Example Presentation April 2008

Presentation to:Pennsylvania Public Utility

CommissionMay 11th, 2009

800-433-3434

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Welcome Sate of Pennsylvania:• PUC Commissioners• PC Bureau Administrators• and others

Thank you! Commissioner Gardner for helping to arrange this meeting.

Agenda:

• Inform• What and Why• Implications• Opportunities and impact

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…Someday, the electricity grid will operate with the equivalent of a giant hard drive. But in the short term, grid storage will look more like a PC's cache or RAM, able to serve up small bursts of power to keep things from crashing.

Technology optimists say that wide-scale energy storage will change the face of the transmission grid and make wind and solar power more compelling economically.

In this scenario, utilities store electricity made from renewable sources or produced during off-peak times. Then, when demand for electricity peaks in the middle of the day, they could draw from the stored-up charge. …

June 27, 2008 4:00 AM PDT

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“Storage devices such as batteries can be located anywhere on the grid (and can be moved) to support the dual needs of integrating intermittent renewables and mitigating congestion.”

Dr. Edward CazaletBoard of Governors, Cal-ISO (2004-2007)

12 October, 2007

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Energy Storage Applications

Electric Utilities Renewable Energy Smart Grid Electric Vehicle

Transmission and Distribution (T&D) Support

Renewable Energy - Optimization

Smart Grid – Energy Efficiency

Electric Vehicles – Recharge Stations

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Energy Storage / UPS Systems | Applications | Performance | Cost | Strengths & Weaknesses | Future Development | Vendors |

Storage technologies are not only defined by the storage medium, but also by the type of application and the duration of time over which the stored energy is used. The typical time durations and

applications are generalized as follows:

Duration of Energy Storage Capacity at Rated Load of Storage Device

Primary Applications

Extremely short duration (1-10 seconds) Power quality: provide critical load ride-through during voltage sags and shorter momentary interruptions.

Short duration (10-300 seconds) Power quality: provide critical load ride-through during longer voltage sags and momentary interruptions. Allow time for alternative power feeds and back-up generators

to be energized.

Moderate duration (5-60 minutes) Power quality/service reliability: all previously described benefits, plus allow for ride-through during longer-

duration power interruptions.

Longer duration (1-4 hours) Power quality/service reliability/ some limited DER applications: all previously described power quality

benefits plus some limited load-leveling/peak-shaving capabilities.

Very long duration (4 hours up to several days) Distributed storage and generation - load-leveling, peak-shaving. Storage for stand-alone PV or wind systems.

Utility Customer Application

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Utilities face the requirement for major capital investment in grid bandwidth and reliability. By implementing ZBB’s energy storage solutions:

Optimizes existing assets, reducing loss and improving cost efficiency

Helps to defer major capital investment

Spinning reserve displacement Increases grid reliability, reducing

chance of brown-outs or black-outs

CO2 reduction

Utility Energy Using ZBB Storage

ZBB Storage charging at non-peak times

ZBB Storage proving reliable, inexpensive, peak power

Energy from Utility

Storage Technology Comparisons

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ZESS technology offers multi-hour energy storage with a clean, deep-discharge, energy neutral, compartmentalized system

• Improved energy density

• Deep discharge

• Superior cycle life

• Wider operating temperature range

• Modularity

• Low Maintenance

• Reliability

• Cost

• No On-Site construction/Plug n Play

• Environmentally Friendly

Zinc-Bromide Regenerative fuel cell battery using an electrolyte system. During charge, metallic zinc is plated from the electrolyte solution onto the negative electrode surfaces in the cell stacks. During discharge the metallic zinc dissolves in the electrolyte and is able to be plated again. Capable of full discharge (100% of stored energy) without damage.

Sodium Sulfur (NaS) Consists of molten liquid sulphur at the positive electrode and molten liquid sodium at the negative electrode, separated by a solid beta alumina ceramic electrolyte. Kept at high temperatures above 300o C to allow the process to occur. It is used for power quality and peak shaving applications. It has also demonstrated more than 20 MW, with stored energy suitable for eight hours of daily peak shaving with 89% efficiency.

