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Utility Demand Reduction with a Cost Effective and Reliable Energy Storage System
June 25, 2012
Company History & Milestones
Changes company name to Arista Power
New management team begins to
arrive
November 2009
November 2009
Receives first Mobile Renewable Power Station
order
Receives first Power on
Demand order
July2010July2010
August2010August2010
Receives first stand‐alone Solar
PV order
December2010
December2010
March 2011March 2011
May2011May2011
July2011July2011
April 2012April 2012
Selected to develop Intelligent Micro‐Grid for U.S. ArmyMakes first
international sale
April2011April2011
Delivers first Power on Demand System
Arista Power was originally founded as anindependent developer of a patented windturbine technology.
2009/2010: Group of senior execs andengineers with long track record inenergy storage and power distributionsystems combine their expertise withthe Company’s patented wind turbinetechnology
2
Forms strategic partnerships with
ABB
Forms strategic partnerships with
GE
Product Lines
• Off‐grid applications
3
Power on Demand Mobile Renewable Power Station
Solar PV Wind
• Can set it up and startcapturing, storing, andusing renewable energysources within fiveminutes
• 4.5GT wind turbine on retractable/winchedmount
• DC input for solar PV/fuel cell
• Multiple inputs and outputs
Market Need
Problem 1: Rising “Hidden” Demand Costs
• Electric bills consist primarily of two charges:
1) Consumption – kWh – how much energy used
2) Demand – kW – maximum amount of power used in the highest 15‐minute window of a billing period; utility charges for the “right” toaccess max power consumption
– Demand charges are often 40% to 70% of a commercial bill– Demand charges are rising at a faster rate than consumption
charges
High Energy Costs + Demand Charges = Market Need for Alternatives
5
Problem 2: Rising Variable Consumption Costs
• Time of day consumption charges / load shifting
1) Resulting from smart metering / intelligent utility grid
2) Grid issues from variable generation from Solar PV, particularly SRECmarkets
3) Time of day electric use in developing countries with increasingrenewable energy penetration (combined with need for reliablepower)
Variable Consumption Rates = Opportunity for Energy Arbitrage
6
Challenge: Consistent Solutions
• Challenges for implementing wide‐spread use of renewable energysources on the customer side of the meter:
– Wind / Solar: provide a variable and somewhat intermittent energy supply– Variability causes difficulty using the energy created when it would provide superior
financial benefits– Use of a wind turbine or solar PV system does not materially reduce a customer’s
charges or provide energy when needed by the customer
• Resistance to capital investment in alternative energy has stemmed fromhigh implementation costs and a long/indeterminable ROI
• Utility sponsored distributed energy storage slow to be realized
Considerable increase in power demand in commercial, residential and military sectors
Consistent power needed, with shorter ROI7
Target Power on Demand Customers
• Electric users with 500kW or more of peak monthly demand– Manufacturing Plants, Hospitals, Schools, Office complexes, etc.– Higher variability in electric usage results in a better the value
proposition (higher shorter peaks result in optimal system payback)
• Large Solar PV installers looking for improved payback through PPA for commercial customers
• Solar Smoothing for Utilities– SREC markets with high solar concentration
• Electric Load Shifting– Developing countries
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The Arista Power Solution
The Arista Power Solution: Power on Demand
• Developed Power on Demand system during second half 2010, beganmarketing aggressively in May 2011
– Proprietary, patent‐pending energy storage and management system designed to lower acustomer’s demand charges
– Maximizes value of energy from wind, solar, fuel cells, and the grid Most areas are suitable for solar and/or wind
– Custom designed with options to blend in renewable energy inputs to best utilize theresources at the customer’s location
– Smart monitoring technology
• System pricing:
– Range from $200,000 to $3 million
– Customer receives renewablesystem incentives
10
Power on Demand Benefits
• Releases energy at optimal times to reduce peakpower demand
– Dynamic Power Distribution
• Immediate reduction in energy costs of 20%+
• Return on investment as low as 2 years
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“Shaving the Peak”
• 40% of energy charges occur between the hours of 7 a.m. and 2 p.m.
• Arista Power’s Power on Demand system eliminates these peaks with dynamic power distribution
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System Design
• Front End Monitor (FEC)– Placed on End User’s Power load to monitor
electrical usage and communicate to UC• Unified Controller (UC)
– The UC manages a custom algorithm based on the historical and real time information provided from the FEC.
