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Sanjeev Choudhary
SunEdison Advanced Solutions
P. 2 | SunEdison Confidential
Australian Energy Storage Conference
Topics
Introduction to SunEdison
What makes a viable energy storage market opportunity?
Where from here?
Studies of Customer-Sited Battery Storage Systems and Solutions for Australia
BTM storage activity in the U.S.
P. 3 | SunEdison Confidential
World’s Largest Renewable Energy Developer
P. 4 | SunEdison Confidential
Active Across Entire Renewable Energy Value Chain
P. 5 | SunEdison Confidential
Industry Leading Value Creation Platform
SunEdison: Renewable energy developer and operator
TerraForm Power: YieldCo, owner of 1.7 GW of solar and wind assets
TerraForm Global: owner of 1 GW of solar, wind and hydro in developing world
5 GW managed Pipeline 7.5 GW
P. 6 | SunEdison Confidential
Significant Australian Presence
Energy Matters was acquired in 2014 and is now SunEdison Australia
• One of Australia’s largest companies dedicated to solar energy
• Australia’s leading commercial installer
• More installed 10-100kW systems in 2014 than any other installer (SunWiz)
• More than 20,000 systems installed nationwide
• Apollo Energy distribution arm
Drawing on our history of solar financing, SunEdison Australia now offers
• Solar PPAs for residential and commercial customers
• Zero money down solar systems
• Guaranteed savings
P. 7 | SunEdison Confidential
Australian Energy Storage Association
Topics
Who is SunEdison?
What makes a viable energy storage market opportunity?
Where from here?
Studies of Customer-Sited Battery Storage Systems and Solutions for Australia
BTM storage activity in the U.S.
P. 8 | SunEdison Confidential
The Storage Buzz Keeps Growing
P. 9 | SunEdison Confidential
But Not Everyone Is Convinced
P. 10 | SunEdison Confidential
Generation Services
Intermittent Resource Integration (Ramping & Voltage Support)
Variable Energy Resource Shifting, Voltage Sag, Rapid Demand Support
Supply Firming
Transmission/Distribution
Peak Shaving: Load Shift
Transmission Peak Capacity Deferral
Transmission Operation
Transmission Congestion Relief
Distribution Peak Capacity Deferral
Distribution Operation (Voltage/VAR Support)
Many Storage Applications, Few Viable Today
Market Services
Electric Energy Time-Shifting
Frequency Response
Frequency Regulation Up
Frequency Regulation Down
Ramping
Real-Time Energy Balancing
Synchronous Reserve (Spin)
Non-Synchronous Reserve
Black Start
Capacity Products
System Electric Supply Capacity
Local Electric Supply Capacity
Resource Adequacy
Additional Grid Benefits
Reduced fossil fuel use
Increased renewables
Grid Reliability
Faster build time
Modularity/incremental build
Mobility
Flexibility of purpose
Optionality
Locational flexibility
Multi-site aggregation
Demand charge reduction UPS / Reliability
Self-consumption
Multiple applications and revenue streams, few can be fully monetized today
Viable today
P. 11 | SunEdison Confidential
Drivers of Viability
Typically
Multiple Drivers
Required
However, One
Driver May
Dominate and
Be Sufficient
P. 12 | SunEdison Confidential
Global Energy Storage Markets Today
Australia/NZ
RSC – Self Consumption
DG – Demand Charge
Reduction
California
1.3GW Mandate by 2020
DG - Demand Charge
Reduction, SGIP $1.90/W
Canada
UTL – Ancillary
Service Pilots
Chile
UTL – Ancillary
Services, Spinning
Reserve
India
Rural Electrification
Microgrids
Resiliency
Japan
RSC – DG & Self
Consumption
Europe
RSC – Self
Consumption in FIT
Markets
UTL - Pilots
Korea
UTL – 250MW
Frequency Regulation
PJM
DG – Backup Power
UTL – Freq Reg
Energy Storage Market opportunities emerging globally across multiple markets and applications
P. 13 | SunEdison Confidential
Australian Energy Storage Association
Topics
Who is SunEdison?
What makes a viable energy storage market opportunity?
Where from here?
Studies of Customer-Sited Battery Storage Systems and Solutions for Australia
BTM storage activity in the U.S.
P. 14 | SunEdison Confidential
US Storage Market Activity (BTM)
4.2 3.7
Source: Greentech Media, May 2015
P. 15 | SunEdison Confidential
Select BTM Storage Applications Today
Application Policy Incentive
Host Customer
Benefit
PJM Frequency Regulation ✓ FERC 755 ✓ ITC ✓ Backup power
California Demand Charge
Reduction
✓ Tariff structure ✓SGIP ✓Significant
energy savings
California Residential
Storage
Net Metering
disincentives self-
consumption
✓SGIP ? Value of
backup power
Australian Residential
Storage
✓Export tariff
incentives self-
consumption
? Savings time
to payback
SCE Capacity ✓✓ AB2514 ? Potentially
DCR, backup
power
P. 16 | SunEdison Confidential
PJM BTM Business Model Overview
Storage only (BTM & IFM) Solar + Storage (BTM )
• Battery provides PJM ISO with fast
responding frequency regulation
• In some configurations, battery is
also used to reduce peak demand
charges
Solar canopy Host
Storage
system
When grid is up:
• Solar production contracted via typical PPA
• Storage provides PJM ISO fast responding
frequency regulation (Reg-D)
When grid is down:
• Solar charges battery to provide Host with
power for critical loads Solar production
included in PPA
• BTM only applications
P. 17 | SunEdison Confidential
FERC 755 FR Revenue + ITC Enable BTM FR
• Battery storage delivers multiple benefits to multiple stakeholders:
• Customer (site host), developer, owner, operator, grid operator (ISO), utility
• Stacking and capturing multiple value streams improves economics
• Not all value streams can be monetized today. Some represent future potential revenues.
