1. No category

Building Smart Utility Solutions
Developing Trends in
Distributed Energy
Resources
February 26, 2015
Building Smart Utility Solutions
Topics for discussion…

Drivers of Distributed Energy Resources

Economics of DER

Technology Development

Applications
Proprietary and Confidential
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
Developments in distributed energy resources are
driven by a rapidly changing market dynamic

Aging Workforce – A large percentage of skilled labor within the electric utility industry is expected to
retire within the next five years, placing stresses on electric utilities to effectively manage systems with
a large degree of manual intervention required

Aging Infrastructure – The Department of Energy (DOE) estimates that losses to the economy due to
outages, quality disturbances and other events total approximately $188 billion annually; a DOE report
stated that, “the aging of the electric infrastructure...could accelerate turnover of capital assets,
including generation, transmission, and distribution facilities.”

Financial Constraints – Challenging financial times are calling into question how electric utilities can
continue to access the capital needed to keep pace with projected load growth given the constraints of
today’s legacy electric grid

Environmental Concerns – Under pressure from environmental groups and foreign governments,
federal and state regulators are assigning increasingly stringent emissions regulations – resulting in
increasing challenges for electricity generators to supply power

Rising Fuel Costs – Increasing fuel costs and capacity costs from rising coal and natural gas prices at
the same time as projected increases in demand for generated power threatens to result in a tide of
rising electric bills

Integration with New Technologies – While the presence of evolving technologies offer opportunities to
explore new approaches to effectively deliver electricity to consumers, electric utilities are often
hamstrung by the roadblocks presented by operating grids that are in many ways not designed to
integrate with new technical approaches
Proprietary and Confidential
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
The characteristics of utilities that employ smart grid systems will
be very different – and support the development of DER programs
- Legacy Operations -
- Next Gen Operations -
Source: PJM
Proprietary and Confidential
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
One of the things that makes the grid “smart” is its ability to
communicate seamlessly between two parallel systems at every
level, including end-use consumption
Proprietary and Confidential
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
One of the largest drivers of DER initiatives is the
ever-increasing set of RPS requirements
R enew able Portfolio Standard Policies
www.dsireusa.org / September 2014
WA: 15% x 2020*
MN: 26.5% x 2025 (IOUs)
MT: 15% x 2015
31.5% x 2020 (Xcel)
25% x 2025 (other utilities)
ND: 10% x 2015
OR: 25% x 2025
(large utilities)*
5% - 10% x 2025 (smaller utilities)
CA: 33% x 2020
WI: 10% x 2015
CO: 30% by 2020
(IOUs) †
10% by 2020 (co-ops & large munis)*
IA: 105 MW
IN: 15% x 2025 †
MO: 15% x 2021
AZ: 15% x 2025*
(+1% annually thereafter)
OK: 15% x 2015
RI: 16% x 2020
CT: 27% x 2020
PA: 18% x 2021†
NY: 29% x 2015
OH: 12.5% x 2026
IL: 25% x 2026
KS: 20% x 2020
UT: 20% by 2025*†
NH: 24.8% x 2025
MA: 22.1% x 2020
VT: 20% x 2017
MI: 10% x 2015*†
SD: 10% x 2015
NV: 25% x 2025*
ME: 30% x 2000
New RE: 10% x 2017
NJ: 20.38% RE x 2021
+ 4.1% solar x 2028
WV: 25% x 2025* †
VA: 15% x 2025*
SC: 2% x 2021
DC
DE: 25% x 2026*
MD: 20% x 2022
DC: 20% x 2020
NC: 12.5% x 2021 (IOUs)
10% x 2018 (co-ops & munis)
NM: 20% x 2020 (IOUs)
10% x 2020 (co-ops)
TX: 5,880 MW x 2015*
HI: 40% x 2030
Renewable portfolio standard
Renewable portfolio goal
Solar water heating eligible
*†
Minimum solar or customer-sited requirement
Extra credit for solar or customer-sited renewables
Includes non-renewable alternative resources
29 states
+
Washington DC +
2 territories have a
renewable portfolio
standard
(9 states and 2 territories have
renewable portfolio goals)
Source: DSIRE
Proprietary and Confidential
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
In addition, the movement toward DER stands in response
to the substantial underutilization of existing energy
assets

