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Tomorrow’s Homes. Today
1
PowerSecure
2
PowerSecure
A Leader in the Microgrid
Market
of all US installed
microgrid sites
1428 of 1547
basic microgrid sites
1.2 of 1.9 GW basic
microgrid capacity
68 of 125 advanced
microgrid sites
78 of 493 MW advanced
microgrid capacity
85%
#1
#3
#1
#1
3
Microgrid Solution Delivery Structure
Vertical integration of equipment and services allows for a supply
of consistent value to our customers and utility partners
Stand-by
Resiliency
Peak Load
Management
Demand
Response
Energy
Efficiency
Reliability
as a Service
1 2
Sales &
Business
Development
Economic Value
Stacking
3 4 5 6
Engineering/
Design
Manufacturing/
Procurement
Construction Commissioning
7 8
Monitoring Service/
Maintenance
PowerSecure Distinguishes Itself as an EPC+ Microgrid Solutions provider
4
https://essensepartners.box.com/s/tjpk71mewik4ixj7gxqo4ftcku1mfwtd
5
Changing Utility Landscape
6
Coal plants retiring
Increased
renewables
(duck curve)
Energy
efficiency
(lower kWh
usage)
Electric vehicle
chargers
Stricter
emissions
standards
7
Distributed Energy Resources (DER’s) and Microgrids
• Systems and technology to capture and optimize value stacking are
developing
• DER technology and reducing price points improve economics
• Expanded deployment of DERs will further enhance value streams
Utilities Are Increasingly Embracing DER’s
• Distributed microgrids will allow for more dynamic grid
capacity/frequency controls
• Utility standards and interconnection requirements generally lag
behind
• Regulations need to catch-up to address and maximize microgrid
functionality
• Growing interest in supporting its customers/members with on-site
DERs
• Federal sector desire to improve energy resiliency (large customers)
• Increasing utilization of DERs to provide flexible capacity resources
Technology is improving microgrid
functionality and ability to interact with
the grid
Revenue and value streams for utilities
and its customers are increasing
8
Anatomy of a Complex Microgrid
Microgrid Controls and Communications – Where Are We Now?
PREDICTIVE ANALYTICS
Real-time predictive maintenance and
Load Management
RATE OPTIMIZATIONS
Real-time fuel and utility rate information
MICROGRID CONTROLLER
Intelligent Energy Asset Management
combined with Plug and Play Deployment
CYBER SECURITY
Secure remote interface to Cloud and
Customer Monitoring and Control Assets
ENERGY ASSETS
Intelligent control of any and all energy
asset combinations
CONTROL GATEWAY
Totally integrated control and
communications architecture and hardware
9
APC Smart Neighborhood
Case Study
10
Objective
Design and build a first-of-a-kind communities to prepare Southern
Company and its subsidiaries for future grid and customer expectations
Scope
Demonstrate distributed energy resources (DER) use cases optimizing
cost, reliability, and environmental impact with a community-scale
microgrid or behind-the-meter solar & storage
Demonstrate high-performance homes with connected technologies
providing an improved customer experience
Demonstrate buildings-to-grid integration with real-time utility-to-
customer interaction
11
PARTNERSHIPS
12
RESEARCHCOMPONENTS
1 2 3 4
Overview of
the
Neighborhood
Building to
Grid
Integration
Distributed
Energy
Resources
Connected
Home
Devices
13
Demonstrate 62 high-performance
homes with connected home
technologies providing an improved
customer experience
14
15
Smart
Neighborhood
Baseline
Neighborhood
Savings
(kWh)
Peak
(kW)
Summer Peak
Reduction
Peak
(kW)
Winter Peak
Reduction
44% 3.16
3.77
16.1%
5.08
7.71
34.2%
--
2
3
4
5
6
7
8
9
1 3 5 7 9 11 13 15 17 19 21 23
kW
Hour
Average Household Winter Load
(Jan 2018)
SN Baseline
0
0.5
1
1.5
2
2.5
3
3.5
4
1 3 5 7 9 11 13 15 17 19 21 23
kW
Hour
Average Household Summer Load
(Aug 2018)
SN Baseline
Summary Information
16
RESEARCHCOMPONENTS
Building to
Grid
Integration
Distributed
Energy
Resources
Connected
Home
Devices
1 2 3 4
17
Demonstrate DER use cases optimizing
cost, reliability, and environmental impact
with a community-scale microgrid
18
Solar Panels –
Canadian Solar
MaxPower 330kW AC
Load Bank –
Simplex Titan 400
500kVA/400W
Resistive/Reactive
Microgrid Controller –
Oak Ridge National
Laboratories
BESS by PowerSecure –
Samsung MEGA E2