• Regulatory change is required to capture additional value streams
• Example: DG Solar + backup power in New Jersey, with frequency regulation services sold to PJM
SystemCost
Returns Back-upPower
PVInverter
ITC &MACRS
Freq.Regulation
SpinningReserve
EnergyTime-Shift(Arbitrage)
SystemCapacity
T&DUpgradeDeferral
UPS PV
ITC
Reg
Spin
ETS
Cap
T&D
OPEX
CAPEX
Real Value Today Potential Value
Initial Value
Potential
Value
P. 18 | SunEdison Confidential
Tariffs + Incentives Drive DCR in California
Demand charge increases + SGIP lead to large market for DCM in CA
Demand vs Consumption
charge over time
• Demand charges have risen significantly
for commercial customers 2008 to 2013
• As more renewables added, demand
charges are expected to rise
Illustrative Customer Electric Bill
P. 19 | SunEdison Confidential
Tesla Home Storage – iPhone Moment?
What payback does an iPhone require?
2 Models Available: • Daily 7kWh for self consumption • Backup at 10kWh for emergency power
Power supply: 2kW continuous output power Warranty: 2500 cycles Payback: Varies greatly
Tesla
Powerwall
Energy
(kWh)
Power
(kW)
life
(years)
usage
(days/yr)
total
cycles
unit cost
(USD)
installed cost
lease (USD)
installed cost
own (USD)
installed cost
post-SGIP chemistry use case
Daily 6.4 2 10 365 2500 3000 NA NMCself-
consumption
Backup 9.2 2 10 50 500 3500 5000 7140 2920 NCAemergency
power
TBD - 1H16
P. 20 | SunEdison Confidential
Australian Energy Storage Association
Topics
Who is SunEdison?
What makes a viable energy storage market opportunity?
Where from here?
Studies of Customer-Sited Battery Storage Systems and Solutions for Australia
BTM storage activity in the U.S.
P. 21 | SunEdison Confidential
$14B for Grid Storage through 2020
Storage Opportunity is Not Going Away
4.2 3.7
Source: Bloomberg New Energy Finance Energy Storage Forecast 2013 - 2020
2013-2017: 26% CAGR with inflection point in 2018
2018-2020: 47% CAGR
31 GWh cumulative installations by 2020
35% CAGR
0.7 0.5 0.6 0.7 0.91.30.1 0.3
0.5 0.2
0.5
0.9
0.3
0.5
0.9
0.2 0.2
0.2 0.3
0.4
0.6
0.1
0.3
0.2
0.1
0.2
0.4
0.3
0.1
0.1
0.1
0.2
0.5
0.3
0.8
1.2 1.2
1.61.8
3.0
5.1
2013 2014 2015 2016 2017 2018 2019 2020
RoW
Canada
China
Italy
UK
Japan
Germany
Korea
US
P. 22 | SunEdison Confidential
Source: ESMAP, WorldBank
Grid 1.0: (1920-1990)
Grid evolved with centralized control and one-way flow of power and information
Key Features
• Large scale central
generation
• RSC and C&I loads
served from grid only,
no self-generation
• Surplus generation
capacity required to
serve variable loads
• Grid operator
balances generation
with loads
• Centralized command
and control
P. 23 | SunEdison Confidential
Grid 2.0 (1990-present)
Source: ESMAP,
WorldBank
Storage enables high levels of DG and 2-way power flows
Key Features
• Many central
generating plants
being retired
• Renewable generation
added, including DG/
self-generation
• 2-way power flows
• Some storage added
to address load
variability
• Grid operators adopt
market mechanisms/
merchant services to
balance loads with
generation
P. 24 | SunEdison Confidential
But Where is it Going?
Source: Rocky Mountain Institute
Unknowns
• Policy
FERC 745 Supreme Court
ruling, FERC 755
implementation, PUC
rulings and tariffs
• Technology
Dozens of potential game-
changing storage
technologies in R&D
• Market Prices Electricity prices, peak/
off-peak spreads, prices
of oil and natural gas
• Business Models Ability to monetize value
of customer and grid
services
P. 25 | SunEdison Confidential
Source: NIST
Grid 3.0 Possibility – circa 2020?
DER, aggregation and storage can enable a decentralized Grid 3.0
Key Features
• Central generation and
grid provide baseline
infrastructure
• Renewables, DG,
Storage, and DR (DER)
play key role, provide
flexible matching of
load and demand
• Aggregators of loads
and variable
generation become
energy services
providers
• Marketplace of BTM
energy transactions
Thank You!
Sanjeev Choudhary| schoudhary@sunedison.com
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