DER affords energy operators a more targeted vehicle for solving energy
demand needs
Source: NETL, EOS Energy Storage
Proprietary and Confidential
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
More and more electric utilities are evaluating the varying dimensions
of a Distributed Energy Resources program that takes into account
the different potential sources of value across organizational silos
Energy Demand
Management
Generation
•
•
•
•
•
•
Generation Deferral
Frequency Regulation
Synchronized Reserves
Renewables Integration
Energy Arbitrage
Wholesale Marketing
Transmission
•
•
•
•
Supplemental Reserves
Blackstart
Transmission Deferral
Voltage Support
Proprietary and Confidential
Distribution
•
•
•
•
Distribution Deferral
Outage Mitigation
Power Quality
Loss Reduction
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
Value Sources
Energy operators are urged to consider a wide variety of potential
sources of value in tandem that historically have been evaluated one
at a time
Application
Description
Generation Deferral
Reduce system peak in order to reduce investments in generation
Wholesale Marketing Resource Call
Frequency Regulation
Synchronized Reserves
Supplemental Reserves
Renewables Integration
Energy Arbitrage
Blackstart
Reduce system peak in order to provide flexibility in generation
requirements during summer peak
Power sources online, on automatic generation control, that can respond
rapidly to system-operator requests for up and down movements
Power sources that can increase output immediately in response to a major
generator or transmission outage
Commitments that can be immediately decreased in response to a major
generator or transmission outage
Engaging in (a) smoothing, (b) shifting, and (c) shaping renewable energy
sources
Opportunity to purchase energy at off-peak rates and sell at higher peak
rates
Process of restoring a power station to operation without relying on the
external electric power transmission network
Transmission Deferral
Reduce system peak in order to reduce investments in transmission
Voltage Support
The injection or absorption of reactive power to maintain transmissionsystem voltages within required ranges
Distribution Deferral
Reduce system peak in order to reduce investments in distribution
Outage Mitigation
Power Quality
Distribution Loss Reduction
Distributed storage capability to bridge gap in power delivery in event of
outage
Maintaining electric power that drives an electrical load and the load's
ability to function properly with that electric power
Dispersed functions allow existing generation to function more efficiently
and improve the overall efficiency of the electric system
Proprietary and Confidential
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
Once specific programs have been identified, the value
proposition for a proposed DER endeavor can be estimated
VPP Model
Sponsored by:
Model Developed by:
Customer Name
Project Reference
9/30/2014
Model Development Date
Business Case Results ($000)
2015
Benefits
Generation Deferral
Wholesale Marketing
Frequency Regulation
Synchronized Reserves
Supplemental Reserves
Energy Arbitrage
Blackstart
Transmission Deferral
Voltage Support
Distribution Deferral
Outage Mitigation
Dist. Loss Reduction
Pro Forma
Benefits
Capacity Cost
Net Profit
Percentage Profit
Financial Metrics
NPV
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
90.9
90.9
134.1
130.0
21.3
45.1
4.1
39.4
47.1
148.9
216.7
63.6
2016
$
$
$
$
$
$
$
$
$
$
$
$
1,032.1 $
433.3 $
598.7 $
58.0%
261.1
261.1
393.7
366.7
60.2
128.5
11.8
113.9
134.4
423.7
616.7
181.0
2017
$
$
$
$
$
$
$
$
$
$
$
$
2,952.5 $
1,233.3 $
1,719.1 $
58.2%
2018
434.6
434.6
671.2
598.6
98.3
211.8
19.4
191.1
222.4
698.5
1,016.7
298.3
$
$
$
$
$
$
$
$
$
$
$
$
4,895.5 $
2,033.3 $
2,862.1 $
58.5%
517.9
517.9
819.1
699.7
114.9
250.0
22.9
229.4
263.5
824.4
1,200.0
352.1
2019
$
$
$
$
$
$
$
$
$
$
$
$
5,811.9 $
2,400.0 $
3,411.9 $
58.7%
523.1
523.1
847.8
692.7
113.7
250.0
22.9
233.6
264.5
824.4
