pooled energy resource ecosystem P2P energy trading...• Global Advanced Energy Market: over $1.4 trillion • Still very centralized value chains • Substantial growth in distributed

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pooled energy resource ecosystemP2P energy trading

v.6.6

DISCLAIMER This confidential Presentation is for informational purposes only and does not constitute investment, legal, tax, regulatory, financial, accounting or other advice and is not intended to provide the sole basis for any evaluation of an investment decision. The re-cipient should consult with his/her own legal, investment, tax, accounting, and other advisors and receive such advice tailored to their own particular circumstances from independent professional advisors. The content of this Presentation is not binding for EnerNext (the “Company”) and/or its affiliates and EnerNext reserves the right to change, modify, add, or remove portions of this Presentation for any reason at any time. The information presented in this Presentation is not exhaustive and does not imply any contractual relationship. Nothing in this Presentation shall be deemed to constitute a prospectus of any sort or a solicitation for investment, nor does it in any way pertain to an offering or a solicitation of an offer to buy any securities in any jurisdiction. No offering is being made and no money or other consideration is being solicited by this Presentation.

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OUR VISIONEmpowering local communities through renewable P2P energy trading and community energy storage

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Now Is The Time

• Maximize local consumption of green electricity

• Enabled by

• Distributed storage systems

• P2P trading

• Demand response

• Provide locally levelized demand

• Better predictability

• Empower prosumers

• Choice

• Economic benefit

Leveraging convergent technologies to empower prosumers

Convergence

Energy

Automation

Digital Transformation

Big Data & AI

Internet of Things (IoT)

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Utility

Grid

• Large players control market

• Designed for unidirectional power flow

• Overbuilt for uncontrolled customer behavior

• Poor integration of distributed resources

• Inequitable treatment of prosumers

Electricity markets are unnecessarily centralized and inefficient

The Problem

BalancingSolar Panel Energy Storage

The Grid

Smart Meter

Light Big Data

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The Evidence

Market Share of Largest Generator (%)

FranceBelgium

AustriaHungaryCzechiaPortugal

IrelandSweden

GermanyUK

SpainItaly

82.562.655.552.952.447474233.529.325.424

Source: Eurostat, 2018.

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• Support neighbors and local economy

• P2P trading - prosumer profits

• Keep excess generation in community

• Sell, trade, donate locally

• EnerNext AI for precision localized forecasts

• Leverage community assets for ancillary grid services

Distributed P2P trading ecosystem designed to maximize local consumption

The Solution Grid

ENERNEXT

Utility

Smart Meter

Light

P2PSolar Panel

Big Data

Energy Storage

EnerNext Hub

Balancing AI

The Grid

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• Dropping storage and distributed generation costs• Expiring Feed-in Tariffs (FiTs)• Grass roots green energy movements

• Convergence of technology mega-trends enabling shift to decentralized• Country-wide conversions: renewables and EV up, exit coal and nuclear

Perfect storm for transformation forming

Why now

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• Global Advanced Energy Market: over $1.4 trillion• Still very centralized value chains• Substantial growth in distributed generation

• Technology transition to renewable power• Significant cost increases [traditional grid operation]• Significant cost decreases [distributed renewables and storage]

Global Annual Revenue by Industry

Electricity markets keep growing, the transition to renewables is underway on all continents

The Opportunity

130,254

49,040

42,394

41,273

19,692

17,052

12,760

8,195

5,929

5,062

4,978

3,571

3,420

2,938

2,697

2,604

2,590

2,186

China

Japan

Germany

USA

Italy

India

UK

France

Australia

South Korea

Spain

Belgium

Turkey

Canada

Thailand

Greece

Netherlands

South Africa

Installed PV Capacity [MW]

Airlines Apparel Advanced Energy Media

$718 B

$1,400 B $1,436 B

$1,700 B

Source: Eurostat, 2018. Source: Navigant Research 2017.

