Paladin SmartGrid Marketing Plan Rev 04c

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Paladin® SmartGrid™ Marketing Plan
Revision 04c
Prepared by Kenneth Wood
Smart Grid Business Development Executive
EDSA Micro Corporation

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Table of Contents
I. Corporate Mission and Objectives............................................................................... 3
II. SmartGrid Market Assessment...................................................................................... 4
III. EDSA Micro Business Review........................................................................................ 7
IV. Paladin® SmartGrid™ Marketing Objectives and Strategies......................... 8
A. Product à Solution Strategies..............................................................................................8
B. Pricing à Value Strategies..................................................................................................11
C. Promotion à Information Strategies .............................................................................14
D. Placement à Access Strategies ........................................................................................17
V. Business Development Strategy................................................................................18
VI. Paladin® SmartGrid™ Unit Forecast and Revenue Projection......................21
VII. Paladin® SmartGrid™ Projected P&L Statements............................................23
VIII. Next Steps (30/60/90 Day Milestones) ...............................................................26
Appendix A: Illinois Institute of Technology (IIT) Intelligent “Perfect Power”
System (“Master”) Controller Requirements ..............................................................28
Bibliography & Endnotes.....................................................................................................31

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I. Corporate Mission and Objectives
EDSA Micro is the market leader in power analytics, the science of scrutinizing electrical power
infrastructure to determine if it is performing properly, utilizing energy efficiently and in a
manner that ensures no operational problems are on the horizon.
EDSA Micro’s power analytics technology is comprised of two platforms which are focused on
the optimal design and operation of electrical power systems: Paladin DesignBase and Paladin
Live. Paladin DesignBase is a highly specialized design and modeling product built using
Computer-Aided Design (CAD) related technologies. Paladin Live is a real-time power and
energy management system that reanimates a DesignBase model to provide unprecedented
levels of both availability and energy management.
Given EDSA’s recent Renewable Energy Secure Communities solicitation (RESCO) win with the
University of California at San Diego (UCSD), the Electric Power Research Institute (EPRI), and
Viridity Energy, a logical market extension for the Paladin Live product (hereafter referred to as
Paladin “SmartGrid”) is the µGrid space. This key win uniquely positions EDSA to expand its
industry presence and leverage an opportunity of increasing interest in the µGrid space and
technology. Market indications are EDSA is five years ahead of anyone else in the space.
EDSA Micro is committed to realizing the “Perfect Power” vision as defined by the Galvin
Electricity Initiative (GEI) by integrating its Paladin SmartGrid technology into a total solution
that achieves unsurpassed power delivery system reliability and availability. Moving forward,
SmartGrid system integrators will fully appreciate how the Paladin SmartGrid technology directly
and positively impacts the “Perfect Power” value proposition. “Perfect Power” is defined by1
:
• Nine-sigma reliability of the power delivery system achieved through digital control and
automation of the SmartGrid that anticipates and corrects disturbances before they occur
• Creation of a “smart Infrastructure” that automates the power distribution system and allows
for instantaneous exchanges of information and electricity between the SmartGrid and the
supply market
• Creation of a smart user portal that allows price signals, decisions, communications, and
network intelligence to flow back and forth through the two-way energy/information portal.
• Seamless array of locally distributed power sources (including solar, wind, fuel cells, UPS,
and generators) which allows users to supply as well as purchase power. This capability
also facilitates the reduction of the user’s carbon footprint.
The core value proposition of “Perfect Power” (and hence, Paladin SmartGrid) is to enable
consumers to manage their electricity use so as to optimize the convenience, cost, and
reliability of electricity service at all times.2
While the terms “power analytics” and “µGrids” are relatively new, the concepts they embody are
extensions of proven, tried-and-true power methodologies that have existed for some time.
EDSA’s Power Analytics™ and Paladin Live ™ technology have already been proven in self-
sustaining, “µGrid-like” environments, with the most demanding requirements imaginable.

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II. SmartGrid Market Assessment
According to Pike Research, the µGrid market will grow over the next six years in 5 distinct
vertical markets (Paladin SmartGrid targets are highlighted in blue):
• Institutional/Campus: Key advantage of common ownership, best near-term opportunities
• Commercial/Industrial: Second best market for near-term
• Community/Utility – Implies a geographical region that includes residential customers.
Most observers predict that this class of µGrids will not achieve widespread commercial
acceptance until standards are in place and regulatory barriers are removed.
• Remote off-grid – this segment represents the greatest number of µGrids currently
operating globally, but it has the smallest average capacity. While many systems have
historically featured diesel distributed energy generation (DEG), the largest growth sector is
solar photovoltaics (PV). Small wind is projected to play a growing role as well.
• Grid-tied Communities
• Military - smallest market segment, these µGrids are just now being developed. They are
integrating Renewable Distributed Energy Generation (RDEG) as a way to secure power
supply without being dependent on any supplied fuel.
Fig.1: µGrid Capacity by Deployment Type, World Markets: 2010-20153
(Pike Research)
0
500
1000
1500
2000
2500
3000
3500
2010 2011 2012 2013 2014 2015
CAPACITY(MW)
Institutional/Campus (Single Owner)
Commercial/Industrial(Multiple Owner)
Off-Grid
Grid-tied Community
Military

