viridity energy & drexel university february 2015 paul reed director, solutions engineering

Viridity Energy & Drexel University

February 2015

Paul ReedDirector, Solutions Engineering

Overview

• The Power Grid & PJM

• Viridity Energy

• Drexel University Smart Campus

2© 2015 Viridity Energy Inc. All Rights Reserved

THE POWER GRID & PJM

The Evolving Power Grid & Deregulation

Traditional

Utility

Deregulation

Market Operator


Market OperatorsIndependent System Operators


PJM is the organization responsible for balancing supply and demand across 13 states and 19 utilities, including Chicago, Philadelphia, and Washington, DC.

PJM was founded as a power pool in 1927, and originally covered parts of Pennsylvania, New Jersey, and Maryland.

One way in which PJM keeps a balance between supply and demand is through the creation and administration of robust energy markets. These markets incent generation (supply) and load (demand) changes based on published prices throughout the PJM region.

Balancing Supply & Demandin PJM


Since reducing demand is equivalent to increasing supply, grid operators compensate large energy users who proactively manage their energy usage on the grid in response to wholesale power prices. New federal regulations allow for the same price as would be paid to a generator to go to the energy user. Load is now dispatched as though it were a generator.

Power Markets: Demand Response

FERC Ruling

7451 MW 1 MW

GENERATION CONSUMPTION

Before FERC 745 After FERC 745

Demand Response Revenue LMP – supply price LMP


Demand Response Multiple Markets = Customers Choice

Capacity Programs• Low frequency , mandatory response• Earn revenue by making a pre-determined amount of

energy available to the grid during emergency events.

Peak Shaving

Load Shifting

Pre-cooling

Pre-cooling

Load Shifting + Sync Reserve

Economic Programs (Day-Ahead and/or Real-Time) • High frequency, voluntary response• A proactive way to earn additional revenue by selling

demand-side response.

Synchronize Reserve• Higher frequency, voluntary response• Requires automated response due to short notice times

and duration

Regulation• Highest frequency & payments, voluntary response• Injects into or pulls power from the grid in small

increments • Requires automated response, often attached to

batteries, due to very short notice times and duration.8© 2015 Viridity Energy Inc. All Rights Reserved

*Varies by calendar year and geographic location

Viridity“Traditional” DR

“Traditional” Demand Response vs. Energy Portfolio Management (PJM)

CapacityPLC

Management

Utility Demand Management (UDM)

EconomicSynchronized

ReserveRegulation

Notification Time

2 hours 1 week 30 minute intervals or up to day/week ahead

Up to previous day

< 10 minutes < 5 minutes

Duration

Up to 6-10 hours 1-3 hours 15-30 minutes Typically 1-3 hours; determined by customer & market

< 30 minutes Continuous, if available

Frequency

Up to 6-10 times/yr, potentially unlimited

5-10 times/yr

1-5 times/day Determined by customer

~35 times/yr As many hours as possible

AutomationLow-Medium Low-

MediumHigh Low-Medium High Very high

Gross Financial Benefit Potential*

*$54,000-$65,000/ MW/yr

*$54,000-$65,000/ MW/yr

*$25,000-150,000/ MW/yr

*$45,000/ MW/yr

*$45,000/ MW/yr

*$275,000/ MW/yr

P&L Risk

Timing of curtailment determined by outside party

Low – voluntary savings strategy

Low – attached to asset that can vary its load while still completing operational goals

Low – voluntary market

Low – voluntary market

Low – attached to asset that can vary its load while still completing operational goals


VIRIDITY ENERGY

Viridity Energy Overview

Viridity Energy is a leading smart-grid technology company with unique credentials

World Class Investor BaseWide Range of Customers

CommercialMilitaryIndustrial

Institutional UtilitiesCampus

Founded in 2008 by renowned grid management industry leaders and professionals

Attracted blue-chip investors

Has established partnerships with industry leaders

Key assets include patented software platform and network operating center

Proven value to a wide variety of clients

Serves the organized markets of ERCOT (Texas), NYISO (NY), PJM, CAISO (California) and ISO-NE (New England)

Market Leading Technology


Viridity Offers a Suite of Solutions for Multiple Customer Needs

Manage Annual and Monthly Peaks

• Customers can realize savings by voluntarily shifting/shedding load during accurately predicted grid/ISO peaks

• Customers can smooth monthly peaks on utility bills through active load shifting/shedding

Participate in Advanced Demand Response Markets

• Customers receive $$ from the electric grid for their ability to voluntarily shift load when the grid needs it.