1,200.0
352.1
2020
$
$
$
$
$
$
$
$
$
$
$
$
5,848.0 $
2,400.0 $
3,448.0 $
59.0%
528.3
528.3
877.4
685.8
112.6
250.0
22.9
237.8
265.5
824.4
1,200.0
352.1
2021
$
$
$
$
$
$
$
$
$
$
$
$
5,885.3 $
2,400.0 $
3,485.3 $
59.2%
533.6
533.6
908.1
679.0
111.5
250.0
22.9
242.0
266.6
824.4
1,200.0
352.1
2022
$
$
$
$
$
$
$
$
$
$
$
$
5,923.9 $
2,400.0 $
3,523.9 $
59.5%
539.0
539.0
939.9
672.2
110.4
250.0
22.9
246.4
267.7
824.4
1,200.0
352.1
2023
$
$
$
$
$
$
$
$
$
$
$
$
5,963.9 $
2,400.0 $
3,563.9 $
59.8%
544.4
544.4
972.8
665.5
109.2
250.0
22.9
250.8
268.8
824.4
1,200.0
352.1
2024
$
$
$
$
$
$
$
$
$
$
$
$
549.8
549.8
1,006.9
658.8
108.2
250.0
22.9
255.3
269.9
824.4
1,200.0
352.1
6,005.3 $
2,400.0 $
3,605.3 $
60.0%
6,048.1
2,400.0
3,648.1
60.3%
28,015.1
Proprietary and Confidential
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
Properly designed, a DER program can yield
tremendous value
Benefit Forecast
Pro Forma
$7,000,000
Distribution Loss Reduction
$7,000,000
Outage Mitigation
Distribution Deferral
Voltage Support
$6,000,000
$6,000,000
Transmission Deferral
Blackstart
Supplemental Reserves
$5,000,000
Benefits
Capacity Cost
Energy Arbitrage
$5,000,000
Synchronized Reserves
Net Profit
Frequency Regulation
Wholesale Marketing Resource Call
Generation Deferral
$4,000,000
$4,000,000
$3,000,000
$3,000,000
$2,000,000
$2,000,000
$1,000,000
$1,000,000
$-
$2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Net Present Value
Profit Retention Rate
$35,000,000
60.5%
60.3%
60.0%
60.0%
$30,000,000
59.8%
59.5%
59.5%
$25,000,000
59.2%
59.0%
$9,681,013
$20,000,000
58.7%
58.5%
58.5%
58.2%
58.0%
$12,656,542
59.0%
$15,000,000
$30,990,679
$28,015,150
58.0%
$10,000,000
57.5%
$5,000,000
57.0%
$-
56.5%
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Cumulative Benefits
Proprietary and Confidential
Cumulative Capacity Cost
Terminal Value
Net Present Value
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
DER programs are gaining in popularity in large part
due to the continually increasing system performance
and decreasing cost
Proprietary and Confidential
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
A variety of technologies will ultimately be called to bear
to optimally solve the need to deliver resources into the
market
Source: Lux Research
Proprietary and Confidential
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
An increasing number of utilities have demonstrated the potential of
DER programs through the deployment of field trials and early stage
commercial deployments
Source: EPRI
Proprietary and Confidential
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
Of course, each operator needs to evaluate the specific targets of a
DER campaign and choose the appropriate technologies
Batteries
and flywheels
PHS, CAES, H2 and
thermal storage
Storage duration
Several seconds
to several minutes
Several hours to several
days or weeks
Source: EASE
Proprietary and Confidential
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
Not all DER technologies are created equal – care must be given to
ensuring that the ultimate design involves the appropriate mix of
technologies
100%
$/kW vs. $/kWh
93%
$12,000
92%
Round Trip Efficiency
91%
90%
90%
90%
90%
90%
89%
85%
85%
79%
80%
$10,000
77%
73%
Fluidic
70%
70%
70%
60%
60%
$8,000
60%
$/kW
50%
$6,000
40%
30%
$4,000
ZBB
Prudent Energy
$2,000
20%
A123
10%
Aquion
EnerVault
LightSailPremium
SustainX Power
Saft
0%
Eos
Isentropic
$0
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$/kWh
Gravimetric Density
3,000
2,500
Ener1
A123
PowerGenix
Company Name
Eos
24M
A123
Altairnano
Aquion
Axion Power
Beacon Power
Boston Power
BYD
East Penn
Core Technology
Zinc Air
Lithium Ion
Lithium Ion
Lithium Ion
Sodium Ion
Lead Acid
Flywheels
Lithium Ion
Lithium Ion
Lead Acid
Cost per kW
$1,000
$1,800
$800
$2,600
90%
85%
2,000
2,000
1,000
21
$160
$100
$750
$1,800
$300
$330
$563
Electric Efficiency Rate
70%
90%
86%
93%
85%
85%
Cycle Life
10,000
1,000
16,000
5,000
2,000
150,000
System Level W/kg
83
2,400
