Smart Grid and PHEV Interaction

Paul HeitmannDirector, Business Development

Comverge, Inc.

Distributed Communications1

Supply and Demand Tech2

Architectural Standards3

Demographic/Economic Shifts4

Government Policies5

We are experiencing the very beginning of a major paradigm shiftthat will create disruptive technology and large market opportunities

for innovative ways to drive adoption barriers lower on EVs.

The key benefits from this mass adoption are:• Energy Efficiency and Security

• Carbon Emission Reduction• Enhanced Grid Reliability

Factors Driving the Smart Grid/PHEV Evolution

BMW Mini e – All Electric Vehicle

2009 – 2010 Pilot Program

(500) All Electric fielded units35 kW-hr Li Ion batteries32 A 240 V Level 2 chargerEfficient A/C Inverter0-60 mph < 9sec90+mphCool.

Potential Issues1. Concentrated (18kW x N) power flow.2. System Peak load reinforcement3. Roaming energy billing reconciliation.

Potential Opportunities w/Grid1. Logical aggregation and control2. Innovative recharging service models3. Surplus renewable power soak.

(PH)EV Benefits

Vehicle-to-grid (V2G) potentialBy plugging it in…

Lower “fuel” costs

Fewer fill-ups

CONSUMER BENEFITS

Home recharging

convenience

Fuel flexibility

GRIDBENEFITS

NATIONAL BENEFITS

Less CO2emissions

Less air pollution

Less petroleum

use

Energy diversity

PHEVs as Energy Storage

Load Shaping

Improved Asset

Utilization

Fast Regulation

GRIDBENEFITS

PHEVs as Energy Storage

Load Shaping

Improved Asset

Utilization

Fast Regulation

Intelligence to the Edges… and beyond

DistributedClient-serverIntelligence migrates

out

True networkInternetIntelligence

everywhere

CentralizedMainframeIntelligence in middle

The move from control-based interactions toward transaction-oriented interactions

will significantly improve information exchange between the electric system devices and the end-use consumers.

Networked and Mobile

Smart Grid Interop Roadmap – Electric Transportation Track

7

Smart GridIntelligentAppliances

TransactiveDemandResponse

DistributionControl

TransformerMonitoring

Dist GenRenewables

DR & AMR / AMI / SmartGrid

AMI

OutageService

Disconnect

TOU &CPP

15 min LP

IntegratedDemand

Response

Automatedreads

AMR

PeakReduction

DR

© 2009 Comverge, Inc. Confidential & Proprietary. Do Not Disclose. 9

Russian Dolls Metaphor

© 2009 Comverge, Inc. Confidential & Proprietary. Do Not Disclose. 10

Apollo Platform Integration View

High Level View SLEET System

THESE ARE THE PARTNER SITE LOCATIONS FOR THE SLEET PROGRAM

Vehicle OpsRegion

PJMInterconnection, LLC

University of Maryland Comverge, Inc.

(Corp)(NOC)

UniversityOf Delaware

AutoPort, Inc.

Project Regional SLEET Partners

eTec

Phoenix, AZ

ENDORSEMENTS• NJ Clean Cities Coalition

• SMECO

Smart Grid Transition Elements

Then Comes PHEV storage…

… and Solar/Wind Microgrids

CleanTechnology Educated

& MotivatedConsumers

Timely Decision Data

RobustSignalling

CommonPlatforms

AutomatedResponse

Innovative Uses of DR for Clean Energy

Continued Product Innovation

Combination of DR + EE Programs

TOU / CPP / RTP Programs

DR as a Reliability and Economic Resource

Emissions Credits

Open Market Development

Comverge is an innovating company that can create and deploy new technologies

and programs quickly, acting as a significant change agent for these

paradigm shifts.

