THANK YOU TO OUR SPONSOR

Transcription

1 Summary of Slides

2 THANK YOU TO OUR SPONSOR

3 The Investment Landscape: Perspectives and Possibilities on Unlocking More Capital CONVERSATION STARTERS Peter Davidson Co-Founder, CEO & Board Member, Aligned Intermediary Lou Schick Partner & CTO, NewWorld Capital Moderator: Richard Youngman CEO, Cleantech Group

4 Investing in the Energy Transition: Potential and Complexity in Abundance Moderator: Bob Zabors Founder & CEO, Enovation Partners

5 Investing in the Energy Transition: Potential and Complexity in Abundance THOUGHTS ON ABUNDANCE The future energy market will struggle to adapt to unprecedented intermittent supply and fossil reserves - a world in which energy is free or more than free during many, but not all, times of peak demand Value in this model shifts from volumetric production to: Delivery Control Consumer brand/ relationship/ trust Regulatory and political influence Optionality

6 US DG Installations (MW) DER is not just about PV US Distributed Generation Capacity Additions ,000 35,000 30,000 25,000 20,000 15,000 10,000 5, P 2015P 2016P 2017P 2018P 2019P 2020P 2021P 2022P 2023P Diesel Gensets NG Gensets Solar PV Fuel Cells Small Wind Note: are projected (P) values Source: Power Systems Research, SEIA, EGSA, Navigant, Enovation Partners

7 IOUs/REPs are rapidly building DER capability Type Company Storage Date Amount ($MM) Description 8/ /2015 A leading provider of grid-scale energy storage software and integration solutions Developer of fast-charging systems for lithium ion batteries Investments 1/ Developer of learning software and energy storage 12/ Provider of grid-scale energy storage software and integration solutions 1/ Producer of power generation, smart-storage and distribution solutions for off grid applications Project Development M&A 7/ /2014 5/2016 2/ / megawatts of BTM storage providing demand management in Southern California. Partnership to deploy EV charging stations with integrated batteries 80% stake; incorporating storage into C&I and public energy services offerings General contractor EPC specializing in solar PV, but with storage and other DG experience Integrated C&I solar and DER developer and service provider Source: Enovation Partners and Cleantech Group analysis

8 Continued PV cost reductions make many residential and commercial projects viable within 10 years Residential Rooftop Commercial Rooftop Aggressive case: Installed cost decline of 12% per year Residential Ground Mounted Industrial Rooftop Years Years Years Years < 5.0 Years Not Assessed Source: EIA, Enovation Partners analysis and DER models

9 Large national PV installers are not realizing scale efficiencies in customer acquisition Threats to core business model? Financing Direct system ownership more likely as costs fall and if alternative, low cost financing becomes available Regional vs. national footprint Regional players are growing faster Cross-selling Other providers may enjoy lower origination costs Multi-DER offer Product innovation hardware, software, contract design Channel competition DIY/big box retailers offer lower installed cost 5,000 4,000 3,000 2,000 1,000 0 Competition triumphs over scale Sales and Marketing Expense for National PV Installers ($/New Customer, 2013 to 2015) 0 50, , ,000 New Customers Source: Company reports, Enovation Partners analysis

10 Behind the meter energy storage economics are likely to improve substantially by 2020 Use Case California ISO-NE ERCOT PJM New York Enovation Partners Estimates of Market Attractiveness for Behind the Meter Storage Demand Mgmt Standalone Stacked Standalone Stacked Frequency Regulation 2 Demand Mgmt. + Markets 3 Demand Mgmt IRR: >10% IRR: 3-9% IRR: <2% Frequency Regulation Demand Mgmt. + Markets 1. Demand Management: C&I system designed lower demand charges 2. Frequency Regulation: C&I system designed to rapidly charge and discharge to provide frequency regulation 3. Demand Management + Markets: Large scale C&I system designed to provide capacity, spinning reserve, and non-spinning reserve in addition to demand management Sources: Lazard LCOS (2015); Enovation Partners analysis of: CA SGIP Handbook; PJM Data Miner; NSTAR rate schedules; CA IOU rate schedules; CA IOU DR Filings; ISO-NE FCM; NYISO ICAP; Con Edison DR Programs; ERCOT; PJM RTO/ISO Market Comparison (2015), PJM Market Monitor (2015)

