Overview of Battery Energy Storage (BESS) commercial and ...

1 Jan GromadzkiManager, Product Management at Tesla EnergyOverview of Battery Energy Storage (BESS) commercial and utility product landscape, applications, and installation and safety best practices 2020 Tesla Inc. | Proprietary & ConfidentialAccelerate the world s transition to sustainable energy2 TESLA S MISSION 2017 Tesla Inc. | Proprietary & ConfidentialTESLA EXPERIENCE OVERVIEW1,500 Superchargerstations15,000 Superchargers275 GWPower Electronics 920,000 Vehicles Deployed6 BillionMilesDriven on Autopilot65 GWhLi-ion Battery Systems3 GWhPowerpack/ GW Solar 15 2020 Tesla Inc. | Proprietary & ConfidentialVERTICALLY INTEGRATED WORLD CLASS MANUFACTURINGG igafactory1 Reno, NVGigafactory2 Buffalo, NYTesla Model S/X/3/Y Production FacilityFremont, CA 2020 Tesla Inc. | Proprietary & ConfidentialESS LANDSCAPE 2020 Tesla Inc.

2 | Proprietary & ConfidentialSource: 2020 Tesla Inc. | Proprietary & ConfidentialSource: 2020 Tesla Inc. | Proprietary & ConfidentialGLOBAL Energy Storage FORECAST2018: 12 GWh2024: 158 GWh(est), GTM 2020 Tesla Inc. | Proprietary & ConfidentialGROWTH OF LITHIUM ION ESSB enefits of Li-ion: Gravimetric density Volumetric density Depth of discharge Cyclability Cost 2020 Tesla Inc. | Proprietary & Confidential10 commercial & Industrial (behind the meter)< 500 2000 kWh productsCabinet Solution: Small footprint, easier to transport Includes inverter, thermal management Indoor/Outdoor Not suitable for larger projects due to added EPC costsSolarEdgeAll-In-OneContainer Solution: ISO or similar form factor Support module depopulation to customize power/ Energy ratings Can be coupled together for larger project sizesSamsung SungrowPRODUCT LANDSCAPEU tility (front of the meter)2000 6000+ kWh productsSolarEdge 400kWhTesla Powerpack 232 kWhBYD 210kWhSungrow/Samsung 584kWh NEC 510kWhCOMMERCIAL (C&I) PRODUCT LANDSCAPE6 MWh+ per unitUTILITY PRODUCT LANDSCAPE 2020 Tesla Inc.

3 | Proprietary & ConfidentialBESS SYSTEM COST STACKCan be fully integrated 2020 Tesla Inc. | Proprietary & ConfidentialBATTERY Storage COSTS ARE DROPPING 2020 Tesla Inc. | Proprietary & ConfidentialESS APPLICATIONS 2020 Tesla Inc. | Proprietary & ConfidentialENERGY Storage APPLICATIONSBACK-UPPEAK SHAVINGLOAD SHIFTINGSOLAR SELF-CONSUMPTIONDEMAND RESPONSEOTHER GRID SERVICESCAPACITY SUPPORTVOLTAGE SUPPORT 2020 Tesla Inc. | Proprietary & ConfidentialLower peak demand chargesReduce grid connection costsHedge against rising chargesPEAK POWER SHAVINGD ischarging during peak demand time to avoid or reduce demand charges 2020 Tesla Inc. | Proprietary & ConfidentialAvoid peak price periods and reduce Energy costsProtect your business from future Energy price increasesMaximizes value of Energy generated by on-site solarENERGY LOAD SHIFTINGS hift Energy consumption from one moment to another to avoid paying high Energy prices 2020 Tesla Inc.

4 | Proprietary & ConfidentialReduce costs for Energy and grid connectionProtect your business from future Energy price increasesDrive sustainability and reduce CO2emissionsRENEWABLE Energy SELF- CONSUMPTIONM aximize your ability to use your renewable Energy generation sources 2020 Tesla Inc. | Proprietary & ConfidentialGenerate revenue by participating in a demand response programImprove grid stabilitySupport integration of solar on the gridDEMAND RESPONSE PROGRAMSM aximize revenues by using Storage as an asset to help decongest the grid 2020 Tesla Inc. | Proprietary & ConfidentialProvides reactive power controlProvides additional revenue streamLowers risk of grid outageFREQUENCY/VOLTAGE GRID ANCILLARY SERVICESP rovide voltage support and participate in frequency regulation to help maintain a stable grid 2020 Tesla Inc.