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Figure 2 below delineates the expected number of µGrid deployments in each of the five major
growth markets. The selected target markets for Paladin SmartGrid are highlighted in blue.
Fig. 2: µGrid Segmentation by Deployment Type, World Markets: 2010-2015
(Courtesy of Pike Research)
Units 2010 2011 2012 2013 2014 2015 CAGR
Year 0 1 2 3 4 5
North America
Institutional/Campus (Single Owner) Sites 20 24 30 36 43 52 20.84%
Commercial/Industrial (Multiple Owner) Sites 1 45 116 226 392 637 263.82%
Off-Grid Sites 3 8 16 27 45 70 87.72%
Grid-tied Community Sites 14 17 20 23 27 31 16.94%
Military Sites 5 6 6 7 7 7 5.90%
Subtotal Sites 43 100 188 319 514 797 79.27%
Europe
Off-Grid Sites 0 0 1 2 4 7 90.40%
Military Sites 0 0 1 2 4 7 90.40%
Subtotal Sites 8 13 31 82 247 775 149.66%
Asia Pacific
Off-Grid Sites 6 7 9 11 13 16 22.08%
Military Sites 0 0 1 2 4 8 102.54%
Subtotal Sites 17 26 45 84 174 399 88.10%
Rest of World
Off-Grid Sites 1 1 1 1 1 1 8.30%
Military Sites 0 0 1 2 4 7 90.40%
Subtotal Sites 1 1 5 9 17 29 96.24%
Grand Total Sites 69 140 269 494 952 2000 96.11%
Total Potential Sites (TAM) Sites 35 96 202 403 820 1,811
Paladin SmartGrid Wins (10%
of market) (SAM) Sites 3 9 20 40 82 181
An initial 10 percent share of market is forecasted for Paladin SmartGrid due to the following
assumptions:
1) Approximately 14 percent of the TAM will actually have a Master Controller opportunity
and funding to purchase a solution.
2) Approximately 75 percent of the opportunities serviced by EDSA will result in an order
for Paladin SmartGrid.

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Because the Paladin SmartGrid product is a scalable solution, the market price must be based
on the actual size (in MW) of a µGrid deployment. In order to forecast revenue projections for
Paladin SmartGrid, it is important to understand the size of a “typical” deployment.
Fig. 3: Average µGrid Size by Deployment Type: World Markets, 2010–2015
(Courtesy of Pike Research)
Region/Segment Units 2010 2011 2012 2013 2014 2015
Year 0 1 2 3 4 5
North America
Institutional/Campus (Single Owner) MW/site 18.254 18.577 18.068 18.211 18.329 18.094
Commercial/Industrial (Multiple Owner) MW/site 1.000 1.113 1.109 1.108 1.107 1.108
Off-Grid MW/site 3.363 3.354 3.300 3.409 3.338 3.360
Grid-tied Community MW/site 11.523 11.332 11.407 11.628 11.468 11.381
Military MW/site 17.662 16.703 18.540 17.103 17.591 16.801
Subtotal MW/site
Europe
Off-Grid MW/site 0.000 0.000 1.945 2.333 2.798 1.918
Military MW/site 0.000 0.000 1.945 2.333 2.798 1.918
Subtotal MW/site
Asia Pacific
Off-Grid MW/site 9.795 10.712 10.104 9.999 10.202 9.961
Military MW/site 0.000 0.000 3.197 4.079 3.904 3.320
Subtotal MW/site
Rest of World
Institutional/Campus (Single Owner) MW/site - - 0.054 0.065 0.058 0.053
Commercial/Industrial (Multiple Owner) MW/site - - 0.036 0.043 0.039 0.035
Off-Grid MW/site 1.000 1.000 1.295 1.381 1.449 1.490
Grid-tied Community MW/site - - 0.036 0.043 0.039 0.035
Military MW/site - - 0.018 0.022 0.019 0.018
Subtotal MW/site
Grand Total MW/site
Conclusion: Typical µGrid deployment size is approximately 18 MW. This will
provide a benchmark for determining market pricing (in $/W) and projected
revenue for Paladin SmartGrid.

