Caterva operates a distributed energy storage system called "We Network the Sun" to support Germany's energy transition (Energiewende) by providing grid stability services. The system connects many small home energy storage containers into a "swarm" that can balance electricity supply and demand like larger power plants. This solves challenges from rising solar energy in a profitable way for homeowners, utilities, and grid operators. Caterva's multi-sided business model optimizes the interests of stakeholders to pilot and scale the system with support from shareholders, industry partners, and public funding.

1. © Caterva GmbH 2014. All rights reserved
Date
Page
We Network the Sun

2. © Caterva GmbH 2014. All rights reserved
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PageWe Network the Sun
Distributed and Synched Storage Supports Energiewende
11/25/2014
2
Caterva Operations
Autarchy and green feeling for
home owner
Future proof service for
grid operators (TSO)
Utility as local
service provider

3. Confidential © Caterva GmbH 2014. All rights reserved
Date
Page© Caterva GmbH 2014. All rights reserved
Date
PageWe Network the Sun
11/25/2014
ESS working at home owner
3We Network the Sun

4. © Caterva GmbH 2014. All rights reserved
Date
Page© Caterva GmbH 2014. All rights reserved
Date
PageWe Network the Sun
11/25/2014
4
Distributed
energy
supply and
storage Based on a
huge installed
photovoltaic
base where
mandatory
grid stability
gets more
difficult
and
storage
systems
are the key to
the future
Energy storage
systems as
business
opportunity
with a unique
model to make
storage
profitable

5. © Caterva GmbH 2014. All rights reserved
Date
Page© Caterva GmbH 2014. All rights reserved
Date
PageWe Network the Sun
Solar Power - Cheaper than Supply from Utilities for
German Home Owner
5
PV levelized cost of energy
excludes grid costs
0
10
20
30
40
50
60
70
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Solar feed-in tariff Germany (ct /kWh)
End-user electricity cost (ct/kWh)
PV levelized
cost of energy (ct /kWh)
PV power at
lower cost
than grid
power
25ct
11/25/2014

6. © Caterva GmbH 2014. All rights reserved
Date
PageWe Network the Sun
Home Owners look for more independency
Direct use
Power independent from sun shine
Independence
Storage owners gain independence and hedge power cost
Emergency Power
In case of grid black-out ESS will support power needs
11/25/2014
6
… but storage is currently hardly a profitable business left with that application

7. © Caterva GmbH 2014. All rights reserved
Date
PageWe Network the Sun
Supply and Demand need Balancing
The Grid frequency of 50Hz will slightly
change, if supply deviates from demand
11/25/2014
7
Supply Demand< must always be equal >
=

8. © Caterva GmbH 2014. All rights reserved
Date
PageWe Network the Sun
Longterm stable power supply needs assured power
11/25/2014
8
Maximum load Germany
Kernenergie: Nuclear power
Braunkohle: Lignite
Steinkohle: Coal
Sonstige: others
Erdgas: Gas
Wasser: Water

9. © Caterva GmbH 2014. All rights reserved
Date
PageWe Network the Sun
Grid services today mostly provided by coal plants
11/25/2014
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Source: Fraunhofer

10. © Caterva GmbH 2014. All rights reserved
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PageWe Network the Sun
Supply and demand need to be matched every second
11/25/2014
10
Power plant outage Frequency Containment Reserve Frequency Restoration R. Replacement R.

11. © Caterva GmbH 2014. All rights reserved
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Decentralized Energy Systems have accumulated risks too
Frequency deviation on 28.10.2013, Storm „Christian“
Nominal frequency
49,85
49,90
49,95
50,00
50,05
50,10
50,15
0:00 2:24 4:48 7:12 9:36 12:00 14:24 16:48 19:12 21:36 0:00
Frequency/Hz
We Network the Sun
11/25/2014
11

12. © Caterva GmbH 2014. All rights reserved
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Page
Disconnection of 5 GW wind power lead to severe activation
of Frequency Containment Reserve in Europe
11/25/2014
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Frequency deviation on 28.10.2013, 17:00 – 18:40
Nominal
frequency
Full activation
of FCR with 3 GW
in Europe
Activation of 2
GW
FCR in Europe
49,75
49,80
49,85
49,90
49,95
50,00
50,05
50,10
17:00 17:14 17:28 17:43 17:57 18:12 18:26 18:40
Frequency/Hz
We Network the Sun

13. © Caterva GmbH 2014. All rights reserved
Date
Page© Caterva GmbH 2014. All rights reserved
Date
PageWe Network the Sun
Growth Potential in Europe is Five Times German Market
11/25/2014
13
Source: regelleistung.net,
CRE (French NRA), ENTSO-E, RTE (French TSO)
Total European
market for FCR is
about 3 GW
Total German FCR
market is about
600 MW or €100m31%
14%
20%
15%
20%
3 GW
Germany
Rest of
Europe
Italy
France
Spain

14. © Caterva GmbH 2014. All rights reserved
Date
PageWe Network the Sun
Synching many ESS to a large swarm makes a business
A large “swarm” serves the grid
Balancing supply and demand is well paid
Selling the aggregate power to TSOs
~60 Energy Storage Systems make One MW
Regulation changed in 2011 – hurdle down to one MW
11/25/2014
14

15. © Caterva GmbH 2014. All rights reserved
Date
PageWe Network the Sun
Small Storage has a symbiotic relation with private homes
11/25/2014
15
Private homes
+
Container Storage
+

16. © Caterva GmbH 2014. All rights reserved
Date
Page
Rents ESS, gains autarchy and cost reduction
Multi-Sided Business model Optimizes Stake Holders
11/25/2014
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Transmission System
Operator (TSO)
Caterva GmbH
R&D / Services
Caterva Operations
Installs and operates ESS
Participates
Ownership III..
Returns Buys ESS from suppliers
Owns ESS
FCRRevn.
Rent
Utilities
Ownership II
Buys ESS from suppliers
Owns ESS
Ownership I
Owns ESS
Customer acquisition &
retention, energy
management
Get new and competitive
supplier for FCR
We Network the Sun

17. © Caterva GmbH 2014. All rights reserved
Date
PageWe Network the Sun
Proof of Business Financed by Shareholders and Grant
11/25/2014
17
 Project leader
 Development
 Owner of IPRs
 Operates the swarm
 Customer acquisition
 Metering services
 Energy Management
 Control center
operation
 Financing of
Caterva GmbH
 Contribution of
some IPRs
 Supplier of power
electronics
 BayINVENT grant
to co-finance the
pilot phase with the
first MW of ESS
The first roll-out is sponsored by leading industry experts

18. © Caterva GmbH 2014. All rights reserved
Date
Page© Caterva GmbH 2014. All rights reserved
Date
PageWe Network the Sun
11/25/2014
18
Distributed
energy
supply and
storage Based on a
huge installed
photovoltaic
base where
mandatory
grid stability
gets more
difficult
and
storage
systems
are the key to
the future
Energy storage
systems as
business
opportunity
with a unique
model to make
storage
profitable

19. © Caterva GmbH 2014. All rights reserved
Date
Page
Dr. Roland Gersch, CTO
rg@caterva.de
Markus Brehler, CEO
mb@caterva.de
Gabriele Ellenrieder, IR
ge@caterva.de
www.caterva.de