• Viridity uses powerful forecasting and optimization algorithms to ensure that customers maximize their opportunity

• Our technology can enable automated response where requested, by interfacing directly with EMS/BAS or other control points

Increase Customer Value for Partners

• We enable customers to see the real value of their energy load flexibility in a way that lets them make business decisions

• VPower provides the missing tool set that makes load management an attractive solution for partners by tying customer flexibility to the commodity supply contract than just a transactional DR product.

Enable Storage Solutions• Through software and market services, Viridity

provides customers with the ability to combine storage with other advanced energy assets and integrate into the electric grid

• By combining storage with advanced energy assets, customers have new opportunities to generate revenue and savings


Dynamic Microgrid Operations

VPower™

Key Output• Real-time and Look-ahead Decision Support

• Optimized Resource Operating Schedule

• Market Bidding Profile

• Market Integration

Typical Input• Grid Mode• Expected Loads• Resource Telemetry

• Operational Constraints

• Supply Costs• Fuel Supplies• Weather Forecast• Market Pricing• Utility Signals• Renewable Forecast

• Storage Level


Automation and Control: Viridity's Network Operations Center

Through our Network Operations Center, we can:• Implement customer alerting system• Control customer assets through real-time

integration • Issue weekly and monthly savings reports

Staffed and monitored 24x7x365 Standard protocols for daily, weekly, and

exception scheduling Direct involvement in system

commissioning and “outage” management Leverage telemetry based alerting, alarming

and adaptive controls


VPower™ Resource / Market Integration


DREXEL UNIVERSITY SMART CAMPUS

Drexel University: Smart Campus Project

Viridity utilizes its VPower™ system on the Drexel campus for forecasting and optimization to deliver solutions and services for the management and bidding of controllable load and customer-owned generation and storage resources into energy markets, including capacity and Real-time markets.

In addition, Viridity and Drexel work together to continuously identify and implement opportunities to position Drexel for a full smart-grid solution.

Funded through the PECO Smart Grid Investment Grant

Drexel’s innovative energy resource – Library Books! One of the unique components included in the Drexel Campus is the use of books in one of their libraries as a thermal storage device. Similar to how the building has a thermal inertia to store energy in the form of heat or cooling, so too can the books!

The additional mass inside this building is included in the software model and represents additional capability of the building to regulate temperature. We can therefore get more KW for Demand Response out of the building with books versus a building without books.

Drexel Quick Facts• Currently managing energy optimization in 12 buildings• Participating in two PJM markets: energy market and capacity markets• By shifting electrical loads and using the existing HVAC systems, Viridity

Energy is able to reduce Drexel’s energy usage in the controlled buildings by 15 – 20 % with no perceptible impact on comfort or productivity



Drexel University: Smart Campus Project

Randell

BossonePearlstein

Main

1

42 3

5

6

7

8

1110

9

Creese Student Center

Commonwealth

Lebow Engineering

13

12

15

14

Original 6 Buildings Phase II Buildings Sync Reserve Targets

Drexel University: Spotlight on Thermal Energy Storage

• Goal to cut cooling costs at the Bassone Research Enterprise Center• When cooling loads changed, the thermal energy storage system was

only used as a back-up cooling alternative. • By modeling the thermal energy storage tanks into Viridity’s VPower™

software, these assets become smart assets that are integrated into the campus’ energy demand strategy.

• If one of the buildings on the University City campus is going to hit a peak, the chillers at the Bassone Center are shut off and the tanks are activated.

• This allows the university to control campus demand, not just demand at one building.

• By allowing Drexel to reduce energy consumption when the grid calls for it, the thermal energy storage system is able to respond within seconds to requests from the grid.


