APPLICATION: Primary Reserve GSS ™ Grid Storage Solution THE NEED FOR PRIMARY RESERVE Electric power grids must maintain frequency (50Hz or 60Hz depending on region) or risk a blackout − Frequency can fluctuate due to disturbances in generation, load, or transmission Primary Reserve resources serve to immediately stabilize the grid’s frequency − Ramp up and down in response to fluctuations in grid frequency; responds automatically in seconds Generators reserve 3% to 5% of their capacity for Primary Reserve − Also known as Frequency Response, Frequency Containment, Primary Frequency Control, or Spinning Reserve Reserve capacity Generator output is limited to provide primary reserve Generator can provide increased output with a GSS ™ providing its primary reserve obligation GENERATOR GENERATOR + GSS ™ Generator Power Output Risk of blackouts Risk of blackouts 60 59 59.5 59.9 60.1 60.5 61 Hz Grid Frequency Total blackout Total blackout Emergency Emergency Low High Too Low - more power needed Too High - reduce power N o r m a l R a n g e THE ROLE OF ENERGY STORAGE A battery energy storage system can effectively replace a generator’s reserve generation capacity obligation − The NEC Energy Solutions GSS ™ has been successfully used in this manner since 2009 and is the highest performing reserve asset in the region, faster and more consistent than other resources VALUE PROPOSITION Release of 3%-5% reserve capacity allows generation plants to increase output Additional generation capacity increases generator’s revenue Depending on the price of energy, and the nature of the reserve requirements, this can yield significant return on investment for the energy storage owner Energy storage also provides faster, more precise, and more consistent response than traditional assets for primary reserve GSS ™ Generator Power Output Time GSS ™ is capable of much faster response times (in milliseconds) and power output ramp rates than traditional generators.