Company Presentation
Company Presentation Future Energy Conference November 10, 2010
– Confidential – This presentation contains private, confidential, and privileged material for the sole use of the intended recipient. Unauthorized reproduction, distribution or communication of this material, in whole or in part, is expressly forbidden.
Need for Change: Industry Challenge
Investor-Owned Utility legacy model
No innovation for decades
Guaranteed rate of return on invested capital Not incentivized to be capital efficient Regulators focused on rates, not operations Industry counts on Feds to support R&D Repels private venture capital Utilities spend nearly $0 on R&D
Need to be transformed like Telecom
Changes in regulation brought new era of change and fueled innovation for consumers
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
2
Utilities need Energy Storage ► Industry builds grid infrastructure to meet peak demand
Renewables mandated need storage – intermittency Distributed deployment maximizes benefits – T&D Supply & demand mismatch – seasonal peaking Load growth exceeding distribution system capacity Lower generation World Load Growth Q BTU fleet capacity factors < 45% utilization Source EIA
800.00 700.00 600.00 500.00 400.00 300.00 200.00 100.00 0.00
1990
1995
2000
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
2007
2015
2020
2025
2030
*** DISCLOSED UNDER NDA ***
2035
3
Peak Shaving – 10% of Peak Load California -- Sept 28, 2010 5000 MW of Storage
Trough Peak
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
24,000 -> 29,000 MW 44,000 -> 39,000 MW
*** DISCLOSED UNDER NDA ***
4
Wind Production in BPA Area
BPA Load
Wind Production
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
5
Distributed Storage
Benefits of a Distributed Architecture
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
Relieves overstressed T&D infrastructure Lowers entry cost Enables granular load control Improves efficiency of renewable generation Bolsters security
*** DISCLOSED UNDER NDA ***
6
Value Streams
T&D infrastructure:
Buy low / Sell high
Cost avoidance Lower line loss
Time-Of-Use Pricing (TOU)
► Sandia 2010 Energy Storage Benefits Guide applied value = $5,941 per kW for Utility & Enterprise customers
Boost “usefulness” of PV & Wind
8x energy wind productivity for peak demand (3% vs 24%)
“Passive” demand response
No fuel costs – zero emissions
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
7
Value – Sandia, Feb-2010 Applied Benefits Value per Sandia 2010 Benefits Type Utility: #1 #2 #8 #9.2 #15 #16 #17.2 #19 #20
Electric energy time-shift Electric supply capacity Tranmission congestion relief T&D upgrade deferral Renewables energy time-shift Renewables capacity firming Wind gen grid integration, long Avoided T&D line loss Avoided trans access chgs Useful life > 10 yrs Subtotal
$ per kW $
Enterprise: #11 Time-of-use energy cost mgmt #12 Demand charge management Useful life > 10 yrs Subtotal Total
Sandia 2010 Energy Storage DOE Benefits Guide
105 107 141 1,079 358 842 782 97 162 260 3,932 1,226 582 201 2,009
Benefit ($ / kW) 1.8% 1.8% 2.4%
18.2% 6.0% 14.2% 13.2% 1.6% 2.7%
Low High $ 400 $ 700 359 710 31 141 759 1,079 233 389 709 915 100 782 $3/kW/yr
$15/kW/yr
$20/kW/yr
Power (MW)
Energy (hrs)
Low High Low High 1.00 500.00 8.0 Assumptions2.0 1.00 500.00 4.0 6.0 System size (power) = 30 kW 1.00 100.00 3.0 6.0 (energy) =3.04 hrs 6.0 0.25 Storage 2.00 0.10 500.00 Price per kW =3.0$2,500 5.0 0.10 500.00 Cycles per yr =2.0365 4.0 0.00 500.00 1.0 6.0 System life =
12 yrs
Cycle life =
4,398
4.4%
Total energy life (kWhs) =
527,760
66.2%
DEN Amortized Cap Cost + 0&M (per kWh) =
$0.18
20.6% 9.8% 3.4% 33.8%
$
5,941 100.0%
* Significantly higher than Thermal by + $
2,137 56.15%
1,226 582
1,226 582
0.00 6.0 Compare:1.00 Gas Peaker,4.0 same + fuel (per kWh)4.0$0.15 11.0 0.05 10.00
Note: Macro benefits that apply, but not included are as follows: #18 improved asset utilization; #21 reduced T&D investment risk; #22 dynamic operating benefits; #24 reduced generation fossil fuel use; and #25 reduced air emissions from generation; and #26 flexibility.