1,100
System Level Wh/kg
109
120
74
System Level W/l
35
System Level Wh/l
228
Levelized Cost of Energy
$0.016
190
2,000
$300
W/kg
Cost per kWh
$2,650
1,500
420
40
20
180
100
30
40
420
220
$0.060
$0.165
Envia
4,500
400
219
$0.750
$0.113
$0.282
$0.300
1,000
500
Boston Power
Johnson Controls
RedFlow
0
40
90
Eos
International
Battery
NGK
140
190
240
290
340
390
440
Wh/kg
Proprietary and Confidential
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
Each technology vendor offering a solution in the DER sector offers a
different set of benefits and limitations that need to be evaluated
Basic Details
Basic Details
Basic Details
Company Name
Company Name
A123 Systems
Core Technology
Annual Sales
$90.9 MM
Website
Dr. Bart Riley
Geoff Taylor
VP of Operations
Louis Golato
Company Overview
System Metrics
$750
Publicly traded with market cap of $504 million as of 8/19/11. Has $294 million in cash. Lost $185.5 million in cash
flow in last 12-month period.
Notes
Presentation at Storage Week by Christopher M. Campbell
Projected $350 by 2016
Presentation at Storage Week by Christopher M. Campbell
Electric Efficiency Rate
90%
Lifecycle Testing (cycles)
1,000
100% DoD
A123 testing results - "High Power Lithium Ion ANR26650"
Amount Deployed (MW)
100
By YE 2011
Internal estimate
A123 document - "A123 Systems Grid Solutions"
Production capacity
System Level W/kg
2,400
System Level Wh/kg
A123 website, Autoblog Green, April 2 2011
"Li-ion Pouch Cell Designs; Performance and Issues for Crewed Vehicle Applications", Eric Darcy, NASA, April 29
2011
A123 website
120
System Level W/l
4,500
System Level Wh/l
"Li-ion Pouch Cell Designs; Performance and Issues for Crewed Vehicle Applications", Eric Darcy, NASA, April 29
2011
Grid Stability Battery Systems for Renewable Energy Success, Charles Vartanian, A123
219
Unit Capacity (range) in kW
2,000
Duration at Rated Power (hr)
Operating Temperature Range
0.25
A123 document - "A123 Systems Grid Solutions"
-30 to +60 C
A123 testing results - "High Power Lithium Ion ANR26650"
Better manufacturing plants that can scale
Safety
Claims to have higher onset temperature than 150 C for thermal runaway
Self-Discharge
Grid stabilization, electric vehicles, aerospace, cordless power
Technical Concerns
May be more abuse tolerant than other Li-ion, but there are still concerns
System Metrics
Lifecycle Testing (cycles)
Operating Temperature Range
Financial Stability
Closed a $30 million round of venture-capital (VC) funding. Foundation Capital led the round, with participation
from returning investor Kleiner Perkins Caufield & Byers, as well as from new investors Advanced Technology
Ventures (ATV) and TriplePoint Capital.
Ice Energy is the leading provider of smart grid-enabled, distributed energy storage to the utility industry. Ice Energy delivers solutions at
grid-scale to reduce peak demand, improve energy system efficiency and reliability, and transform the way the utility system operates.
Completed a $24 million Series C financing in October 2010. Investors include TIAA-CREF, Energy Capital Partners,
Good Energies, Sail Ventures and Second Avenue Partners. Total funding to date = $90 million.
System Metrics
Source
System Metrics
Source
El Salvador project pricing
KEMA
16,000
Company website
Cost per kW
$1,800
Cost per kWh
$300
Electric Efficiency Rate
93%
Lifecycle Testing (cycles)
5,000
Amount Deployed (MW)
0
Production capacity
1,100
Altair Nanotechnologies Investor Community Resource Portal
System Level W/kg
System Level Wh/kg
74
Altair Nanotechnologies Investor Community Resource Portal
1,000.0
Company product brochure
0.25
KEMA
-40 to +55 C
Company product brochure
System Level Wh/l
Unit Capacity (range) in kW
Duration at Rated Power (hr)
Operating Temperature Range
500 MWh per year
By 2014
Uses Titanate (Li4Ti5O12) anode
Suppressed fire risk relative to other Li-ion batteries
Regulation, large wind, UPS, EV
Differentiating Features
Lifecycle Testing (cycles)
Amount Deployed (MW)
Presentation at Storage Week, July 2011
