Evolution 7 is developing technology (PowerStationTM gateway and software agents) to support distributed energy integration and

MicroGrid operations

David A. Cohen CEO and Chairman

Evolution7 Labs www.evolution7labs.com

Solar Microgrids Tucson Regional Clean Cities Coalition Meeting - Jan 21, 2015

David Cohen CEO Evolution7 Labs

Copyright© by Evolution7 Labs

Why Solar Microgrids - Non-Linear PV Dispersion

Market Dynamics: The time is NOW!

•Former US energy secretary Steven Chu has claimed battery storage technology used in combination with solar could be “as disruptive to electricity distribution and generation as the internet”. According to Chu, in order to remain competitive, utilities need to respond by applying a new business model to prepare for the likely coming of cheap solar power and falling prices of residential storage batteries. (2014)

•“Duke Energy CEO Jim Rogers said, “If the cost of solar panels keeps coming down, installation costs come down and if they combine solar with battery technology and a power management system, then we have someone just using [the grid] for backup.” (2014)

•Hawaii’s governor lays out the reality of the state’s grid: “The energy Rubicon has been crossed”. In a Landmark case, Hawaii’s Future of Hawaii’s Electric Utilities Report calls for the need to embrace a distributed energy system” (2014)

•Barclays is expecting more than 20% of U.S. electric consumers to live in states where solar combined with electric storage will be as cheap or cheaper than utilities can deliver power to those same consumers within 4 years. (2014)

•"The investments of Edison International, Duke Energy and NextEra in distributed solar companies demonstrate that these forward-looking companies recognize the important role that solar will play in the future of the energy industry” Source: Julia Hamm, Solar Electric Power Association

Major Utilities are getting into the Distributed Solar Business

Market Trends: Solar + Storage Disrupting Utilities

Copyright© by Evolution7 Labs

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Microgrids and SmartGrid Coordination Local generation sources, Energy Storage, Responsive Load. Smart

Switch Controls.

Copyright© by Evolution7 Labs

Plug-in Hybrid Electric Vehicle

SAE J1772

ExternalNetworks, &

Data

Smart Inverter(s) and Power Conditioning

AMI Smart Meter

Examples of Modular Plug-in App Agents

Other EMSEquipment

USB™

PLC HomePlug™

Zigbee™

Internet (Wireless, DSL,

Cable, etc.)

WiFi

CAN-TP

EVSEModbus

Smart Thermostat

Lighting Control System

Efficient HVAC

HAP LonWorks

PV Array

SEP2.0

Heat Pump Water Heater

Zigbee™

Power Data

Connected Appliances

PLC

Premises Battery Storage

PowerStation Gateway ISO/IEC 15045/18012

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ISO/IEC 15045-2:2012 GatewayISO/IEC 18012-2:2012 Product interoperabilityOpen Source Agents for Analytics and SmartGrid Controls

Copyright© by Evolution7 Labs

Evolution7 Labs Demo System

Copyright© by Evolution7 Labs

Example Microgrids and Control Schemes

February 12, 2015 6

Con Edison 3G-SOF

Home Solar Microgrid Marin Renewable Communities

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Renewables Aggregation MicroGrid 2010 – Marin

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DC/AC

DC

DC/AC

Solar to Battery/EV Solar/Battery to Grid Solar/Battery/EV to Building

EV Fast Charging and Integrated Solar

Copyright© by Evolution7 Labs

• Smart PV Inverter Controls (Intelligent Backfeed, VAR Control, LVRT, etc.)

• Management of PEV load in synch with demand reduction and solar/wind generation ramps

• Energy storage to mitigate Fast Charge grid impacts and emergency power in the home

• Low power bi-directional energy management of PEVs – integration with commercial building DC bus (peak load reduction)

• Vehicles as a flexible MicroGrid component• Charging vehicles from Solar directly

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Solar Microgrid Functions

Copyright© by Evolution7 Labs

PEV

Solar Array

DC Fast Charger

Home Building Load

Grid

DC/DC DC/AC

V2X Board

HYBRID INVERTER

DC

DCSingle or 3-Phase AC

DC/AC

DC/AC

LI-ION BATTERY

Hybrid EV Charger (Solar + EV + Battery Storage + V2X)

1 Stationary

Battery Storage

2 Secondary

EV Battery Market

LI-ION BATTERY

3 V2B

Capability

SmartGrid

4 V2G

Capability

Smart EV Charging Platform

Copyright© by Evolution7 Labs

Powering the 21st Century

A Very Different Future?

• As the number of loads and generators connected to the grid increases;

– the controllability and control model of the grid will change – reliability will be augmented through distributed intelligence and control

• Complexities at the edge – DR programs, DG programs, MicroGrids, grid divorce, AMI / HAN

• Project and Infrastructure Finance: Solar Gardens, Community Solar, Crowdfunding, Securitization, MLPs

• Municipalization, Green Enterprise Zones

This strongly suggests a more highly distributed energy system (Solar Microgrids) will play a major role in the modern grid.

Energy Storage Incentives - California

$415 million to fund projects through 2019