CSU - PANASONIC presentation for May 20th

STRATEGIC ALLIANCE

May 20, 2019

AGENDA Discussion Topic

Moderator

Duration

• Welcome & Introductions

All

05 Min

• Panasonic & COS Strategic Partnership

Jarrett Wendt

05 Min

• CSU Strategies & Priorities

Arum Benyamin

20 Min

• CityNOW Applied Innovation

George Karayannis

05 Min

• Utility Advisory Services

Dexter Gauntlett

15 Min

• Project Alignment & Next Steps

All

10 Min

TEAM PANASONIC CITYNOW

Jarrett Wendt | Executive Vice President

Alan Gotcher | Sr. Architect, Energy Storage

Dexter Gauntlett | Director Utilities

Jarrett is charged with leading Panasonic’s Smart Cities initiative CityNOW leveraging the strengths of Panasonic’s history in smart and sustainable solutions, including solar, battery storage, micro-grids, mobility solutions, healthcare. He also leads corporate partnerships for Panasonic providing large-scale solutions. Jarrett created Panasonic’s Connected Vehicle business, signing the largest CV contract in US DOT history with Colorado Department of Transportation.

Alan is responsible for creating and building CityNOW’s Energy Storage business and Energy Storage product development and delivery for utility, C&I and residential markets. He has a proven track record in product and business development having lead public and private company teams to design, build, monitor and operate over 44 battery power plants providing 275+ MWs of power for micro-grids to Utility companies, IPPs and C&I customers in the USA, Germany, the United Kingdom, Italy and Portugal.

Dexter leads CityNOW’s Smart City Utility Advisory Services, to deliver transformational smart city offerings across distributed energy resources, mobility, decarbonization, and social equity. Dexter has 15 years experience working at the nexus of clean-tech, IoT, water, and utilities in the US and overseas. He previously led Navigant Research’s custom research division and has directed more than 50 market research and strategy engagements with leading utilities, Fortune 500’s, startups, and investors.

George Karayannis | Executive Director George’s team helps utilities define smart city strategies and implement innovative new products and services for their municipal and real estate developer customers. Previously, George led Schneider Electric’s smart city team and Lockheed Martin’s smart grid team, and his background is in emerging technologies and complex systems.

Chris Gustafson | Sr Manager, Quality & EHS Project planning and execution for optimal stakeholder and key partner outcomes. Experienced in the public and private sector for delivering high quality projects for long term operations and reliability. Key stakeholder relationship development and maintenance to ensure project front end goals are succinctly defined and successful roll out and completion of complex products is achieved.

Harris Kalofonos | Project Manager, COS Harris is relationship architect. He is responsible for all smart city initiatives for Olympic City USA (Colorado Springs). Prior to joining Panasonic Harris worked at five Olympic Games and has see first hand city level transformations. Harris is a ULI member and has founded a youth Olympic leadership education program. His extensive Olympic experience and branding background is a key asset for customer relationships and sharing the story of CITYNOW.

Timeline Colorado Springs & Panasonic Strategic Alliance Smart City Planning

US Olympic Museum

Jan 2018

SW Downtown District Master Plan

Oct 2018

Dec 2018

Fire Station Microgrid Proposed

JAN 2019

APR 2019

Smart City Solution Pilot Program Proposed

MAY 2019

Airport Parking Microgrid Proposed

FUJISAWA

PENA STATION NEXT

UTILITY

APPLIED INNOVATION

CityNOW Utility Advisory Services: Applied Innovation in the Public Good May 20, 2019

Dexter Gauntlett

Straddling Eras and the Democratization of Energy Renewables & Distributed Generation Era

100% Era: Connected, Resilient, Decarbonized

Drivers: Universal access to Safe, Reliable, affordable Electricity

Drivers: Climate, Pollution, CostEffectiveness

Drivers: Customer Demand, Disaster Preparedness, City goals, Decarbonize

Can we invent it?

Can we invent it?

Can we connect it?

Can we build it?

Can we build it?

Can we protect it?

Can we scale it?

Can we scale it?

Can we store + stack it?

Central Generation Era

Zero-Carbon by 2050

Full Muni: Go/No-Go by 2020

Can we ratebase it?

Can we future-proof it?

Will it improve city “-ities”?: • Equity issues • Housing affordability • Mobility

12% EE, 20% RE by 2024, Decom. Drake

CSU Strategic Plan “The combination of evolving customer expectations, emerging technologies, changing demographics...“ “Essentially flat projected energy and water unit usage and resulting low revenue growth rates create a challenge to fund existing operations and growing customer needs.”