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III. EDSA Micro Business Review
Since its founding 25 years ago, EDSA Micro has been the leading innovator in electrical
distribution systems design and simulation solutions. Today, the Company's products are used
by thousands of customers in virtually every industry in which electrical power serves as the
"central nervous system" of customers' most mission-critical operations.
EDSA Micro is a company in transition opportunistically seizing the emerging marketplace it
created, “Power Analytics.” In response to this opportunity, the Company has evolved from
developing a small desktop design software product (Paladin Design Base) to creating the
world-leading power and energy management system (Paladin Live and Paladin SmartGrid.)
The corporate team has also evolved from a small group of engineers to a professional blend of
management and engineering. The Paladin Design Base product is well positioned, well
respected and a solid cash engine; however, Paladin Live and Paladin SmartGrid are the growth
vehicles for EDSA. Paladin Live and Paladin SmartGrid are enterprise energy and power
management systems for critical power infrastructure.
EDSA has assembled a core management team that has the ability to grow and expand the
company, with a plan to significantly grow sales and share over the planning horizon.
Fig. 4: EDSA Micro SWOT Analysis
Strengths Weaknesses
– FAA install base
– Commercial install base and visibility
– Market awareness
– Patents to protect technology
– Core Management Team
– Patents filed for IP
– Lack of commercial sales
infrastructure and distribution
– Dependence on Eaton
– Lack of International presence
– Lack of critical mass
Opportunities Threats
– Unique green strategy model based
on decision support for energy
management
– Leverage of FAA success throughout
Government
– Continue to expand into Datacenter
and Oil and Gas Markets especially
with a second platform
– Develop strategic partners outside of
Eaton
– Future of Eaton development and
support for Foreseer
– Limited resources to support Paladin
early adopters
– Introduction of perceived
competition with greater market
awareness or resources
– Inability to attract and retain talent

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IV. Paladin SmartGrid Marketing Objectives and Strategies
A familiar methodology for approaching a customer-focused marketing strategy is known as
SIVA (Solution, Information, Value, Access). The SIVA Model provides a demand/customer
centric version alternative to the well-known 4Ps supply side model (product, price, place,
promotion) of marketing management.
Product → Solution
Price → Value
Promotion → Information
Placement → Access
A. Product à Solution Strategies
The distinguishing characteristics of a µGrid include4
• A community-scale power network consisting of interconnected loads and distributed
energy resources which act as an integrated system that can operate in parallel with the
public utility grid or in an intentional “island” mode.
• Integrated distributed energy resources that are capable of providing sufficient and
continuous energy to a significant portion of the internal load demand, even in “island”
mode.
• The µGrid possesses independent controls and is able to “island” with minimal or no
service disruption.
Fig. 5: Overview of a µGrid Architecture5

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In early 2009, EDSA teamed with the University of California at San Diego (UCSD), and Viridity
Energy in a proposal to the California Energy Commission (CEC) for a demonstration site at the
UCSD campus for a µGrid. The Paladin Live platform was proposed to become the “Master
Controller” for the campus µGrid. The team was verbally notified in June 2009 that they had
been selected and would receive a grant from the CEC to proceed with the demonstration
project.
The Master Controller is at the heart of a market-aware µGrid enterprise which enables
“customer preferences for electricity utilization to be expressed and automatically implemented
in a no-fail power system.”
The key characteristics of the Master Controller6
:
• Provides the interface between the system controller and the individual loads, generators,
energy storage, and power conditioning equipment within the µGrid
• Provides the local optimization function for the loads, generation, storage, and power
conditioners within the µGrid based on the economics of local vs. system conditions.
• Provides monitoring and control functions for real-time conditions (including risk
assessment)
• Acts as the primary communication conduit between the µGrid components and the System
Controller to coordinate the resources of the µGrid with the power Grid to improve system
reliability
• Provides an interface for µGrid users to review conditions within the µGrid
Paladin SmartGrid meets the requirements imposed by the Master Controller specification
because it:
• Enables µGrid users to leverage EDSA Micro’s ‘Power Analytics’ technology to diagnose the
real-time “health” of the µGrid by using the original design model as an operational
benchmark
• Provides µGrid users with a powerful method to perform risk assessments using the Paladin
BlackBoard feature, which enables the simulation and testing of real-time µGrid
configurations, maintenance, repair, and other procedures before attempting them live.
• Monitors, controls, and optimizes all transactions between public utility service and the
µGrid infrastructure by looking ahead at possible contingencies and optimizing the µGrid
configuration. This functionality will be deployed within Paladin SmartGrid in conjunction
with Viridity Energy as a part of the RESCO grant with UCSD.
• Maintains and analyzes rate and pricing information for management of private-public
exchange to virtually eliminate risk (facilitating “perfect” power quality and reliability) and
ensure optimal economics. This functionality will be deployed within Paladin SmartGrid in
conjunction with Viridity Energy as a part of the RESCO grant with UCSD.

