CURRENT Smart GridTM Solutions

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CURRENT Smart GridTM Solutions
October 2009
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About Us

• The leader in Smart Grid with integrated
  communications, sensors and management and
  analytic software solutions.
• Locations include U.S., Europe, Australia,
  Singapore and Brazil.
• Enabler of Smart Grid communications, sensing and
  analytics platform for SmartGridCityTM with Xcel
  Energy
• Collaborating with Iberdrola and EDF in an
  EU-funded program to develop European Smart Grid
  platform that enables an open standard for
  metering, integrated communication technologies,
  and advanced distribution management
  capabilities.
• Member of GridWise Alliance, Smart Grid
  Australia, IEEE, European Consortiums (EU FP7
  ADDRESS, EU FP7 OPEN, PRIME) and the Joint
  US-China Cooperation on Clean Energy.
• Winner of
• 2009 World Economic Forum Technology Pioneer
• Go Green East 2009,
• Dow Jones 2008 Ten Most Innovative Clean Tech
  Companies in Europe
• 2006 Red Herrings Top 100 Private Companies, and
  
• 2006 Platts Global Energy Commercial Technology
  of the Year award.

Investors
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Why a Smart Grid is Needed
Solar Panels PHEVs Net metering Microgrids
The centralized electric grid was created at a
time when carbon was ignored and energy was
cheap. The world has changed. So must the Grid.
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Smart Grid Vision
. . . a power system that can incorporate
millions of sensors all connected through an
advanced communication and data acquisition
system. This system will provide real-time
analysis by a distributed computing system that
will enable predictive rather than reactive
responses to blink-of-the-eye disruptions.
(EPRI, emphasis added)
Covers the entire value chain wind to light,
or coal to cool air. (Above quote and picture
courtesy of Xcel Energy)
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Smart Grid around the World

• Europe - Without effective deployment of the
  SmartGrids concepts, European security of
  electricity supply in general, and the
  operational security of the European electricity
  grids in particular, may not be maintained. This
  is crucial not just for the large scale
  development of renewables, but also because of
  the steady demand growth and more onerous
  environmental requirements which conventional
  grids and methodologies will increasingly find
  difficult to meet (European Commission Smart
  Grids Technology Platform, SmartGrids, Strategic
  Deployment Document for Europes Electricity
  Networks of the Future (Draft), September 2008)
• U.S - The U.S. has made Smart Grid a National
  Policy and provided 4.5 billion dollars to roll
  out Smart Grid solutions
• That means updating the way we get our
  electricity by starting to build a new smart grid
  that will save us money, protect our power
  sources from blackout or attack, and deliver
  clean, alternative forms of energy to every
  corner of our nation. (President-elect Obama, 8
  Jan 09)
• Canada - Provincial initiatives on conservation,
  renewable generation and smart meters begin the
  move towards a new electricity system, but their
  full promise will not be realized without the
  advanced technologies that make the smart grid
  possible. The challenges that Ontario faces in
  simultaneously incorporating distributed
  generation, addressing growth, and replacing
  aging infrastructure while maintaining
  reliability and quality of service are daunting.
  While new grid infrastructure will be necessary
  to connect generation resources, replace aging
  assets and address growth, simply adding wires
  and equipment without intelligence is not a
  viable option. (Ontario Smart Grid Forum,
  February 2009)

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CURRENT Value Model - 1,400/customer PV Benefits
Up to 5 reduction in electric demand with no
impact on customer
Estimated 87 reduction in cost of outages
0.50 for every 1 spent on electricity (EPRI)
Without a radically expanded and smarter
electric grid, wind and solar will remain niche
power sources (MIT, similarly European SG
Platform, Ontario Smart Grid Forum)
Enables better utility and end user energy usage
Improve Grid Operations
Integrate Intermittent Renewables
Enable End User Energy Management
Reduce Outages
Smart Grid Platform (communications, sensing,
software)
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The Growing Consensus on the need for a broad
Smart Grid

• 85 of the carbon reduction benefits of a Smart
  Grid come from System Optimization and
  Integration of Renewables and only 15 will come
  from End-User Energy Management. (i.e. the
  benefit of smart meters). UK based Climate Group
• while the smart meter may have become the
  poster child for the smart grid, advanced
  sensors, synchro-phasors, and distribution
  automation systems are examples of equipment that
  are likely to be even more important in
  harnessing the value of smart grid. U.S.
  National Association of Regulatory Utility
  Commissioners (NARUC)
• but less well-known is the fact that the
  potential for efficiency improvements within the
  electric power industry from distribution to
  transmission and generation itself is large.
  U.S. Federal Energy Regulatory Commission
  Chairman Wellinghoff
• If we expect the horse i.e. the consumers to
  push the cart before it is ready, we may never
  get the Smart Grid off the ground. This means
  that we should not focus immediately on the end
  user and demand response rather, we must start
  with the backbonethe transmission and
  distribution systems while proceeding carefully
  to go inside consumers homes. Honorable
  Frederick J. Butler, President National
  Association of Regulatory Utility Commissioners
  (NARUC)

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Xcel Energy SmartGridCity Boulder, CO, USA
Since CURRENTs Smart Grid Solution was
implemented in Boulder over a year ago, voltage
problems have been reduced by over 90 and there
have been no customer voltage complaints this
year.
Source Xcel Energy, SmartGridCity Update
Project Status and Early Benefits
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CURRENTs Lessons Learned

• Government/Utility/Vendor Partnership increases
  effectiveness and speeds implementation.
• Experience with deploying and operating Smart
  Grids leads to new ways to lower costs and
  increase the value.
• For example, leveraging existing or public
  networks (fiber, DSL, cable, 3G wireless, WiMax)
  can reduce costs and time to value.
• Grid operational improvements through sensing,
  communications and control can be implemented
  relatively quickly and provide a high value
  across all customers.
• High value grid improvements can also be deployed
  in a modular fashion to lower initial cost and
  overall project risk.
• Engaging even an educated green consumer can be
  a challenge.
• Customers may not be interested even if hundreds
  of dollars of technology is given away free.
• Not everyone has central air conditioning (only
  25 of Boulder) which limits effectiveness of
  much of the in-home technology.
• Many of the advanced in-home devices require a
  broadband connection to be truly functional, but
  using the consumers broadband connection can
  require one or more truck rolls due to firewall
  and router configuration issues.

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Why isnt it happening?

• Utilities act rationally in a regulated
  environment
• lack incentives to reduce usage
• Earn rate of return on invested capital
• not rewarded for implementing new technologies
  and often run the risk of being judged imprudent.
  
• Historically, regulators and consumer advocates
  focus on the immediate rate impact without taking
  into account gains from efficiency, conservation,
  renewables or a world where carbon has a cost
• Environmental reliability benefits go to
  society but not the utility
• No sustained, prioritized, and coordinated
  program of global, national and local government
  action
• Capital markets
• The real risk in a true coal-to-cool-air,
  wind-to-light implementation of the smart grid is
  that these technologies that transform
  conservation and efficiency efforts can lead to
  degradation of the regulated return and
  uncompensated demand destruction.
• ( Xcel Energy Smart Grid, A White Paper)

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