What can HVDC Light do for you it s time to connect Applications Key Components

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Power from shore inauguration event Bo Normark Marketing and Sales, Grid Systems What can HVDC Light do for you it s time to connect Applications Key Components ABB-Toll Inauguration -1 -

HVDC Light : Unique system with unique features ABB-Toll Inauguration -2 - Transmission System with converters and cables Converts give less stress on cable system and allows: Lightweight extruded cable Prefabricated joint technology Superior voltage and reactive power control Environmentally adapted Short permitting time Small footprint and low profile of converters Oil free cable No magnetic fields New applications opens new possibilities

ABB Semiconductor capabilities Semiconductor Devices Device Encapsulation Reliable Products for... ABB-Toll Inauguration -3 -... Transmission Systems...Industry...Transportation

IGBT Silicon Chip - a reliable Power Switch Silicon Wafer with Chips Single IGBT Chip StakPak TM Modul Submodule ABB-Toll Inauguration -4 -

StakPak TM product platform for HVDC and FACTS ABB-Toll Inauguration -5 - Main features Versatile modular design for HVDC and FACTS applications ABB-proprietary encapsulation design with Failsafe short-circuit mode Totally immune to mechanical mounting tolerances Design based on ABB s recognized high voltage IGBT chip technology Proven Quality and Reliability more than 100 000 units in operation more than 500 000 module-years of successful operation failure rates allow maintenance intervals > 3 years

Chip Factory and Module Assembly Recognized leading high voltage IGBT technology Dedicated high voltage Semiconductor development and manufacturing ABB-Toll Inauguration -6 - Our module assembly line is dedicated to high voltage products

Quality and Reliability is key We use dedicated high voltage test equipment for product qualification and test ABB-Toll Inauguration -7 - Data from our extensive field experience is used to improve our production processes on an ongoing basis 15000 units in operation, failure rates allow maintenance intervals > 3 years

ABB Cable capabilities Modern factory in Karlskrona since 1992 ABB-Toll Inauguration -8 - High Voltage Cables Capability for extruded and paper insulated cables, AC and DC Standard cables and advanced customized products Efficient production for long and heavy cables Proven track record of running cable projects on a global basis. Great Britain Finland Norway Sweden Karlskrona

References tell about our capability ABB-Toll Inauguration -9 - Land and sea cables with paper and oil. 1952 1954 First 400 KV LPOF Cable First DC MIND Cable to Gotland XLPE introduced 1965 for AC 1973 1978 First XLPE Submarine cable 60 KV to Åland XLPE 245 KV cables XLPE introduced 1997 for DC (HVDC Light ) 1997 2002 2004 Gotland land cable Cross Sound Cable Troll Cables

Major supplier of XLPE cable for d.c. and a.c. Cables from ABB 1350 km installed HVDC Light cables since 1998 745 km installed XLPE cables above 220 kv since 1978 out of totally about 4000 km installed world-wide ABB-Toll Inauguration -10 -

Cost effective installations ABB-Toll Inauguration -11-

HVDC Light Convertor Development 1997 Hellsjön +/- 10 kv 1999 7 MW - 50 MW +/- 80 kv 2001 up to 330 MW up to +/- 150 kv 2004 up to 550 MW up to +/- 150 kv 2006 up to 1100 MW up to+/- 300 kv 1200 1100 1000 ABB-Toll Inauguration -12-800 700 600 550 550 400 330 350 220 200 3 3 3 50 60 0 1997 1999 2000 2002 2004 2006 Power MW Voltage kv

HVDC Light, six key applications ABB-Toll Inauguration -13-

Improved grid reliability by HVDC Light, values Increased grid reliability by Fast and accurate voltage control Can not be overloaded Black start capability Short time to market by simplified permitting procedure ABB-Toll Inauguration -14 - DC lines will never be subject to an unforeseen increase of power flow due to the outage of system components. Therefore it is not necessary to reserve capacity margins on DC lines in order to fulfil the (n-1) principle. DC links can rather be operated at their rated power, unless there are limitations inside the adjacent AC networks. Source: IAEW/Consentec report 2001

