Capturing Demand-Side Storage that Already Exists in the Power System

Wind Integration through Intelligent Load ManagementRon Dizy, President & CEO ENBALA Power NetworksThe information contained in this presentation is for the exclusive and confidential use of the recipient. Any other distribution, use, reproduction or alteration of the information contained in this presentation, by the addressee or by any other recipient, without the prior written consent of ENBALA Power Networks Inc. is strictly prohibited.The Power System Needs Real-time FlexibilityContinuous deliveryof electricityAbility to meetpeak requirementAbility to continuallymatch supply & demand (& manage intermittentgeneration)

ENERGY

CAPACITY

FLEXIBILITY

#There are three key pillars for the power system:

First we need to supply energy -- electrons in wires -- and we need enough to meet the demands of the users in the power system.

Second we need capacity -- the ability to supply enough power in the middle of the hottest day of the year. This is manifested in having enough power plants and enough distribution to satisfy the highest demand in the year - and this receives a lot of attention from both the grid operator and the public.

But we also need flexiiblity. Because electricity cannot be stored , supply and demand must be precisely balanced in very near real time. This is an increasing challenge in the power system, because at the same time that we are retiring some of our older, less green generation (like coal), we are adding intermittent, new generation. This adds to the volatility in the power system - and this increases the need for flexibility in the power system. Adequate supply of flexiibiltiy is crucial to the reliable and cost effective management of the power system. 2

Volatility maintaining system balanceRamp losing wind at inconvenient times (during ramp)Capacity different form of generationWhat is Wind Integration Complex ProblemVolatility and Ramp can be solved using Demand Management Technologies.VolatilityRampCapacity#

Wind IntegrationWhat are Markets Doing?

Grid Balance

26 GW FlexibilityWind IntegrationGrid Balance

Load shifting and Supply & Demand Optimization

CAISO also looking at ramp products.BPA has over 4,500 MW of wind connected.#ENBALA has been busy since last August. We have been working through PJMs stakeholdering process to implement necessary rules changes in the areas of allowing multiple CSPs for a client, allowing submetering and simplifying load aggregation. FERC has been supporting those rules changes. We have been delivering commercial, live regulation since November 2011. ENBALAs platform was also selected by Powershift (a consortium of three Atlantic Canadian provinces utilites) to provide real time load management services to help integrate high levels of wind much more effecitively into their power system. ENBALA has been engaged by Oak Ridge National Labs to characterize how much load can provide valuable flexibility services to the grid. This information has been requested by the DoE as they consider a program to encourage load participation much more deeply in the power system. We have also been working with the IESO in Ontario on rules changes and are now awaiting an imminent RFP for non-generation Regulation Services. ENBALA is working with both ERCOT and NYISO on upcoming rules changes to support the use of aggregated loads to supply Regulation and other ancillary services to the grid. 4

Customers Connecting to the GridHighly secure communication interface installedThe network supplies reliable storage to the power system and pays your site for its flexibilityReal-time optimization platform that understands process constraintsENBALA engineers help you "define your sites flexibility and constraints

#Enter the ENBALA Power Network.

We connect to a network of loads, receiving real time information as to their health, status and flexibility. The ENBALA Power Network has a very sophisticated optimization platform at its core.

Every few seconds, it receives a new signal from the power system operator -- to consume a little more, or a little less power -- and, based on the real time status of the participants in the networks, determines the best way to satisfy the needs of the power system (without impacting the operational effectiveness of any load)

This platform is capable of providing reliable, robust and resilient balancing services to the grid (on a 4 second time scale) ....

The key elements of the solution includeNear real time communication, supporting fast bi-drectional response from the loads (both increasing and decreasing consumption)The skills to understand and capture flexibility inherent in how loads consume powersA sophisticated optimization platform that preserves each individual loads operational effectivenessThe network -- there is power in the network5Capturing Process Storage that Already Exists

Water Distribution FacilityCommercial BuildingRefrigerated WarehouseWastewater TreatmentStorage already exists in the power systemStorage in industrial systems and processes provides flexibility in consumptionWe only have to connect and manage this storage#6

The individual responses from each asset in the network are aggregated to form the network response Network Response Using Heterogeneous Load Types#

Traditional Approach to Wind Integration21Fossil fuel generator running at a low level, ready to provide back-up generation for intermittent windFossil fuel generator ramps up quickly to generate energy as the wind power falls off

12#Wind is viewed as an attractive, carbon free source of electricity that is cost effective, relative to most other forms of renewable generation. But it is intermittent and must be backed up by other forms of energy. Utilities recognize the need to provide a backup supply for sudden variations in power output.

Todays approach involves keeping some fossil fuel plants operating at minimum levels, ready to provide generation if the wind plants stop producing.

Obviously, this creates inefficiencies in the power system -- and at least partially, defeats the purpose of introducing the wind in the first place. 8

Much Better Approach to Integrating WindThe continuously connected network of demand-side loads offset the decline of wind power while the fossil fuel generator prepares to come onlineLoads give the generation fleet time to efficiently turn on and begin ramping up to provide generation as wind falls offLoads are recharged back to their neutral point and continue to provide balance to the generation mix.

123123#A different approach is to think of the challenge of integrating wind as two distinct components:There is a requirement for flexibility -- to handle the moment by moment variations in the amount of wind power produced and to handle the ramp (when wind is either coming online or going offline).And there is a requirement for capacity to handle the absence of wind over longer periods (over several hours).

The reality is that loads can provide the flexibility required to balance intermittent wind. Load management can make the integration of renewable generation much simpler. Conventional generation must still play a role in the process since loads are not suitable for providing the energy capacity during periods of low wind.

By engaging customers to handle the flexibility portion of the wind integration requirement, generators can be sitting idle, and only need to be brought online when there is a need for their capacity.

As wind power decreases, loads can be reduced for several minutes, giving the backup generator enough time to start up and ramp up its power output. This eliminates the need to have the generator constantly operating at minimum power and low efficiency. Similarly, during sunrise and sunset, loads can be increased or decreased for several minutes to fill in the gap between the generator ramping constraint and the net load ramp.

9BenefitsEngagement of consumers to participate in the power systemReliable integration of wind generationReduction of greenhouse gas emissions

ChallengeMeeting the provinces objective to reliably integrate wind generation into the power system.

SolutionIntegration of wind power through intelligent load management. New Brunswick Power

#Thank YouFor further information, please contact:

Ron Dizy, President & CEOENBALA Power Networks

Tel:416.419.6393Email:rdizy@enbala.com

URL:www.enbala.com

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