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Paladin SmartGrid Technology Roadmap
A technology roadmap for Paladin SmartGrid is included as a part of this business plan
to ensure that the short-term and long-term goals relative to specific technology
enhancements are met.
Currently Available Technical Features of Paladin SmartGrid 1.0
• Set point load control – RESCO grant
o HVAC and lighting
• High Penetration Solar – RESCO grant
o Deployment
Technical Features to be incorporated in 2010 – 2011
• Renewable Biofuel
o 400 VDC Modular Data Center
• Solar Power
o Resource analysis (tied California Solar Initiative for 2011)
• Real time power system optimization
o Market based pricing optimization
• Unbalanced load flow
• AC 3phase Real-Time Transient Stability
• AC and DC Real-Time Reliability and Availability
• Real time power modeling
o Market based optimization
Technical Features for Future Releases (schedule TBD)
• Data historian neutral architecture
• Scalable architecture from 1 megawatt on up
• Open source platform

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B. Pricing à Value Strategies
The following paragraphs outline a methodology for determining the market price for
Paladin SmartGrid.
1) As EDSA Micro kicks off its marketing and sales campaign and engages with its target
customers (page 19), a line of questioning will be employed where EDSA extracts
customer-incurred costs due to a lack of a Perfect Power µGrid. Using this information,
EDSA can perform a routine ROI analysis for that particular customer which will typically
offer a compelling case for Perfect Power. Additionally, through this analysis, EDSA can
put together a strong business case for the value (i.e., market price) of Paladin
SmartGrid for each opportunity.
2) The questions below would be typically asked at an initial interview (either by telephone
or face-to-face) with a potential customer. These questions would also be posed to key
µGrid system integrators based on experiences with their clients:
a. What direct and indirect costs do you incur because of poor power quality and
peak demand utility pricing? Can you delineate these costs?
b. Are you considering deploying a µGrid or SmartGrid within the next year? Will
your application require a Master Controller in order to achieve “Perfect Power”
reliability and optimized economics? What would be the value to you to be able
to analyze the effects of power disturbances on your particular installation based
on data collected in real time?
c. What other solutions have you investigated? (This information can be used to
enhance EDSA’s understanding of the competitive landscape for Paladin
SmartGrid).
3) Developing a compelling case in the customer’s mind that he should invest in “Perfect
Power” (and hence, Paladin SmartGrid) is achieved by quantifying the value proposition
in terms of return on investment (ROI). A value-based pricing strategy for Paladin
SmartGrid results from this analysis.
a. ROI Assumptions:
i. Cost of capital: 7 percent
ii. Payback period: 3 – 5 years depending on actual savings
iii. 7-year IRR needs to exceed cost of capital
4) Value Proposition Quantification (Illinois Institute of Technology example, 12MW
installation)
Paladin SmartGrid facilitates the reduction of customer direct and indirect costs through
unsurpassed power availability/reliability and optimized economics. A good illustration
of the potential value of Paladin SmartGrid is to use a case study example from the
Illinois Institute of Technology (IIT) as presented in Endurant Energy’s final report on the
IIT “Perfect Power” prototype.7
a. Projected yearly savings from optimized economics: $750K - $2.0M
b. Cost of 2 hour blackout at a typical university installation: (approximate
frequency of 2x per year)

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c. Cost breakdown of a 4-hour power outage:8
Cost Impact Monetary Value
Lost Productivity 3000 people @ $30/hr for 4 hours $360,000
Restoration &
Recovery
Temporary power equipment and staff resources $100,000
Recovery of Research
Experiments
5 experiments, 400 hours each, $30/hr $60,000
Total $520,000
Therefore the approximate annual savings realized by Perfect Power range is the sum of
optimized economics savings and power outage cost avoidance:
Min: $750K + $520K = $1.27M Max: $2.0M + $520K = $2.52M
This does not include the $7M capital expenditure cost avoidance for sub-station and power
network distribution upgrades that would be required if Perfect Power was not deployed.
The functional cost breakdown for the four fundamental Technical Areas of the IIT Perfect
Power Solution is presented below. The functionality offered by Paladin SmartGrid is
highlighted in blue:
Function Percentage of Total Cost
Digital control and automation of power delivery system 5%
Smart infrastructure 5%
Smart metering 40%
Locally-distributed power sources 50%
SmartGrid ROI - Illinois Institute of Technology (12 MW)
Annual Savings ($M) Yearly
7-year IRR Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Savings Rate
($/W)
-8% (12.00) 1.2 1.2 1.2 1.2 1.2 1.2 1.2 0.10
1% (12.00) 1.80 1.80 1.80 1.80 1.80 1.80 1.80 0.15
7% (12.00) 2.20 2.20 2.20 2.20 2.20 2.20 2.20 0.18
9% (12.00) 2.40 2.40 2.40 2.40 2.40 2.40 2.40 0.20
16% (12.00) 3.00 3.00 3.00 3.00 3.00 3.00 3.00 0.25
µGrid infrastructure cost ($/W) $1.00
Capacity (MW) 12
Total Cost $12.00 M
Analysis adding in the $7M capital expenditure savings (Approximately $1M or $0.08/W per year)
Annual Savings ($M) Yearly
7-year IRR Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Savings Rate
($/W)
7% (12.00) 2.2 2.2 2.2 2.2 2.2 2.2 2.2 0.18
14% (12.00) 2.80 2.80 2.80 2.80 2.80 2.80 2.80 0.23
21% (12.00) 3.40 3.40 3.40 3.40 3.40 3.40 3.40 0.28

