The value of an integrated Wind Power and Energy Storage solution. Turning excess energy into dispatchable power

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1 The value of an integrated Wind Power and Energy Storage solution Turning excess energy into dispatchable power Martin Larocque October 207

2 Energy Storage Canada Energy Storage Canada is the only industry association that represents the broad range of companies and technologies engaged in energy storage in Canada Founded in 203 as Energy Storage Ontario, the organization rebranded and expanded in 206 to include a focus on national, federal opportunities. Our membership represents all players along the energy storage value chain -- technology providers, project developers, investors and operators, local electricity distribution companies, etc. Our goal is to advance the role of energy storage, strengthen the market for energy storage, and showcase the value that energy storage can bring to optimize the energy system, the environment and strengthen the innovation economy. 2

3 Why Energy Storage? As the world continues to use more renewable power, whose production does not necessarily align with demand, the need for energy storage solutions grows at an exponential rate. In N-A, power grids can presently accommodate some 5-20% of power generated with intermittent sources, but after that point new energy sources must be built to accommodate the peaks and troughs, if there is not an energy storage system in place. We did not need Nostradamus for that 3

4 What s Driving the need for Storage? The rapidly growing contribution from renewable/variable generation (wind & solar) Need to optimize all resources on grid Increased grid resilience and efficiency A surplus of baseload generation at night when demand is low Canadian Clean tech innovation and economic development 4

5 Energy Storage Value Proposition Energy Storage; a broad range of innovative technologies for a broad range of applications: 27,000 (+) MW energy storage installed worldwide Roughly equivalent to all the installed capacity in Canada Including: Batteries (many types), flywheels, compressed air energy storage (CAES), conversion to hydrogen fuel (power to gas), pumped storage hydro (installed and running for decades) 5

6 Energy Storage Value Proposition Energy storage is versatile and plays multiple roles in supporting the electricity grid including: Avoided distribution/transmission upgrades Capacity and operating reserve Regulation services Voltage support and black start Ramping to support slow or variable generation Carbon reductions Uninterrupted power supply State of Charge - Massachusetts Energy Storage Initiative, Different storage technologies play different roles on the power grid From behind-the-meter (batteries) To distribution/transmission support (batteries, flywheels, CAES) To bulk system storage (power to gas, CAES, Pumped Hydro) 6

7 Use Case Exemples; Behind-the-meter home battery storage Store when grid price is low and use when high Store your own wind/solar for lower carbon footprint 7

8 Ancillary Services Stabilizes short-term Fluctuations. Minto, Ontario 8

9 Power to Gas Hydrogen Electrolysis Process 9

10 Hybrid Thermal - Compressed Air Energy Storage Sigma Energy Hydro-Sherbrooke Peak Shaving application Diesel Displacement 0

11 My objective; demonstrate why Energy Storage = More Wind

12 Energy Storage Case study Current State; - Largely Wind and Nuclear Grid Balancing; - Natural Gas Peaking Power Plants Result; - Negative Pricing during the night - Negative impact on the environment (90% CO 2 e vs Coal*) - High Price per KWh 2 *

13 Energy Storage Case study Current State; - Largely Wind and Nuclear Using same demand curve Grid Balancing; - Seasonal, large scale HT-CAES Result; - Install 30 to 40% more Wind infrastructure - Eliminate negative night (store excess / multiple GWh) - Deliver a complete non-emitting infrastructure - Lower the price of electricity per KWh to end-users 3

14 The Canadian Energy Storage Roadmap Status Update Webinar April 207 4

15 Canadian Energy Storage Roadmap 5 5 Canadian Energy Storage Roadmap Terms of Reference:

16 ES Roadmap Project Scope 6 Canadian ES Roadmap Update Webinar April 207 6

17 The Voice of Leadership in Energy Storage in Canada 7

18 Merci / Thank you! Martin Larocque Co-Founder & CEO Sigma Energy Storage Inc. m.larocque@sigmaenergystorage.com