Cash reserves
Presentation at ESA, June 2011
30
Presentation at ESA, June 2011
Production capacity
System Level Wh/kg
System Level Wh/l
Unit Capacity (range) in kW
7.0
Duration at Rated Power (hr)
5.00
Technical innovation
Hermetically sealed - "zero maintenance"; use of manganate cathode
Very benign materials; no fire risk
Minimal over relevant time domains; cell voltage is fully stable over 35 hours at 50% state of charge
Load leveling for renewables
Carbon is effectively used as a supercapacitor, limiting energy density and product life
Differentiating Features
Diverse operations
Use of thermal energy storage in distributed approach for A/C cycling
Safety
No safety issues
Self-Discharge
None
Principle Applications
A/C peak shifting
Technical Concerns
Strengths
Have developed low cost, ultra high surface area carbon and advances in processing and materials
stream for anode; aqueous electrolyte sodium ions in cathode
Have grown to 45 FTEs in less than 2 years of operation
Revenue
Safety
No hazardous chemicals
Efficiency
High electricial efficiency coupled with peak shift equates to pseudo-gain in efficiency
Have achieved high profile 53 MW deployment with Southern California munis
Weaknesses
Pre-revenue company
Limited history
Only began in fall 2009 with 2 FTEs
Energy density
Features a high-surface area carbon rather than a viable cathode that does what a lithium-ion cathode
does
High cost
Cost of $2,100/kW is not projected to come down in any meaningful way
No large scale opportunities
Opportunities
Altairnano features diverse company operations with multiple market focuses, including smart grid,
reneable integration, remote UPS, transportation, and military
In addition to selling technology, the company also provides related design, installation and test
services
Cost potential
System is largely limited to distributed A/C cycling approach
Large bulky battery with limited energy density limits market applications
Opportunities
Diverse markets
Product spec sheet
Technical Notes
Weaknesses
Altairnano features very high costs, even relative to other Li-ion batteries
Despite generating revenues, Altairnano continues to lose money at a significant rate
Product spec sheet
Operating Temperature Range
Large scale deployment
Lack of profiability
SCPPA, Redding
System Level W/l
ESA presentation - June 2011
-10 to 60 C
Company growth
High cost
SCPPA
54
Strengths
Has generated solid revenues and has significant market cap
SCPPA
100%
System Level W/kg
40
Principle Applications
Technical Concerns
Technical Concerns
Opportunities
Given A123's size and financial resources and head start in the EV market, they have the chance to
capture up a portion of the EV market before other vendors enter the space
Expanding to offer services beyond pure technology that includes grid integration, operational support,
and extended services (warranty, financing, monitoring)
2010 presentation
Presentation at Storage Week, July 2011
200
6 hours
Safety
Self-Discharge
3% per year
Principle Applications
$2,070
Electric Efficiency Rate
1/2 to 1/3 of Li-ion?
Weaknesses
15-minute discharge of technology limits the potential to deliver high energy applications
Cost per kW
Cost per kWh
2010 presentation
Technical Notes
Market limitations
Mass production potential
100% depth of discharge
Notes
Current Value
EV World, August 3 2011
CNet News, July 22, 2011, ESA presentation - June 2011
System Level W/l
Weaknesses
Thermal runaway remains a concern with any Li-ion vendor
Services
Notes
Goal is to get below $200
$249.1M grant recipient under DOE Battery and Electric Drive Manufacturing Grant
Safety
EV market opportunity
Source
Current Value
Notes
Differentiating Features
Greg Tropsa
Publicly traded (ALTI) on Nasdaq. Market cap of $91.75 million as of 10/31/11. Company holds $2.92 million in
cash with $1.53 million in debt. Lost $16.77 million in EBITDA and had negative $15.17 million in cash flow for past
12 months.
86%
Safety
Mike Hopkins