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Recalling the Four Fundamental Technical Areas of "Perfect
Power" Innovation…
Function
Multiplier
Function Cost
($M)
Digital control and automation of power delivery system 0.05 0.60
Smart infrastructure 0.05 0.60
Smart metering 0.4 4.80
Locally-distributed power sources 0.5 6.00
Total 1 12.00
Conclusion: Based on this analysis, the ROI for Perfect Power at IIT is
compelling when yearly savings exceed $2.2M. A functional cost breakdown
indicates the market price for Paladin SmartGrid is approximately $0.05/W of
SmartGrid system capacity.

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C. Promotion à Information Strategies
With the launch of Paladin SmartGrid, EDSA will be introducing an existing successful
product (Paladin Live) into a new market for the company, namely SmartGrid. As such, the
promotion portion of the marketing strategy should be structured around the following
goals:
A. Formal introduction of EDSA Micro to the SmartGrid industry
B. Declaration of EDSA Micro’s commitment to the Perfect Power vision
C. Establishment of EDSA Micro as the premiere (and exclusive) supplier of µGrid Master
Controller solutions
D. Formation of deep relationships with SmartGrid industry thought leaders and
influencers
E. Creation of a marketing “buzz” around EDSA Micro and Paladin SmartGrid within the
space through a continuous stream of press releases and white papers that convey a
strong sense of activity, investment, and involvement
1. Industry Trade Shows
There are several SmartGrid-oriented trade shows being organized for 2010. Initially, EDSA
personnel will attend some or all of these shows to establish contact with industry thought
leaders and influencers along with the gathering of potential customer leads. A follow-on
strategy will be for EDSA (in possible conjunction with Viridity Energy?) to formally exhibit at
those shows that yield the maximum ROI. As new trade show information is made
available, it will be incorporated into this plan.
a. IEEE Power & Energy Society (PES) Conference on Innovative Smart Grid
Technologies – NIST, Gaithersburg, MD Jan. 19-21, 2010 (Ken Wood attending)
http://ewh.ieee.org/conf/isgt/2010/
b. SmartGrid Summit – Miami Beach, FL Jan. 20-22, 2010
http://smart-grid.tmcnet.com/conference/east-10/e-10-why-attend.aspx
c. SmartGrid & Overhead Distribution Reliability Conference –
Columbus, OH Feb. 9-11, 2010
http://www.exacterinc.com/conference.html
d. National SmartGrid Forum – Sydney, NSW, Australia Mar. 23-25, 2010
http://www.smartgridsevent.com.au/Event.aspx?id=246238
2. Internet Marketing à EDSA Micro Web-site
The EDSA Micro website should serve as the primary tool for Paladin SmartGrid inbound and
outbound marketing. Inbound marketing tactics will focus on the task of helping
prospective customers “find” EDSA Micro and Paladin SmartGrid, while outbound marketing
tactics will facilitate a steady flow of company and product information to prospective
customers.

