Company Presentation

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► Early Stage Energy Solutions Company Electricity storage system- battery based Patent pending Inverterless DC to AC system design Seasoned telecom and utility market executives from:

World Wide Packets Itron

Based in Liberty Lake, WA Founded in 2008

About Demand Energy

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► Grid infrastructure built to meet the peaks Just-in-time delivery model for electricity Renewables mandated needs storage – intermittency Centralized model suboptimal for growth Supply & demand mismatch – peaking High load growth – significant opportunity

The Problem

2010 2020 2030

U.S. Energy

Demand

29% Growth from2006 to 2030

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Supply and Demand

Available Generation

(Supply)

VariableDemand

The Gap

Built to meet the Peak

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Demand Shifter Inverter-less (patent-pending) Plug-n-play modular deployment Chemistry agnostic

Communications & Control System Charge / discharge at the “edge” Measure (energy) & monitor

(temp/health/status) Distributed AI for security,

self-awareness, & auto-response Public or private network; wired or wireless

Distributed Edge Mgmt System Real-time response to grid conditions or events Flexible / scalable / integrative Front office / Back office systems integration

Game Changing Complete Solution► STORE & MANAGE energy at the EDGE of the grid

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Benefits of aDistributed Architecture

Distributed

Relieves overstressed T&D infrastructure

Lowers entry cost Enables granular load

control Improves efficiency of

renewable generation Bolsters security

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T&D infrastructure: Cost avoidance Lower line loss

Buy low / Sell high (TOU)

Boost “usefulness” of PV & Wind 8x energy wind productivity for

peak demand (3% vs 24%)

RPS – storage now included

“Passive” demand response

No fuel costs – zero emissions

Value Streams

► Sandia 2010 Energy Storage Benefits Guide applied value = $5,941 per kW for Utility & Enterprise customers

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Avista Installation

http://avista.raiinc.com/dc3/overviews/customers/overview2.aspx?overviewID=1

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Inland Power Installation

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Why Now?

Electricity delivery costs going up Significant upgrades in T&D

infrastructure needed Renewables are increasingly

coming on line and need storage to be reliable and cost effective

Stimulus money available to accelerate scaling

Stars are aligned

Consumers Regulators

Utility Mgmt Legislators

Environmentalists

Utility leadership is transforming from “old school” Legislators, regulators and environmentalists want clean energy

and a smart grid Customers are helping us find add’l use cases and benefits

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Go-to-Market Strategy

Customer Focus: Public Power utilities – muni’s & co-ops – fastest to scale

25% of utility market / 4,500 members of APPA / 9-mo sales cycles IOUs – significant trials – small scale deployments in 2012 Enterprise co-investment – data centers, large retailers, agriculture

Product / Selling Strategy: MW projects: public power or regional consortiums Joint programs: Enterprise + Utility + Incentives = Optimized ROI Community deployment for residential solar “Surgical” use case applications with modular storage flexibility Direct sales force + ESCOs + Project Power Consultants

► Management team includes former Itron executives who are proven leaders at scaling deployments in utility markets globally

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Active: 2-3MW Avista – 100kW (EV charging) Arizona Public Svc – 500kW Northwestern Electric – 10kW Maui Electric – 1MW (wind) Seattle City Light (Sabey datacenter) Salt River Project (residential PV) Central Lincoln PUD (PNW DOE project) Puget Sound Energy (Bainbridge Island) PG&E – 30kW (R&D – pilot)

Emerging Sales Opportunities Utilities – 5.5 to 7.5 MW

Forecast: 0.5MW Inland Power – 30kW Benton PUD – 5kW Provo Power – 5kW Lehi City Power – 5kW ConEd – 500kW

Emerging: 3-4MW Benton/BPA/Walmart – 1MW Summit Power/Austin (community - PV) KWAPA/BPA (Ag - pumping stations)

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Emerging Sales Opportunities Data Centers – 6 MW

Initial Orders (committed)

1 - 110kW unit

1 - 110kW unit

Total(in MWs)

6.0 MW

TBD

CustomersSwitch / SuperNAP (Las Vegas, NV)

Sabey Corp (Seattle, WA)

Store energy off-peak for chillers (overhead) freeing up power held in reserve for resale

Enable lower rate negotiation with utilities for peak shaving and time shifting renewable power

Life extension for data centers with power constraints Target: next-gen centralized co-location facilities,

Fortune 500 remote facilities, and level-3 power constrained facilities.

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Looking Forward

Challenges Utility transformation away from a “Centralized” model Smart Grid confusion and hype Securing capital during a recession environment

Plans Commercialization of our Product line Focused implementations with utility early adopters Continue to educate the market on the value of distributed

storage

Thank you

For more information: brett@denetworks.com