Don t Panic - The ABB Galaxy. Bazmi Husain, Chief Technology Officer, ABB Group

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1 NEW YEAR S EVENT SWISS FEDERAL OFFICE OF ENERGY, BERNE, JANUAR Y 5 TH 2017 Don t Panic - The ABB Galaxy Bazmi Husain, Chief Technology Officer, ABB Group

2 Important notices This presentation includes several time warps and thus contains forward- and backward-looking information and statements including statements concerning your businesses in the future and in the past. These statements are based on current expectations, estimates and projections about the factors that may affect your future performance, including global economic conditions, and the economic conditions of the regions and industries that are major markets for you. There are numerous risks and uncertainties, many of which are beyond your and my control, that could cause your actual results to differ materially from the information and statements made in this presentation and which could affect your and my ability to achieve any or all of your stated targets. The important factors that could cause such differences include, among others: Your readiness to embark with me on this time journey Slide 2

3 Time Warp We are in 1877 Slide 3

4 Present Past Alexander Graham Bell will not recognize his baby Here s how the phone system has developed since Device Network Operation Slide 4

5 Present Past Thomas Edison will feel at home with modern grids Here s how the power system has developed since Generation Power grids Consumption Slide 5

6 .. predictions have proven to be difficult. I believe in the horse. The automobile is only a temporary appearance Emperor Wilhelm ll (The last German Emperor) There is not the slightest indication that nuclear energy will ever be available Albert Einstein (Physicist, Nobel laureate) Television has no future. It's just a strawfire Mary Sommerville (Head of BBC-Radio education program) but sometimes exceptional individuals get it right Why, sir, there is every probability that you will soon be able to tax it 1850 Michael Faraday's purported reply to William Gladstone, (minister of finance), when asked of the practical value of electricity. Slide 6

7 Time Warp Welcome to 2042 New Year s Event BFE Slide 7

A revolution in many markets Disrupt or be disrupted

accommodation provider owns no real estate World s

emerged Largest grocery stores owns no supermarkets

8 A revolution in many markets Disrupt or be disrupted World s largest taxi company owns no taxis Largest accommodation provider owns no real estate World s largest movie house owns no cinemas But new ones emerged Largest grocery stores owns no supermarkets Grocery2U Largest healthcare company owns no hospitals Slide 8

9 The energy <r>evolution Elements of the evolved grid Grid interconnection Power quality & demand mgmt. Digitalization Residential roof top solar plus Micro- and Nano-grids Energy storage New business models Slide 9

10 Commodity (kwh) Benefit achievement Services New business models emerged Societal drivers and technological enablers Driver technology Energy Service Provider Integrator New utility DSO Utilities IPP TSO ISO Vertical integrated utility Asset-based Platform-based Mainly in developing and in few industrialized regions Unbundled G, T, D: adopted in industrialized & in few developing regions Unbundled D: emerging in industrialized regions Slide 10

11 $/watt The energy <r>evolution Disruptive developments drove key changes in our grids Price history of silicon PV cells Cost for lithium-ion battery packs Yearly demand for EV batt. power , gigawatt hours Batteries, photovoltaic, new business models and nobody believed it Dramatic cost reduction Scalability of technologies Consumer investment Marginal costs of electricity became zero Slide 11

12 Max. hourly variable renewable generation as a percentage of total demand The energy revolution An evolution in process but a revolution in impact Technical challenges countries encountered Short circuit power & significant variable RES curtailment Germany System inertia & grid voltage Grid capacity & reserve Conventional operation Grid investments and technologies Take away were message required to address challenges Slide 12

13 Grid defectors and a global energy internet.. The evolved system accommodated them all! Elon Musk State Grid China Demand management Grid defectors Global energy internet Bulk battery storage Slide 13

14 hold on back to 2017 Slide 14

15 The energy <r>evolution.. The next 25 years. Most of the technology is already here Adoption by all market participants will be required Very important role of the regulator Slide 15 1 NCIT Non Conventional Instrument Transformers

16 Don t Panic! Lets write the future, together. Slide 16

India Smart Grid Week, 2017

India Smart Grid Week, 2017 N. Venu President and Head, Power Grids Division, South Asia, Middle East and Africa ABB 1 Big Shift in Power: Shaping the System of the Future Several global challenges Population