Aquion Energy is producing a revolutionary battery based on novel ambient-temperature sodium-ion technology. Aquion claims to offer
an advantaged value proposition in nearly all stationary storage use cases; beyond minimized materials and manufacturing costs, the core
technology has exceptionally long life, is safe and is environmentally benign. Early production is currently taking place at the Aquion
Energy pilot manufacturing plant located in Pittsburgh, PA.
System Level Wh/l
Unit Capacity (range) in kW
Ted Wiley
Brian Parsonnet
General Counsel & EVP,
Corporate Development
Executive Vice President
Company Overview
System Level W/l
Duration at Rated Power (hr)
VP, Business and Market Dvpt.
Frank Ramirez
Chief Technology Officer
Financial Stability
Production capacity
System Level Wh/kg
Don Humphreys
Company Overview
Amount Deployed (MW)
System Level W/kg
Chief Executive Officer
Jay Whitacre
John Connolly
Vice President, Manufacturing
Financial Stability
$1,800
Publicly traded stock (AONE) with market cap of $690 million (as of 7/25/11)
EV market presence
Energy density
Daniel S. Voelker
Strengths
Has raised over $130 million from investors and has annual sales approaching $100 million
Financial stability
VP, Engineering and Operations
Current Value
http://www.ice-energy.com/
Management Team
Scott A. Pearson
CFO
Cost per kW
Strengths
Financial resources
Founder and CTO
Altair Nanotechnologies Inc. develops, manufactures, and sells nano-structured lithium titanate spinel, battery cells, battery packs, and
multi-megawatt battery systems, as well as provides related design, installation, and test services in the United States and internationally.
The company also provides contract research services to develop intellectual property and/or new products and technology. It markets its
energy storage solutions to power companies and electric grid operators; and batteries to electric and hybrid-electric bus manufacturers,
and other industrial markets. The company was formerly known as Altair International Inc. and changed its name to Altair
Nanotechnologies Inc. in July 2002.
Electric Efficiency Rate
Website
Management Team
President and CEO
Bruce Sabacky
C. Robert Pedraza
Company Overview
Cost per kWh
Thermal
Annual Sales
http://www.aquionenergy.com/
H. Frank Gibbard
VP, Corporate Strategy
Self-Discharge
1-2% per month
Principle Applications
Website
Technical Notes
Technical Notes
Differentiating Features
$0
Stephen B. Huang
Chief Technology Officer
Source
Current Value
$2,650
CFO
Financial Stability
A123 Systems develops lithium-ion energy storage solutions for applications in grid storage, electric vehicles, and in commercial
applications. In addition to developing the technology, A123 provides support and integration services.
Cost per kWh
President and CEO
David Vieau
Dr. Yet-Ming Chiang
Founder, CTO and VP of R&D
VP of Quality
Ice Energy
Core Technology
Other Technologies
Annual Sales
Management Team
Management Team
Founder
Company Name
Sodium Ion
Other Technologies
$8.16 million
http://www.altairnano.com/hom
e
http://www.a123systems.com/
President and CEO
Cost per kW
Aquion Energy
Core Technology
Lithium Ion
Other Technologies
Annual Sales
Website
Basic Details
Company Name
Altairnano
Core Technology
Lithium Ion
Other Technologies
Opportunities
Sodium is cheap and plentiful and could support a reduction in cost over time
Partnership
Has secured strategic partership with Carrier
Lithium cells are easily deployed in mass in manufacturing and can therefore be ramped up quickly
Threats
Threats
Threats
Threats
Unable to scale as well as other technologies because each cell has to be monitored individual to avoid
thermal runaway
Potential scarcity of Lithium is likely to result in unit price increases and organic solvents they use are
unlikely to yield price decreases
Scalability
Future Cost
Litigation
Engaged in litigation between Valence and Hydro Quebec regarding IP
Greentech Media profile of A123