Siemens Sinamics Inverters
852kWh/360kW (.5C)
Switchgear –
NexGear by
PowerSecure
Inverters –
SMA Tripower
30kW x 11 Strings
Meteorological Station –
Campbell SCI
Solar 1000
Generator –
Natural Gas PowerBlock
by PowerSecure
400kW Standby
19
System Operation
• Solar: Provide energy to Smart Neighborhood, excess to grid
• BESS: Provide active frequency response, grid stabilization
• Generator: Provide capacity to Smart Neighborhood or to grid
• Utility: Provide/take balance of capacity/energy to stabilize
Base Case
• Solar: Provide energy to Smart Neighborhood (if available)
• BESS: Provide ride through capacity to generator
• Generator: Provide capacity to Smart Neighborhood for duration of outage
• Utility: Inactive
• Solar: Provide energy to Smart Neighborhood, excess to grid
• BESS: Charge during non-peak hours, discharge during peak hours
• Generator: Inactive
• Utility: Provide/take balance of energy to Smart Neighborhood
Standby Mode
(Loss of Utility Power)
Grid Interactive
20
RESEARCHCOMPONENTS
Building to
Grid
Integration
Connected
Home
Devices
1 2 3 4
21
TRANSACTIVE
CONTROLS
22
RESEARCHCOMPONENTS
Connected
Home
Devices
1 2 3 4
23
Home Devices
Smart
Refrigerators Cameras
Lighting
Controls
Smart
Thermostats
iPad
Controls
and more …
24
Microgrid Data and
Lessons Learned
25
R&D Components- Internal Efficiencies
Manage Behind-the-
Meter Assets
Energy Use
Optimization
Buildings as a
resource
Create load shapes
High-Performance
Homes
Passive Thermal
Energy Storage
Tighter envelope
Advanced Building
Energy Systems
Potential Revenue &
Rate Design Impacts
Informed Load
Forecasting
New building codes
& standards
How to price energy
with tech options
Renewable Energy
Grid Integration
Localized solar +
storage
New infrastructure
needs
Balance grid &
customer benefits
26
ECONOMIC USE CASE
The Shannon-Oxmoor Road Microgrid was
installed in a robust distribution area with
lower than average reliability concerns.
Upgrades here are not expected for
decades, but can range in cost from $100k
for reconfiguration to $2.5M for a new
substation.
Microgrids or simpler systems can
be used as Non-Wire alternative
solutions to grid issues.
Microgrids tend to be installed in
places with higher than average
reliability concerns or specialized
processes that would be costly to
interrupt.
Non-Wire Alternatives can also be
used to defer large capital
upgrades.
27

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Case Study

  • 3. 2 PowerSecure A Leader in the Microgrid Market of all US installed microgrid sites 1428 of 1547 basic microgrid sites 1.2 of 1.9 GW basic microgrid capacity 68 of 125 advanced microgrid sites 78 of 493 MW advanced microgrid capacity 85% #1 #3 #1 #1
  • 4. 3 Microgrid Solution Delivery Structure Vertical integration of equipment and services allows for a supply of consistent value to our customers and utility partners Stand-by Resiliency Peak Load Management Demand Response Energy Efficiency Reliability as a Service 1 2 Sales & Business Development Economic Value Stacking 3 4 5 6 Engineering/ Design Manufacturing/ Procurement Construction Commissioning 7 8 Monitoring Service/ Maintenance PowerSecure Distinguishes Itself as an EPC+ Microgrid Solutions provider
  • 7. 6 Coal plants retiring Increased renewables (duck curve) Energy efficiency (lower kWh usage) Electric vehicle chargers Stricter emissions standards
  • 8. 7 Distributed Energy Resources (DER’s) and Microgrids • Systems and technology to capture and optimize value stacking are developing • DER technology and reducing price points improve economics • Expanded deployment of DERs will further enhance value streams Utilities Are Increasingly Embracing DER’s • Distributed microgrids will allow for more dynamic grid capacity/frequency controls • Utility standards and interconnection requirements generally lag behind • Regulations need to catch-up to address and maximize microgrid functionality • Growing interest in supporting its customers/members with on-site DERs • Federal sector desire to improve energy resiliency (large customers) • Increasing utilization of DERs to provide flexible capacity resources Technology is improving microgrid functionality and ability to interact with the grid Revenue and value streams for utilities and its customers are increasing
