Audrey Zibelman, President and CEO, Viridity Energy • What are the FERC and State regulatory agencies doing to support storage on the grid and behind the meter? • What are the further challenges and how may they be addressed?

1. CHARGED 2020
The Global Energy Storage Forum 2010
30 June-1 July, San Diego-USA
Driving sustainable innovation along the energy storage and
smart-grid value chain
Meeting the Challenges of Storage in a Complex Regulatory
Environment
Audrey Zibelman
President and CEO of Viridity Energy

2. June 2010
Meeting the Challenges of
Storage in a Complex
Regulatory Environment
Audrey Zibelman
President and CEO
azibelman@viridityenergy.com
Phone: 484-534-2222
www.viridityenergy.com

3. Senate Committee on Energy & Natural Resources
The Hill Perspective on Grid Energy Storage, Alicia Jackson

4. Senate Committee on Energy & Natural Resources
The Hill Perspective on Grid Energy Storage, Alicia Jackson

5. Senate Committee on Energy & Natural Resources
Pending
The Hill Perspective on Grid Energy Storage, Alicia Jackson

6. Senate Committee on Energy & Natural Resources
The Hill Perspective on Grid Energy Storage, Alicia Jackson

7. FERC Actions
California ISO Reliability Problems
- Traditional solution: higher-voltage transmission lines, new
generators, etc.
- Alternative: 3 batteries, 10-50 MW, located at strategic sites.
Operated at CAISO direction. Much less lead time, much less
environmental impact, cost 15-40% less than traditional.
- FERC awarded transmission incentives for battery project.
FERC Staff Inquiry – Compensating Storage
- Compensation as transmission asset?
- Compensation for enhancing value of merchant generation?
- Compensation for providing ancillary services?

8. Renewable Portfolio Standards
www.dsireusa.org / May 2010
VT: (1) RE meets any increase ME: 30% x 2000
WA: 15% x 2020* New RE: 10% x 2017
MN: 25% x 2025 in retail sales x 2012;
MT: 15% x 2015 (Xcel: 30% x 2020) (2) 20% RE & CHP x 2017 NH: 23.8% x 2025
OR: 25% x 2025 (large utilities)* ND: 10% x 2015 MI: 10% + 1,100 MW MA: 22.1% x 2020
x 2015* New RE: 15% x 2020
5% - 10% x 2025 (smaller utilities)
(+1% annually thereafter)
SD: 10% x 2015 WI: Varies by utility;
NY: 29% x 2015 RI: 16% x 2020
10% x 2015 statewide
NV: 25% x 2025* CT: 23% x 2020
IA: 105 MW OH: 25% x 2025†
CO: 30% by 2020 (IOUs) PA: ~18% x 2021†
10% by 2020 (co-ops & large munis)*
IL: 25% x 2025 WV: 25% x 2025*† NJ: 22.5% x 2021
CA: 33% x 2020 UT: 20% by 2025* KS: 20% x 2020 VA: 15% x 2025* MD: 20% x 2022
MO: 15% x 2021
DE: 20% x 2020*
AZ: 15% x 2025
NC: 12.5% x 2021 (IOUs) DC DC: 20% x 2020
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
State renewable portfolio standard Minimum solar or customer-sited requirement 29 states +
State renewable portfolio goal
Solar water heating eligible *
†
Extra credit for solar or customer-sited renewables
Includes non-renewable alternative resources
DC have an RPS
(6 states have goals)

9. Without storage, 33% Renewables for CA unlikely

10. Without storage, 33% Renewables for CA unlikely

11. FERC Demand Response Order 719
FERC goals:
- eliminate barriers to DR in organized markets
- ensure that DR is treated comparably to generation and other resources
FERC regulations now require all RTOs and ISOs to:
1. accept bids from DR resources in ancillary services markets, on basis
comparable to other resources.
2. during system emergencies, eliminate "deviation charges" to buyers who
voluntarily take less power than they'd planned.
3. allow "aggregators of retail customers" to bid DR directly into the markets
on behalf of retail customers.
4. change their market rules so that wholesale prices during shortages
accurately reflect the true value of energy at those times.

12. 12

13. Viridity Energy: Integrating Storage as a Grid Service
• Virtual Power
RTOs • Dispatchable Load
• Reliability • Economic Value
• Delayed Capital • Self-Sufficiency
Investments Forecast • Reliability
• DR, Emissions Goals • Sustainability
• Targets
Congestion Services
Info Services
tlement
Optimize
ervices
NOC
Viridity
Utilities Customers
Energy
Se rvic
Set
S
• Distr. Utilities • Microgrid asset
s e
• IOUs owners
• Munis/Coops • BAS providers
Monitor & Control • End-users

14. Developing customer-side infrastructure will drive
Date: June 27, 2008 / Pre-optimized load: 11 MW / Electricity Costs: $60 per MWh
A Greater Philadelphia Campus
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15. Optimized w/Solar, Battery, Onsite Generation
Optimized w/ Solar, Storage, and Onsite Generation
Daily Electricity Bill: Case $6,723
Generation Costs: ($13,218)
Supply Savings: $6,851
Virtual Generation $17,832
Total Daily Economic
Revenue: $11,465
Benefit: 15