5 | Proprietary & ConfidentialControls ramp rates and smoothes generation profile Avoids renewable curtailment and increases Energy outputEnables continuous power despite fluctuations in power supplyRENEWABLE POWER PRODUCTION FIRMINGS mooth out variability and increase certainty in renewable Energy production 2020 Tesla Inc. | Proprietary & ConfidentialReduce Energy costs and use of diesel for generationProtect against diesel supply constraints and price changesLower maintenance costs by reducing generator run hoursMICROGRIDSENABLING FACILITIES TO ISLAND 2020 Tesla Inc. | Proprietary & ConfidentialESS PRODUCT FEATURES, INSTALLATION, AND SAFETY 2020 Tesla Inc. | Proprietary & ConfidentialAn all-in-one AC Energy Storage system for utility market optimized for cost and performanceMEGAPACK 2020 Tesla Inc.

6 | Proprietary & Confidential2 Hour4 HourRated AC Energy [kWh]2,5292, AC Power [kW]1, Trip Efficiency (at STC) 90%AC Power (kVA @ 480V) [Max]Scalableup to 1540 Scalable up to 910 MaximumMass (kgs / lbs)21,500/ 47,40023,500 / 51,800 Dimensions W x D x H (m / ft) x x / 23 -5 x 5 -3 x 8 -3 MEGAPACK SPECIFICATIONS 2020 Tesla Inc. | Proprietary & ConfidentialEach unit is fully assembled and tested at the Tesla Gigafactory and ships ready to installAC Connections + BreakerBattery ModuleBaysInverter BayThermal SystemIP66 EnclosureThermal RoofMEGAPACK FEATURES 2020 Tesla Inc. | Proprietary & ConfidentialUtility-specific ESS products enable the lowest cost, highest density utility-scale projects. Megapack is cost optimized for projects sized >2 MWh Megapack requires more space and bigger crane to installC&I-sized ESS products are versatile and best suited for a whole range of locations and applications Powerpack is generally less expensive than Megapack on an installed basis for projects <2 MWh Powerpack smodularity makes it easier to transport and install in locations with difficult access WHAT TO INSTALL WHEREMEGAPACK VS POWERPACK Energy DENSITYM egapack yields a 63% more Energy density and requires >10x fewer enclosures vs PowerpackPowerpack| 51 kWh/m2 Megapack | 83 kWh/m2 2020 Tesla Inc.

7 | Proprietary & Confidential Megapack is designed to be installed close together to improve on-site Energy density Connects directly to a transformer, noadditionalswitchgear required (AC breaker & included in ESS unit) All AC conduits run underground No DC connections requiredTypical 4-Hour AC Transformer Block LayoutESS INSTALLATION 2020 Tesla Inc. | Proprietary & ConfidentialESS INSTALLATION Typical ESS AC terminal voltage: 480V Connect directly to MV transformer Can also connect directly to 480V switchgear for smaller sites 2020 Tesla Inc. | Proprietary & ConfidentialProduct Functional Safety UL 1642 Standard for Lithium Batteries (cell level certification) UL 1973 Standard for Batteries for Use In stationary Applications (module level certification) UL 9540 Standard for Energy Storage Systems and Equipment (system level certification)

8 UL 9540A Test Method for Evaluating Thermal Runaway Fire Propagation in Battery ESS NEW UL 1741 Standard for Inverters, Controllers, Converters, and Interconnection Equipment for DER UL 1998 Standard for Software in Programmable Components UL 991 Standard for Tests for Safety-Related Controls Employing Solid-State Devices IEC 62619 Standard for Battery Safety in stationary Applications + moreBESS SAFETY STANDARDS40 Electrical, Fire, and Safety Codes and StandardsFor commercial applications: new code and standard requirements for ESS >20kWh NFPA 855 Standard for the Installation of stationary Energy Storage Systems (2020) location, separation, hazard detection, etc NFPA 70 NEC (2020), contains updated sections on batteries and Energy Storage systems International Fire Code 2018 and 2021 Dedicated sections on Energy Storage , language is harmonized with NFPA 855 Code requirements:-Large-scale fire testing and report may be required to meet exemptions in new codes and standards around.

9 Maximum allowable quantities (>600kWh) Fire suppression sprinkler density Size and separation of ESS Means of egress-IFC and NFPA language does not require detection or suppression for outdoor locations (except walk-in container ESS)-Indoor locations require smoke detection / IR and fire suppression (water sprinkler)MultispectrumIR Flame DetectorSITE LEVEL CONSIDERATIONS 2020 Tesla Inc. | Proprietary & ConfidentialYQUESTIONS?Contact.