W HAT E UROPE AND THE US C AN L EARN FROM EACH OTHER H ANNOVER M ESSE - PowerPoint PPT Presentation

T OWARDS A M ORE F LEXIBLE E NERGY S YSTEM : W HAT E UROPE AND THE US C AN L EARN FROM EACH OTHER H ANNOVER M ESSE 2016 D R . T HORSTEN S TECHERT THORSTEN . STECHERT @ AUTO - GRID . COM

AutoGrid: Making Energy Flexible Established in 2011 in Silicon Valley, now over 50 employees Mission Statement: Enable access to sustainable, affordable, and reliable energy for everyone Recognized leader in Energy Internet applications With over 550 MW of flex under management 300% year-over-year growth of managed flex, with over 25 utility customers globally 2 AutoGrid Systems Inc. – general use

Technology Leader In Energy Internet Technology Leadership Ranked #1 by Collaborator Collaborator Technology California Energy Winner of GENI award Pioneer 2015 Commission Thought Leadership Davos 3 AutoGrid Systems Inc - Confidential

Leading Global Energy Companies Are Working with AutoGrid 4 AutoGrid Systems Inc. – general use

Outline 1. European and US Markets 2. Decentralized Supply/Demand flexibility 3. New business models 5 AutoGrid Systems Inc. – general use

EUROPEAN AND US MARKETS

European Markets Highly diverse and require market/asset specific solutions Germany: high penetration of renewables, PV and small-scale DER-focussed business cases, 80% renewables by 2050 France: Opening DR market, new competitors UK: extensive smart meter rollout, emerging congestion DR markets, many aggregators Eastern Europe: Grid reliability problems, non- technical losses a big opportunity Benelux: Lots of innovation, new flexibility products being tested (TSO, DSO, imbalance) Spain/Portugal: high potential for DR & DER pending regulator action 7 AutoGrid Systems Inc. – general use

The US market A giant unified market? 8 AutoGrid Systems Inc. – general use

The US Markets Highly diverse and require market/asset specific solutions Texas: Liberalized energy market, enormous price spikes (up to 9000 $ per MWh) California: Monopoly market (one ISO, no retailer choice), 50% of retail electricity from renewables by 2030, high EV uptake Hawaii: Net metering, solar revolution, 100% renewables by 2045 PJM: Commercially viable storage opportunities, competitive wholesale market 9 AutoGrid Systems Inc. – general use

DECENTRALIZED SUPPLY/DEMAND FLEXIBILITY

America has overtaken Europe in Investments Source: BNEF 11 AutoGrid Systems Inc. – general use

Why flexibility? Volatility and overcapacity are the main driver for grid and markets Installed capacity for equal yearly output Installed capacity for equal yearly output grid capacity Source: Günther Brauner, TU Wien 12 AutoGrid Systems Inc. – general use

Overcapacity issues are also present in the US, e.g. in California “Duck Chart” illustrating volatility of supply and demand Source: CAISO 13 AutoGrid Systems Inc. – general use

Key Challenge: Making the Energy System Reliable (again) ? Predictable Predictable but and Traditional energy system not controllable controllable Generation Demand Predictable but Unpredictable ? ? Real-time grid & markets not controllable but controllable 14 AutoGrid Systems Inc. – general use

Germany: Energy Transition from small to large Conditions: • Popular support • Climate goals • Fukushima and Nuclear phase-out • Dependency on fossil fuel imports (mainly Russia) • Reliable infrastructure (very few outages) Regulation: • open market (EU-wide unbundling) • generous subsidies for renewables (EEG) • not an equal playing field for all participants (demand/supply, CAPEX/OPEX) Flexibility Solutions: • Heavy on supply-side assets • Very little “smart grid” investments • Large focus on proof-of-concepts and public funding 15 AutoGrid Systems Inc. – general use

Case Study: Software Defined Power Plant Customer: Profile: 2 Million customers, Largest wind producer in Holland Challenge: High imbalance costs due to intermittency of wind “By offering us increased control, AutoGrid enables us to integrate flexible energy resources into our portfolio… Solution: helping our customers reduce their AutoGrid Software Defined Power Plant energy costs and helping us get a higher return on our renewable assets.” leads to 100 MW of balancing capacity in the market Michael Engelen Head of Portfolio Management 16 AutoGrid Systems Inc. – general use

USA: Energy Transition from large to small Conditions: • Economics • Climate goals • Business customer demand (e.g. through power purchasing agreements) • Plentiful fossil reserves (fracking boom) • Unreliable infrastructure (outages, old peaking power plants) Regulation: • No federal market liberalization • Local legislation may provide incentives • Primarily designed to provide level playing field (e.g. FERC order 745) Flexibility Solutions: • Heavy on demand side assets • Primarily market driven by large tenders • Very often directly or indirectly tied to grid issues (e.g. avoiding new transmission lines) 17 AutoGrid Systems Inc. – general use

Case Study: C&I, Economic and Emergency DR Customer: Profile: NextERA’s retail arm in Texas. Challenge: Create additional value for customers in an ultra competitive retail market. Solution: AutoGrid DROMS enables Gexa’s C&I customers to participate in both Emergency DR (4CP) and Economic DR 18 AutoGrid Systems Inc. – general use

Recommendations Use more flexibility in “smart grids” § Modernize Legislation Monetize existing flexibility Improve customer engagement and participation Transfer experiences from other markets 19 AutoGrid Systems Inc. – general use

NEW BUSINESS MODELS

A holistic view of distributed energy assets AutoGrid Flex Platform Distributed Energy Resources Solar CHP Wind DR Storage Biomass AutoGrid enables any kind of flexible resources to be integrated into a single VPP platform, from Demand Response to Energy Storage 21 AutoGrid Systems Inc. – general use

Flexible Asset Management System DROMS Post-Event Report: July 21, 2015 DR Program: HECOEventReport Event: rpt_test-20150723-9-2BZBZ2 1000 750 Load (kW) 500 250 0 02:00 pm 03:00 pm 04:00 pm 05:00 pm 06:00 pm 07:00 pm 08:00 pm 09:00 pm 10:00 pm 11:00 pm Hour Ending Baseline Load Actual Load Actual Load Shed Event Info Event Results Event Date: 07/21/2015 Actual Load Shed: 231.79 kW Start Time: 05:45 pm Actual Load Shed (percentage): 31.00% End Time: 08:00 pm Actual Load Shed Per Meter: 1.45 kW Notification Time: 04:45 pm Actual Meter Count: 150 135 minutes 5 Duration: Opted Out Participants: Restoration Duration: 45 minutes Event Reason: Reliability Targeted Participants: 160 Group(s): All Enrolled Dispatch Statuses Device Proxy Action Status Updated At SSN HCM 2.2 - DtG create_event success Tue, Jul 21 at 04:44 pm D2G Reduction Strategy Reduction Strategy: Advanced duty cycling Priority: 1 Appliances: Water Heaters Duty Cycles: 9 {0, 0, 0, 0, 0, 0, 25, 50, 75} Randomize End Time: Enabled 22 AutoGrid Systems Inc. – general use

Thank you! AutoGrid Systems Inc. – general use