Distributed Energy Storage Brent Harris Founder CTO Daljit

Distributed Energy Storage Brent Harris, Founder & CTO Daljit Ghotra, Director of Engineering Smart Cities – Driving a New Economy – March 16, 2016 1

Eguana Technologies • Manufacturer of power control systems for distributed energy storage • Internationally patented technology with cost and performance advantages • 15 years experience with solar PV, Fuel Cell, and Battery technologies • More than 35 MW installed globally • Energy storage market leader: more than 5, 000 units shipped • Publicly listed on the TSX: EGT. V

Why Distributed Storage? Flexibility and simplicity of deployment Modular, certified, factory-built AC Batteries Lever solar PV & HVAC installation networks Host derives behind-the-meter benefits Backup power PV selfconsumption Demand charge management Time of day arbitrage Fleet aggregation for grid edge services & markets Feeder Voltage Control Frequency Regulation Demand Response Spinning Reserve

Non-Aggregated Distributed Storage Behind the meter benefits • Important Driver for: • Residential in Germany, Japan, and Australia • Commercial in the USA • Backup important for US residential customers, but not market catalyst • Today’s rate structures limit US residential value props

Markets and Services • Behind the Meter Energy Storage provides the broadest range of services • Operational flexibility is key to economics Source: Rocky Mountain Institute 5

Markets and Services Feeder Stabilization Frequency Regulation Renewables Integration

“Utility of the Future” projects https: //www. greentechmedia. com/research/report/regulating-the-utility-of-the-future 7

High Penetration Rooftop Solar PV is spreading fast based on falling costs and rising electricity rates. Solar tends to cluster on feeders for community layout, socioeconomic, resource availability, and sales and service efficiency reasons.

AC Battery => Energy Storage Appliance Eguana’s AC Battery is a certified, grid ready power control solution pre-integrated with industry leading Li-ion batteries. Our solution can be seamlessly integrated with a local energy management system or a distributed fleet control network using open communication protocols to provide a fully functional energy storage installation Fleet Operator Image: GTM Research AC Battery

Inside the Smart Home Solar & Storage Smart Thermostat Controllable Loads Smart Heat Pump Water Heater 10

Community Fleet Aggregation & Control 11

Commercial AC Battery – AI-EES Project • Demonstrate in Alberta: Renewable Integration / Demand Charges • Deployment in USA: Underserved retail commercial distributed energy storage market 12

Eguana Grid Edge Case Studies • Hawaii distribution feeder control stabilization testing using residential energy storage at Hawaiian Electric lab • Residential energy storage fleet in Baltimore bidding into PJM frequency regulation market • Residential Net Zero Energy Home development in Fontana California in partnership with Next. ERA, EPRI, Meritage Homes • AI-EES supported development and deployment of energy storage appliance for commercial buildings • Bid into Hawaiian RFP for 5000 distributed storage systems to provide ancillary services to Hawaiian 13