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515388342325301248215212181172158158158144120115114113989479705442315

GermanyJapan

BelgiumItaly

AustraliaGreeceCzechia

SwitzerlandUK

NetherlandsUSA

DenmarkBulgariaAustriaFrance

ChileSpainKorea

RomaniaChina

CanadaCyprus

PortugalTurkey

SwedenPoland

Installed solar PV capacity per capita(watts per capita)

Germany:• High residential PV penetration [>1 million systems]• Renewable Portfolio Standard: 60% by 2035• Exit from nuclear power

• High residential rates• Expiring FiT for distributed PV systems starting 2021

Mature deregulated market with high costs and large number of distributed resources

Launch Market - Germany

2000

Cent

/ kW

h

FiT (Cent / kWh) Residential Rate (Cent / kWh)

0

20

40

60

2010 20152005

Year FiT Expire

Annual Capacity Growth of System w. Expired FiTs [MWp]

Cumulative Capacity Growth of System w. Expired FiTs [MWp]

Installed solar PV capacity per capita (watts per capita)

515

0

Feed-in Tariffs and Residential rates in GermanyResidential Systems w. Expired FiT Annual Capacity Growth and Cumulative Growth [MWp]

Source: Eurostat, 2016; IPVS, 2017.Source: Bundesnetzagentur 2018. Source: Solarenergie Förderverein, 2018; Eurostat, 2018.

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Offering more prosumer choice at less prosumer risk

Competitive Landscape in Germany

Centralisedno P2P

Decentralisedfull P2P

No Upfrontcost

High Upfrontcost

Trading System

Pros

umer

Ris

k

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Empowering prosumers and balancing the grid by providing an electricity trading ecosystem and energy storage solutions

Platform and Business Model

• P2P trading ecosystem

• AI-powered forecasts increase:• Efficiency• Local self-consumption• Local electricity trading

• Smart contracting mechanism and blockchain ledger

• Balances supply and demand on wholesale market

• Leverages storage for ancillary services

• ENERNEXT energy storage solutions• ENERPOOL – community energy storage system• ENERHOME – behind-the-meter residential storage system

EnerHomeor

EnerPool

Prosumer generator Wholesaleexchange

Grid operator

Prosumer demand

Ancillary services

Data, Trading, Comms

P2Pdelivery

ENERCLOUD

Light P2P

Smart Meter

Solar Panel

Smart ContractBig Data

Energy Storage

EnerNext Hub

Currency

Balancing AI

The Grid

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• EnXT Tokens:• On-platform currency• Part of blockchain solution• Useable in non-energy P2P transactions• Fiat settlements monthly or annually

• Smart Contracts:• Contract template for P2P transactions• Recorded on blockchain• Transactions verified by smart meter oracles

Secure and transparent P2P trading

Energy Trading Environment

BuyerBids on electricity

SellerSells electricity

Transaction is recordedin Smart Contract

Smart Contract placed on Blockchain

ElectricityDelivery

Delivery confirmed

Delivery confirmedSmart Meter

Solar Panel

User

EnerNext Hub

P2P

Currency

Smart Contract

Electricity

Blockchain

Core Components [1/3]

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• Fast frequency response

• Storage sized FCR-market compliant

• Peak-shaving/demand-charge management

• Buffer between grid and high-power applications

• Power quality management

• Local power factor correction

• Voltage support

• Balancing responsible party for platform members

Autonomous and pooled capabilities for improved grid stability and power quality

Ancillary services capabilities

Absorb powerInject power

Balancing GenerationConsumption

49.8 Hz 50 Hz 50.2 Hz

Core Components [2/3]

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• Systems tailored for daily PV cycles

• Sized to accommodate FCR

• Advanced Li-batteries: long service life

• Inverters to suit application

• Autonomous fast frequency response

• Autonomous grid islanding optional

• Emergency backup

• Microgrid operation

• Single package - easy install

• On-board smart meter and communications hub

Designed by high penetration renewable grids experts to boost green energy

EnerPool and EnerHome Storage

ENERPOOL

ENERCLOUD

ENERPOOL

Light P2P

Smart Meter

Solar Panel

Smart Contract

Big Data

Energy Storage

EnerNext Hub Currency

Balancing AI

The Grid

Core Components [3/3]

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Creating immediate value for all players

Upsides for all

• Savings of 20-35%

• Maximize renewable generation

• Enable going fully “green”