http://www.cospp.com/news/2011/09/1500874915/roundup-energystorage-procurement-supply-call.html
Maui Electric project
http://www.post-gazette.com/pg/12052/1211651-28.stm
Sale to Dongfang Electric Corporation
Energy Storage Pilot Project with NSTAR
Technical profile of A123 battery systems
System specifications
Advanced Energy Report - January 14 2011
Profiling the economics of A123
Technology development profile
http://www.denverpost.com/business/ci_17963675
Funding developments
Profile on company developments
New CEO named
Company profile
Company profile
Receipt of $30 million in VC funding
Development of manufacturing facility
http://www.altairnano.com/Profiles/Investor/Investor.asp?BzID=54
6&from=dl&ID=125082&myID=125082&L=i&Validate=3&I=
http://www.altairnano.com/Profiles/Investor/Investor.asp?BzID=54
6&from=dl&ID=107038&myID=107038&L=i&Validate=3&I=
Company brochure
Product brochure
http://www.b2i.cc/Document/546/KEMA_Report.pdf
KEMA report
http://www.b2i.cc/Document/546/070919_Altair_Corp_Presentation
.pdf
Company presentation
http://www.aquionenergy.com/sites/default/files/user_files/newsESA Presentation, June 2011
press/2011_esa_aquion_whitacre.pdf
http://www.ece.cmu.edu/~electriconf/pdfs/Apt_Emergence%20or% Carnegie Mellon Univ - "Emergence or Emergency?: Things that May
Shape the Power System", March 8 2011
20Emergency%20Jay%20Apt%20Session%201.1.pdf
http://www.smartgrid.gov/sites/default/files/Aquion%20Energy%2
DOE Project
0OE0000226%20Final.pdf
http://www.sandia.gov/ess/docs/pr_conferences/2010/wiley_aquio
Results of Sandia testing
n.pdf
Presentations and Analyst Reports
http://www.iceenergy.com/stuff/contentmgr/files/1/b5fef8f4e945bef09e48aca6714
http://www.iceenergy.com/stuff/contentmgr/files/1/fc97f020c47300fef8943eba4c9f
http://www.iceenergy.com/stuff/contentmgr/files/1/8b2c24b9a2d7c435ecdee2c978
Product specifications sheet
Smart Grid News report card
Application guide
Investment Plan 2010-2011; Electric Drive Workshop
http://ww2.esd.org/_PDFS/2010/Eggs-Energy/Ijaz.pdf
Profile of A123
http://www.greentechmedia.com/articles/read/a123-lands-gridbatteries-in-maui-massachusetts/
Maui and NSTAR projects
Notable Projects
Notable Projects
Notable Projects
20 MW system used for spinning reserves in 500 MW plant
First of its kind to be classified as a generator by the FERC for
emissions-free reserve capacity New York ISO
32 MW demonstration funded by DOE ARRA program to potentially
work with the 4,500 megawatts of wind energy coming from
Detroit Edison
500-kilowatt/250-kilowatt-hour demonstration project.
Dongfang Electric Corporation
500 kW to firm wind in China
NSTAR
http://www.fastcompany.com/magazine/158/brian-parsonnets-iceenergy
Presentations and Analyst Reports
Presentations and Analyst Reports
Presentations and Analyst Reports
Maui Electric Company
Founding of technology/company
Development of battery production facility
Identified as promising start-up at VentureWire’s FASTech
Conference
Development of new military lithium battery
http://www.a123systems.com/2e9d6f7b-ad82-44a0-9f8979cfb9349129/download.htm
http://www.a123systems.com/08852ac7-4a96-47e8-b3d46696b89beefc/download.htm
http://www.advancedenergy.org/ci/services/testing/files/Communi
ty%20Energy%20Storage%20Report%20%28Sealed%29.pdf
http://seekingalpha.com/article/236186-valuation-primer-forenergy-storage-companies-comparing-a123-and-enersys
http://www.google.com/url?sa=t&source=web&cd=1&ved=0CBYQFj
AA&url=http%3A%2F%2Fwww.energy.ca.gov%2F2009-ALT-
Northern Powergrid (UK)
New management
Jim Cramer video
http://evworld.com/news.cfm?newsid=27449
AES Gener - Chile
Altairnano batteries used on Proterra buses
News Items
http://www.technologyreview.com/energy/24043/page1/?a=f
UK smart grid project
http://www.wired.com/autopia/2009/11/altairnano-proterra/
http://www.altairnano.com/profiles/investor/ResLibraryView.asp?R
esLibraryID=47423&f=1&g=322&BzID=546&Nav=0&LangID=1&s=0
Delivery of batteries to Smith Electric Vehicles
