MILLIKAN I PROJECT BATTERY ENERGY STORAGE SYSTEM Blake Rector, PhD, - PowerPoint PPT Presentation

POWIN ENERGY MILLIKAN I PROJECT BATTERY ENERGY STORAGE SYSTEM Blake Rector, PhD, Powin Energy Mike McGuffin, Customized Energy Solutions Energy Storage and Distributed Energy Resources Workshop CAISO – 16 January 2018

Full Range of Energy Market Services CES Emerging Wholesale Demand Congestion Mgmt Market IQ Retail Services Renewable Mgmt Technologies Services Response ISO Reporting DR Mgmt Market Entry ARR Analysis RPS Management Rule Changes CES|GREEN Dispatch Storage IQ EDI/Billing FTR Analysis Plant Registration Regulatory SecureNet Scheduling CoMETS Valuation Forecasting Congestion Analysis REC Optimization Models Tracking Monitoring Scheduling Power Flow Studies Compliance Forecasting Storage Settlement Bidding Market Size Settlements Telemetry Market Entry & Pricing Settlements Business Strategies Congestion 24 Hour Desk Storage Rules Management Market Participant Technology Due Headroom Analysis Diligence Market Optimization Managed Portfolio Microgrids DA / RT Strategies Services CES|GOLD

CES Offices

Customized Energy Solutions (CES) • CES manages approximately 9,000 MWs of capacity across six ISO/RTOs in North America including over 100MWs of Energy Storage. • CES is a certified CAISO Scheduling Coordinator under the affiliate name of Galt Power. • CES has been scheduling in the CAISO market since 2010. • Currently schedule for Dispatchable Renewables, Direct Access Load, Proxy Demand Resources, and Energy Storage. CES is objective and independent--not affiliated with any trading, marketing, distribution or transmission companies 4

OUTLINE • Project Owner / Project Information (3 slides) • Market Participation Issues (1 slide each) - Infeasible AGC Dispatch - Persistent AGC Dispatch - Accuracy Scores

Project Owner: esVolta esVolta is a leading North American utility-scale energy storage platform Highlights esVolta launched in 4Q 2017 • Develop, build, own, operate business model • Focus on greenfield development and M&A in the North American utility-scale storage market ` • Contracted project portfolio of 116 MWhs • Additional 800+ MWhs in development pipeline Strengths Resourced to achieve market scale • Dedicated team for project development, financing, management and operations • Long-term capital commitment from Blue Sky Alternative Investments, a global infrastructure investor ` • Strategic procurement relationship with Powin Energy Corporation, a leading lithium-ion battery storage technology integrator

PROJECT INFORMATION • Size: 2 MW/8 MWh • Technology: • Powin Energy BP400+ BESS • Lixin LiFePO4 cells (lithium iron phosphate) • Eaton Energy Xpert 2 MW inverter • Operation: Day Ahead and Real Time Energy, Regulation • Interconnection: SCE medium-voltage grid Virgo 12 kV distribution line out of Estrella 66/12 kV substation

PROJECT INFORMATION • BESS Control • Industry exclusive Powin bp-OS • Battery Odometer TM • Warranty Tracker TM • BMS • Patented in US and China • Modular design • Scalability • Speed of deployment • CES Secure|Net Remote Intelligent Gateway (RIG)

INFEASIBLE AGC DISPATCH • Continuing to receive AGC signals to CHARGE after hitting MAX SOC • CIDI Ticket filed in August 2017 – Received several iterations of responses, but nothing conclusive • Observed improvements soon thereafter • Recently started seeing infeasible dispatches again • 8 such occurrences of sustained infeasible dispatch week of 1/1/2018

PERSISTENT AGC DISPATCH Dispatch Power - AGC Signal 0 0:00 0:30 1:00 1:30 2:00 2:30 -500 • Many occurrences of >1hr constant -1000 kW -1500 Reg Down CHARGE signal -2000 -2500 Time Duration • Consistent dispatch pattern occurring in certain hours

ACCURACY SCORES • ISO Settlement Accuracy data is not what we see in our internal data Example AGC Signal and Powin Response - 4 second data 2500 2000 1500 1000 500 kW 0 0:00 0:01 0:02 0:04 0:05 0:07 0:08 0:10 0:11 -500 -1000 -1500 -2000 -2500 Time Duration DispatchPower - AGC Signal PCSPower - Powin Response

ACCURACY SCORES AGC vs Response – as seen by ISO - 4 sec data 0.5 0 9:59:54 10:00:12 10:00:29 10:00:46 10:01:03 10:01:21 10:01:38 10:01:55 -0.5 • How is latency treated? MW -1 • -1.5 Lack of clarity on calculation… -2 ➢ 4 Second data used in calculation not published -2.5 Telemetry AGC SetPt • Ramp Rate determination – lacks transparency ➢ Ramp rates calculated by ISO from Operational Test versus Regulation Test were very different and both were not representative of experience during the test or unit capability.

POWIN ENERGY - MILLIKAN I • Blake Rector, PhD – Director of Analytics, Powin Energy blaker@powin.com • Mike McGuffin – Director of Wholesale Services West, Customized Energy Solutions mmcguffin@ces-ltd.com