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a. Inbound Marketing Activities
• Search engine optimization (suggested keywords: microgrid, smartgrid, master
controller, perfect power, power analytics)
• Banner advertising with EDSA link on sales partners websites (Viridity Energy,
select µGrid system integrators)
• Banner advertising with EDSA link and press releases on industry trade websites
b. Outbound Marketing Activities
The Paladin SmartGrid web page should clearly communicate the value proposition
of Paladin SmartGrid (in both technical and non-technical terms) and demonstrate
EDSA Micro’s commitment to the “Perfect Power” vision. The complete message
needs to include:
• Press Release Archive
• Perfect Power ROI Business Case Analysis
• White papers
• Downloadable videos or link to YouTube (EDSA Micro corporate overview, Paladin
SmartGrid product demo)
• Links to select industry websites (GEI, EPRI, etc.)
• Link to Viridity Energy website
All of these tasks could and should be completed by the end of Q2CY10.
3. Internet Marketing à Press Release Topics and Schedule
a. “EDSA introduces Paladin® SmartGrid™, the first Micro Grid Master Controller for
management and control of micro grids using alternative energy sources” – January
5, 2010
b. “EDSA enters into strategic relationship with Viridity Energy to supply “Perfect Power”
solution to University of California at San Diego” (PROPOSED)
c. “EDSA attends IEEE PES Conference on Innovative Smart Grid Technologies”
(PROPOSED)
d. “EDSA hires seasoned business development professional to expand market demand
for Paladin SmartGrid” (PROPOSED)
e. Press Release about potential business agreements between EDSA and IIT, EDSA and
Texas A&M, etc. (PROPOSED)
4. Internet Marketing à Industry Web-sites
As stated previously, a portion of EDSA Micro’s inbound marketing strategy should
include an evaluation of industry trade websites (especially with respect to target
audience) for suitable banner advertisement placement opportunities. The banner
advertisements would contain an embedded link to the EDSA website which would
gather e-mail address contact information.

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Fig. 6: SmartGrid Industry websites
SmartGridNews.com http://www.smartgridnews.com/index.html
SmartGridToday.com http://www.smartgridtoday.com/
SmartGrid-TMC.net http://smart-grid.tmcnet.com/Default.aspx
Galvin Electricity Initiative http://www.galvinpower.org/
Uptime Institute http://www.uptimeinstitute.org/
SmartGrid Careers http://www.smartgridcareers.com/
GreenGrid.org http://greengrid.org/
Electric Power Research Institute http://my.epri.com/portal/server.pt?
IEEE SmartGrid http://smartgrid.ieee.org/ieee-smartgrid-news
Prefabricate http://www.refabrica.com/
Future Renewable Electric Energy
Delivery and Management Systems Center
http://www.freedm.ncsu.edu/
Sustainable Industries http://www.sustainableindustries.com/
Industry website evaluation and candidate selection for banner advertising should be
completed by end of Q1CY10.
5. YouTube Videos
A portion of EDSA’s outbound marketing strategy should include an offering of short
videos (to be available for viewing on YouTube) on the following subject matter:
a. EDSA Micro Corporate Overview
b. Paladin SmartGrid webinar demo – useful for customers and as a sales tool
6. White Papers
White papers, in the outbound marketing sense, are technical communication
documents designed to promote EDSA Micro and its products/solutions. White papers
generated for Paladin SmartGrid will be written by EDSA Micro technical personnel and
used to generate sales leads, establish thought leadership, make a business case, or
educate customers.
White papers written for Paladin SmartGrid will most likely fall into three main
categories:
• Business-benefits: Make a business case for Perfect Power and the Master
Controller concept
• Technical: Describe how Paladin SmartGrid meets the requirements of the GEI
“Master Controller” specification
• Hybrid: Combines high-level business benefits with technical details in a single
document
If possible, the launch of any white paper should coincide with the timing of an industry
trade show (possible presentation) or important press release.

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D. Placement à Access Strategies
1. End Customer Profile
Earlier in this document, it was established that the three target vertical markets for
Paladin SmartGrid were academic institutions, commercial/industrial clusters, and
military installations. Generally speaking, a potential End-Customer Profile in each of
these markets would contain the following attributes:
a. Installation size of > 10 MW (assumption based on Pike Research)
b. Uses a mix of alternate energy sources (UPS, generator, wind, solar, fuel cells, etc.)
in conjunction with the utility to facilitate a continuous “Perfect Power” grid.
c. The alternate sources are NOT just used during an emergency situation such as a
loss of utility.
d. The value proposition of high power availability/reliability coupled with optimized
economics (branded as “Perfect Power”) is clearly understood and valued.
e. Desires the ability to perform “what if?” scenarios in real time based on actual
system parameter measurements.
2. Selling Channel Strategy
In most cases, the µGrid user will be sourcing his Perfect Power solution components
through a variety of direct and indirect procurement/service channels; hence EDSA Micro
will need to incorporate a selling strategy that addresses both of these channels.
a. Direct channel – EDSA Micro personnel independently identify and pursue Paladin
SmartGrid opportunities within the target markets. This channel offers EDSA Micro
the maximum amount of control over the sales process but least amount of market
coverage. Typical end-customers in this channel (although not for every
opportunity) would include:
• Universities/academia
• Commercial/industrial clusters
• Global OEMs (e.g., Lockheed Martin, Honeywell)
• Military installations
• Utilities
b. Indirect and/or partner channels – This strategy can take on two different forms:
I. EDSA Micro partners with select SmartGrid system integrators to pursue Perfect
Power opportunities as a cohesive team
II. EDSA Micro licenses Paladin SmartGrid to select SmartGrid integrators
Both of these scenarios allow EDSA Micro to significantly increase its market
coverage for Paladin SmartGrid by leveraging the existing relationships between
SmartGrid system integrators and potential µGrid end customers. However potential
pitfalls exist because of a lesser degree of control over the sales process and a
higher possibility of channel conflict or penetration from Paladin SmartGrid’s
perceived competitors.