11 Many players are integrating storage and solar Solar Installer Storage Partner Developments 4/2015: SolarCity / Tesla turnkey residential solar battery backup system focused on greater savings for business and government customers 12/2015: Announced an agreement to market energy storage systems with REC Solar, a subsidiary of Duke Energy Initial market focus: Hawaii and California Financing available from both REC and Green Charge Networks 1/2016: Sonnen, SolarWorld, and PetersenDean announced partnership to offer residential solar-plus-storage for the U.S. market 1/2016: Sonnen and Sungevity announced a distribution partnership offering residential PV + storage to residential customers Offering initially available in southern Californiaadd 1/2016: Sonnen and Spruce (a merger of Clean Power Finance and Kilowatt Financial) announced a partnership to develop a financing product focused solely on energy storage Storage-only financing made available Q1 2016; PV + storage financing targeted for late /2016: Announced a partnership to sell and install JuiceBox s 8.6 kwh residential energy storage systems Source: Enovation Partners and Cleantech Group analysis

12 Company Showcase PRESENTING COMPANES Michael Oster CEO, Eos Energy Storage Michael Wyman CEO, Origin Solar Bud Vos President & CEO, Enbala Power Networks Sean Becker President, Sparkplug Power Eric Laufer CEO, Laufer Wind Tom Stepien CEO, Primus Power

13 Company Showcase PRESENTING COMPANES Michael Oster CEO, Eos Energy Storage

14 ` Eos Energy Storage Introductory Presentation October 2016

15 Market and Eos Background Strong Global Market Growth Defined by Need for Locational Capacity and Renewable Integration Massive global market for utility scale and behind-the-meter energy storage Industry-Leading Eos Aurora Product Low-cost, long-life, safe, efficient and compact zinc hybrid cathode (Znyth ) battery Developed to meet market needs through partnerships with major global utilities Partnerships with major global system integrators to provide a turnkey AC-integrated Eos solution globally Eos Scaling Up To Meet Massive Global Demand Since announcement of commercial availability in 2016, Eos has received >29 GWh (~$5B) of qualified inquiries with many now in active proposals Eos is partnering with multi $B contract manufacturer to achieve rapid, capex efficient scale-up enabled by uniquely simple battery design 15

16 Why Energy Storage? There is a significant demand for energy storage today 1 Underutilized Grid Infrastructure 2 Grid infrastructure oversized to exceed peak demand, resulting in massive idle capacity Energy storage can defer costly and inefficient utility infrastructure investment Growing Locational Capacity Needs Growing demand in constrained areas creates acute need for locational capacity and flexibility Estimated US upgrades in ~$1.5T 1 Generation Transmission Distribution US Average Utilization 1 47% 43% 34% 3 Increasing Intermittent Renewables US renewable energy to reach 27% by Many countries have higher goals Energy storage opportunity is business, not technology problem Energy storage solutions must meet global market requirements and compete economically with conventional generation and infrastructure upgrades Sources: 1. Electric Power System Asset Optimization. NETL, March 2011; The Power of Five Percent. The Brattle Group, May Renewable Energy Prospects: United States of America. IRENA, January

17 GW $B (Assuming $250/kWh Total Cost) Rapidly Growing Demand at Eos Price Total 2030 U.S. Peak Shaving Market Opportunity PJM ERCOT MISO SERC Canada SPP WECC NYISO CAISO ISONE Current Eos cost 2020 Eos Cost Source: IHS >$500 $ $ $ $ $ Total Turn-Key Installed AC-integrated Cost (real 2014 $/kwh) Eos Installed System Cost Unlocks up to 85 GW of Potential U.S. Peak Shaving Market by 2030, Equivalent to ~$70 B Market Opportunity 1 0 Notes: 1. Assuming 85 GW total market opportunity, with a 4 hour duration and $200/kWh installed cost. 17

18 Eos Aurora DC Product is Uniquely Designed to Meet Market Needs for Energy Storage 1 Aurora System 1 MW 4 MWh DC battery system Low Price Long Life Energy Dense Efficiency Safety Pictured: 500 kw 2 MWh Subsystem $160/kWh (>10MW) $200/kWh (<10MW) 5,000 cycles (~15 years) at 100% DoD 2 23 kwh/m 3 (DC system level) >75% capable of daily 100% DoD Non-flammable electrolyte; nonhazardous and non-corrosive when shipped Notes: 1. Product specifications based on internally generated data 2. DoD Depth of Discharge Proprietary Znyth (zinc hybrid cathode) chemistry employs abundant, low-cost materials Designed for simple, low-cost manufacturing Aqueous electrolyte enables system safety System supports daily 100% depth of discharge Wide operating temperature range mitigates need for dedicated heating/cooling Outdoor rated, plug-and-play Energy Stack TM design reduces onsite installation cost Includes Battery Management System The Aurora system can reduce cost and maximize profitability for utilities, project developers and industrial end-users confidential 18