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
8
Game Changing Complete Solution ► STORE & MANAGE energy at the EDGE of the grid
Demand Shifter
Communications & Control System
Inverter-less (patent-pending) Plug-n-play modular deployment Chemistry agnostic Charge / discharge at the “edge” Measures & monitor components Grid aware for auto response Public or private network; wired or wireless
Distributed Edge Mgmt System
Real-time response to grid conditions or events Flexible / scalable / integrative Front office / Back office systems integration
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
9
High Level Architecture Overview Regional Control System
Central Management System
Data Warehouse
NBI
RCS
CMS
ACE DB
Client Interface Module
CMS-RCS Comms
DB
DS Protocol Plug-in 3rd party Protocol Plug-in
Third Party Devices
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
10
Battery Strategy: Good-Better-Best GOOD: Product Requirements: Lead-acid High energy density optimal for time shifting 1,000 cycles Slow charge / slow discharge 3,650+ deep discharge cycles = 10+ yr life BETTER: Adv. lead-carbon Highly reliable / easy to transport 3,650 cycles No emissions / Recyclable Optimized form factor provides IP and BEST: competitive advantage/barrier
Low-temp Sodium Ion 5,000+ cycles
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
11
5 kW Systems
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
12
Avista Utilities Installation
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
13
Inland Power Installation
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
14
30 kW System Installation
Regional Wind Farm
30 kW Solar PV Direct Connected Utility
30
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
Grid
120
*** DISCLOSED UNDER NDA ***
15
Optimization of Wind & Solar ► Optimize wind & solar using real-time feeds & forecasts Charge
Discharge
wind only
solar only
wind & solar
12:00am
6:00am
12:00pm
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
6:00pm
*** DISCLOSED UNDER NDA ***
12:00am
16
Thank you
For more information: [email protected]
– Confidential – This presentation contains private, confidential, and privileged material for the sole use of the intended recipient. Unauthorized reproduction, distribution or communication of this material, in whole or in part, is expressly forbidden.
Need for Change: Industry Challenge
Investor-Owned Utility legacy model
No innovation for decades
Guaranteed rate of return on invested capital Not incentivized to be capital efficient Regulators focused on rates, not operations Industry counts on Feds to support R&D Repels private venture capital Utilities spend nearly $0 on R&D
Need to be transformed like Telecom
Changes in regulation brought new era of change and fueled innovation for consumers
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
2
Utilities need Energy Storage ► Industry builds grid infrastructure to meet peak demand
Renewables mandated need storage – intermittency Distributed deployment maximizes benefits – T&D Supply & demand mismatch – seasonal peaking Load growth exceeding distribution system capacity Lower generation World Load Growth Q BTU fleet capacity factors < 45% utilization Source EIA
800.00 700.00 600.00 500.00 400.00 300.00 200.00 100.00 0.00
1990
1995
2000
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
2007
2015
2020
2025
2030
*** DISCLOSED UNDER NDA ***
2035
3
Peak Shaving – 10% of Peak Load California -- Sept 28, 2010 5000 MW of Storage
Trough Peak
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
24,000 -> 29,000 MW 44,000 -> 39,000 MW
*** DISCLOSED UNDER NDA ***
4
Wind Production in BPA Area
BPA Load
Wind Production
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
5
Distributed Storage
Benefits of a Distributed Architecture
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
Relieves overstressed T&D infrastructure Lowers entry cost Enables granular load control Improves efficiency of renewable generation Bolsters security
*** DISCLOSED UNDER NDA ***
6
Value Streams
T&D infrastructure:
Buy low / Sell high
Cost avoidance Lower line loss
Time-Of-Use Pricing (TOU)