Cross Sound Cable US, HVDC Light Grid reliability Customer needs Provide power exchange channel Long Island - Connecticut ABB s response Turnkey 330 MW HVDC Light transmission system ABB-Toll Inauguration -15 - Customer benefits Easy siting of convertor stations by compact design No need for network reinforcements Increased security of supply by continues voltage and VAR control Short permitting, delivery and commissioning time

HVDC Light, proven technology ABB-Toll Inauguration -16-

Improved grid reliability by HVDC Light Case 350 MW, short distance transmission 100 km DC alternative, HVDC Light transmission +/- 150 kv AC alternative, 220 kv overhead line Grid reliability, 350 MWW 400 350 Other cost AC 300 ABB-Toll Inauguration -17 - MUSD 250 200 150 100 50 0 HVDC Light - low HVDC Light -high AC OHL - low AC OHL - high Other cost DC EPC cost DC EPC cost AC

ABB-Toll Inauguration -18- Connecting wind farms, offshore is growing Source: DENA Study Feb 2005

Connecting wind farms by HVDC Light, values Facilitates grid connection by Voltage and reactive power support No limitation in distance Ride-through capability at faults Easy permitting Short construction time ABB-Toll Inauguration -19 -

Checklist, connecting wind farms ABB-Toll Inauguration -20 - Need for power transmission 200-1000 MW Need for accurate and fast control Distance more than 50 km Difficult to obtain permits for OH-lines Difficult to find/reach interconnection point in the grid Difficult to build a substation near the coastline (for reactive power compensation) Weak AC network Risk for dynamic instability Power quality issues Need for grid black start capability Need for high availability during thunderstorms, windstorms/hurricanes or icing Need for compact offshore module Risk of low harmonic resonances Need for fast voltage and reactive power control to enhance network security

Connecting wind farms by HVDC Light Case 350 MW, 70 km sea cable and 30 km land cable DC alternative, HVDC Light transmission +/- 150 kv AC alternative, 220 kv AC cable 350 Connecting wind farms, 350 MW 300 Other cost AC 250 MUSD 200 150 Other cost DC ABB-Toll Inauguration -21-100 50 0 HVDC Light -HVDC Light - low high AC Cables - low AC Cables - high EPC cost DC EPC cost AC

Cost is historically the key problem? ABB-Toll Inauguration -22 - State of the art historically Undergrounding cost is 5 15 times OHL

ABB-Toll Inauguration -23 - Underground power links by HVDC Light, values Easier permit procedure by Underground invisible cable system Environmental friendly oil-free cables Short installation and implementation time Environmentally adapted converter stations No EMF No audible noise Time saving No loss of property value Increased grid reliability by voltage and reactive power support Increased utilization of existing AC network Reduced losses in connected AC network by voltage control

Underground power links by HVDC Light, values Flexible Cable system Robust, lightweight and oil-free cables Pre-fabricated joints Cable faults can be quickly located and repaired Enables installations in existing right of ways e.g. existing cable ducts, roads, subways, railways, channels ABB-Toll Inauguration -24 -

Underground power links by HVDC Light Case 700 MW, long distance transmission 400 km DC alternative, HVDC Light transmission +/- 300 kv AC alternative, 400 kv overhead line 900 Underground power links, 700 MW 800 700 Other cost AC MUSD 600 500 400 Other cost DC ABB-Toll Inauguration -25-300 200 100 0 HVDC Light - low HVDC Light - high AC OHL - low AC OHL - high EPC cost DC EPC cost AC

Southern Link, Sweden Customer s need Improved security of the electricity supply in South and Central Sweden Distance 400 km Alternatives ABB-Toll Inauguration -26-400 kv overhead transmission line Turnkey 500 700 MW ±300 kv underground HVDC Light transmission system Customer s benefits with HVDC Shorter project time due to easier permitting ( 2 3 years ) Increased power transfer existing a.c. lines Improved reactive balance in both ends Project status Final evaluation ongoing. Decision 2005 Cost of HVDC option comparable to OHL

What can HVDC Light do for you? ABB-Toll Inauguration -27 - We can offer proven system with unique features Environmentally adapted Superior grid reliability properties Cost competitive particularly when all factors are considered, example Undergrounding used to be 5 15 times more costly, with HVDC Light relation could typically be 1 3 times Suitable to meet new demands such as grid reliability and connection of wind farms. Offshore power supply has shown the example. Challenge us with your application and ask us what HVDC Light could do for you