19 Eos Launches Leading Residential and Commercial/Industrial Product Eos is working with original equipment manufacturers (OEMs) to package, distribute and service storage appliance products, using Eos safe, low-cost, long-life batteries Eos Wins $2M Project to Demonstrate Residential and C&I Systems at UCSD Resi Product 3 kw 12 kwh C&I Product 40 kw 160 kwh Price Life Density Efficiency Safety Target Performance $300/kWh (resi) $250/kWh (C&I) 15 years daily, 100% DoD 23 kwh/m 3 (DC system level) 75% at 100% DoD Non-flammable electrolyte; non-hazardous, noncorrosive when shipped California Energy Commission 40 kw 160 kwh (residential + commercial) UCSD San Diego, CA Q Product Launch: OEM Partner Selection in Q Product Launch in H Eos will select major OEMs for the Residential/C&I sector in

20 DC System Cost Cell / Battery Cost $/kwh Eos Battery and System Cost Lower Than Li-Ion with Growing Cost Advantage Eos Price vs. Li-ion Usable Cost/kWh Comparison 1 0 Cell cost DC integration/pack cost Eos Price Eos Contained Li-Ion Usable Contained Li-Ion Eos Znyth + Abundant low cost materials; simple, easy-toassemble design minimizes manufacturing capex + 100% DoD maximizes capacity utilization for lower $ per usable KWh + Manufacturing does not require clean room; uses commoditized equipment and processes Lithium-Ion Costly and scarce materials; Complex product design (potentially >100 parts) Typical 70% DoD results in greater cost per usable kwh Expensive and specialized facility, clean room for purity tolerances/safety; Significant capex for specialized equipment Today 2020 Notes: Li-Ion cell cost publicly announced by GM Li-Ion cost assumes 70% depth of discharge (DoD); Eos cost assumes 100% DoD all Eos kwh are usable Eos cost validated by major contract manufacturers and suppliers Eos cost lower at lower volume and capex; DoD range widens gap in cost per usable kwh; Safety and stack design reduce balance of system cost Eos Aurora + Inherent safety allows for simple packaging, selfbalancing and string-level monitoring; can eliminate HVAC & fire suppression costs; recyclable + Stack design minimizes wiring, racking & container costs Lithium-Ion Safety concerns require strong protective packaging and cell-level monitoring/bms; Hazardous materials require costly disposal Risk of thermal runaway requires high cost HVAC, fire suppression and containerization Notes: 1. Based on Eos internal research and analysis confidential 20

21 Eos Partnerships Leveraging Capability of Market Leaders MANUFACTURING Utility and IPP partnerships to develop detailed business case analysis, product development, pilot demonstrations and commercial roll-out Partnering with system integrators to provide turnkey, AC integrated products; collaborated on ~1 GWh of proposals Major Global Contract Manufacturers and Suppliers Manufacturing Services Agreements signed with major global Contract Manufacturing Partner; first batteries delivered in July 2016 Minimal Capex and Rapid Scale- Up Simple product design optimized for low cost manufacturing with standard equipment and facilities Validated Low Manufacturing Cost Lowest cost battery system, major global Contract Mfg Partner, potential for significant further reduction confidential 21

22 1/1/2015 2/1/2015 3/1/2015 4/1/2015 5/1/2015 6/1/2015 7/1/2015 8/1/2015 9/1/ /1/ /1/ /1/2015 1/1/2016 2/1/2016 3/1/2016 4/1/2016 5/1/2016 6/1/2016 7/1/2016 8/1/2016 MWh Global Qualified Sales Inquiries Predict Market 29.5 GWh of qualified utility scale interest represents ~$5 Billion in potential revenue Project leads coming from 6 continents; Eos Aegis partners to support global product deployment and service Qualified Leads Over Time Qualified Leads by Region 35,000 30,000 25,000 20,000 15,000 10,000 5,000 Other 5% South / Central America 6% Asia 12% Australia 4% Middle East 3% North America 32% 0 Africa 16% Europe 22% A qualified lead is defined as an active dialogue with a validated purchaser for a viable project where an NDA has been signed Leads continue to grow ~1,500 MWh per month with minimal marketing / PR confidential 22