“Renewable energy and battery storage costs continue to decline while electric vehicle technologies are advancing quickly.

“...lower costs for natural gas. This low fuel-cost environment, along with increased regulations and customer expectations, will likely result in a fundamental shift in the electric generation portfolio.” “…we must now increase our investment in new technologies. This will allow us to operate more efficiently, enable customer connectivity and provide advanced utility services for the next generation of customers.

CSU Strategic Plan Forcing Functions / Opportunities EIRP due in 2020 Drake Transmission Plan AMI Infrastructure Upgrade Critical Infrastructure + Military Resiliency Distributed Energy Resources E-mobility

Panasonic Operational Approach CityNOW specializes in Applied Innovation in the public interest

Operating as an internal change agent, accelerating current plans, understanding constraints

To unlock shared outcomes

2) Smart City Technical Support 3) MultiStakeholder Alignment 4) Utility Innovation Platforms

Utility Challenges Panasonic Off-Grid Wireless Resiliency (POWR) Products

Future Solutions (e.g. Resiliency-as-aService)

Regulatory Transformation

Innovation

Climate Change & Resiliency

1) Business Model

Direct Access to Subject Matter Experts for In-Scope Projects

Increasing Customer Demands

Full-Time CityNOW Program Manager Onsite with Utility

Legacy Fossil Power Plants

CityNOW Utility Advisory Services

Approach

CityNOW Utility Innovation & Advisory Services accelerate the development and deployment of innovative smart city strategies and solutions that will be successful today and support an evolving regulatory structure.

Extensive Expertise Bringing Innovation to Market

Strategy, Market Research, Competitive Landscape, Multiparty Financial & Value Stream Analyses, Smart City & Resiliency Solutions & Service Models, Senior Leadership Coaching

Future-Ready Business Models

Direct On-Call Technical Support (e.g. Microgrid Design, Battery Sizing, 5G Planning, etc.), RFP Support, Technology Identification & Vetting, Smart City Solution Implementation

Successful Smart City Deployment

Ensure utility priorities represented with developers, cities, transportation and econ. development agencies, while building capacity of utility staff to realize shared vision of future

Org. Transformation, Thought Leadership

Jointly Identify high-value new smart city products and services co-developed & incubated with strategic utility partners and Panasonic, leveraging Panasonic R&D and partner capabilities

New Rate-Based Products & Services

Panasonic Value Added

Outcomes

Portland General Electric Situation: • • • • • •

Crawl

50% Renewable Portfolio Standard (2016) New CEO, Maria Pope (2018) 5 Large-Scale Real Estate Development Projects Portlandia Effect (“-ities rule the city”) Bungled Natural Gas Power Plant Construction Cap & Invest, Clean Energy Fund, Decarbonization

Walk

Run

CSU-Panasonic Project Alignment

Appendix

DEEP DIVE

PANASONIC Off-grid Wireless Resiliency (POWR) Platform 1 CONTROL PLATFORM + 3 PRODUCTS POLE | PACK | PAVILION INTEGRATED MANAGEMENT PLATFORM

KEY VALUE PROPOSITION TARGET CUSTOMERS UTILITIES CITIES DEVELOPERS

• • • • • •

New Revenue Stream Platform of Innovation Peak Demand Community Resiliency 5G Acceleration Public Relations

POLE

KEY STAKEHOLDER BENEFITS

PRODUCT DETAILS PRODUCT FEATURES • 11.5 kVA, 50kWh

UTILITY New Service Revenue Resource Adequacy Load Following Outage Mitigation Frequency Regulation Voltage Management PV Integration

CITY

•

Up to (2) 5G Small Cells

Streetlight / Traffic System Backup Public Safety Communications Resiliency – Disaster Recovery

•

IoT Integration

Community Aesthetic - Right-of-Way Stewardship

•

Inherently Safe Design

CUSTOMER

•

Fits Existing O&M Processes

•

Naturally Cooled

TOU Charge Reduction Demand Charge Reduction Peak Demand Reduction Operational Resiliency PV Integration

PACK

KEY STAKEHOLDER BENEFITS

PRODUCT DETAILS PRODUCT FEATURES • 11.5 kFA, 50kWh • Inherently save design • Underground protection • Easy to Install • 24/7 Monitoring

UTILITIES New Service Revenue Resource Adequacy Load Following Outage Mitigation Frequency Regulation Voltage Management PV Integration

CUSTOMER TOU Charge Reduction Demand Charge Reduction Peak Demand Reduction Operational Resiliency PV Integration

CITY Streetlight / Traffic System Backup Public Safety Communications Resiliency – Disaster Recovery Community Aesthetic - Right-of-Way Stewardship

