Getting Smart Evolution to the Smart Grid April 2008

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Getting Smart Evolution to the Smart Grid April 2008 Thomas F Garrity Vice President, Sales and Business Development Siemens Power T&D, Inc.

Electrical energy is the backbone of our society Page 2 Mar-07 PTD CC

Transmission & Distribution Portfolio High Voltage Transformers Medium Voltage Turnkey projects, switchgears and components for power transmission > 52 kv (AC and DC) Power transformers, distribution transformers with oil or cast-resin insulation. Solutions, switchgears and components for power transmission 52 kv (AC and DC) Energy Automation Network control systems, protection and substation automation, telecontrol systems, power quality. Services Network planning & consulting, asset maintenance and maintenance management for grids and networks, metering services. Page 3 Mar-07 PTD CC

Increasing demand and decreasing resources World polulation 4,4 billion 8.300 TWh 15% 1980 85% Lifetime assuming static consumption Conventional Oil Non conventional Oil Conventional Gas Non conventional Gas Coal Uranium 7,5 billion 6,1 billion 45% 15.400 TWh 29% 55% 71% 2000 2020 Lifetime (proven reserves) 45 years 20 y. 65 years 0 years 200 years 100 years 27000 TWh Electricity consumption Developing and Transition countries OECD, CIS, Eastern Europe Lifetime (Reserves + Resources) 70 years 30-80 years 150 years 600 years 1300 years >1000 years with recycling Quelle: oben: Vortrag Wilson, PG auf PTD Strategietagung 6/7.3.06, IEA, UN, PG GS4. unten n: PG GS4, Current Trends in Energy & Power Markets. BP Statistic Review of World Energy 2005; BGR Page 4 Mar-07 PTD CC

Challenges and Potential Solutions Need for more energy Urbanization Scarcity of natural resources Global warming Open markets Increased use of distributed and renewable energy resources Capacity increase and bulk power transmission over long distances Distribution within congested areas / mega cities More flexible, reliable, efficient, safe and secure grids Page 5 Mar-07 PTD CC

The grid has to become more flexible Increasing energy trade Changing load flows Bulk power transmission Demand growth Bottlenecks and overloads Increasing grid size and complexity Variable infeed Drivers: efficiency, reliability, security Page 6 Mar-07 PTD CC

SmartGrids Vision for Electricity Networks of the Future Quelle: European Technology Platform SmartGrids, Vision and Strategy for Europe s Electricity Networks of the Future, V4.0, 24.2.2006 Page 7 Mar-07 PTD CC

Evolution to a SmartGrid Movement from Static Infrastructure and Operation As-Designed to a Dynamic Living Infrastructure and Proactive Delivery Management From: Central generation and central control Load flow by Kirchhoff s Law Power generation according to power demand Manual Switching, & Trouble Response Stimulus / Response Protection Periodic Maintenance To: Central and distributed generation. Central and distributed intelligence. Load flow control by power electronics Controllable generation, fluctuating infeed and demand in dynamic equilibrium Automatic Response, Predictive Avoidance Monitored overload of bottlenecks Prioritized Condition Based Predictive Maintenance Page 8 Mar-07 PTD CC

From central to distributed power generation Trading increased fluctuations (t i ) reverse power flow intelligent residential devices increased horizontal communication Page 9 Mar-07 PTD CC

Wind Power Generation: Market Development World Wide Installed Wind Power Generation in 12/2006 74,223 MW (ref. GWEC) Germany 20,621 MW (1) Spain 11,615 MW (2) U.S.A. 11,603 MW (3) India 6,270 MW (4) Denmark 3,136 MW (5) China 2,594 MW (8) Italy 2,123 MW (6) U.K. 1,957 MW (7) Portugal 1,716 MW France 1,567 MW In 2006: Growth ~30% (~20% in 2005) Total Investment ~EUR 18 Page 10 Mar-07 PTD CC

Solutions for offshore wind farm connection AC AC DC Page 11 Mar-07 PTD CC

Wind farm with energy storage and CC power plant Off shore Wind farm 1 Wind farm 2 ~ Grid ~ ~ ~ _ e.g. elektrolysis H 2 H 2 Storage G CCPP Advantages: Controlling power: Reserve power: Grid extension: Light load: Can be provided by the energy storage Better fulfillment of scheduled power infeed (option: additional natural gas fueling) Reduction of the required transmission capacity by avoiding peaks infeeds A surplus of energy is not wasted, but stored. Page 12 Mar-07 PTD CC

Technology landscape of storage technologies Power capacity [MW] 0,1 1 10 100 1.000 Decentralized SMES Flywheels SuperCaps Mobile NaS-Battery Lead-Acid-Battery Centralized Thermal Storage Redox-Flow-Battery 1 h 10 h Storage capacity [MWh] Pumped hydro CAES 0,1 1 10 100 1.000 H 2 GT remark: all values approximated NaS-Sodium Sulphur SMES-Super Conductive Magnetic Energy Storage CAES-Compressed Air Energy Storage SuperCaps-Super Capacitor Primary Control: Batteries, Flywheels, SMES Sourcee: Siemens, T. Jockenhövel, CT SM E comparison study for large-scale electricity storage, 2006 Page 13 Mar-07 PTD CC

Evolution to a SmartGrid Movement from Static Infrastructure and Operation As-Designed to a Dynamic Living Infrastructure and Proactive Delivery Management From: Central generation and central control Load flow by Kirchhoff s Law Power generation according to power demand Manual Switching, & Trouble Response Stimulus / Response Protection Periodic Maintenance To: Central and distributed generation. Central and distributed intelligence. Load flow control by power electronics Controllable generation, fluctuating infeed and demand in dynamic equilibrium Automatic Response, Predictive Avoidance Monitored overload of bottlenecks Prioritized Condition Based Predictive Maintenance Page 14 Mar-07 PTD CC