1. 10 buildings automatically and remote controlled by the Viridity Network Operations Center

2. ~1,000 hours of load curtailment, with no interruption to university activities or complaints of tenant discomfort

3. ~160+ MWh saved via the curtailments

4. Average load response of 181 kW/event

5. Cumulative revenue and savings through 2014 of $127,5531. PJM Energy: 138 MWh for $16,063 revenue and $13,800 savings2. PJM Capacity: 15 MWh for $85,669 revenue in reservation payments3. PJM Emergency Energy: Revenue of $12,021

Drexel University: Achievements


QUESTIONS?

THANK YOU

Paul ReedDirector, Solutions [email protected]

APPENDIX: VPOWER 2.0

RTO/ISO Utility

Commercial Buildings

Generators

Battery StorageSolar

Campuses and Microgrids

Our Advanced Software Solutions Connect Customers to the Electric Grid

BMS

EMS

Industrial Plants

EMS

23© 2014 Viridity Energy Inc

We optimize against assets and markets to transform buildings into smart energy revenue generators

Our team considers each building’s energy assets and operational constraints to develop the optimal energy strategy.

Business as Usual Temperature Number of people

in building

Available Assets: HVAC, Solar, Storage, On-Site Generation

Operational constraints

Develop market and energy strategy Client Adoption

Develop model parametersCurrent infrastructure Tenant contraints

Understand building capabilitiesCurrent infrastructure Building controls

Identify building potentialTotal Load Controllable Load

HVAC (Steam & Electric Chillers)

Roof top units Air Handlers Fans

On-site

generation Thermal storage

VPower: Visualization, Optimization & Control

VPower™Delivers cash for energy

© 2015 Viridity Energy Inc. All Rights Reserved 25

Gain INSIGHT• View historical & forecasted energy profiles • Understand impact of real-time energy prices• Monitor real-time performance against plan

Enable Action• Utilize load, pricing and/or predicted conditions to determine best energy strategies

• Optimize participation in energy markets with real-time monitoring, advisory and alerting

• Implement auto-control and never miss an opportunity

Manage Demand• Proactively manage peaks to save significantly on utility bills

• Utilize on-call 24 hour NOC to manage and execute customer energy strategies

STAGE 4 – ADVANCED ENERGY PLANNING: Viridity Links Storage with Advanced Energy Resources

How It Works

• Advanced energy assets such as PV and EV will not realize full economic value alone.

• Pairing advanced energy assets with energy storage is a key advantage in this market. Storage helps firm the service, but the performance of the batteries can unlock the highest available market revenue.

• For PV, Instead of selling excess solar power back to the grid at a low, fixed price, that power can be used to charge a battery.

• Then the battery can be used for frequency regulation, quickly injecting and removing small amounts of power to/from the grid, or in the economic market to receive lucrative payments greater than the low, fixed sale price described above. The battery can also be used in other market programs and for back-up power.

Battery Advanced Energy Resources

+

Regulation Market

Energy Markets

Load Shifting

Pre-charging

Economic Market

Frequency balancing Economic planning

© 2015 Viridity Energy Inc. All Rights Reserved 26

27

SEPTA Overview: Storage Solutions In Action

Project Facts at a Glance

Annual Results Energy Savings (efficiency) • ~1MWh daily; ~400 MWh

Supply Savings ($85/MWh)• ~$35k-50k

Market Revenue Potential• ~$250-300k

Total Economic Benefit• ~$285-350k

Environmental Benefits• CO2: more than 1,000 tons• SO2: more than 5 tons• NOx: more than 1 ton• Mercury: more than 50 pounds

Participating Vendors VPower™ market integration and optimization from Viridity Energy

Energy storage system from Saft

System integration technology from Envitech Energy, a member of the ABB group

How it Works

© 2015 Viridity Energy Inc. All Rights Reserved

viridity energy & drexel university february 2015 paul reed director, solutions engineering

Documents

energy available

power grid pjm slide

voluntary response

energy usage

automated response

rights reserved slide

demand response ferc

mandatory response