23 Company Showcase PRESENTING COMPANES Michael Wyman CEO, Origin Solar

24 Company Showcase PRESENTING COMPANES Bud Vos President & CEO, Enbala Power Networks

25 We are creating a Clean, Sustainable and Distributed Energy Future

26 Our grid is inverting. Our resources will be variable. Local Grids (late 1880s) Electric Companies (late s) Transmission (late s) Wholesale (late 1980s-2000s) Grid Edge (today) Confidential & Proprietary

27 In 20 years, the electric industry as we know it will no longer exist. 32% of Utility Executives believe their utilities will become service providers and network operators 84% of our Energy will be derived from distributed and variable generation sources Confidential & Proprietary

28 Which conductor would you rather listen to? Confidential & Proprietary

29 Thank you Arthur (Bud) Vos President & CEO Enbala Power Networks Confidential & Proprietary

30 Company Showcase PRESENTING COMPANES Sean Becker President, Sparkplug Power

31 Company Showcase PRESENTING COMPANES Eric Laufer President, Laufer Wind

32 Radar Controlled Obstruction Lighting for Wind Farms Aircraft Detection System (ADS) October 20 th, 2016

33 Major Impacts Increase at the state and county level in the mandatory use of radar lighting on wind farms Multi-use deployment of radar systems on wind farms Radar Lighting Eagle Tracking Air Traffic Control in-fill Laufer Wind Proprietary 33

34 Addressing #1 Impediment to Wind Development The FAA and other international Civil Aviation Authorities mandate that tall structures, including wind turbines, must be marked with flashing obstruction lights to prevent aircraft collisions. Obstruction lights create a visual nuisance, the #1 cited impediment to wind farm development.* *Iberdrola Study: A Statistical Analysis of Opposition to Wind Farms & Successful Outreach Techniques Laufer Wind Proprietary 34

35 Our Solution Our Aircraft Detection System (ADS) is a radarcontrolled lighting technology that allows obstruction lights to be illuminated only for the small fraction of time (typically <2%) when lowflying aircraft are nearby. A Laufer Wind ADS is currently operational at the US National Renewable Energy Lab (NREL). For less than 0.5% of Total Project Cost, a Laufer Wind ADS can be the difference between a developer being granted or denied a permit to build a $100MM+ wind farm. Laufer Wind Proprietary 35

36 Current Status Mature technology Commercial design complete and field tested Fully certified: FCC, CE, ETL Successful FAA demonstration DNV GL and FAA Technical Notes published Contracts in place: Total: $1.5M Laufer Wind ADS components being installed on a turbine. First wind farm installation happening: Completion 2016Q4 Laufer Wind Proprietary 36

37 Market Outlook Since 2012, we have tracked a 76% CAGR in wind energy projects with a need for radar lighting. We observed a 104% increase in demand between 2015 and Market Australia 1 Canada 24 Germany 13 Italy 1 Norway 4 South Africa 2 Sweden 43 United States 68 Total 157 Number of Farms with Radar Lighting Needs Laufer Wind Proprietary 37

38 Eagle Tracking R&D In February 2016, Laufer Wind, NREL and Auburn University collaborated on taking radar measurements with trained golden and bald eagles. Laufer Wind radar is capable of detecting and tracking birds to greater than 3.5 km. Laufer Wind Proprietary 38

39 Thank you for your time and consideration Laufer Wind 270 Lafayette St Suite 1402 New York, NY Eric Laufer, President Office: Cell: Laufer Wind Proprietary 39

40 Company Showcase PRESENTING COMPANES Tom Stepien CEO, Primus Power

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52 Roundtable Discussions TOPICS Implications of a maturing grid energy storage market Roundtable Host: Bob Zabors Founder & CEO, Enovation Partners Innovation for a majorityrenewable electric grid Roundtable Host: David Henshall Deputy Director for Commercialization, ARPA-E How the C&I customer experiences energy Roundtable Host: Kristin Barbato Managing Director of Enterprise Development, Edison Energy How grid modernization will change the economics of DERs Roundtable Host: Josh Gould Department Manager, Utility of the Future, Con Edison