Demand Response

Non-EE/DR

EE + DR

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

0.00

0.50

1.00

1.50

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 241 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hour

Watt

s p

er

Sq

uare

Fo

ot

Energy Efficiency (Blue) reduces load all the timeDemand Response (Red) reduces just when we need it

EE

DR+

DR-

The opportunities for utilizing Electric Vehicles in demand response include providing proportional charge rate signals (aka V1G) or letting the vehicle actually take and give power to the home (V2H) or back to

the grid (V2G). The market economics and government policy will determine the optimal technology adoption..

Clean Capacity Through Demand Response

Integrated DR Product Suite

IntegratedCustomerExperience

Demand ResponseAutomation Platform

LargeAppliance

Automation

In HomeEnergyDisplay

CustomerEnergyPortal

Home HVAC Automation

Comprehensive Suite

ZigBeeIntegrated & Tested

Open Standards

Experience

DR Leader & Roadmap

Evolving Business Models

Grid Generation Retail Electric Supply Capacity Markets Utility-Scale Renewables Reliability

Meter Data Analysis Facilities Management Performance-based

Contracting Distributed Generation Energy Procurement Power Quality

Traditional Utility Traditional Customer

GridGeneration Utility-ScaleRenewables Reliability

Service HVAC Maintenance

Transaction Utility Transaction Customer

Smart Meter DR+/-, EE Renewables Capacity Mkt

Performance Contracting

DG/EE Procurement PowerQuality Emissions

Services

Energy Capacity Ancillary Services

• Economic

• Emergency – Energy Only

Voluntary load reductions for energy,

even during a PJM emergency event

• Emergency – Capacity Only

• Emergency – Full (also gets an energy payment)

Mandatory reduction for PJM Load Management emergency

event

• Synchronous Reserves

• Regulation

Load bids into these markets and responds to

an event exactly like a generator

Mandatory response to a Synchronous Reserve event

if cleared in market

Load Response in PJM

Load Management

DR ILR

DLC, FSL, GLD

Source:

Future Options for Participation (Timeframe Debatable)

• PJM Ancillary Service Markets

•PJM Regulation Market•Automatic adjustment of load in response to PJM regulation control signal

•PJM Synchronized Reserve Market•Ability to achieve required reduction of load in a 10 minute period when notified by PJM

• These markets can be served by aggregated batteries from electric vehicles, if…

• There is a robust and secure aggregation platform and service provider

• Sufficient quantity of vehicles participate to assure committed capacity and no inordinate stress on any one vehicle battery.

• Educated customers have simple and transparent control mechanisms to program their operational requirements (ie min state of charge) Source:

What is Frequency Regulation?

Regulation is the continuous adjustment for maintaining AC grid frequency (60 Hz)

This would representan economic opportunity for

Vehicle to sell back power at peak times

This would represent an economic opportunity forVehicle to be available for short bursts of charge and discharge

Example Regulation Contract

To service this regulation contract would require coordinating approximately50,000 EVs each with 40 kwHr batteries and 15 kw power transfer capability

Assumptions: 80% availability; Reg. $40/MW-h; Spin. $10/MW-h, 7% discount rate, example calculations

Basic per Vehicle Values

10 –Year Present Value V2G Revenue Potential

$00

$7,500

$15,000

$22,500

$30,000

2 kW 6 kW 10 kW 15 kW

Regulation Spin. Reserves

Green Mountain College

LiIonBattery Syst.

$25K

Providing Regulation from an EV

• Red line shows power (kW) to the battery (left axis)

• Green line shows the state of charge steadily rising (right axis)

• Blue line shows showsthe regulation signal. Notice how closely the commanded power follows the power delivered by the vehicle

This is actual data from the MAGIC Consortium test program, showing the precision load following that the EV can perform to the PJM Ancillary Services signal.

Consumer Driven Approach

•Intuitive Web Controls•Current kW-hr Pricing Info•Access to education•Access to account data•Streamlined bus. process

The real key to rapid consumer adoption of EVs lies in the transparent and intuitive

interfaces available for managing cost and convenience for both

driving and charging.

Thank You!

Paul HeitmannComverge, Inc.pheitmann@comverge.com