International Wind – Diesel Workshop Overview & Discussion

1. International Wind – Diesel Workshop Overview & Discussion March 2011 Christopher Kuhl, Sales Application Engineer ZBB Energy Corporation

2. Agenda • ZBB Overview • Integrated Platforms • Flow Batteries • Operational Data - Savings • Design Considerations • Modular Architecture

3. The Leader in Renewable Energy Integration ZBB is transforming intermittent renewable energy into a reliable power source through intelligent power-management platforms and advanced storage technologies • Leader in large format Zinc-Bromide flow batteries • Created the “Brain/Router” of renewable energy systems - the Power and Energy Control Center (PECC) • Key installations of grid-connected and off-grid Storage systems • Ramping penetration in multi-billion dollar distributed renewable energy market

4. Quick Facts • Founded in 1995 / IPO in 2006 • Headquartered in Menomonee Falls (Milwaukee), WI, USA • 75,000 Sq. Ft. ES & System Production Facility • 10,000 Sq Ft. Power Electronics Facility (Tier Electronics – 2011) • R&D group in Perth, Australia • ISO-9001 Certified • +50 Full time employees • Traded on NYSE AMEX: ZBB

5. “Conventional Architecture” Renewable Off Grid Non-Modular Power Plant kW Always On Gen Set Energy Storage Energy Storage Each PV Array Each Wind Turbine • Not a factory integrated and tested Energy Storage and Power Conversion System (PCS) • Customer required to set up control dispatch or for load following • Energy Storage suffers extra ‘round-trip’ across inverters (6 to 10% efficiency lost) • Multiple inverters from various manufacturer’s • Challenging to expand or change given typical microprocessor controls kVar Control kW and/or kVAR to ZERO Master System Controller Power Flows M Circuit Breakers & Meters “Micro” Grid & Loads 480VAC, 3PH, 50/60 Hz

6. ZBB ZESS POWR™ Integrated Energy Storage and Renewable / Conventional Fuel Generation kW ZESS POWR PECC Power & Energy Control Center Segmented PV Array with MPPT per Section Modular ES Units Individual or Aggregated Wind Turbine (VAC / VDC) One or More Gen Sets with Stop / Start kVar • Factory Integrated and tested Energy Storage and Power Conversion System (PCS) with connections for multiple power inputs • Fully managed energy and power between the generation and the load demand • Energy Storage provides “after hours” power plant operation • Complete Reactive and Active Power supply for the load and / or grid demand • Can be equipped & configured to operate ‘independently’ of the grid (as an EPS) or even have the grid as a power input • Scale & Flexibility • Modular • Multiple power inputs • Multiple ZESS or alt ES inputs • ZESS POWR • ZBB control optimization • Optimal use of energy production • For Grid-Interactive or Grid-Independent Applications • Up to Multiple Megawatts (MW)/Megawatt Hour (MWH) • Load active/reactive power support • Load voltage regulation • Load frequency regulation • Single output as a “Firm” & regulated power plant • Built in protection • Local Display and Remote Monitoring Confidential Power Flows Platform Configurations: Grid Interactive (Synch-tied) Grid Independent (Off-grid / EPS) Grid Conversion (UPS with grid as an input) Customer Loads/Grid with Dedicated AC or DC Outputs - 1ph or 3ph - Various Voltages - 50Hz or 60Hz CONFIDENTIAL, ZBB Energy Corp - 2011

7. Grid Independent POWR™ PECC Operational Modes

8. Grid Independent ZESS POWR™ PECC with PV,Storage & Gen Set

9. Grid Independent ZESS POWR™ PECC with PV, Wind,Storage & Gen Set

10. ZESS POWR™ PECC Private Residence - State College, PA • System Parameters: • Inverter Nameplate = 70kVA, 240V, 1-phase, 60Hz • Gen Set Nameplate = 75kVA, 240VAC, 1-phase (rectified) • Total Load ~ 500kWHr/Day • Average Load ~ 20kW/Hour – Peak Load ~40kW • Renewable Capacity (Including Storage) = • Daytime ~100% • Nighttime ~ 50% • Renewable Output Contribution (Daily Average) • Summer >70% • Winter ~40% • Gen Set Runtime • Summer ~ 5 Hours / Night • Winter 2x Day @ 6 Hours per run • ES & system losses have approximately a 70% round-trip efficiency when charged by Renewable or GS output; • 100kWH / 0.70 ~ 142kWH required to fully charge