Vanadium Redox (VRB) Flow battery that stores energy by employing vanadium redox couples and is stored in sulphuric acid solutions. Storage of up to 500 kW for 10 hours, or 5 MWh. Net efficiency is about 70%, and is heavy and large-scaled. It has been installed by Sumitomo Electric in Japan and by Vantek in South Africa.

Pumped Hydro Storage Widely used but characterized by long construction times and high capital expenditures. Used for water reservoirs. Water is pumped from a lower reservoir to an upper reservoir during off peak times, and then reversed to generate electricity.

CAES A peaking gas turbine power plant using compressed air stored in underground caverns inside salt rocks.

Lead Acid Suitability for energy management is very limited in applications that require deep discharge, long life cycle and longer term energy storage. The base components (lead and sulfuric acid) are neither desirable to handle and recycle or to have installed in a facility without more extensive infrastructure and precautions.

The ZBB Zinc Energy Storage System (ZESS) is a proprietary and patented regenerative fuel cell based on zinc/bromide technology

• Fully grid interactive system (AC)

• Fully grid independent system (AC)

• Chargeable from a variety of power generation sources (Utility Grid, solar PV, wind, hydro-electric, bio-fuels, ocean power and biomass)

5X greater power density than lead-acid

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Utility Applications for T&D Network Support

• Mitigates congestion• Defers Sub-Station Capex• Distributed Energy Resource• Implement peak shaving

• Manage cost efficiency

• Reduce grid vulnerability

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Renewable Energy

Store and re-supply generated power during high-demand periods

Smooth power delivery from the generator to the grid

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Smart Grid

• Goal of the Smart Grid - to maximize the efficiency of existing generating facilities and accommodate the integration of renewable power resources.

• Evolution of the Smart Grid will depend on cost effective energy storage

Electric Vehicle – The Recharging Solution

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Zinc Energy Storage Systems - ZESS

50kWh

ZESS 50

ZESS 500

Modular and Transportable

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Municipal Dam Projects

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New Jersey –

• Mandate for Battery Storage to get grid under control during Peak Demand

• Utilities required to provide distributed battery storage

“Proposals were submitted in a timely manner by PSE&G, JCP&L, ACE and RECO. Theseproposals contained more than a dozen separate programs, ranging from residential airconditioning cycling to a system for electricity storage…”

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Keith Frame, Director CCEF

‘…until the policy changes are made and the utilities can make Energy Storage part of the rate base, we cannot make progress on energy storage…’Conversation with Group Six, April 2009

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PUC Commissioners:

Maine has the most wind power available of any New England State, and the Gulf of Maine holds the potential for 3 GW of clean wind generated power.

We are under tremendous pressure to add transmissions lines that would have no benefit to the people of Maine, but energy storage could ease this need by leveling the delivery of power and stabilize delivery to small municipalities…

We will forward this information to the Governor's office for his consideration.Conversation with Group Six, April 2009

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Pennsylvania RPS• PA: On December 16, 2004, Governor Edward Rendell signed into law

Pennsylvania’s Alternative Energy Portfolio Standard, requiring that qualified power sources provide 18.5 percent of Pennsylvania’s electricity by 2020. There are two tiers of qualified sources that may be used to meet the standard. Tier 1 sources must make up 8 percent of the portfolio, and include wind, solar, coalmine methane, small hydropower, geothermal, and biomass. Solar sources must provide 0.5 percent of generation by 2020. Tier 2 sources make up the remaining 10 percent of the portfolio, and include waste coal, demand side management, large hydropower, municipal solid waste, and coal integrated gasification combined cycle.

– How should the Commonwealth make use of energy storage, ‘smart grid’ and self-generation programs to ensure the success of the RPS and other energy conservation programs?

– Modification of PPA’s to include cost coverage for storage and load management investments

– Incentives to ensure best deployment of alternative generation investments– Benchmarking against other national leaders in the area; CA, NJ, others

Example Presentation April 2008

Thank You

800-433-3434