Storage Industry: Q1-Q2 2016 August 3, 2016 Housekeeping Who We - PowerPoint PPT Presentation

State of the U.S. Energy Storage Industry: Q1-Q2 2016 August 3, 2016

Housekeeping

Who We Are www.cleanegroup.org www.resilient-power.org 3

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Today’s Speakers • Brett Simon , Analyst, Energy Storage, GTM Research • Ravi Manghani , Director, Energy Storage, GTM Research

State of the U.S. Energy Storage Industry: Q1-Q2 2016 Prepared For: Brett Simon - Analyst, Energy Storage Ravi Manghani - Director, Energy Storage August 2016

About Greentech Media News/Online Greentech Media delivers business-to- business news, analysis and events at the forefront of the global energy transformation. Our coverage area extends across the clean energy industry with a focus on solar power and the electric utility market’s evolution. Greentech Media’s industry-leading coverage is provided by a team of analysts from our market intelligence arm, GTM Research, as well as our world-class journalists and global network of expert contributors. Research GTM Research is the market analysis and consulting arm of Greentech Media. GTM Research is comprised of analysts covering solar, grid edge, and energy storage markets. Our analysts combine diverse backgrounds in energy, environmental, emerging technology, information technology and strategic consulting sectors. This diverse team provides critical and timely market analysis in the form of research reports, consulting, and data subscription services. Event Greentech Media and GTM Research experts come together to produce all of Greentech Media’s industry conferences throughout the year. These summits provide a platform for our latest market intelligence and draw together the industry influencers from organizations across the value chain. State of the U.S. Energy Storage Industry: Q1-Q2 2016 1

Contents 1. Deployment Trends 3 2. Market Drivers 8 3. Outlook 19 State of the U.S. Energy Storage Industry: Q1-Q2 2016 2

1. Deployment Trends State of the U.S. Energy Storage Industry: Q1-Q2 2016

Q1 2016 Deployments Grew 127 Percent Year-Over-Year to 18.3 MW Fr Fron ont of of the the Me Meter Beh Behin ind the the Me Meter Tot otal Q1 U.S. Energy Storage Deployments (MW) Q1 U.S. Energy Storage Deployments (MW) Q1 U.S. Energy Storage Deployments (MW) 10.0 20.0 10.0 18.3 9.0 18.0 9.0 16.0 8.0 8.0 14.0 7.0 7.0 12.0 6.0 6.0 10.0 5.0 5.0 8.0 4.0 4.0 6.0 3.0 3.0 4.0 2.0 2.0 2.0 1.0 1.0 - - - Total Front of the Meter Behind the Meter Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2015 Q1 2016 Q1 2015 Q1 2016 Source: GTM Research / ESA U.S. Energy Storage Monitor: Q2 2016 State of the U.S. Energy Storage Industry: Q1-Q2 2016 4

Behind-the-Meter Sector Continues 4-Quarter Trend of Deploying at Least 10 MWh in Q1 2016 Fron Fr ont of of the the Me Meter Beh Behin ind the the Me Meter Tot otal Q1 U.S. Energy Storage Deployments Q1 U.S. Energy Storage Deployments Q1 U.S. Energy Storage Deployments 25 18 5 21.2 16 20 4 14 12 15 3 (MWh) (MWh) (MWh) 10 8 10 2 6 4 1 5 2 0 0 0 Front of the Meter Total Behind the Meter Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2015 Q1 2016 Q1 2015 Q1 2016 Source: GTM Research / ESA U.S. Energy Storage Monitor: Q2 2016 State of the U.S. Energy Storage Industry: Q1-Q2 2016 5

California and PJM (Excl. NJ) Account for 92 Percent of Deployments Since Q1 2013 Rank Residential Non-Residential Utility 1 California California PJM (excl. NJ) 2 All Others* All Others* California 3 Hawaii New Jersey All Others* *GTM Research is currently monitoring seven individual markets. Complete coverage of all markets is available in the full report. Source: GTM Research / ESA U.S. Energy Storage Monitor: Q2 2016 State of the U.S. Energy Storage Industry: Q1-Q2 2016 6

