Microgrids for industrial applications. ABB Group June 22, 2016 Slide 1

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1 June 2016; Pablo Astorga, Head of Sales Microgrids Microgrids for industrial applications Group June 22, 2016 Slide 1

2 Microgrid segments and main drivers Covering a diverse range of applications Main drivers Social Economic Environmental Operational Segments Typical customers Access to electricity Fuel & cost savings Reduce CO2 footprint and pollution Fuel independence Uninterrupted supply Island utilities (Local) utility, IPP* P P P (P) Off-grid Weak grid Grid-connected Remote communities Industrial and commercial Defense Urban communities (Local) utility, IPP, Governmental development institution, development bank Mining company, IPP, Oil & Gas company, Datacenter, Hotels & resorts, Food & Beverage P P P (P) P P P Governmental defense institution (P) (P) P P (Local) utility, IPP (P) P Institutions and campuses Private education institution, IPP, Government education institution (P) P (P) Slide 2 P: Main driver (P): Secondary driver IPP: Independent Power Producer

3 Microgrids Grid Connected Microgrid Slide 3

4 Microgrids Transition to Islanded Microgrid Islanded Microgrid Grid Connected Microgrid Slide 4

5 Microgrids Transition to Grid Connected Microgrid Microgrid operating as a single, autonomous grid either in gridconnected or Islanded mode with respect to the existing utility power grid. Islanded Microgrid Grid Connected Microgrid Slide 5

6 Microgrid for Industrial and Commercial Sites OPEX accounts for ~75% of total costs over ten years of operation, with 20% of OPEX in energy costs Case example: TCO calculation in food manufacturing over ten years of operation 100 CAPEX ~25% OPEX ~75% 100% % % of total costs One time costs Operating costs 20-30% One time costs 2-3% Spare parts and maintenance 15-20% Energy costs 25-35% Line operators Material losses In industry, OPEX is the main cost lever of TCO Total Cost of Ownership Slide 6 TCO: Total Cost of Ownership

7 Operational objectives and power system functions drive microgrid technology choices Operational goals Maximize reliability Resilience in the face of severe weather or natural disasters Resilience in the face of unreliable grid Meeting environmental targets Maximizing renewable penetration Shrinking operating expenditures Energy independence Participation in regulation or ancillary services markets Power system functions 8S 1. Stabilizing 2. Spinning reserve 3. STATCOM (static synchronous compensator) 4. Seamless 5. Standalone operation 6. Smoothing 7. Shaving 8. Shifting June 22, 2016 Slide 7

8 Integration Important notices of renewables and storage with diesel Johannesburg, PV/diesel, battery energy storage system and grid Johannesburg, PV/diesel and grid Project name Longmeadow Location South Africa Customer Longmeadow Business Estate Completion date 2016 ABB solution PV/diesel microgrid with battery-based system to maximize solar contribution and ensure security of power supply at ABB s premises in Johannesburg The resulting system consists of: 750 kwdc rooftop PV plant, including ABB PV inverter 1 MVA/380 kwh battery-based PowerStore Microgrid Plus System Customer benefits* Reliable and stable power supply Optimized renewable energy contribution to the facility Ability to island from the grid in case of an outage CO2 reduction: over 1,000 tons/year Up to 100% renewable energy penetration About the project The microgrid solution is for the 96,000 sqm facility houses hosting ABB South Africa s headquarters as well as manufacturing facilities with around 1,000 employees. The innovative solution will help to maximize the use of solar energy and ensure uninterrupted power supply. Slide 8 Group June 22, 2016 Slide 18

9 Integration Important notices of renewables and storage with diesel Western Australia, PV/diesel and storage ABB solution Integration of a new 10.6 megawatt (MW) solar PV field and a battery storage system with existing diesel generation to provide reliable base-load power. The resulting system consists of: PowerStore grid stabilization solutions (2 x 2 MW), solar inverter stations (5 x 2 MW), solar MV stations, a transformer and the Microgrid Plus System Project name DeGrussa Copper-Gold Mine Location Western Australia Customer juwi Renewable Energy Completion date 2016 Customer benefits Expected diesel fuel saving is 5 million liters per year, cutting diesel consumption by 20% About the project The new hybrid solar facility will be the largest integrated off-grid solar and battery storage plant in Australia. Once fully integrated, the plant will reduce CO2 emissions by 12,000 tons. Slide 9 Group June 22, 2016 Slide 18

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