Janice Lin | CESA Executive Director and Managing Partner of Strategen Consulting Heiko Stutzinger| BVES Executive Director, Head of Renewable Energy Fairs Messe Dusseldorf GmbH Rahul Walawalkar | IESA Executive Director and Vice President, Customized Energy Solutions Johnson Yu| Chairman, China Energy Storage Alliance Marcus Wiemann| General Secretary, Alliance for Renewable Energy

March 2014

Global Energy Storage Alliance (GESA) Advancing education, collaboration, knowledge and proven frameworks about the

benefits of energy storage globally

Energy Storage

On the Grid • Existing grid

support • Smart Grid • Distributed

generation

Demand-Side Management • UPS/reliability • Building

Energy Mgmt. • Demand Response

Renewables • Solar • Wind • Geothermal • Biomass

Transportation • On road • Off road • Charging infras

Consumer Electronics • Laptops • OEMs

Off-Grid/Weak Grid • Islands • Microgrid • Telecom

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Affordable electricity access = jobs and productivity

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Change Happens Locally

Storage alliances are being created all over the world to build local ecosystems

European Association for the Storage of Energy (EASE) Founded

German Energy Storage Association Founded

California Energy Storage Alliance (CESA) Founded

Electricity Storage Association Founded as the Utility Battery Group

Texas Energy Storage Alliance (TESA) Founded

Energy Storage Association (ESA) Advocacy Council Created

India Energy Storage Alliance (IESA) Founded

China Energy Storage Alliance (CNESA) Founded

2011 2012 2009 2010 2013

Ontario Energy Storage Alliance (OESA) Founded

1991

How do we achieve market transformation faster?

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GESA Mission

“Advance education, collaboration, knowledge and proven frameworks about the benefits of energy storage and how it can be used to achieve a more efficient, cleaner, reliable, affordable and secure

electric power system globally”

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Introducing the Global Energy Storage Alliance (GESA)

Formation and Structure will be Collaborative by Design

» 501c(3) structure to enable charitable donations by foundations » Co-Founded by existing storage alliances and key partner

organizations » Leadership/management – 7 person Executive Committee

– As funding expands, hire dedicated executive director – Executive Committee members are unpaid volunteers, appointed/elected by Board – In person meetings co located with energy storage conferences

» Board Directors – up to 25 members – 1 seat for each co-founder – Additional board members to be invited based on their involvement and

contributions to GESA’s mission – Newly created storage alliances can be added, provide they agree to fundamental

principles and goals » Board of Advisors (appointed, up to 15)

– Utility representatives – Environmental group representatives – Policy/economics/technical advisors

GESA: Core Purpose

» Advance global education, collaboration, knowledge and proven frameworks about the benefits of energy storage and how to incorporate it into the electric power system in a cost effective way

» Increase ecosystem development funding pool: target foundations, NGOs and governments who share GESA’s mission

» Empower local ESA’s and other key stakeholders, not compete with them for funding

» Learn from local market development efforts, help proliferate best practices

» Foster collaboration among key stakeholders including policy makers, utilities, renewable energy community, financial institutions and environmental organizations

» Help establish standards and protocols to advance energy storage acceptance worldwide

GESA will be more than the sum of its members

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GESA Vision

By 2015 all major international environmental, utility, and social justice organizations will be aware of, and

actively considering energy storage and its potential for transforming the electric power system.

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GESA Vision

By 2015 all major international environmental, utility and social justice organizations will be aware of, and actively

considering energy storage and its potential for transforming the electric power system.

By 2020 energy storage will be a mainstream resource routinely used for electric power system planning and

operation in at least three major markets.

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GESA Vision

By 2015 all major international environmental, utility and social justice organizations will be aware of, and actively

considering energy storage and its potential for transforming the electric power system.

By 2020 energy storage will be a mainstream resource routinely used for electric power system planning and

operation in at least three major markets.

By 2025, energy storage will have made a significant and measurable contribution in helping to achieve much

higher penetrations of renewable energy and access to electricity for millions of people globally.

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Core GESA Principles

Transformation to a clean energy economy requires diversity, collaboration and commitment

» Diversity – Support all forms of energy storage – Support all applications of energy storage – Support all ownership models

» Collaboration – Engage all key stakeholders – Proactively seek ‘win-win’ solutions – Focus on education, and being helpful

» Commitment – Success to be measured by results

• Initiatives launched and completed • New partnerships formed • Active use of energy storage as part of national tool kit

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Collaboration is the key to success

Not only among existing storage alliances, but also more broadly within and across industries and stakeholders

Source:

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GESA Organizational Structure

Global Energy Storage Alliance (GESA)

Board of Directors

Executive Director

Executive Committee

Chairperson J. Lin

Vice-Chairperson I E. Weber

Vice-Chairperson II R. Walawalkar

Secretary H. Stutzinger

Treasurer J. Yu

Communications M. Roberts

Board of Advisors

» Max. of 25 Directors / Board Members » Each founding member has one (1) board seat » Additional Board Members to be invited based on involvement and contributions to GESA » Max of 15 Advisors for appointed environmental groups, research, governmental officials etc.

