The document discusses the transformative potential of smart grid technology for buildings and cities, emphasizing energy efficiency and consumer involvement in energy management. It highlights a shift from traditional one-way energy supply systems to interconnected networks that leverage distributed energy resources and real-time market integration. The text outlines various projects and benefits in demand response and smart grid initiatives, aiming for a more sustainable and economically viable energy future.

1. The benefits of smart grid technology for buildings, Cities and sustainability

2. Where We Are Today?Just like IT and telecom, our energy network is on the cusp of a paradigm shift – led by advanced technology, networked devices, and informed consumer choice. Power GridInformation TechnologyTelecommunicationsViridity founded to give new info and technology to consumers

3. March 2011 FERC ruling: a MW generated is financially equivalent to a MW conserved NEGAWATT = MEGAWATT

4. Consumer-led demand reductions lead to lower power prices—interesting politics2

5. The Existing Grid is a “one-way street”Supply DemandIndustrialLocalUtilityResidentialIPPTransmission Substation GeneratorsCommercialDistributionSubstationRenewablesThe grid must continuously balance production and consumption6/10/20113Highly Confidential

6. RTO/ISO Markets Serve in Excess of 80% of North American Power Customers

7. 11/04/2009Highly Confidential5Congestion, Grid ReliabilityCRITICAL CONGESTION AREA

8. The Power Grid of the Future requires advanced tools to coordinate distributed energy resourcesThe Smart Grid is a Two Way Street Global proliferation of distributed energy resources:Distributed generation

9. Distributed storage

10. Controllable loadClusters of these distributed resources organized in microgrids4/26/20116© 2011 Viridity Energy Inc. All Rights Reserved

11. Traditional Demand Response is a Directed Actionto Minimize Stress on the GridRTO MarketsGrid OperatorsWholesale Physical MarketsRegulatory agency: FERCGenerationTransmissionBuyDistribution UtilitiesRetail Energy SuppliersSellLoad Control Retail MarketsRegulatory agencies: states77© 2011 Viridity Energy Inc. All Rights Reserved4/26/2011

12. Viridity Energy’sDemand Optimization (vs. Traditional Demand Response) integrates controlled load into real time market operations as a virtual power resource (a closed loop system)RTO MarketsGrid OperatorsThe Wholesale Markets Establish the Real Time PriceBuyGenerationTransmissionSellDistribution UtilitiesRetail Energy SuppliersThe Value of Customer Energy Resources are Enhanced when Integrated into the Real Time DispatchSell88© 2011 Viridity Energy Inc. All Rights Reserved4/26/2011

13. Leveraging a Building for Energy Savings and Revenues Efficiency - Reduction of KW consumption per square foot over all hoursDemand Response – The ability to reduce consumption in response to a utility request Dynamic Demand Optimization – The automated and continuous active management of building load from the power grid in reaction to real time prices while ensuring that tenant comfort, sustainability and productivity concerns are addressed. 1/20/2010Confidential

14. Economic Value to the Market10

15. Benefits of DR to PJM Customers Quantity of fuel displaced by voluntary load reductionduring peak usage periods 1 August 2006 through 4 August 20061,367 Tons15,855 Barrels227,965 MCFCoal

16. Heavy Oil

17. Natural Gas$5 million = direct payout to DSR instead of additional generation dispatched at higher price.$650 million = indirect savings per day to system during the week from DSR through lower marginal clearing pricesSource: PJM6/10/2011