WERC Research in Support of Sustainability

1. WERC Research in Support of Sustainability John C. Bobrowich Executive Director & CEO

2. What is WERC? • WERC is One of America’s Largest Energy, Power and Control (EPC) Industry Clusters • WERC Catalyzes the EPC Industry in Greater Midwest Region by Connecting and Synchronizing the Region’s Expansive Academic, Economic Development, Government, NGO and Industrial EPC Participants WERC is Focused on Maximizing Cooperative Activities Within Our Energy, Power and Control Industry Cluster

3. WERC Technology Cluster • Power + • Transmission • Distribution • Storage • Conversion • Quality • Control • Industrial Automation • Building Automation • Energy Management • SMART Grid & Microgrid • Electric Vehicles • Energy + • Generation • Renewable • Fossil • Nuclear • Bioenergy We Are Working on the Future of Energy, Power & Control

4. WERC Vision • Wisconsin/Midwest to Become the Leading US Region for EPC: • Sales, Employment & Companies • Research & Technology Development • Targeting 5 %+ Annual Growth • WERC to Become an Internationally Recognized EPC Leader: • Technology, Market, Public Policy and Workforce Research and Industry Development We Are Focused on Becoming the US Leader in Energy, Power and Control

5. Why We Started in Wisconsin • Energy Power & Control in Wisconsin • 900 Companies • 100,000 Employees • Over $38 Billion in Sales • Expanding Collaboration in Key Technology Sectors to Companies, Universities and Partners Throughout the Midwest Region The Midwest Region Has Expansive Capabilities in Energy, Power & Control

6. WERC Industry Participants Working Together to Grow and Advance Our Region’s Energy, Power and Control Industry

7. WERC Academic Participants We Combine the Power of Wisconsin’s Top Four Engineering Research Universities with the Power of Industry and the Training Know-how of Leading Technical Colleges Combining Technology Innovation, Workforce Development and Strategic Collaboration to Promote Industry Expansion

8. Technology Focus Areas • Distributed Energy Resources and Systems (DERS) • Building Energy Efficiency (BEE) • Energy Storage • Renewable Energy • Energy Water Nexus • Biofuels

9. WERC Promotes Sustainability • Distributed Energy Resources Systems(DERS) Strategy Aims to Maximize Renewable Energy & Combined Heat & Power • Building Energy Efficiency Strategy Aims to Integrate DER and Dramatically Reduce Both Energy & Peak Demand • Biofuels Strategy Aims • to Use Waste on Site to • Create Biogas

10. We are Wasting Too Much…

11. Energy Efficiency is the KEY • ~60% of our Energy is WASTED • An Incandescent Light Bulb Wastes 90% of its Energy, a Fluorescent Wastes 40% and LED 25% • Major Opportunities for Savings • Electric Production Wastes 68% • Transportation Wastes 75% • Industry Wastes 20% + Heat/Elec Loss • Residential Wastes 20% + Heat/Elec Loss • Commercial Wastes 20% + Heat/Elec Loss ACEEE Says US Market is Projected to Grow from $300 to $700B/yr

12. Disruptive Developments DC Building Distribution Systems to directly Power LED lighting, computers and data systems without multiple conversion losses Low natural gas prices will drive advanced distributed generation and CHP providing power less expensively than from central stations Combined water, wastewater and electric distributed grids allowing multiple overlapping efficiency synergies and local biogas formation to power the grid Large appliance efficiency gains. IPads use 10% of the power of desktops, LED televisions use 70% less power than Plasma, current refrigerators are 60% more efficient than in 2000.