11. ZESS 50 Zn-Br Flow Battery Version 3 - ZESS 50 Zn – Br Flow Battery (50 kWH) • Fully Front-accessible • 50 kWh of Storage per Module with a 25kW (max) Discharge Rate • Full Discharge Capability • 3x Expected Service vs. Life of Lead Acid • Of one set of ZESS 50 cell stacks • Cheaper than Li-ion • 5x Energy Density of Vanadium Flow • Extended Operating Temp (-30° to +50°C) • Modular & Transportable ZESS 50V3 Module 60”W x 25”D x 96”H withintegrated DC bus and internal heat exchanger, controls and mechanicals CONFIDENTIAL, ZBB Energy Corp - 2011

12. ZESS POWR™ 50 Expected “Service Lifetime Discharge” Capacity • 75MWH SLD Capacity of Cell Stacks per 50kWH Module • (Not an “End-of-Life” / Failure Mode Projection, but an Economic Operational Decision for Cell Stack Replacement) Discharge Capacity to Equivalent “Cycles” Comparison 75MWH / 10% / 50kWH > 15,000 cycles 75MWH / 20% / 50kWH > 7500 cycles 75MWH / 40% / 50kWH > 3750 cycles 75MWH / 60% / 50kWH > 2500 cycles 75MWH / 80% / 50kWH > 1875 cycles 75MWH / 100% / 50kWH > 1500 cycles 10% 20% 40% 60% 80% 100% Maximum State – of - Charge

13. ZESS POWR™ 50 Flow Battery Projected Efficiency Degradation of Cell Stacks

14. ZESS POWR™ PECC Diesel Fuel Reduction Cost savings How Much Energy Storage Should We Have ? Projected “Cost of Stored Energy” • What is the objective to using storage: • Voltage & Frequency control • Seconds • Ramp rate control • 1 to 5 minutes • Provide ‘dis-patchable’ power • 15 minute increments • Accumulate “off peak” wind • Hours • Generator Shut down • >50% Reduction in diesel • Many hours of capacity ‘filling in gaps’ and ‘absorbing peaks’ • Assumptions: • CAPEX of systems + freight + install • $1000/kWH • $50,000 (ZESS 50V3) • +15% for install = $7500 • OPEX of systems (replace cell stacks) • 15% of CAPEX per 5 years • $7500 x 3 events = $22,500 • SLD Output = 2000 x 4 (sets) = • 8000 x 50kWH = 400,000kWH • TCO Calculation = $80,000 / 400,000 • = $0.20/kWH + cost of charging energy • “Your results may vary”

15. ZESS POWR™ PECC Hybrid Output Operational Mode* How long and often will the Gen Set run on these days? Load in kW System Max Output = 58kW; 60kW in Gen Set Bypass (On @ 20% S-O-C; Off @ 80% S-O-C) ES % S-O-C • Assumptions: • ES & Renewable output = % of load average on a daily basis • What are the SoC min / max points? • What happens at 100% SoC? Any ‘spikes’ in Load are automatically ‘absorbed’ by Platform up to 100kw in total 75kW ES Discharge Automatically Provides for Load Any ‘dips’ in Wind Output are NOT seen by loads 50kW 80% S-O-C 25kW 50% S-O-C ‘Surplus’ Wind Output Charging to ES 10kW GS is dispatched automatically by SoC, Output Provides for Load & ES Charge 20% S-O-C 12AM 6AM 12PM 6PM 12AM

16. ZESS POWR™ PECC Equipment Packaging & Configurations • Intelligent DC Bus • Patented Design • UL 1741 Qualified • Configurable & scalable • Hybridize multiple generation and storage sources • Partnered with • Multiple installations running now

17. ZESS POWR™ PECC DSP Control & Status Display • Typical “System-level” Home Screen with: • Generation sources • Loads information • Battery SoC • System status summary • Historical • Alarms / Faults • This web-based application is available both at a walk-up • touch-screen and over a wide-area network

18. ZESS POWR™ PECC System Design & Operational Issues Existing Auto / Manual Transfer Switch Diesel Generator Auto / Manual By-pass 1-phase loads imbalance; ~ 25% Phase-Phase Imbalance Existing Distribution; Possible New Breaker Each PV Array Up to 25kW; 120 to 300VDC 3-phase ‘start-up loads’; Max % Overload’ TBD Each Wind Turbine Up to 125kW; 200VAC, 3-phase Personal Renewable Energy; <15% of Total System Load

19. Summary • ZBB Overview • Integrated Platforms • Flow Batteries • Operational Data & Savings • Design Consideration • Modular Architecture

20. Thank you !Christopher KuhlSales Application Engineer262-253-9800 ext. 124ckuhl@zbbenergy.comwww.zbbenergy.com