced Solutions · SolarCity Confidential Slide 10 DemandLogic –solar + storage for demand charge reduction. 12 PM Your system is at full production,