Integrated Firm, Reliable, High Quality Energy Using Variable Energy Renewable Resources.

Integrated Firm, Reliable, High Quality EnergyUsing Variable Energy Renewable Resources

The Altresco Approach

Altresco has never sold or been in the power plant business - we have always sold “total reliability and lowest cost energy.”

We have over 25 years of providing low cost reliable energy and electricity solutions for customers.

Our first client was the General Electric Complex, Pittsfield, MA (where the first AC transformers were manufactured).

Altresco sells reliable energy solutions not equipment

In 2005, we looked at the fleet of emerging uncontrollable generation sources and asked “How can we integrate this source to improve the efficiency and reduce the carbon footprint of customers?”

Since that time this has been our base business.

Microgrids - a small-scale, flexible, reliable source of electricity

In the search for more reliable ways to provide electricity and to incorporate renewable energy sources such as solar and wind — much attention is focusing on the Microgrid

What is a Microgrid? A small-scale power system that uses a

combination of generation, load and storage devices to serve local customers

The power is generated by the community for the community, and any excess is fed directly into the power grid

Size of the Microgrid may range from homes to municipal regions to industrial parks

Microgrids - Components

Components of a Microgrid? Distributed Generation

Loads

Storage devices

Controls

Point of Common Coupling

Design of Microgrids LAP™

A major challenge (and opportunity) is deciding what components to choose and then how best to operate them to meet demand

LAP™ Location Adaptation Protocol. This allows each Microgrid to be designed using optimum resources and provide optimum benefits.

The system should run as much as possible on its renewable technologies, using the diesel generators or batteries when more power is needed

The system should provide perfect reliability—that is, it should never fail to meet total customer demand

Design of Microgrids

Key design questions: How much generating capacity in solar PV

panels and wind generation? What do I need in diesel generators and

batteries or other storage sources for backup? What mix will provide the necessary

performance at the least cost, or with the lowest possible emissions, or with some mix of the two?

Integration challenges: Voltage, frequency and power quality are three

main parameters that must be considered and controlled to acceptable standards while the power and demand are balanced

Design of Microgrids

Integration challenges: Resynchronization with the utility grid is

complex and operation must be seamless and automatic: o when the power system shuts down, the

microgrid may need to ramp up generation and possibly cut service to some customers; and

o when the power system comes back on, the microgrid must resynchronize

Microgrid protection is one of the most important challenges

Electrical energy stored in battery banks or other storage devices will require more space and maintenance

Issues such as standby charges may present barriers for Microgrid

Microgrids - a small-scale, flexible, reliable source of electricity

Microgrids are flexible Can provide electricity to remote loads or

communities Can be connected to a central power system,

selling and buying electricity as needed and increasing reliability to customers by continuing to operate even when the central system goes down

Microgrids can support integration of intermittent energy sources (wind and solar) When the sun doesn’t shine or the wind

doesn’t blow, microgrid operators can get power from batteries or diesel generators, they can buy it from their utility, or they can reduce demand by cutting service to self-selected customers or loads

Challenges with large scale integration of Wind

• Supply-demand balancing– wind can be unpredictable, increase or decrease

rapidly and patterns can be correlated or counter to load (at night)

• Limits to system flexibility– need access to flexible resources considering

physical limits (ramping and start up times)• Reliability issues

– need mitigating measures, resources and the scale/costs can escalate

• Market Impacts– can increase variability and uncertainty

• Transmission– upgrades are necessary to interconnect wind

resources

Alberta System Demand and Wind Power Correlated Well Nov 6 2006

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Alberta System Demand and Wind Power Do Not Correlate Well Jan 6, 2006

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Supply Demand

Variable Fuels Must Be Used When Available• Variable generation often does not positively correlate with

electricity demand

Wind & Solar Wind & Solar Electricity Electricity Production Production Appears Appears ComplementaryComplementary

Only 8 – 26% of Only 8 – 26% of windwind’’s s ““nameplatnameplatee”” capacity is capacity is available at times available at times of peak demand of peak demand for electricityfor electricity

““RampsRamps”” in in output can output can

challenge grid challenge grid operatorsoperators

Microgrids can assist with the integration of variable intermittent generation resources

Microgrids assist renewables integration

Power may be stored and shaped and conditioned Use of batteries or energy storage devices can allow use of otherwise

curtailed wind energy to be reused at times of peak Microgrid may make use of low cost wind energy when it is surplus to

the power system and assist system operators who may be dealing with supply surplus conditions at night

Microgrid control may also assist system operators with severe ramping conditions caused by large scale integration of renewables

Microgrid controls can be designed to support the region and the grid with voltage, frequency and power quality

Microgrids for Islands and Remote locations

Microgrid 2001

National Renewable Energy Laboratory Innovation for Our Energy Future

St. Paul, AlaskaAirport and industrial facility on the island of St. Paul in the Bering Sea • Owned and operated by TDX Power• High-penetration wind-diesel system; all

diesels are allowed to shut off• One Vestas 225-kW turbine installed in 1999 and

two 150-kW diesel engines with a synchronous condenser and thermal energy storage

• Current average load ~70kW electrical, ~50kW thermal

• Since 2003, net turbine capacity factor of 31.9% and a wind penetration of 54.8%

• System availability 99.99% in 2007• In March 2008, wind supplied 68.5% of the

facility’s energy needs and the diesels only ran 198 hours ~27% of the time.

