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Santa Barbara Summit on Energy Efficiency Commercialization Panel Pradeep (PK) Kapadia Director of Business Development May 21, 2009

Four Energy Efficiency Technologies that will transform the industry in the next five years

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• In the energy field, we have lived in a supply-side society for 40 years and now find ourselves in a demand side environment • This is no time for the two extremes: “Drill baby drill” can no longer be our first response to high energy costs; just as dangerous as ‘drill baby, drill’ is looking for a silver bullet – whether in renewable or efficiency – that will solve all or most of our energy and environmental problems. • As the sustainability euphoria gives way to the “sensible sustainability” movement, it will satisfy the needs of both businesses and environmentalists

• Applying the innovations of the past 10 years in the energy efficiency, storage & management field is our most costeffective energy solution for the next 5 years • If incentives could either a) buy down the cost of implementing proven measures to a 1 year payback period, or b) finance measures for a net positive cash flow, we could improve efficiency by 10 to 15% in the commercial & industrial sector, stimulating the economy immediately while continuing to lower the price point of viable technologies •  Energy efficiency is a mature and growing industry that has been waiting for this moment since the ‘70’s. It is neither sexy nor a passing fad, it’s simply a bunch of highfunctioning geeks and technocrats on a long-term mission

New Technologies: PK’s top four energy efficiency technologies that will transform the industry over the next 5 years: (note: the technology is old; the applications are not) 1. L.E.D. lighting will replace fluorescent, H.I.D., and CFL bulbs for indoor and outdoor use 2. Web-based controls will shut off loads and reset temperature setpoints and schedules remotely 3. Electricity will be stored and re-sold to utilities or used during peak periods 4. The human brain will finally catch up with energy efficiency technology 6

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Efficiency: expect 120 lumens/watt by 2011 Environmentally friendly (no PCB’s or mercury) Longer Life, Longer Lumen Maintenance Durable, Compact, Improved Photometrics Better Color, Directional Light Source Instant on, Variable Dimming Operates well in cold temperatures

New Technology # 1: L.E.D. Lighting …Replaces outdoor pole heads

New Technology #1: L.E.D. Lighting …Replaces outdoor pole lights

New Technology # 1: L.E.D. Lighting

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New Technology #1: L.E.D. Lighting …Replaces task lights at desks

New Technology #1: L.E.D. Lighting …Replaces recessed ceiling CFL and halogen lamps

New Technology #1: L.E.D. Lighting

…Replaces linear fluorescent fixtures

New Technology # 2: Web-enabled Controls Standard Benefits: Superior Energy Management • 366-Day Programming • Advanced HVAC Settings • Temporary Manual Override Optimized Time Management • Remote Schedule Changes • Remote HVAC System Changes • Remote System Monitoring • Remote Alarm Notifications Premium Benefits: All the benefits of basic web-enabled control, plus: • Verification of savings • Continuous Commissioning • HVAC experts diagnosing failures or alarms • Dispatch capability to Fix Alarms • Preventive maintenance • Demand Response Compatible

New Technology # 3: Electricity Storage Electric Storage for Peak Shaving & Load Shifting in 1kW Chunks

New Technology # 3: Electricity Storage

Ideal for “Smart Grid” operations, or “Off Grid” applications Can be used for Demand Response programs Loses no more than 0.1% of power stored per month Can be used for back-up power (UPS systems, data centers, etc.)

New Technology # 4: The Human Brain The human brain will finally catch up with energy efficiency technology: Large energy consumers always looking for short payback opportunities will finally realize that applying the human brain to existing technologies within a facility will result in the fastest payback: •  Using existing B.A.S. to their fullest to track & analyze efficient operation; • Trend logging of equipment operation for monitoring & verification •  Matching real-time utility rates and load shedding of equipment •  purchasing weather derivatives for hedges against energy price spikes; and • Adding the above tasks to their existing jobs to ensure job security during uncertain times. Cutting edge technology is always more expensive than the creative application of existing technology. You do not need to buy the latest product at the highest first cost in order to get decent returns on investment. You need well-trained human capital that can identify opportunities, quantify the savings and apply the technology. 19

Thank You! Questions? Comments?

Pradeep Kapadia, Director of Business Development [email protected] www.lime-energy.com NASDAQ: LIME