Advanced Power Transmission Solutions - HVDC and FACTS (Flexible AC Transmissions Systems) Tariff North System 60 Hz Power Exchange Asynchronous Networks voltage control Central System 60 Hz Avoidance of ~ Loop Flows Clean & Low Cost Energy Submarine Cable Link Bulk Power & Long Distance Tariff South System 60 Hz Power Exchange Submarine Cable Link ~ Symbols: DC Transmission & Interconnection Series compensation Parallel compensation Page 15 Mar-07 PTD CC

Project Neptune: with HVDC into load centers 82 km sea cable 23 km earth cable 660 MW monopolar Completion 07/2007 Manhattan JFK Long Island

Evolution to a SmartGrid Movement from Static Infrastructure and Operation As-Designed to a Dynamic Living Infrastructure and Proactive Delivery Management From: Central generation and central control Load flow by Kirchhoff s Law Power generation according to power demand Manual Switching, & Trouble Response Stimulus / Response Protection Periodic Maintenance To: Central and distributed generation. Central and distributed intelligence. Load flow control by power electronics Controllable generation, fluctuating infeed and demand in dynamic equilibrium Automatic Response, Predictive Avoidance Monitored overload of bottlenecks Prioritized Condition Based Predictive Maintenance Page 17 Mar-07 PTD CC

Decentralized Energy Managment Supply Contract Virtual Accounting Grid Transfer Profile Contract of Delivery Biomass CCPP Wind Power Load Controllable load Photovoltaic Quelle: PTD SE, Dr. Schwaegerl Page 18 Mar-07 PTD CC

Evolution to a SmartGrid Movement from Static Infrastructure and Operation As-Designed to a Dynamic Living Infrastructure and Proactive Delivery Management From: Central generation and central control Load flow by Kirchhoff s Law Power generation according to power demand Manual Switching, & Trouble Response Stimulus / Response Protection Periodic Maintenance To: Central and distributed generation. Central and distributed intelligence. Load flow control by power electronics Controllable generation, fluctuating infeed and demand in dynamic equilibrium Automatic Response, Predictive Avoidance Monitored overload of bottlenecks Prioritized Condition Based Predictive Maintenance Page 19 Mar-07 PTD CC

Future EMS systems will have to handle complex situations much better than today Supplement the message reports By clear decisions 2000 MW Pump Load OFF The grid dispatcher has to decide within seconds. Incorrect decisions or inactivity may lead to Blackouts. Page 20 Mar-07 PTD CC

How Energy Management Systems can help to avoid blackouts Alarm Alarm Alarm Check Protection Relay Settings Static Security Assessment Dynamic Security Assessment Control Center Parameter Database Power System Simulation SCADA State Estimation (SE) Phasor Measurement (PM) Request for Topology Change Page 21 Mar-07 PTD CC

Evolution to a SmartGrid Movement from Static Infrastructure and Operation As-Designed to a Dynamic Living Infrastructure and Proactive Delivery Management From: Central generation and central control Load flow by Kirchhoff s Law Power generation according to power demand Manual Switching, & Trouble Response Stimulus / Response Protection Periodic Maintenance To: Central and distributed generation. Central and distributed intelligence. Load flow control by power electronics Controllable generation, fluctuating infeed and demand in dynamic equilibrium Automatic Response, Predictive Avoidance Monitored overload of bottlenecks Prioritized Condition Based Predictive Maintenance Page 22 Mar-07 PTD CC

Mobilizing grid capacity reserves through monitored overloading of bottlenecks Cables Overhead Busbars Bushings, Transformers lines plugs Page 23 Mar-07 PTD CC

Evolution to a SmartGrid Movement from Static Infrastructure and Operation As-Designed to a Dynamic Living Infrastructure and Proactive Delivery Management From: Central generation and central control Load flow by Kirchhoff s Law Power generation according to power demand Manual Switching, & Trouble Response Stimulus / Response Protection Periodic Maintenance To: Central and distributed generation. Central and distributed intelligence. Load flow control by power electronics Controllable generation, fluctuating infeed and demand in dynamic equilibrium Automatic Response, Predictive Avoidance Monitored overload of bottlenecks Prioritized Condition Based Predictive Maintenance Page 24 Mar-07 PTD CC

Reliability Centered Asset Management for T&D equipment 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 66 kv bus bars 11 kv nodes EENS share per component 66 kv nodes Network Components transformers overhead lines cables Contribution of each component to system reliability ( Expected Energy not supplied ) Importance Inspections Operational data etc. Condition condition Boundary conditions Rules importance Prioritisation and Strategy development Reliability Centered Asset Management Strategy Business strategy Sourcee: Siemens PTD SE, Kaiser / PTD TI, Menke, 12/2006 Page 25 Mar-07 PTD CC

Challenges and areas for action Need for more energy Urbanization Scarcity of natural resources Global warming Open markets Increased use of distributed and renewable energy resources Capacity increase and bulk power transmission over long distances Distribution within congested areas / mega cities More flexible, reliable, efficient, safe and secure grids Page 26 Mar-07 PTD CC

Offshore Windpark HVDC Zero emmission power plant Power trading (yellow) CHP DER managment (green) FACTS Grid condition monitoring (red) Energy storage Page 27 Mar-07 PTD CC