© 2015 Advanced Microgrid Solutions, Inc. | Proprietary and Confidential

Tomorrow’s energy grid.

SCAP Energy Management Committee Meeting August 26, 2015

Market Drivers

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Energy Costs

Renewables

Infrastructure

Reliability

Incentives

Technology

Cost Reliability

Technology

Costs: Customer rates rising & commodity prices falling

Renewable generation: Integration and Intermittency

Aging distribution infrastructure Grid reliability/Service

Interruptions Government/Regulatory

Incentives Technology Evolution

• Smart Meters, Smart Buildings, Smart Grid

• Distributed Generation - Fuel Cells, PV

• Electric Vehicle Infrastructure • Battery Technology

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The “Duck” Chart

Demand Response Energy Storage Systems

For Utilities: Large customer load centers serving as “virtual power plants” for utility

and grid services Reliable, grid-scale load reduction = firm, flexible capacity resource for

utilities and grid operators Provides alternative to costly distribution upgrades For Facility Owners & Host Customers: Lowers electricity costs through “peak shaving” and reduction of utility

demand charges Firms, shapes and integrates on-site generation for optimal rate design Provides supplemental or emergency back-up generation for critical loads Supports load balancing for “islanding” or microgrid Increases revenues from utility incentive programs

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Aggregated Energy Storage Systems have the potential to displace natural gas “peaker” plants, avoid costly distribution upgrades and help utilities integrate intermittent renewable generation.

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ENERGY STORAGE

GENERATION

CUSTOMERS

UTILITIES

Storage Turns Customer Load into a Firm, Generation-Quality Resource

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Demand Response Energy Storage

(

© 2014 Advanced Microgrid solutions, INC. Proprietary and confidential

Modular Energy Storage Systems – Compact, scalable installed outdoors near other electric service equipment.

LG Chem 250kW/1000kWh Containerized System (Greensmith Control Systems)

TESLA 200kW/400kWh Battery Systems (Rendering)

Wastewater Treatment Plant | Solar + Storage

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Before After Savings Savings

Energy $ 222,860 $ 195,103 $ 27,757 12.5%

Demand $ 195,023 $ 129,128 $ 65,895 33.8%

Total $ 419,110 $ 325,459 $ 93,651 22.3%

Battery Size 1,250 kW / 7,875 kWh

Battery Duration 6 Hour

Dispatch Date 08.04.14 [CPP Event Date]

Dispatch Time 2:00 PM - 6:00 PM

Tariff TOU / CPP

0%

100%

200%

300%

400%

500%

600%

700%

-1500-1000

-5000

5001000150020002500

0:15 2:15 4:15 6:15 8:15 10:15 12:15 14:15 16:15 18:15 20:15 22:15

Bat

tery

Sta

te (

%)

Bat

tery

/Lo

ad (

kW)

Native Load (kW) Post-Battery Load (kW) Battery State (%) Battery In, Out

On Peak Mid Peak

Utility Dispatch

-1500

-500

500

1500

2500

3500

0:15 2:15 4:15 6:15 8:15 10:15 12:15 14:15 16:15 18:15 20:15 22:15

Waste Treatment Facility

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Tariff Direct access

Battery Duration 4 Hour

Battery Size 1250 kW / 5250 kWh

RA Eligible 1125 kW / 4500 kWh

RA Dispatch Time 2:00 PM - 6:00 PM

-1500

-500

500

1500

2500

3500

0:15 2:15 4:15 6:15 8:15 10:15 12:15 14:15 16:15 18:15 20:15 22:15

DA Flat DA on/off 2¢/kWh

Pre-Storage

Post-Storage

Bill Savings Post-

Storage Bill Savings

Energy $ 1,071,994 $ 1,085,215 - $ 13,221 -1% $ 898,214 $ 173,780 16%

Demand $ 717,637 $ 593,981 $ 123,673 17% $ 595,394 $ 122,243 17%

Total $ 1,796,832 $ 1,686,396 $ 110,452 6% $ 1,500,808 $ 296,024 16%

Ba

tter

y/Lo

ad

(kW

)

Wastewater Treatment Plant | Solar + Storage

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Before After Savings Savings

Energy $ 1,013,206 $ 978,124 $ 35,082 3.5%

Demand $ 643,213 $ 484,006 $ 159,207 24.8%

Total $ 1,663,785 $ 1,469,495 $ 194,290 11.7%

Battery Size 1,250 kW / 7,875 kWh

Battery Duration 6 Hour

Dispatch Date 08.28.14 [CPP Event Date]

Dispatch Time 2:00 PM - 6:00 PM

Tariff TOU / CPP-DR

0%

100%

200%

300%

400%

-3000

-2000

-1000

0

1000

2000

3000

0:15 2:15 4:15 6:15 8:15 10:15 12:15 14:15 16:15 18:15 20:15 22:15 0:15

B

atte

ry S

tate

(%

)

Po

we

r (k

W)

Pre- Imp Elec (kW) Post- Imp Elec (kW) Battery State (%) Existg Solar (kW) Battery Out, In (kW)

On Peak

Utility Dispatch

Mid Peak

AMS: A Leader in the Emerging Storage Market

“San Francisco's Advanced Microgrid Solutions (AMS) is one of several young companies positioned at the leading edge of innovation and development of behind-the-meter advanced energy storage solutions. Marking a major milestone for the company, SCE on November 5 awarded AMS “a 50-megawatt contract...to develop the first grid-scale fleet of Hybrid-Electric Building project in the world.” - Renewable Energy World.COM 2.14.2015 Energy Storage Emerges as an all-purpose grid asset

“Typically, a utility copes with high demand by bringing an additional power plant online; instead AMS will reduce the utility’s load by up to 50 megawatts—enough to power 20,000 homes. ‘Susan and her team are unlocking the notion of using customer-side resources as capacity,’ says Julie Blunden, an energy consultant who chairs the governing body for the public-private consortium CalCharge. ‘That is an absolutely tectonic shift for utilities.’” Popular Science, 5.20.2015 Keeping the Lights on with Virtual Power Plants

“…the AMS Tesla battery announcement steps things up a notch. The idea is for AMS to use up to 500 megawatt-hours (MWh) of Tesla batteries, in partnership with the company Black & Veatch, for engineering and construction services. If Black & Veatch rings a bell, you could be thinking of any number of microgrid and renewable energy projects the global firm has a hand in, including the construction of fueling stations for fuel cell electric vehicles in California. The point is, if the Tesla brand is enough to give AMS street cred, the association with Black & Veatch puts it over the top.” Clean Technica, 6.5.2015 Stealth” Woman-Owned Startup Nails Tesla Battery For Hybrid-Electric Buildings

“…If batteries live up to their promise — a very different electric grid is about to emerge, one free of the long-time constraint that electricity must be consumed almost as quickly as it is produced….Already a new competitive player is emerging, the energy storage aggregator. (Stem and Advanced Microgrid Solutions are examples.) Aggregators install energy storage in buildings and then group the capacity into a portfolio. They then offer the combined storage as a dispatchable asset for use by the grid, perhaps for peak shaving, demand response or ancillary services. These load aggregators, who Hill sees as poised for tremendous growth, take on the risk required to create the kind of new grid imagined in New York’s Reforming the Energy Vision (REV). - Energy Efficiency Markets.com 1.17.2015 “Will Batteries Live Up to their Promise For Energy Storage?”

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AMS develops customized energy storage solutions for grid support. AMS designs, finances, owns and operates installed storage systems at customer locations.