• Estimated fuel savings since January 2005 (3.5 years) is 140,203 gal (530,726 l), which at $3.52/gal is almost $500k

• Annual fuel saving between 30% and 40%

National Renewable Energy Laboratory Innovation for Our Energy Future

Coral Bay, Western AustraliaA small settlement of about 200 people on the western coast of Australia with high seasonal load• High penetration wind-diesel system

using a flywheel and low load diesels• Diesels remain on consistently • Three Vergnet, 275-kW hurricane-rated

turbines, a 500-kW PowerCorp flywheel and 7x320-kW low-load diesel engines

• Installed in summer 2007 by PowerCorp Australia in collaboration with Horizon Power and Verve Energy

• Average penetration for the first 10 months of operation was 55%

• In September 2007, wind supplied 76% of the community’s energy needs with instantaneous penetrations consistently above 90%

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National Renewable Energy Laboratory Innovation for Our Energy Future

Mawson, Antarctica

•Plant that powers the Australian Antarctica Research Station

• Installed in 2002-2003• Four 120-kW diesels with heat capture• Two Enercon E30, 300-kW turbines• Flywheel used to provide power conditioning,

although a diesel always remains operational• Electrical demand: 230 kW average• Thermal demand: 300 kW average• Total fuel consumption of 650,000 l per year• Average penetration since 2002 is 34%• Best monthly penetration is 60.5% in April

2005• Turbine availability 93%• Average fuel savings is 29% • Power station operation Web site:

http://www.aad.gov.au/apps/operations

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Microgrids for Data Centers

Diagram of a potential configuration and components.

Data Center Campus

Ice Storage

Hot Thermal Storage and generation

Grid Connection

Firm Generation source Gas or LF

Synchronous condenser

Data Center Substation

Microgrids for Water, Food, Electricity and Energy

This illustration is an example of one way to achieve Maximum efficiency with minimum carbon using a single interconnect system. This system architecture could facilitate name plate wind generation of up to 100%

Microgrids - Benefits

What are the benefits? Microgrids can provide electric service to regions and communities that

are currently unserved. The use of both electricity and heat permitted by the close proximity of

the generator to the user can increase the overall energy efficiency Can provide substantial savings and cut emissions Microgrid can facilitate the use of renewable energy sources Power generation units are small and are located in close proximity to

load Can provide high quality and reliable energy supply to critical loads Large land use impacts are avoided Large transmission build out may be reduced and transmission losses can

be reduced

IGLB™ Microgrids for Efficiency and Reliability

Microgrid meets Major Grid Creating a firm electricity supply and subordinate

load balancing area with a single interconnect. Bidirectional electricity flow allowing ancillary

services on both absorption or voltage support. Creates power product rather than single plant

output. Can add power quality to both grid and “behind the

fence” loads.

Microgrids for India

Microgrids for India Eliminates energy poverty Integrates renewables Integrates storage Creates new forms of

consumer participation Improves quality of life

Microgrids and IGLB™

Microgrids can provide extraordinary energy and electricity benefits for customers and communities

For more information on details and possible configurations of the system, or information specific to individual site and/or specific projects please contact:

William Ross Williams

Altresco Integrated LLC12925 N Sierra CirParker, CO 80138303 888 [email protected]

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The Team Altresco’s diverse team includes highly qualified members with significant experience in each of the key areas of generation, transmission, dispatch, gas, wind, solar, energy storage and grid management:

William Ross Williams - 35 years in industry and power development Warren Frost - Electrical engineer with 34 years in utility operations, NERC Variable Generation Task Force Dr. Thomas Sladek - Chemical engineer with Analysis Consulting experience on every continent. Jerry Gotlieb - 40 years Power Engineering, management, operations. Jeff Whitham - Control system designer with 20 years control system design experience Dave Perry - Engineer and project manager with project management experience in 7 countries. Bill Shanner - Utility advisor and creator of several DSM, Data Center , and No Fail Energy systems Fred Buckman, Jr. – Advisor Specialist in system efficiency Improvements

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