Needed in Future as Organization & Project Scope Grows

Is governed by

Elects

Elects

Consists of

Elects

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GESA Advisors

» Angelina Galiteva, Founder and Board President, Renewables 100 – Board of Governors for the California Independent System Operator

– Chairperson of the World Council for Renewable Energy (WCRE)

» Ben Kaun, Senior Project Engineer, Electric Power Research Institute – Manages the analysis of value and impact for grid-connected energy storage technology

– Seven years of diverse experience in energy storage RD&D and management

» Gopal Garg, Vice President Advanced Solutions, SunPower Corporation – Oversees advanced solutions at SunPower Corporation, including Energy Storage

– Advisor to both CREE high power devices, and a venture-backed touch-solution company

– Co-chair of the TiE Silicon Valley Energy group.

» Dr. Imre Gyuk, Energy Storage Program Manager, US Department of Energy

Office of Electricity Delivery and Energy Reliability – For the past decade he has directed the Energy Storage research program

– Supervises the highly leveraged $185M stimulus funding for Grid Scale Energy Storage Demonstrations developing a portfolio of field tested storage technologies

Examples of GESA Special Initiatives

» Facilitating international collaboration between California and Germany at Energy Storage Europe, Dusseldorf 2014

» Developing International Energy Storage Application Framework and Cost Effectiveness Methodology

» Developing the Business Case for Integrating Energy Storage with Renewable

Energy to displace diesel generation and increase access to affordable electricity

» Modeling System Impacts and Possibilities of Stationary and Mobile (EV)

Energy Storage to achieve 50% and 80% renewable penetration in CA » Role of Energy Storage in Zero Energy Buildings

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Energy Storage Evaluation

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Conduct a comprehensive and objective evaluation of energy storage cost effectiveness as applied to another electric power system globally, ie. Germany

Approach

Stakeholders

Gov’t

Utilities

Industry Energy Users

Society

Electrical grid model that accounts for unique characteristics of various energy

storage types.

Practical energy storage dispatch and operations

Cost/benefit analysis of storage when used for different grid functions

Engagement and buy-in with critical stakeholders

Develop consistent international framework for evaluating energy storage use cases and cost effectiveness, leveraging frameworks, models, and insights developed in California

Goal

What are the possible benefits of grid storage?

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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

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)

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

Bulk Peaker Example: Compare benefits, not just MW

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(1)Excluding start-up and shutdown time

(2)http://www.energy.ca.gov/2011_energypolicy/documents/2011-02-15_workshop/comments/California_Energy_Storage_Alliance_03032011_TN-59863.pdf

100 MW Gas Turbine 10 minute ramp 50 MW flexible range 2768 useable hours/year(1)

6500 gallons per hour Status quo GHG emissions

Energy storage can provide much greater benefits per MW as a flexible resource!

Energy Storage Benefits >600x the ramp rate

>4x the flexible range

>3x the operational hours

Less water usage on many sites

Lower GHG emissions

100 MW Energy Storage <1 second ramp 200 MW of flexible range >8300 useable hours/year Little to no water usage Reduces GHG emissions by up to 90%(2)

VS.

California Bulk Peaker Replacement Cost Effectiveness Results

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Results by EPRI using stakeholder input showed a benefit to cost ratio over one for nearly every scenario

» Projects were assumed to be utility scale projects starting in 2015 and 2020

» Cost effectiveness results did not include GHG benefits of storage or GHG costs due to AB32 implementation

» High renewable penetration cases had the highest benefit to cost ratios for storage.

» GHG benefits for storage are greater the more renewables we have on the grid.

Replacing Diesel with Solar & Advanced Energy Storage

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Conduct global study to identify and develop privately financeable businesses case(s) for storage-backed PV and PV-hybrid systems.

How can we accelerate the transition away from diesel-based distributed generation

toward storage and renewables?

Approach

» Reveal current storage/PV landscape » Characterize geographies by application » Identify best practices » Model LCOE for various configurations » Identify scalable solutions » Highlight suitable policy and business models to attract private capital

» Highlight high-value applications » Inform Gov’t policy and program

recommendations » Create compelling business cases

for private sector investment » Establish mechanism for ongoing

collaboration from int’l stakeholders

Goals Evaluation Method

Example: Solar-powered Dairy and Fish Refrigeration

» Perishable items such as milk and fish are in high demand and refrigeration is a key enabler to increase reliable supply to large customers (e.g., Nestlé, Land O’Lakes)

» The ability to sell perishable items can be a life-changing income source

» Integrated solar + storage solutions exist, but better storage solutions are now commercially possible

» Can also be deployed for agricultural produce, dairy chilling, ice-making, and other purposes.

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Application

Example of solar powered refrigerator in Indonesia: 6.4KWp solar and 10kWh lead acid battery bank

Example: Solar-powered Dairy and Fish Refrigeration

» Access to capital » O&M services » Irradiance/ Wind variability » End-user education

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Limitations » Leverage modular advanced energy

storage + PV solutions » Sell renewable powered refrigeration

services to bankable large multinationals

» Expand via smart, focused growth opportunities, first within a targeted industry/application, second to adjacent markets

Sustainable Strategy

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Next steps

GESA is ready to begin its work!

» Secure partners and funding for first GESA initiative(s)

» Develop detailed scope of work with key milestones and metrics for success