PAVILION CONCEPT

KEY STAKEHOLDER BENEFITS UTILITIES New Service Revenue

PRODUCT FEATURES • • • • •

50kWh Microgrid + 12k Solar PV New Utility Revenue Easy to Install Community Point 24/7 Monitoring

Resource Adequacy Load Following Outage Mitigation Frequency Regulation Voltage Management PV Integration

CUSTOMER TOU Charge Reduction Demand Charge Reduction Peak Demand Reduction Operational Resiliency PV Integration

CITY Streetlight / Traffic System Backup Public Safety Communications Resiliency – Disaster Recovery Community Aesthetic - Right-of-Way Stewardship

POWR

FEATURE MATRIX Key Features 11.4kW / 50kWh BESS Encased in NEMA 6P Steel Vault X Concrete Caisson X

POWR Pack

POWR Pavilion X X

POWR Pole X X

NEMA 4 Above-Ground EncloSure X 4G / 5G and IoT System Integration

X

Video Surveillance Camera

X

12kW Solar PV Array (approximately a 20’ x 40’)

X

Weatherproof Tables and Seating

X

Outdoor Rated 120VAC and USB Charging Outlets

X

1 Year O&M and Data Monitoring Services X

X

X

10 Year Warranty on Battery X

X

X

1 Year Warranty on Balance of System X

X

X 18

SOFTWARE MANAGEMENT SYSTEM

BASE FEATURES • • • • • • • • • •

Live Monitoring Data Aggregation Notification Access Analysis Modeling Reporting Resilient Safe Scalable

ENERGY SOLUTIONS

GROUND MOUNT SOLAR

ROOFTOP SOLAR

CARPORT SOLAR

EV INFRASTRUCTURE

ENERGY STORAGE & MICROGRIDS

FUELING STATION FOR THE FUTURE

Components • • • •

DC Fast Chargers Battery Energy Storage Solar PV Canopies Energy Management Software

City of San Luis Obispo: 2035 Net Zero Goal 1. Research & Identify Gaps

2. Align Stakeholders & Organize Findings

Electricit y

Transport

Waste

Buildings

3. Prioritize

Adaptive Learning

CCA

HIP Investors Foundations

PG&E

5. Operationalize

1

City Engineering Dept. + Vendors

4. Link to CAP & Budgeting

Public Process

CALTRANS

County

Pooling Resources

Land Use

2

Business Models + Technolog y

• Climate Action Plan • Carbon Neutral City Plan • Financial Planning

Policy & Regulatory

3

Capital

System Integrators Developers

Crawl

Walk

• Vendors • Capex vs.

Opex • Right of Way

Run

• Code • Regulations • Developer Engagement

• P3 Engagement • Capital Planning • 1-2 yr, 6-7 yr

Technology: Renewables, Gas, Batteries, Corporate PPAs 88 GW Flexible BTM Assets by 2023

66% Renewables, 34% Gas (2019 Forecast)

(Source: EIA)

(Source: GTM)

184 Corporate PPA’s (14 GW)

13 Services for Batteries (T&D, BTM)

(Source: RMI)

(Source: GTM)

Power to (and from) the People

Disintermediation: Cleaner, Faster, Cheaper • “CCAs are expected to serve 16% of the electrical load in California in 2020. But, it’s highly likely more CCAs will launch in the coming years, which could put this number at over 50% in 2020.”

• CCAs could lead to achieving 2030 RPS 10 years sooner

• In California, every CCA (so far) has chosen to provide customers with more renewable energy than the competing utility and has done so at lower rates.

Climate Change & Resiliency

2003

25% of People in ModerateHigh Risk Fire Zone

2015

$600B In Damages

Utilities Pressured to Align with “-ities” (Livability, Equity, Mobility), Energy Goals

• Affordability (housing) • Equity: Energy Burden on Low Income Homes, People of Color • Mobility and EV Infrastructure • 100% is the new 50%

Energy Majors: More to Come Total Invests in SunPower, stem, Acquires Saft

Shell $2B War Chest: Sonnen, Greenlots, First Utility

Smart Cities is the Framework to Enable Co-Existence Community Innovation The CityNOW Pillar Process • Aligns Senior Executives and staff from diverse stakeholder organizations to produce integrated strategies and goals • Unlocks transformative P3 business models that produce highly impactful solutions.

Engagements

Southwest Downtown Smart District Master Planning

US Olympic Museum

Fire Station 21 Microgrid

Colorado Springs Airport Parking Microgrid

Colorado Springs Streetlight Pilots