20190520 ESIE PPT Powin Energy v2

Trends and Opportunities in the US Energy Storage Market Danny Lu, Senior Vice President, Powin Energy 2019-01-05 Version 0.1 Table of Contents 1 1. Introduction of key news and headlines that have influenced and created opportunity the USA energy storage market 2. Current market and product trends in the North American market 3. Introduction to energy storage contract and merchant market revenue structures 4. Introduction of Powin’s marquee projects in operation, product and business model 1 1 1 1 Energy Storage Trends in North America 1 Local state renewable generation goals - Need energy storage to reduce PV and Wind penetration and to cover the evening peak Shutting down of existing large coal, gas and nuclear power plants and replacing the lost capacity with energy storage Plans for new development of large coal, gas and nuclear power plans halted in favor of energy storage Disaster and Crisis relief using energy storage New Frequency Regulation markets opening up Energy Storage Product Trends in the USA 1 Product and Project safety is becoming a primary concern This is causing a shift from the use of NCM to LFP battery chemistry for use in ESS Many battery cell mfgs will start developing specific cell chemistries specific for energy storage to extend cycle life and cut down costs EV based technologies such as BMS, Module/Pack design and thermal management cannot be simply adapted for large scale utility BESS market Further investigation and development of safety features and fire protection to prevent propagation for BESS will be a key driver of future success US Energy Storage Contract and Control Structures 1 Utility Owned and Operated Build Operate Transfer BOT Developer build the energy storage system, reached COD and sells the project to the utility. The utility will own, operate and control the system Privately Owned and Financed Fixed Revenue Contracts Capacity Contracts Solar Storage PPA Merchant Revenue Bidding Frequency Regulation Real time and day ahead wholesale energy market bidding Demand Charge Reduction for industrial energy users CAISO Price Map 1 2 MW / 9 MWh BESS in Response to Aliso Canyon Disaster 1 Southern California Edison contracted with Powin to supply critical peak load support in response to its Aliso Canyon natural gas leak emergency. The project was installed in an existing warehouse and interconnected to an SCE 12kV underground distribution line. It has been providing capacity, energy and ancillary services to CAISO consistently since its start of operation in January 2016. Battery Powin BP400 / Lishen 19Ah Cells Inverter Eaton 2.0 MW COD December, 2016 System Availability Jan 2017-Present 99.8 Hours of Frequency Regulation Duty 4,300 Total Energy Discharged 1.12 GWh 2 MW / 9 MWh BESS in Response to Aliso Canyon Disaster 1 Project Performance 2 MW / 9 MWh BESS in Response to Aliso Canyon Disaster 1 Frequency Regulation Charging/discharging -/ on a 4-second basis to help balance the short-term generation/demand mis-match Follow a dispatch signal directly from CAISO Each resource providing Frequency Regulation receives a unique dispatch signal The dispatch is essentially random in terms of direction -/ and time 2 MW / 9 MWh BESS in Response to Aliso Canyon Disaster 1 Powin Market Optimization Algorithm 8.8 MW / 40.8 MWh – IESO ESS 1 Under contract with IESO, Powin financed, constructed and is operating Canada’s largest energy storage facility in Stratford, ON. By providing reactive support, voltage control, and capacity services, the project is demonstrating the potential of energy storage to reduce grid operating costs. The project is installed in a purpose built warehouse adjacent to the 135 kV Wright substation. Powin secured non-recourse construction to term debt financing from Brookfield Asset Management. Battery Powin Stack 140 / eTrust 40 Ah Cells Inverters Eaton 2.0MW / EPC Power 375kW COD March, 2018 System Availability Mar 2018-Present 100 12 MW / 12 MWh – Mexico MFG Microgrid 1 Sited as the largest storage microgrid project in Mexico, Powin’s energy storage system is paired with an islanded natural-gas generator providing power to a manufacturing complex in Mexico. Powin’s solution will provide frequency, voltage regulation and spinning reserve services for the microgrid in the event of system emergencies. The factory is currently powered by natural gas engines that have had difficulty maintaining power quality and reliability. Battery Powin Stack 140 / eTrust 40 Ah Cells Inverters SMA 2.5MW COD October, 2018 Containerization 53ft pre-fab construction 1 MW / 4 MWh – Iowa BOT 1 Powin Energy secured a contract with a prominent US IPP to build a containerized BESS for a large investor Owned Utility in Iowa. This project is owned and operated by the utility company, where the utility will generate all of the dispatch signals for the BESS Battery Powin Stack 140 / eTrust 40 Ah Cells Inverter 2MW SMA COD December, 2018 1 MW / 4 MWh – North Carolina BOT 1 Powin Energy secured a contract with a prominent US IPP to build a containerized BESS for a small government owned municipality in North Carolina. This system will be controlled and dispatched by the municipality. Battery Powin Stack 140 / Lishen 40 Ah Cells Inverter 1MW EPC Power COD May, 2019 1 BUSINESS MODEL IN THE ENERGY STORAGE VALUE CHAIN Battery Cell Manufacturing Battery Pack Assembly Battery Management System System Assembly and Integration Energy Management System Project Installation Operation Monitoring POWIN ENERGY 1 POWIN SOFTWARE ADVANTAGE Solely Focused On Energy Storage Patented Technology Integration Supplier Agnostic Detailed cell monitoring and diagnostics Warranty tracking Automated maintenance and calibration Full scalability PCS-DC battery integration made easy System control software and EMS included Capable of delivering full scope of work to point interconnection EPC partners to provide turnkey service Integration newest proven PCS technology into our AC system Integrates any chemistry of battery cell to meet customers performance requirements Can choose alternate sub component suppliers to meet customers price requirements 1 PRODUCT LINE DC STACKS Fully Integrated, Ready to Install ❖ Stack140 4’ W x 3’ D x 6’4” H 140 kWh DC Battery String Based on eTrust 40Ah LFP cell* 760 – 990 VDC 1C Max Current Rating ❖ Stack225 4’ W x 3.1’ D x 6’2” H October 2019 launch 225 kWh DC Battery String Based on CATL 271Ah LFP cell* 760 – 990 VDC 0.5C Max Current Rating The modularity eases installation, simplifies maintenance, reduces downtime, and lowers operation costs. Can scale easily to multiple MW systems for indoor and outdoor environments. *Our BMS allows us to change the capacity, cycle life and power rating by changing the battery cell vendor or type Stack 140 Powin Deployed and Contracted Projects 1 谢谢 Thanks for Your Time