• Local community sharing economy

UserProsumers

• Increase grid resilience

• Provide ancillary services

• Reduces grid congestion

• Infrastructure upgrades deferred

BalancingGrid Operators

• Advanced power flow management

• Reduced T&D costs

• High fidelity forecasts

• Wholesale market leverage

Smart MeterUtilities

• Ecosystem for 3rd party energy hardware and software

• Shared capabilities in forecasting, trading and dispatch

P2PEnergy Tech Developers

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10 year effective rate[Euro/kWh]

20 year effective rate[Euro/kWh]

EnerPool

EnerPool

EnerHome

Competitor Rate

No Storage: Existing PV**

EnerHome

Competitor Rate

No Storage: New PV* 0.3519 0.3045

0.3486 0.2802

0.3350 0.3472

0.5252 0.3269

0.2132 0.2598

0.1657 0.2000

0.1640 0.1703

0.3373 0.2330

Positive returns from day one

• Competitors:

• Prosumer caries CAPEX for storage

• Effective rate above reference for

at least first 10 years

• EnerNext EnerPool:

• Investor-owned storage

• Shared storage, flexible capacity allocation

• No additional energy hardware in home required

• EnerNext EnerHome:

• Investor-owned storage

• No OPEX, no risk

* assumes new PV installation at current FiT. ** assumes amortized PV and expired FiT. All values for a small household: 4250 kWh demand, 5.5 kW PV w/ 4400 kWh, EnerHome/EnerPool allocation 2 kW / 7 kWh. Competitor offer: 3.3 kW/6 kWh.Reference rates assume 3.5% escalation.

Prosumer Advantage

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• Frequency Control Reserve market:• 1,400 MW in weekly auction• Pricing: Euro 1,000 to 4,000/MW-week

• Moderate additional cycling of storage

• Additional values stream for storage resources

• EnerPool viable at Euro 750/MW-week

• EnerHome viable at Euro 1,500/MW-week

Offering attractive prosumer rates through additional value streams

Ancillary Services Market

50.075

49.900

Time

Freq

uenc

y [H

z]

49.925

49.950

49.075

50.000

50.025

50.050

08:00 13:0009:00 10:00 11:00 12:00

Source: ENERNEXT Measurements.

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2021Germany countrywide rollout

2022Global expansion

Technology partnerships for blockchain-service, and AI development; Relationship with TSO established; Smart-meter supplier partnership secured

Computing resources secured;Partner EV platform selected; Regional roll-out funded

Prosumer base expanded >1000;Commercial prosumers addedfor EnerPool deployment

Marketing campaign for scale-up

Community and utility partner for pilot project; partnership with hub hardware vendor; storage supply contract for first pilot

Pilot launch

Launch of 100 kW pilot project in Germany

Regional roll-out

Integrating OTC broker into the platform;

Stage 2 funding secured

Commencecommercial-scale EnerHome production

Building communities

Business Development Roadmap

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Building EnerNext to lead the market

Funding requirements

Two stages, Euro 5.3M total

28.6% 18.1%22.4% 12%18.7%

15.4% 6.7%11.8% 45.9%20.2%Admin& OPEX

OtherEnergy Storage Systems& Equipment

Business Dev.& Marketing

Research& Development

Stage 1: Euro 1.95M

Stage 2: Euro 3.35M

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Team

David Davtyan

• Over 10 years experience in corporate finance and investment management

• Decision maker: storage and EV ventures

• Experience in USA, Russia and Germany

• Stanford MBA

• Fluent in English and Russian

Dr. Marc Müller-Stoffels

• Energy Systems and Storage Expert

• Algorithm and Model Expert

• Entrepreneur, Innovator, and Strategist

• Experience in Germany, USA, NZ, AU

• Lived off-grid in Alaska for eight years

• Fluent in German and English

Theodor Kozko

• Entrepreneur

• Startups in Education and HR

• Design and implementation of complex information systems

• Experience in Russia and USA

• Fluent in English and Russian

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• EnerTech, S. Korea

• EnerDel, USA

• Decades of experience in cell and pack R&D

• Hundreds of millions of USD in investments

• EnerNext custom engineered packs

Customers include:

Developing a worldwide supply chain

Energy Storage Partners

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Thank you for your considerationRead the whitepaper at http://enernext.ioContact us at [email protected]

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