Advanced Low Cost and Long Life Energy Storagefor Integration of Renewables and Grid-Connected Applications

July, 2015Intersolar, San Francisco

Ivan MenjakSr. Director, Bus. Development and Marketing

Energy Power Systems

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Battery Storage: 240 GW Global Capacity by 2030*

Grid-connected energy storage market is set to “explode” to an annual installation size of 6 GW in 2017 and over 40 GW by 2022

Stationary Energy Storage will grow to $2.8 Billion annual market in 2020 Batteries for Micro-hybrids will grow to a $6.1 Billion annual market in 2020

Global market for energy storage for will grow to 1,040 GWh by 2030 (>$400B)Energy storage is the “Holy Grail” in addressing the intermittency problem of renewables

Battery storage solutions are a “game-changer”

Texas utility Oncor will seek state regulatory approval for up to $5.2 Billion in distribution grid-connected batteries, with deployment set to start in 2018 – 15GWh of batteries!

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Key Question: What Are Barriers to Widespread Adoption?

1. Initial Cost – Minimize financial risk, accelerate payback time, open up the market size

2. NPV of cost and benefits – $/kWh throughput, recycling value (or cost) at end of life

3. Validated Performance – Will they last 10 years? Bankability. Replacement costs. Future-proof.

4. Safety and Acceptance – Customers, Regulators, and Environmentalists; On-site permitting

5. Connect Multiple Value Streams – Improve ROI and drive faster adoption; more power, more life

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Factors Impacting Adoption - Analysis

Li-IonHP, high lifeMid-gradeHE, low lifeCost varies $350-$750/kWhTesla disruption

ExoticsFlow, Zn, Fe, V,…Promising low cost in the future

Advanced Lead $150/kWh now

Lets look at the model more deeply

Typically used for grid-scale, but not the key driver in residential

Payback time more important in behind-the-meter applications – minimizes financial risk

Cycle life plus calendar life (can Li-Ion last 10 years?)

Life at high rates is also important

Advances in PbA (PLM™) are enabling

System design to minimize replacement cost

Level of comfort (residential, commercial, grid)

History and precedence

Permitting (fire departments)

Proven electrochemistry of advanced PbA

Need both high and low rate capability

Behind-the-meter aggregation

Multiple cycling modes (DOD, rate)

Controls features maximize value

Initial Cost NPV Life Safety Value Streams

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PLM™ Battery - Advances in Cycle Life of Low Cost Batteries

Gen 1 – available now1,250 Cycles @100% DOD, 2C rate2,000 Cycles @80% DOD, 2C rate$150/kWh initial cost

Gen 2 – R&D2000 Cycles @100% DOD, 2C rate ~3,000 Cycles @80% DOD, 2C rate PLUS 30% higher initial energy at the same cost to produce.

Higher Energy + Longer Life = 70% More Energy throughput at the same cost

Gen 1

Gen 2

70% More Energy Throughput

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Key Question:What is the lowest cost batterysolution for my application over the life of the system?

Complex Grid-tied Value Propositions

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6 Storage“Profiles”Provide direct comparisons of various battery chemistries and their ability to provide multiple value streams

Energy storage is an asset. Maximize its value by using it more.

POWER

CYCLE LIFE

ENERGY

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Battery-specific Analysis by Application Profile

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A detailed analysis of the specific application is required to determine the NPV life-cycle cost

6-factor Analysis Provides Insights on Battery Chemistry & ROI

Iterative Cost Model Reduced capacity over life vs. a fixed energy

requirement results in a higher DOD use

The higher DOD faster capacity reduction

Iterations calculate incremental and accumulated capacity loss with more accuracy

The analysis introduces a “replacement event” when the capacity is no longer meets application need or at “end of life”

This analysis includes: Cycle life

Varying Depth of Discharge with capacity loss

C-Rate (power to energy ratio)

Round Trip Efficiency

Calendar Life

Initial and replacement cost

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Profile 2 – Peak Shaving and Demand Charge Management

Analysis: Grid Storage Consulting - Data from various sources and subject to change

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Profile 3 – Renewable Ramping and Firming

Analysis: Grid Storage Consulting - Data from various sources and subject to change

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Multi-Value Stream Comparisons

1 - Bulk power 2 - Peak Shaving 3 - Ramping 4 - Micro Grid0.0

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10.0

15.0

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25.0

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Net Present Cost in Cents per Delivered kWh

PLM Mid-cycle LiB High-cycle LiB Tesla

Tesla’s disruptive pricing easily beats competitive Li-ion systems

PLM™ Advanced Lead-Acid retains value advantage with long life and low cost

High rate capability enables multiple value streams

Analysis Takeaways

Advanced Lead Acid

Low-Cycle Li-Ion

Mid-Cycle Li-Ion

High-Cycle Li-Ion

Lithium Titanate

NaSAqueous

IonTesla

Powerpack

1 Bulk power, diurnal storage, home solar,

2 Peak shaving, demand charge management

3 Renewable Ramping and Firming

4 Micro Grid Balancing and Regulation

5 T&D Asset Deferral, Capacity, Spin

6 UPS and Frequency Response

Lowest Cost Group (within 20% NPV cost for application)

Profile

Advanced PbA and Tesla deliver multiple value streams at the lowest LCOE

Delivering on Multi-Value Stream Performance

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Founded in 2011 by Townsend Ventures and Subhash Dhar $25M initial VC investment Headquartered in Troy, Michigan; 65 employees Gen 1 product samples available now

Awards: Emerging Company of the Year (2014 - Michigan Energy Innovation Council ) 50 Companies to Watch (2015 - Michigan Celebrates Small Business)

EPS is building a high-volume manufacturing operation in Michigan, with a target of Q3 2016 for start of large-scale production.900MWh/yr production capacity. Made in USA! Production Plant

Pontiac, Michigan

About EPS - A Start-up With a Great Start

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POWER: Excellent cold-cranking and high-rate discharge; high Dynamic Charge Acceptance (DCA) for fast-charge and hybrid applications. Up to 1,200 W/kg pulse power is achievable

LIFE: PLM offers significantly better cycle life in deep-discharge and partial state-of-charge (PSOC) operation

MULTIPLIED!: PLM offers major competitive advantages

Based on proven, safe and reliable electro-chemistry Proprietary microstructure, morphology, electrode and battery

design reduces internal resistance, corrosion, sulfation and stratification

Abundantly available and fully recyclable low-cost materials based on existing manufacturing processes

A new class of advanced low cost battery with significantly improved power and cycle life

Planar Layered Matrix™ Technology

Commercial and Utilitiy Scale Rack Configurations

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384V 24kWh RacksFor Behind-the-Meter

480V 29kWh RacksFor industrial and

ISO container storage

Lobby Installation example, 100kWh20’ ISO

Scalable, Flexible, Low Cost

960V, 550kWh, 1+MW

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So, what is the best energy storage solution?

The one that delivers the combination of: Low initial cost to minimize financial risk Best NPV for a given application Meets multiple value streams, power and energy over life

PLM™ Battery: Highly competitive in cost of energy delivered over 10-year evaluation Lower cost “future proofs” initial capital investment Flexible storage form factors and voltage configurations Ease of permitting accelerates wide spread deployment Global recycling infrastructure unmatched by any other chemistry Safe, proven, and reliable chemistry with 150 years of service

Contact:Ivan Menjak

248-703-6146imenjak@energypowersystems.comwww.energypowersystems.com

Visit us at booth #8039

Analysis:Bill Capp

Grid Storage Consultingcapp@gridstorageconsulting.com