13. REALLY Disruptive Developments Additive Manufacturing (Printing) dramatically improves manufacturing energy efficiency nearly eliminating waste products and enabling local manufacturing greatly reducing shipping cost/ fuel Advanced batteries from DOE’s Batteries and Energy Storage Hub at Argonne National Lab reducing battery energy storage costs by 80% Graphine super capacitors allowing for even higher stored energy densities, ultrafast charging and long lasting storage Solar and wind powered highways continuously charge EV batteries allowing for unlimited travel range

14. Sustainable Research • Technology Innovation • Transformational R & D in the Microgrid Industry Through Academic/Industry Collaboration and Better Awareness and Use of Existing IP • Market & Industry Development • Market Research, Industry Development and Promotional Activities to Drive Growth of the Microgrid Industry • Supportive Public Policy • Public Policy and Standards Research that Support and Promotes the Growth of the Microgrid Industry • Workforce Development • Workforce Requirements Research and Development Boards across Business, Universities, Technical Colleges and WIB’s to Advise and Align Workforce Training to Meet the Workforce Needs of the Microgrid Industry • Development and Strategic Collaboration • Microgrid Project Participant Expansion Across the Country and World

15. Industry Roadmaps • Quantifies Market Size, Anticipated Growth, Segment and Market Requirements • Identifies Best Market Segments Based on Regional Strengths and Capabilities • Identifies Regional GAPS, Competition and Threats • Creates Detailed Action Plans for: - Technology Innovation - Market and Industry Development - Public Policy Support - Workforce Development WERC Roadmaps Drive Strategy

16. WERC DERS Roadmap Segment Trends/ Metrics Environment/Market Trends Central Roadmap Technology Gaps and Enablers Projects andOutcomes

17. DER Systems/MicroGrids A DERS System is an energy system network consisting of: • distributed energy resources • multiple electrical loads And operating as a single, autonomous grid either in parallel to or islanded (disconnected) from the existing utility power grid • Customer Owned Microgrid • Control is behind PCC or Customer Interface • Implies market participation for Energy, Capacity or Ancillary Service

18. DERS Benefits • Customer, Developer or Utility Owned • Premium Reliability • Premium Power Quality • Premium Security • Revenues from Market Sales • Energy Export • Demand Response (Capacity) • Ancillary Services (Voltage Regulation, Power Factor and Frequency Regulation) • High Renewable Integration

19. DERS Market & Segmentation • Source: Frost & Sullivan analysis. • Pike Research Analysis

20. DERS Market & Segmentation Growth Assumptions Detailed in Segment Description Source: Frost & Sullivan analysis. Pike Research Analysis

21. 2012 Market = $484.8 million 16.7% CAGR 2019 Market = $1,439.1 million

22. DERS TI Research Centers • Facilities in Milwaukee and Madison • Provide complementary DER & Microgrid R&D test, demonstration, education and workforce training facilities for WERC universities, technical colleges & companies • Madison facility will provide opportunity to explore new architectures and control algorithms focusing on interactions between sources, loads & storage • Milwaukee facilities can be used to research, demonstrate, educate across energy management, CHP, hardware and controls. Actual distributed generation with natural variability. World-class Microgrid Research & Test Environments

23. Madison DERS Center Madison Microgrid is Research-oriented w/ Emulated Sources WEI Building • Each source and load has rating of ~50 kW • Power supplies and dynos controlled to emulate RE sources

24. Madison DERS Center WEI BuildingConstruction Photos • Building Completed • Punch List Execution • Departments moved by 2-1-2013 • Lab Integration by 5-1-2013

25. Milwaukee DERS Center UW Milwaukee DERS uses Distributed Resorses with Controls Modified for Microgrid Compatibility UWM USR Building • 100kW PV solar, with inverter in voltage and current mode. • 100kW wind turbine w/ induction gen. • 100kW gas engine w/ synchronous gen. • 50kWh, 25kW Zn-Brom. energy storage

26. Additional Major Activities • Technology Roadmap • New Research Projects • Development of Incubator/Accelerator and Recruit Companies to Fill Gaps • Recruit Partners from 8 State Region • Convene Utilities and Customers to Shape Public Policy Recommendations • Convene Electrical Contractor and Companies to Identify and Shape Workforce & Requirements We Aspire National Leadership in DERS

27. Conclusion • WERC is Focused on Sustainability • Six Target Technologies Will All Save Energy & Protect the Environment • Dramatic Developments are Underway Here in WI/Midwest • WERC Strategic Roadmaps Will Lead the Way Through a Highly Disciplined Process • Stay Tuned for More Developments We Are Driving a Sustainable Future

28. WERC Upcoming Meetings • March 28 • S&C Electric • Chicago • May 16 • Green Bay Contact Ray Walter for Details

29. Thank You Questions?