► Sandia 2010 Energy Storage Benefits Guide applied value = $5,941 per kW for Utility & Enterprise customers
Boost “usefulness” of PV & Wind
8x energy wind productivity for peak demand (3% vs 24%)
“Passive” demand response
No fuel costs – zero emissions
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
7
Value – Sandia, Feb-2010 Applied Benefits Value per Sandia 2010 Benefits Type Utility: #1 #2 #8 #9.2 #15 #16 #17.2 #19 #20
Electric energy time-shift Electric supply capacity Tranmission congestion relief T&D upgrade deferral Renewables energy time-shift Renewables capacity firming Wind gen grid integration, long Avoided T&D line loss Avoided trans access chgs Useful life > 10 yrs Subtotal
$ per kW $
Enterprise: #11 Time-of-use energy cost mgmt #12 Demand charge management Useful life > 10 yrs Subtotal Total
Sandia 2010 Energy Storage DOE Benefits Guide
105 107 141 1,079 358 842 782 97 162 260 3,932 1,226 582 201 2,009
Benefit ($ / kW) 1.8% 1.8% 2.4%
18.2% 6.0% 14.2% 13.2% 1.6% 2.7%
Low High $ 400 $ 700 359 710 31 141 759 1,079 233 389 709 915 100 782 $3/kW/yr
$15/kW/yr
$20/kW/yr
Power (MW)
Energy (hrs)
Low High Low High 1.00 500.00 8.0 Assumptions2.0 1.00 500.00 4.0 6.0 System size (power) = 30 kW 1.00 100.00 3.0 6.0 (energy) =3.04 hrs 6.0 0.25 Storage 2.00 0.10 500.00 Price per kW =3.0$2,500 5.0 0.10 500.00 Cycles per yr =2.0365 4.0 0.00 500.00 1.0 6.0 System life =
12 yrs
Cycle life =
4,398
4.4%
Total energy life (kWhs) =
527,760
66.2%
DEN Amortized Cap Cost + 0&M (per kWh) =
$0.18
20.6% 9.8% 3.4% 33.8%
$
5,941 100.0%
* Significantly higher than Thermal by + $
2,137 56.15%
1,226 582
1,226 582
0.00 6.0 Compare:1.00 Gas Peaker,4.0 same + fuel (per kWh)4.0$0.15 11.0 0.05 10.00
Note: Macro benefits that apply, but not included are as follows: #18 improved asset utilization; #21 reduced T&D investment risk; #22 dynamic operating benefits; #24 reduced generation fossil fuel use; and #25 reduced air emissions from generation; and #26 flexibility.
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
8
Game Changing Complete Solution ► STORE & MANAGE energy at the EDGE of the grid
Demand Shifter
Communications & Control System
Inverter-less (patent-pending) Plug-n-play modular deployment Chemistry agnostic Charge / discharge at the “edge” Measures & monitor components Grid aware for auto response Public or private network; wired or wireless
Distributed Edge Mgmt System
Real-time response to grid conditions or events Flexible / scalable / integrative Front office / Back office systems integration
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
9
High Level Architecture Overview Regional Control System
Central Management System
Data Warehouse
NBI
RCS
CMS
ACE DB
Client Interface Module
CMS-RCS Comms
DB
DS Protocol Plug-in 3rd party Protocol Plug-in
Third Party Devices
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
10
Battery Strategy: Good-Better-Best GOOD: Product Requirements: Lead-acid High energy density optimal for time shifting 1,000 cycles Slow charge / slow discharge 3,650+ deep discharge cycles = 10+ yr life BETTER: Adv. lead-carbon Highly reliable / easy to transport 3,650 cycles No emissions / Recyclable Optimized form factor provides IP and BEST: competitive advantage/barrier
Low-temp Sodium Ion 5,000+ cycles
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
11
5 kW Systems
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
12
Avista Utilities Installation
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
13
Inland Power Installation
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
*** DISCLOSED UNDER NDA ***
14
30 kW System Installation
Regional Wind Farm
30 kW Solar PV Direct Connected Utility
30
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
Grid
120
*** DISCLOSED UNDER NDA ***
15
Optimization of Wind & Solar ► Optimize wind & solar using real-time feeds & forecasts Charge
Discharge
wind only
solar only
wind & solar
12:00am
6:00am
12:00pm
Copyright © 2010 Demand Energy Networks. All Rights Reserved. Proprietary and Confidential.
6:00pm
*** DISCLOSED UNDER NDA ***
12:00am
16
Thank you
For more information: [email protected]
