The document discusses energy storage systems and their applications. It provides information on: 1) Different types of energy storage systems including mechanical, electrochemical, and thermal systems. 2) Common applications of energy storage including renewable integration, microgrids, and frequency regulation. 3) Experience deploying large battery storage projects globally and the growth of lithium-ion batteries for grid-scale storage.

1. © Wärtsilä
LATEST IN ENERGY
STORAGE
Energy Integration Workshop
Wartsila/Greensmith
Dakar – 22 May 2018
Loïc CHARMOILLE
Proposal manager Africa
1 23.5.2018 Energy Solutions

2. © Wärtsilä 23.5.2018 Energy Solutions2
WHAT IS ENERGY STORAGE ?
Mechanical systems
Electrochemical systems

3. © Wärtsilä 23.5.2018 Energy Solutions3
ENERGY STORAGE SYTEMS FUTURE DEPLOYMENTS
Source: Bloomberg New Energy Finance

4. © Wärtsilä 23.5.20184
ENERGY STORAGE SYTEMS APPLICATIONS
Grid Reliability
• FR Regulation (PJM, CAISO)
• Voltage Resp./PF Correction
• Spinning Reserve
• T&D Deferral/Peak-shift
• Load leveling/Peak Shaving
Hybrid Engine
Optimization
• DER Management
• Fleet Aggregation
• Asset Optimization
Renewable
Integration
• PV Firming
• PV Ramp Control
• PV Smoothing
• Curtailment Capture
Microgrid
• Islanding Grid
• Grid Forming
• Frequency Drooping
• Black Start
• Control DER
Energy Solutions

5. © Wärtsilä 23.5.2018 Energy Solutions5
APPLICATIONS FOR EACH ESS
System Power Rating (MW)
EnergyDischargeTimeatRatedPower
Seconds
Minutes
Hours
100 kW 1 MW 10 MW 100 MW 1,000 MW10 kW1 kW
UPS Grid Support Energy Management
Power Quality Load Shifting Bridging Power Bulk Power Management
Peak Shaving
T&D Deferral
Load Leveling
Ramping
Energy Arbitrage
Spinning
Reserve
Frequency Regulation
Renewables
-- Wind
-- Solar
Metal Air Battery
Ni-Cd Battery
Ni-MH Battery
Lead Acid Battery
High Power Super Caps
High Power Fly Wheels
Hi Energy
Super Caps
Pumped Hydro
CAES
SMES
Flow Batteries
ZrBr VRB PSB Novel Systems
NaS Battery
ZEBRA Battery
Advanced Lead Acid Battery
Lithium-ion BatteryLithium-ion Battery
Source: EPRI and Greensmith

6. © Wärtsilä 23.5.2018 Energy Solutions6
COMMISSIONED BATTERY STORAGE SYSTEMS
Source: Bloomberg New Energy Finance

7. 7
SOLAR AND STORAGE EXPERIENCE CURVES
Note: Prices are in real (2015) USD. ‘Current price’ is $0.4/W
Source: Bloomberg New Energy Finance, Maycock Source: Bloomberg New Energy Finance, Long-Term Electric Vehicle Outlook 2017, August 02, 2017
0.1
1
10
100
1 10 100 1,000 10,000 100,000 1,000,000
1976
1985
2003
2012
Cumulative capacity (MW)
2016
2008
SOLAR PV MODULE COST ($/W)
SOLAR COSTS
HAVE FALLEN
90% since 2009
Learning rate 24.3%

8. © Wärtsilä 23 May 20188
Utility-scale commissioned energy storage projects
55%
30%
57%
66%
58%
87%
98%
4%
6%
1% 18%
6%
32%
51%
15%
29% 15%
12% 12% 16%
4% 5% 3%
2011 2012 2013 2014 2015 2016 H1 2017
% by MW
Other
Flow batteries
Lead-based batteries
Sodium sulphur batteries
Lithium-ion batteries
BATTERY TECHNOLOGY MIX
Source: Bloomberg New Energy Finance, 2H 2017 Global Energy Storage Market Outlook
Energy Solutions

9. © Wärtsilä 23.5.2018 Energy Solutions9
COMMISSIONED BATTERY STORAGE SYSTEMS
Source: Bloomberg New Energy Finance, survey of more than 50 companies

10. © Wärtsilä 23 May 2018 Energy Solutions10
Commissioned battery systems for grid storage (>10 MW)
BATTERY TECHNOLOGY MIX
Source: DOE Global ES Database

