Town Meeting July 13 -14 2009 Washington DC

Town Meeting: July 13 -14, 2009 Washington DC Interactive Distributed Generation for Demand Response Wayne Hartmann; VP, Marketing whartmann@powersecure. com www. powersecure. com 919 -556 -3056

Discussion Topics • What is “Interactive Distributed Generation? ” • How can IDG be used as a DR Tool? • Why Employ IDG in the DR Tool Set? • Making IDG Happen 2

What is IDG? • Use of a Customer’s on-site distributed generation (DG) for DR purposes Ø DG size typically 250 -5, 000 k. W Ø Employ Reciprocating Engine Technology • Single or multiple engine generators Ø Connected to the distribution system • Interactive (the “I” in IDG) Ø DG is under Utility control for a DR call Ø DG is monitored for reliability 3

IDG in DR Role Without IDG With IDG 4

IDG: Typical Installation 5

Dispatching & Monitoring Broadband typically used as communication medium No SCADA Additions/Modifications Needed !!! 6

IDG Turnkey Application

IDG Retrofit Applications Aka: “Harvesting” 8

IDG: How Used for DR • Relieves Customer load by: Ø Load management (peak shaving) Ø Complete load curtailment • IDG provides seamless operation Ø IDG is paralleled with Utility Ø Soft Customer & Utility unloading/reloading Ø Does not disturb Customer’s process or business Ø IDG also provides Standby Power 9

Load Management

Complete Load Curtailment

Why Employ IDG for DR? • Peak Load Management • Defer T&D Build Out • Dispatchable by the Utility • “Harvesting” Lowest $/k. W for Firm – Address Distribution “Hot Spots” Capacity – Address Transmission • Future: Constraints • Utility Does Not Own the Asset – Customer Owns the Asset – No Cap & Trade Issues – Address Distribution Constraints – Intelligent Grid/Micro. Grid Capability 12

Sustainability & Losses: Conventional Power Delivery • Losses typically 3 -7% • 5% used in this example

Sustainability & Losses: IDG for DR • Heat rates (efficiency) of modern engine/gensets applied in IDG systems are as good if not better than combustion turbines (CTs) [1, 2]. • IDG capacity has a heat rate of 9, 800 btu/k. Wh saving approximately 2, 200 btu/k. Wh of fuel input compared to the overall peak power generation portfolio published by e. Grid [3]. [1] California Energy Commission; http: //www. energy. ca. gov/distgen/equipment/reciprocating_engines. html [2] California Energy Commission; http: //www. energy. ca. gov/distgen/equipment/combustion_turbines. html [3] http: //www. epa. gov/cleanenergy/energy-resources/egrid/index. html

Sustainability • The amount of demand reduction can be precisely matched with the proper amount of dispatched IDG ØMaximum efficiency of each IDG is maintained • IDG can be started and fully loaded within 30 seconds ØOnly small amounts of fuel are consumed without realizing power output and demand/load reduction. • IDG are considered spinning reserve while stopped! ØTremendous Green House Gas Savings and Carbon Footprint Reduction ØAvoids 15% Reserve Capacity Over-Build Requirement 15

Sustainability • IDGs can operate as bi-fuel ØUse mixtures of diesel and clean-burn natural gas to reduce emissions • IDGs can utilize waste methane and biodiesel • IDGs can be fitted with selective catalytic reduction (SCR) to further limit emissions in regions where emissions are restricted ØThis is true for new installations and retrofitting of existing engine/gensets • IDG can be applied to firm Renewables 16

Availability, Firmness, Reliability • Many IDGs have greater reliability than a small group of CTs Ø A failure of one or even a few IDGs only impacts the demand reduction capability associated with those failed systems…. . . the others relieve load. • IDG systems have an availability of over 96. 5% [1] • CTs have typically an availability rate of 90 -95% [2] • Monitoring keeps availability high • IDGs can pick up load in 30 seconds • IDGs use control implementations that will pick up as much of a Customers’ load as the generation will allow Ø Dynamic setpoint for non-export [1] Power. Secure operating experience from >850 MW of aggregated IDG [2] European Commission Research; ftp: //ftp. cordis. europa. eu/pub/eesd/docs/ev 260901_poster_came-gt. pdf

Prebound-Rebound Effect: Signaled Passive DR

No Prebound-Rebound Effects: Signaled IDG-based DR

Making IDG for DR Happen • Be open to it; employ a holistic view • Have rate structures and programs that support it Ø Shared Savings, Lease, other Ø Premium Power, Emergency Power, other Programs • Train CI&I Account Managers to suggest IDG as a rate reduction tool to Customers • Approach 24/7/365 power users for Greenfield or Harvesting applications Ø Data centers, hospitals, waste water, institutional, mission critical manufacturing, municipal services, hotels, food stores, refrigerated warehouses • Have DG interconnection processes in place 20

Town Meeting: July 13 -14, Washington DC Interactive Distributed Generation for Demand Response Thank You Questions? 21