  • 9. 8 Anatomy of a Complex Microgrid Microgrid Controls and Communications – Where Are We Now? PREDICTIVE ANALYTICS Real-time predictive maintenance and Load Management RATE OPTIMIZATIONS Real-time fuel and utility rate information MICROGRID CONTROLLER Intelligent Energy Asset Management combined with Plug and Play Deployment CYBER SECURITY Secure remote interface to Cloud and Customer Monitoring and Control Assets ENERGY ASSETS Intelligent control of any and all energy asset combinations CONTROL GATEWAY Totally integrated control and communications architecture and hardware
  • 11. 10 Objective Design and build a first-of-a-kind communities to prepare Southern Company and its subsidiaries for future grid and customer expectations Scope Demonstrate distributed energy resources (DER) use cases optimizing cost, reliability, and environmental impact with a community-scale microgrid or behind-the-meter solar & storage Demonstrate high-performance homes with connected technologies providing an improved customer experience Demonstrate buildings-to-grid integration with real-time utility-to- customer interaction
  • 13. 12 RESEARCHCOMPONENTS 1 2 3 4 Overview of the Neighborhood Building to Grid Integration Distributed Energy Resources Connected Home Devices
  • 14. 13 Demonstrate 62 high-performance homes with connected home technologies providing an improved customer experience
  • 15. 14
  • 16. 15 Smart Neighborhood Baseline Neighborhood Savings (kWh) Peak (kW) Summer Peak Reduction Peak (kW) Winter Peak Reduction 44% 3.16 3.77 16.1% 5.08 7.71 34.2% -- 2 3 4 5 6 7 8 9 1 3 5 7 9 11 13 15 17 19 21 23 kW Hour Average Household Winter Load (Jan 2018) SN Baseline 0 0.5 1 1.5 2 2.5 3 3.5 4 1 3 5 7 9 11 13 15 17 19 21 23 kW Hour Average Household Summer Load (Aug 2018) SN Baseline Summary Information
  • 18. 17 Demonstrate DER use cases optimizing cost, reliability, and environmental impact with a community-scale microgrid
  • 19. 18 Solar Panels – Canadian Solar MaxPower 330kW AC Load Bank – Simplex Titan 400 500kVA/400W Resistive/Reactive Microgrid Controller – Oak Ridge National Laboratories BESS by PowerSecure – Samsung MEGA E2 Siemens Sinamics Inverters 852kWh/360kW (.5C) Switchgear – NexGear by PowerSecure Inverters – SMA Tripower 30kW x 11 Strings Meteorological Station – Campbell SCI Solar 1000 Generator – Natural Gas PowerBlock by PowerSecure 400kW Standby
  • 20. 19 System Operation • Solar: Provide energy to Smart Neighborhood, excess to grid • BESS: Provide active frequency response, grid stabilization • Generator: Provide capacity to Smart Neighborhood or to grid • Utility: Provide/take balance of capacity/energy to stabilize Base Case • Solar: Provide energy to Smart Neighborhood (if available) • BESS: Provide ride through capacity to generator • Generator: Provide capacity to Smart Neighborhood for duration of outage • Utility: Inactive • Solar: Provide energy to Smart Neighborhood, excess to grid • BESS: Charge during non-peak hours, discharge during peak hours • Generator: Inactive • Utility: Provide/take balance of energy to Smart Neighborhood Standby Mode (Loss of Utility Power) Grid Interactive
  • 26. 25 R&D Components- Internal Efficiencies Manage Behind-the- Meter Assets Energy Use Optimization Buildings as a resource Create load shapes High-Performance Homes Passive Thermal Energy Storage Tighter envelope Advanced Building Energy Systems Potential Revenue & Rate Design Impacts Informed Load Forecasting New building codes & standards How to price energy with tech options Renewable Energy Grid Integration Localized solar + storage New infrastructure needs Balance grid & customer benefits
  • 27. 26 ECONOMIC USE CASE The Shannon-Oxmoor Road Microgrid was installed in a robust distribution area with lower than average reliability concerns. Upgrades here are not expected for decades, but can range in cost from $100k for reconfiguration to $2.5M for a new substation. Microgrids or simpler systems can be used as Non-Wire alternative solutions to grid issues. Microgrids tend to be installed in places with higher than average reliability concerns or specialized processes that would be costly to interrupt. Non-Wire Alternatives can also be used to defer large capital upgrades.
  • 28. 27