Lithium-Ion Technology Comprised 97% Of Deployments in Q1 2016 Qu Quarterly Ene Energy St Storag age Dep Deployment Shar Share by by Tec echnology (M (MW %) 100% Energy Storage Deployments by Technology – 90% 80% 70% 60% MW (%) 50% 40% 30% 20% 10% 0% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Lithium Ion Lead Acid Sodium Chemistries Flow - Vanadium Flow - Zinc Other *”Other” includes flywheel and unidentified energy storage technologies Source: GTM Research / ESA U.S. Energy Storage Monitor: Q2 2016 State of the U.S. Energy Storage Industry: Q1-Q2 2016 7

2. Market Drivers State of the U.S. Energy Storage Industry: Q1-Q2 2016

Front-of-the-Meter Policy and Market Developments, Q1 2016 Colo olorado New Yor ork MI MISO A proposal to extend property tax exemptions to Colo olorado PUC PUC approved two energy storage MI MISO held an energy storage projects proposed by Xce cel Ene Energy. energy storage was amended and passed the State workshop and classified priorities As Assembly and was amended by the State Senate. into three phases. NYSEG issued an RFP for a non-wire alternative upgrade for the area served by the Java Substation. Nevada NY PS PSC C updated NY’s standardized interconnection PU PUCN opened an investigation into battery requirements; also issued an Order Adopting storage technologies and held a workshop to Distributed System Implementation Plan Guidance. NYISO O started initiative to evaluate energy storage discuss the role of energy storage. participation in existing programs. Federal California The he U.S. Sup upreme Court t granted a stay on the Clean Power Plan. The U.S. PG&E, SCE PG CE and nd SDG&E filed their 2016 Biennial Storage Senate passed Grid Modernization Act Procurement Plans. SDG&E issued 2016 LCR RFO to of 2016, though it still must be seek up to 140 MW of preferred resources, including reconciled with HR 8. FER ERC issued a energy storage; also signed a contract with He Heca cate notice to hold a technical conference Energy Bancr Ener croft for 20 MW of energy storage which is Ha Hawaii to discuss interconnection pending approval by CPUC. The Bur ureau of of Land requirements; also initiated AD16-20 Management approved ARES’ proposal for a rail-energy Ma HE HECO CO filed a Power Supply Improvement to allow ISOs the opportunity to storage system to be located in southern NV and Plans update report. SB B 2739 proposed provide data on energy storage provide ancillary services in CAISO. CAI AISO initiated to establish a long-duration storage participation in existing markets. stakeholder process for track 2 of ESDER. mandate but was deferred. Source: GTM Research / ESA U.S. Energy Storage Monitor: Q2 2016 State of the U.S. Energy Storage Industry: Q1-Q2 2016 9

Front-of-the-Meter Policy and Market Developments, Q1 2016 (Cont.) Iowa PJM PJM Minnesota Mi Con onnect cticut PJM MR PJ MRC convened meeting to Mi MidAmerica can Ene Energy filed its Preliminary Minnesota PUC Mi PUC issued a staff report on grid CT DEE DEEP issued an RFP to Implementation Plan. modernization and Xce cel Ene Energy answered comments on discuss DER participation; PJM PJM procure energy resources, its Biennial Grid Modernization Report. Senior Task For orce ce held meetings including energy storage. to evaluate regulation market. Uta tah The he Uta tah legi gislature passed SB 115, which permits utilities to pursue battery storage projects if authorized. New Je Jers rsey NJ J BPU approved a $2 million Ar Arizo zona loan for Eos Eos Ener Energy Sto torage under the Edison Innovation TEP EP filed its 2016 Preliminary Green Growth Fund. Integrated Resource Plan. Arizona Corporation Commission approved TEP’s 20 MW RFP projects. Maryland Ma Texas Vi Virgi ginia HB 787 to establish utility targets HB for energy storage procurement Texas PU PUC approved Oncor’s application for the Bethel CAES HB 452 to establish an HB received an unfavorable report project. ERCO ERCOT FAS AST is working on ancillary redesign; ERCO ERCOT Energy Storage Consortium and was withdrawn. DREAM Task For DRE orce ce was disbanded. continued to 2017. Source: GTM Research / ESA U.S. Energy Storage Monitor: Q2 2016 State of the U.S. Energy Storage Industry: Q1-Q2 2016 10