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V. Business Development Strategy
1. Paladin SmartGrid Target Customer List (next page)
In their “Perfect Power” book, Bob Galvin and Kurt Yeager provide an extensive list of
industry “Institutions and Companies to Watch” which conveniently serves as a suitable
directory of SmartGrid influencers and system Integrators. The stratified target customer
and strategic partner list for Paladin SmartGrid provided in Fig. 7 was mined from this
information along with additional leads uncovered from EDSA Micro independent research.
Stratification rankings range from “A” to “D” to indicate overall priority for pursuing Paladin
SmartGrid opportunities.
2. Sales Methodology
EDSA’s Paladin SmartGrid business development professional will contact each company on
this list and perform the following:
a. Introduce EDSA Micro
b. Determine if a potential Master Controller opportunity (including funding) exists
c. Convince potential customer to participate in a web-based or live demo of Paladin
SmartGrid.
d. Convince potential customer to provide µGrid deployment details and request a
Paladin SmartGrid quote.
e. Perform all required customer engagement and follow-up to obtain order for Paladin
SmartGrid.

REV. 04C
19
Fig. 7: Stratified Paladin SmartGrid Target Customer List
Company/Organization Classification
Potential EDSA
Relationship Stratification Web-site Contact
BPL Global, Ltd. Smart Grid integrator Partner A www.bplglobal.net
Current Group Integrated smart-grid solutions Partner A www.currentgroup.com
Electric Power Research
Institute SmartGrid Thought Leader Partner A www.epri.com
Energy Control Inc.
Smart Grid integrator -
intelligent buildings Partner A www.energyctrl.com Jack McGowan
Enspiria Solutions Smart Grid integrator Partner A www.enspiria.com
Galvin Electricity Initiative SmartGrid Thought Leader Partner A www.galvinpower.org Kurt Yeager
Illinois Institute of Technology Academic institution End-customer A www.iit.edu
Dr. Mohammad
Shahidehpour
Intelligent Power Partners
Distributed energy assets for
commercial office buildings Partner A www.endurantenergy.com John Kelly
Lockheed Martin
Engineering and business
services deliver state-of-the-art
technical innovations designed
to modernize the nation’s
utilities. End-customer A
http://www.lockheedmartin.co
m/products/energy-
solutions/index.html
Texas A&M University Academic institution End-customer A http://www.ece.tamu.edu/
Mladen
Kezunovic
UC - San Diego Academic institution End-customer A www.ucsd.edu Byron Washom
Ventyx
Business solutions provider to
energy and utility markets Partner A www.ventyx.com Jay Jenkins
Accenture Management consulting Partner B www.accenture.com Maura Rudolph
Boeing
Aerospace - St. Louis military
grade cyber security project End-customer B www.boeing.com
CASNE Engineering Inc. System Integrator - Paladin Live Partner B www.casne.com Nick Wiley
Chevron Energy Solutions
Consulting firm to international
energy companies Partner B www.chevronenergy.com Roy Mulvaney
Comverge Inc. DR solutions Partner B www.comverge.com Scott Sullivan
Delta Controls Building automation systems End-customer B www.deltacontrols.com
DST Controls System Integrator Partner B www.dstcontrols.com Greg Dumas
Enernex
Consulting firm specializing in
the
development and application of
new electric power technologies Partner B www.enernex.com
EnerNOC Inc.
DR and energy management
solutions Partner B www.enernoc.com
General Electric (GE) Energy products and services End-customer B www.ge.com
GridPoint Inc. Clean technology End-customer B www.gridpoint.com Paul Duncan
Horizon Energy Group LLC
Value-added services to energy
industry Partner B
www.horizonenergygroup.co
m
IBM Global Business Services Business consulting services End-customer B
www.ibm.com/services/us/gb
s/bus
Optimal Technologies Optimal energy usage solutions End-customer B www.otii.com
PCN Technology
PCN designs, develops and
commercializes Grid
MicroCircuits™ End-customer B www.pcntechnology.com
Pecan Street Project - Austin,
TX
Hub of clean energy
development in Austin End-customer B www.pecanstreetproject.org
Power Secure
End-to-end provider of resilient
DG solutions for utilities,
municipalities, and commercial
customers Partner B www.powersecure.com
Rovisys System Integrator Partner B www.rovisys.com Joe Maukonen
Silver Spring Networks DR software Partner B
www.silverspringnetworks.co
m Edward Quick