11. © Wärtsilä 23.5.2018 [Presentation name / Author]11
FUTURE-PROOFING ENERGY STORAGE
Short System Track-Record Market Uncertainty
• Median grid-scale ESS is <5 years old
• Only 14 grid-scale ESS globally have
operating history of >10 years
• Many storage revenues are paid via short-
term contracts or entirely merchant markets
• In 2017 PJM changed Reg D signal, cutting
revenue for ESS without flexibility in half

12. © Wärtsilä
FUTURE-PROOFING ENERGY STORAGE
January 2017 PJM changes regulation AGC signal without notice
presenting significant challenge to 250MW battery investments
- Energy neutrality from 15 minutes to 30 minutes
- Energy throughput up 62%
- More frequent full charge/discharge calls
PJM old signal
PJM new signal

13. © Wärtsilä
Greensmith Snapshot
GREENSMITH – A WÄRTSILÄ COMPANY INTRODUCTION
• VC-backed, founded in 2008
• Grid-scale energy storage leader
• Turn-key, integration and software
• Now a Wärtsilä company – operating in 176
countries with 64GW installed base
• Multiple awards: fastest growing
• Over 60 systems delivered globally
• A third of total 2016 US capacity
• Five top systems in PJM FR market
• Battery-agnostic:16 battery and 12 inverter
types integrated – allows for best of breed
• Total raw pipeline reaching $1B globally

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GREENSMITH EXPERIENCE
Technology neutral.
Total flexibility.
Power electronics
Batteries
Energy Solutions

15. © Wärtsilä
Indicative Deployments
GREENSMITH EXPERIENCE
2MW/6MWh - CA
Grid Deferral to Utility
1MW/500kWh – Puerto Rico
Microgrid/Solar Integrated to OEM
1MW/500kWh – Puerto Rico
Microgrid/Solar Integrated to OEM
20MW/9MWh PJM - IL
Freq Regulation to IPP
2MW/14MWH – WV
Backup & Freq Regulation to Utility
23.5.2018 Energy Solutions

16. © Wärtsilä
GREENSMITH EXPERIENCE
23.5.2018 Energy Solutions
Power Energy Battery PCS
SW
Control
Application Location Scope COD
40 MW 15 MWh Leclanché WSTech GEMS 5 PJM FR PJM Hybrid Q4 2017
13 MW 53 MWh Leclanché WSTech GEMS 5 Frequency Resp, Cap. Ontario, Can SW Control Q4 2017
10 MW 4 MWh Toshiba Parker GEMS 5
PV Integration +
Frequency Response
AZ Hybrid 2017
20 MW 80 MWh Samsung Parker GEMS 5
Resource
Adequacy/FR
CA Turnkey 2016
125 kW 250 kWh Kokam Ideal GEMS 4
BTM Microgrid with
PV
CA Turnkey 2016
2 MW 800 kWh LG Chem Parker GEMS 4 PJM FR PJM Hybrid 2015
18 MW 7 MWh LG Chem Parker GEMS 4 PJM FR PJM Hybrid 2015
1 MW 500 kWh JCI Eaton GEMS 4 PJM FR OH Hybrid 2015
1 MW 500 kWh JCI Ingeteam GEMS 4 Solar PV RRC Puerto Rico Hybrid 2015
1 MW 3 MWh Samsung ABB GEMS 4 Distribution Deferral CA Turn-Key 2015
20 MW 9 MWh LG Chem ABB GEMS 4 PJM FR PJM Turn-Key 2014
1 MW 3 MWh Samsung ABB GEMS 4 Distribution Deferral CA Turn-Key 2014
50 kW 100 kWh Aquion Siemens GEMS 4 PV Integration VA SW Control 2014
10 kW 40 kWh ViZn Siemens GEMS 4 PV Integration VA SW Control 2014
500 kW 1.5 MWh Winston Satcon GEMS 3 PV/EV Integration CA Turn-Key 2012
3@30 kW 30 kWh Saft PowerHub GEMS 3 CES Fleet Control CA SW Control 2013
50kW 83kWh Int’l Bat Satcon GEMS PV/EV Integration CA Turn-Key 2011

17. © Wärtsilä
GREENSMITH EXPERIENCE
Alta Gas
20MW/80MWh
KEY TAKEAWAY
5 months NTP to COD
DEPLOYMENT
20MW/80Mwh ESS
SOLUTION
Renewables integration
CLIENT PARTNER
Alta Gas

