©2011 A123 Systems, Inc. All rights reserved. Proprietary and confidential. ©2011 A123 Systems, Inc. All rights reserved. Proprietary and confidential.

Energy Storage for Integrating Wind

Andy Chu

VP, Marketing & Communications A123 Systems

UMass Lowell Wind Energy Research Workshop

©2011 A123 Systems, Inc. All rights reserved. Proprietary and confidential.

Energy Storage is a Multifunctional Tool

2

Frequency regulation

Spinning reserve

Renewable integration

T&D deferral

Peak shifting

Power quality and reliability

Voltage support

©2011 A123 Systems, Inc. All rights reserved. 3

Absorb sudden changes in wind farm output

Renewable Ramp Management

0:00 1:00 2:00

Ou

tpu

t (M

W)

Time (Hours)

Wind Project Output

Wind

Battery

Total Project

0:00 1:00 2:00

Ou

tpu

t (M

W/m

in)

Time (Hours)

Wind Project Ramp Rate

Wind

Project

0

100

0 100

Po

we

r O

utp

ut

(MW

)

Energy Capacity (MWh)

Storage System Sizing

Wind Farm Ramp Rate

Net Ramp Rate With Storage

Ramp Limit ±X MW/min

©2011 A123 Systems, Inc. All rights reserved.

Renewable Ramp Management: Denmark

4

©2011 A123 Systems, Inc. All rights reserved.

Multiple Uses: Tehachapi Storage Project

• Customer: Southern California Edison

• Location: Tehachapi Windfarm + California’s largest wind resource

+ Wind development potential driving grid infrastructure upgrades and expansion

+ 2nd largest wind park in the world

– 660MW installed / ~5,000 turbines

• System + 8MW – 4 hour (32MW-hour) GBS system

– World’s largest Li-ion battery system when complete

+ Dynamic 4-Quadrant PCS/Grid Interface

+ A123 Prismatic Cells

+ Installation / Operation 2012

+ 13 Targeted Operational Uses – Individually and Stacked

5

Tehachapi, CA

©2011 A123 Systems, Inc. All rights reserved.

Multiple Uses: Tehachapi Storage Project

• Transmission-Related Uses + Voltage Support & Grid Stabilization

+ Demonstrate a decreased in transmission losses

+ Demonstrate how the system can defer transmission investment

+ Optimize Size and Cost of Renewable Energy-Related transmission

• System-Related Uses + Provide System Capacity and

Resource Adequacy

+ Black Start

+ Wind Firming

• ISO Market-Related Uses + Frequency Regulation

+ Spinning and Non-Spinning Reserves

+ Ramp Management

+ Energy Price Arbitrage

6

©2011 A123 Systems, Inc. All rights reserved.

Diverse System Needs…

7

0

100

0 100

Po

we

r O

utp

ut

(MW

)

Energy Capacity (MWh)

Storage System Sizing

Frequency Regulation

Wind Ramp Management

Wind Firming

Spinning Reserve

Capacity

©2011 A123 Systems, Inc. All rights reserved.

4MW

2MW

1MW

400kW

200kW

8

…Need a Flexible Product Architecture…

100kW

Choose Inverter Size Add Containers

More Power:

Select Number of Racks

More Energy: Scalability:

©2011 A123 Systems, Inc. All rights reserved. 9

Over 40MW in service today

…and A123 Provides Solutions Worldwide

Operational

In construction