REV. 04C
20
Company/Organization Classification
Potential EDSA
Relationship Stratification Web-site Contact
Automated Logic Inc. Building automation systems End-customer C www.automatedlogic.com Scott Kolkebeck
Babcock & Wilcox Energy products and services Partner C www.babcock.com Doug Johnson
Balance Energy
End-to-end provider of resilient
DG solutions for utilities,
municipalities, and commercial
customers Partner C
www.balanceenergysolutions.
com
Cooper Industries
Electrical distribution and control
products End-customer C www.cooperindustries.com Scott Feldbush
Cooper Power Systems
Medium- & high-voltage
electrical equipment End-customer C www.cooperpower.com Derek Schwarz
Invensys
Industrial, commercial, and
residential automation controls End-customer C www.invensys.com
Johnson Controls Battery controls for PHEVs Partner C www.johnsoncontrols.com
S&C Electric Company
Electric power systems
equipment and services Partner C www.sandc.com
Siemens - Building Technology
Division (SBTD)
Home comfort infrastructure
products Partner C
www.buildingtechnologies.sie
mens.com Bill Stayart
AEP - Ohio Utility End-customer D www.aepohio.com
American Electric Power (AEP) Utility - OH End-customer D www.aep.com Kurt Wissner
Ausra Inc.
Utility-scale solar thermal power
technology End-customer D www.ausra.com
Austin Energy Utility - Austin, TX End-customer D www.austinenergy.com
Consolidated Edison Utility - NYC End-customer D www.coned.com
Duke Energy Utility - NC End-customer D www.duke-energy.com
Kansas City Power & Light Utility End-customer D www.kcpl.com
Nstar Utility - Massachusetts End-customer D www.nstaronline.com
Progress Energy Utility - Carolinas, Florida End-customer D www.progress-energy.com/ Becky Harrison
Southern California Edison Utility - Los Angeles End-customer D www.sce.com

REV. 04C
21
VI. Paladin SmartGrid Unit Forecast and Revenue Projection
The following common assumptions were made in compiling the Best, Typical, and Worst Case
Scenarios for the Paladin SmartGrid unit forecasts and revenue projections:
• Average deployment size: 18 MW
• Paladin SmartGrid market price will increase 5 percent per year due to inflation
• Paladin SmartGrid revenue is not realized until customer is invoiced
Best Case Scenario
EDSA wins 18% Share of Pike Research Forecasted Market
Average Deployment Size: 18 MW
Paladin SmartGrid Market Price of $0.05/W
Paladin SmartGrid Units Invoiced
1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H
CY10 CY10 CY11 CY11 CY12 CY12 CY13 CY13 CY14 CY14 CY15 CY15
SmartGrid Deployments Total
CY2010 6 1 2 3
CY2011 17 2 6 9
CY2012 36 4 16 16
CY2013 72 5 13 27 27
CY2014 123 8 35 40 40
CY2015 100 15 85
Sub Totals 1 2 5 6 13 21 29 27 35 35 55 125
CY 2010 2011 2012 2013 2014 2015
Paladin SmartGrid Units Invoiced 3 11 34 56 70 180
ASP ($M) 0.90 0.95 0.99 1.04 1.09 1.15
Revenue ($M) $ 2.7 $ 10.4 $ 33.7 $ 58.3 $ 76.6 $ 206.8

REV. 04C
22
Typical Case Scenario
1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H
CY2010 3 1 2
CY2011 9 3 4 2
CY2012 20 7 7 6
CY2013 40 12 12 16
CY2014 80 25 25 30
CY2015 120 60 60
Sub Totals 1 2 3 4 9 7 18 12 41 25 90 60
CY 2010 2011 2012 2013 2014 2015
ASP ($M) 0.54 0.57 0.60 0.63 0.66 0.69
Revenue ($M) $ 1.6 $ 4.0 $ 9.5 $ 18.8 $ 43.3 $ 103.4
Worst Case Scenario
1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H
CY2010 3 1 2
CY2011 9 3 4 2
CY2012 20 7 7 6
CY2013 40 12 12 16
CY2014 80 25 25 30
CY2015 120 60 60
Sub Totals 1 2 3 4 9 7 18 12 41 25 90 60
CY 2010 2011 2012 2013 2014 2015
ASP ($M) 0.18 0.19 0.20 0.21 0.22 0.23
Revenue ($M) $ 0.5 $ 1.3 $ 3.2 $ 6.3 $ 14.4 $ 34.5

Paladin SmartGrid Marketing Plan Rev 04c

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