18. © Wärtsilä 23.5.2018 [Presentation name / Author]18
ALISO CANYON GAS LEAK – ENERGY STORAGE RESPONSE
• Installed 20MW/80MWh in 4 months 12,500 ft2
• Largest in-building deployment globally
• Fastest responding asset in SCE territory (period)
• First Aliso Canyon system qualified by CAISO
• AltaGas paid for capacity by SCE but bidding into dynamic markets
Pomona System Time-Lapse Video – System of the Year Award
https://www.youtube.com/watch?v=fo6rnfqlVp8

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METAL PRICE IMPACT
Energy Solutions
• alternative to NMC Batteries are lithium-ion chemistries such as lithium manganese oxide (LMO) or
lithium iron phosphate (LFP), which are suitable for applications like power tools and electric buses.
However, both these alternatives are not energy dense enough to be used in automobiles or mobile
phones

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20
Greensmith Energy
A global leader in energy storage integration
Germany/EU
PRC > 1GW
Weekly Auction
North America
Bilateral Agreements with
various integrated utilitiesCAISO
Reg Up/Reg Down
Merchant Market
United Kingdom
EFR 201MW
FFR > 1GW
4,2 year contracts
PJM
Reg A: >2GW
Reg D: > 250MW
Merchant Market
ERCOT
REM: 60MW
Demo Market
Hawaii
Ramping/Duck Curve
Bilateral Agreements
Philippines
Bilateral Agreement
Puerto Rico
MTR: RRC -> FR
All solar Australia
FCAS: >1GW
Merchant
India
Bilateral Agreement
Thailand
Bilateral Agreement
Over 70 systems deployed around the world

21. © Wärtsilä
FUTURE-PROOFING ENERGY STORAGE
Energy Storage As a Major Grid Resource in 2016
• Ancillary Services in PJM and other ISOs, Canada,
United Kingdom with International Growth
• AB2514 and Aliso Canyon Crisis in California
− California transitioning towards renewables
− Major gas reservoir leak
− Three ESS projects, totaling 70 MW / 280 MWh installed
in <6 months to meet peak power crisis
− Kevin Payne, CEO of SCE: “procurement validates that
energy storage can be part of the energy mix now”
• Global market growth is strong
− 2016 Global ESS market: $1.6 billion
− 2025 Global ESS marekt: $7 billion (IHS Market forecast)
20 MW / 80 MWh delivered in 2016 by
Greensmith in response to Aliso Canyon crisis

22. © Wärtsilä 23.5.201822
Minimize, Optimize and Monetize
FUTURE-PROOFING ENERGY STORAGE – DESIGN, SIMULATION AND BUSINESS CASE
When a location has run out of energy, the VPP
allows for energy to be pulled from other sources
on the network
When a location has energy to spare, it can
share it with the network
When a location has used too much energy, the
VPP recommends other sources of energy
Energy produced in different
locations by multiple
generation sources is
controlled and monitored by
the VPP
What if Scenarios/NOC Decision Support
• Historical load data and forecast
• PV generation forecast
• Weather forecast
• Fleet management
Greensmith
Virtual Power Plant
Energy Solutions

23. © Wärtsilä 23.5.201823
FUTURE-PROOFING ENERGY STORAGE – FLEX TECH AND COMPONENT-AGNOSTICISM
Storage
Technologies
Electrochemical
Batteries
Lead Acid
Nickel Cadmium
Nickel Metal
Hydride
Lithium Ion
Sodium Sulfur
Flow Batteries
Vanadium
Redox
Zinc Bromine
Zinc Iron
Mechanical
Pumped Hydro
CAES
AA-CAES
Flywheels
Thermal
Solid Heat
Storage
Fluid heat
Storage
Electromagnetic
SMES
Super-Caps
Energy Solutions
Single Architecture for Multiple Components

24. © Wärtsilä
0 5 10 15
UsableEnergyCapacity(kWh)
Project Years
Replenished
Targeted
24
Degradation Management
BATTERY DEGRADATION
0 5 10 15
UsableEnergyCapacity(kWh)
Project Years
Declining
Target
Declining
Description Comments
• Most attractive option for rate base
• Incur capital at highest point of cost curve
• Only Applicable for PPAs up to 10 yrs
Oversized Capacity
Initial oversizing of batteries to
ensure constant power level in
each year
Augmented Capacity
Oversize batteries to support initial
yrs of degradation then augment
with new batteries
Declining Capacity
Change Capacity nomination in each
year based on degradation of
batteries
• Most cost-effective option; optimizes against
degradation curve
• Less attractive to utility
• Not feasible for many off-take agreements
• Benefits from declining cost curves and TVM
• VOM structure less attractive to Utilities
• Best suited for developer economics and for
longer term PPAs > 10 yrs
• Requires multiple inverters
0 5 10 15
UsableEnergyCapacity(kWh)
Project Years
Oversized
Targeted
Energy Solutions23.5.2018