– Provides external communication and monitoring including battery state of health, power trends, renewable energy generation, and allows remote system control.
• Inverter – ABB PCS 100– Bi‐Directional to allow energy storage charging – Works in conjunction with the UC to determine
usage of the energy storage system• Energy Storage System (Battery)
– Contains Battery Management System (BMS) for state of health communication
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Grid Power
Circuit Breaker
End User’s Power Load
Renewable Energy Source(s)
Energy Storage System
Inverter/Battery Charger
Energy Inverter(s)
• Systems are Chemistry Agnostic– NaMH, Lithium (LFP), and Lead-Acid
• Partnership with General Electric for implementation of Durathon Technology
– Based on application requirement• Peak Shave vs Load Shifting• Temperature• Cycle Life• Cost • Weight
• Battery Management System • Power Storage and Distribution from 1kW to 1MW• Scalable from Mobile Unit to Commercial Building
Energy Storage
Energy Storage System Options
• Sealed Lead Acid– Lowest cost per kWh– Requires 2X sizing to maintain optimal cycle life– Challenges through dynamic charge / discharge
• Lithium Ion (LFP)– Highest cost option, cost improving through electric vehicle volume– Excellent rate capability and cycle life (5,000 cycles)– Safety management requirement and
• NaMH – GE Duration Battery– Moderate Cost Point with best potential cost (low cost materials)– Superior Cycle life (> 7,000 cycles)– Fully integrated BMS– Good rate capability through battery cycle
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Strategic Partners& Vendors
Strategic Partnerships & Competitive Advantages
• Strategic partnerships and vendor relationshipswith several leaders in alternative power
• Intellectual property– Patent protection
• Battery and power conditioning expertise– Group of engineers with unique experience in applied
alternative energy
• Focus behind the meter
• Head start on the competition– Only provider of an integrated Power on Demand system
– Limited competition for Mobile Renewable PowerStations
– Competitors for complementary product line include: GE,Siemens, Schneider, EnerNoc, ZBB
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Sentry®Safe – An Initial Sales Cycle Case Study
• November 2010First meeting with Sentry®Safe, the world leader infire‐resistant and security storage solutions forimportant documents and valuables
• December 2010Review of utility bills and electrical profile
• March 2011Proposal for power management system submittedto Sentry®Safe
• June 2011Sentry®Safe signed contract; Arista begins designingsystem to meet the company’s growing powerdemand
• January 2012Delivered system to Sentry®Safe
• Demonstrating 20% monthly savings in power costs17
Intelligent Micro-Grids
Intelligent Micro‐Grid for U.S. Army
• Prime contractor on Phase I development of a new Intelligent Micro‐Grid– Multi‐phase program with Phase II expected to commence in 2012
• Integrating renewable and traditional energy, provide soldiers with abilityto optimize their use of available resources at any give time/location
• Objectives:– Scalability and automatic operation
– Highly reliable power in areas where military operations are taking place that have abroad spectrum of energy requirements and applications
– Minimize the use of fossil fuels
– Save lives by reducing the need to transport diesel fuel
• Part of DoD’s broad‐based initiative to reduce its reliance on fossil fuelsand improve energy efficiency
• Contract provides credibility and opens doors to additional militaryopportunities
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Key Takeaways
• Focused renewable integration and power smoothing system withmultiple market applications
– Attractive value proposition with 20%+ immediate cost reduction and 2‐5 year ROI
• Recent Prime Vendor contract from U.S. Army provides credibility andentry point into large military applications
• Anticipate 2012 booked orders of at least $17.5 million, revenues of atleast $7.5 million
• Massive market opportunity with converging energy storage and demandrate increases
• Strong management team with executive and engineering expertise indeveloping energy solutions for customers
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Distinct Market Need
Considerable increase in power demand in commercial and military sectors ~ more consistent power necessary
Recently awarded U.S. Army contract to be the prime contractor to complete Phase One activities for the development of a new
Intelligent Micro-Grid.
Strong Financial Position
Available capacity to execute growth strategy; no long-term debt
Solid Value Proposition
Company Niche
Immediate reduction of 20% in annual energy costs; Return on investment in 2 to 5 years
Arista can considerably reduce energy costs through the installation and management of its unique “Power on Demand” system
Investment Conclusions
Recent Military Contract for
DevelopmentAt the Company:
Bill SchmitzCEO
Mark MatthewsVP Sales and Marketing