http://www.marketwatch.com/story/a123-systems-to-supplyadvanced-energy-storage-system-to-dongfang-electric-corporationhttp://www.marketwatch.com/story/a123-systems-and-nstar-tolaunch-advanced-energy-storage-pilot-project-2011-12-19
http://www.marketwatch.com/story/a123-systems-to-supplyadvanced-energy-storage-solution-to-maui-electric-company-tohttp://www.smartgridnews.com/artman/publish/Technologies_Stor
age/A123-Systems-scores-big-win-in-UK-
AES - Johnson City, NY
El Salvador project
http://www.bizjournals.com/pittsburgh/stories/2010/08/09/story5.h
tml
http://blogs.wsj.com/venturecapital/2010/10/12/venturewiresfastech-conference-to-spotlight-most-promising-start-ups/
http://www.pittsburghlive.com/x/pittsburghtrib/business/s_716277
.html
http://www.aquionenergy.com/sites/default/files/news/pr_pearso
n_ceo_appointment.pdf
http://gigaom.com/cleantech/aquion-energys-cheap-edible-gridbattery/
http://news.cnet.com/8301-11128_3-20081944-54/aquion-energytakes-plunge-into-bulk-grid-storage/
http://www.nawindpower.com/naw/e107_plugins/content/content
.php?content.8545
A123 work in EV market
Profile of CEO, David Vieau
http://video.cnbc.com/gallery/?video=3000021317
Southern California Edison
News Items
News Items
News Items
http://www.greentechmedia.com/articles/read/Energy-Storage-atGrid-Scale-A123-Gets-Li-Ion-to-Market/
http://www.autonews.com/article/20110614/BLOG06/110619933/14
99&sectioncat=product
http://www.a123systems.com/Collateral/Documents/EnglishUS/Boston%20Business%20Journal_Dave%20Vieau%20profile_May%
http://green.autoblog.com/2011/05/12/a123-systems-to-supply-liion-battery-modules-to-smith-electric/
Inversiones Energéticas (El
Salvador)
10 MW system - $18 million
AES
2 MW - frequency regulation
US Navy
$2.5 million contract for the development of battery backup power
systems in Naval applications
Carnegie Mellon - AES
DOE Project ($10,359,827) to progress the work from bench-scale to
pilot-scale
Notable Projects
SCPPA
53 MW - $100 million to supply as many as 6,000 Ice Bear units
Redding Utility
$1.2 million - 100 Ice Bear machines
2 MW Substation pilot project
1 MW - 1 hour battery to reduce the peak energy load on one of the
substation's transformers
A 2.5 MW system, two 100 kW systems and three 50 kW systems for
load shifting and voltage fluctuation management
Proprietary and Confidential
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
Historically, the overwhelming focus of DER programs have been
based on demand response – but that is changing with the
development of distributed generation and energy storage
Source: EPRI
Proprietary and Confidential
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
Developments in new technologies are increasing the potential of
more distributed applications, like microgrids
Source: AEP/CERTS, Alexis Kwasinski
Proprietary and Confidential
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
Each system operator should be thinking very seriously about how
DER programs can be developed within their own sphere of
operations

Different mixes of technology and program design can offer significant value when
properly designed

The advancement of system automation schemes provide the needed support to
deploy increasing amounts of DER

In many cases, the deployment of dedicated DER programs offer opportunities to
deliver additional capacity into the market with a fraction of the capital cost

System operators may consider how to structure “win-win” relationships with end
users by offering subsidies that feature terms that properly align interests

Financial analysis is a critical step in the process to ensure that the systems being
tested can deliver sustainable value

Combinations of distributed generation, energy storage, and demand response offer
the potential to create valuable “virtual power plant” scenarios
Proprietary and Confidential
© Copyright UtiliWorks 2015
Building Smart Utility Solutions
Thank You
David Shpigler
UtiliWorks
(845) 920-7001
[email protected]
21
Proprietary and Confidential
© Copyright UtiliWorks 2015