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FUTURE-PROOFING ENERGY STORAGE – FLEX TECH AND COMPONENT-AGNOSTICISM
Battery Degradation Management
Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
$/kWh Racked Battery Cost1
$274 $256 $249 $245 $243 $241 $239 $229 $220 $211 $203 $195 $187 $180 $172 $166
Oversize
Strategy
MWh Installed 108 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Racks Installed 1980 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Battery $NPV $26.9 million
Augmentation
Strategy
MWh Installed 74.8 0 0 0 7.0 0 0 0 7.6 0 0 0 8.4 0 0 0
Racks Installed 1370 0 0 0 12
8
0 0 0 14
0
0 0 0 15
3
0 0 0
Battery $NPV $25.4 million
0 5 10 15
UsableEnergyCapacity(kWh)
Project Years
Oversized
Augmented
Targeted
1 Based on average 1C values received by top tier 1 battery OEMs
• Battery cost is typically 50%-60% of project cost
• Augmentation strategy takes advantage of both
rapidly declining cost curves and TVM
• Augmentation can amount to an NPV savings to
battery cost of >5%
Energy Solutions

26. © Wärtsilä
GEMS – Energy Storage and Integration Platform
FUTURE-PROOFING ENERGY STORAGE – SOFTWARE, DATA AND OPTIMIZATION
Components
BMS Adaptors PCS Adaptors Grid Adapters Other Device Adaptors
Temperature sensors
Fire suppression
HVAC, etc.
AMI Adaptors
Computational Platform
Operation Scheduling • Peer-to-Peer Group Control • Real-time Equipment Control • Local HMI
Applications
Ramp Rate
Control
Renewables
Smoothing
Capacity
Shifting
Demand
Management
EV Charge
Management
Black
Start
Frequency
Regulation

27. © Wärtsilä
23.5.2018 [Presentation name / Author]
27
FUTURE-PROOFING ENERGY STORAGE – SOFTWARE, DATA AND OPTIMIZATION
Strategy 3: Contemporary Software Tools and Architecture

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Strategy 3: Track Ongoing Operation with Flexible Warranty
FUTURE-PROOFING ENERGY STORAGE – SOFTWARE, DATA AND OPTIMIZATION
GEMS dashboard tracks
values associated with
warranty compliance
• Battery warranties are complex
− Annual energy throughput
− Peak DC charge/discharge rate
− Daily average DC charge/discharge rate
− Average daily temperature
− Maximum temperature deviation across
measurement points
− Common mode noise level (voltage)
− Common mode noise level (current)
• BMS does not track!
• GEMS tracks all values and provides
analytics for on-going plant optimization

29. © Wärtsilä 23.5.2018 [Presentation name / Author]29
FUTURE-PROOFING ENERGY STORAGE – SOFTWARE, DATA AND OPTIMIZATION
-500.0
-400.0
-300.0
-200.0
-100.0
0.0
100.0
200.0
300.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
PV Output Load Demand ESS Power
Net Load Threshold
ESS Charge
with excess PV
Load Threshold
ESS Discharges to
limit load demand
Net load at POI
(limited to 200kW
Actual Load
PV production
Fault Response
Frequency Regulation (Reg D)
System Load Leveling
Resource Adequacy
Ramp Rate Control
Solar Firming
0
50
100
150
200
250
300
12:00:00AM 4:00:00AM 8:00:00AM 12:00:00PM 4:00:00PM 8:00:00PM 12:00:00AM
Frequency Response
Voltage Control
(100%)
(50%)
0%
50%
100%
12:00 AM 6:00 AM 12:00 PM 6:00 PM 12:00 AM
Batterty(Charge)/Discharge
Profile
Peak Shifting
Strategy 3: Application Algorithms and Optimization

30. © Wärtsilä
FUTURE-PROOFING ENERGY STORAGE – HYBRIDS AND INTEGRATION
Strategy 4: GEMS Virtual Power Plant Functionality

31. © Wärtsilä INTERNAL
Greensmith Experience
SMART
POWER
GENERATION
+
+
ENGINE POWER
GENERATION
SOLAR
GENERATION
ENERGY STORAGE
&
ENERGY
MANAGEMENT
SYSTEMS
OPTIMISED
GENERATION
MAXIMIZE
RENEWABLE
PENETRATION
SYSTEM
STABILITY
+
+
ENERGY
SYSTEM INTEGRATOR