Enabling resilient and cost effective access to power

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G-STIC, ENERGY POSITIVE COMMUNITIES, OCTOBER 24 TH, 2017 Microgrid Enabling resilient and cost effective access to power Peter Van Den Heede, Head of Sales Council Benelux www.abb.com/microgrids

Distributed Energy Solutions Microgrid a key component of energy positive communities Microgrid Generation at the point of consumption and always available, off-grid and grid connected Vehicle-to-Grid EV selling demand response services to grid Home & Building Automation Control in-home appliances to time-shift high-load components (load disaggregation) Behind the meter DERs Distributed energy resources at customer sites Behind-themeter Central & Distributed Generation & Storage Traditional & renewables generation and storage Generation & Storage Distributed Energy Solutions Aggregation Requires DERMS* functionality *Software for DER control & optimization, part of a utility DMS or microgrid Virtual Power Plants Aggregation of DERs for wide-area grid support and market trading Volt-VAR Control Managing voltage levels & reactive power (VAR) throughout the power system Communications & Cyber Security Underlying communication to support smart technology Intelligence Gridchain (Blockchain) Demand Response Load management at customer sites through e.g. dynamic pricing Smart Meters Collect, store and report residential energy use information Peer-to-Peer Energy Trading Prosumers locally sell excess energy from their distributed energy source Optimized Operations & Asset Health Monitor network parameters & control devices remotely EV Energy Market Place Decentralized market platform for charging EVs November 15, 2017 Slide 2 EV: Electric Vehicle DER: Distributed Energy Resource DERMS: Distributed Energy Resource Management System DMS: Distribution Management System

Digital innovation at the edge of the grid Unlocking the full value of distributed energy resources Evolving technology requirements Control Storage Generation Conversion Consumption Planning and design November 15, 2017 Slide 3

Grid-connected Weak grid Off-grid 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 Fuel independence Uninterrupted supply Island utilities (Local) utility, IPP* ( ) Remote communities (Local) utility, IPP, Governmental development institution, development bank Industrial and commercial Mining company, IPP, Oil & Gas company, Datacenter, Hotels & resorts, Food & Beverage ( ) Defense Governmental defense institution ( ) ( ) Urban communities (Local) utility, IPP ( ) Institutions and campuses Private education institution, IPP, Government education institution ( ) ( ) November 15, 2017 Slide 4 IPP: Independent Power Producer ( ) : Main driver : Secondary driver

Grid connected Microgrid Grid resiliency, power quality, self consumption and lower environmental impact Stabilization Wind Solar Hydro Battery Storage Connection to Power Grid PCC* Residential Industrial Conventional CHP* November 15, 2017 Slide 5 PCC: Point of Common Coupling, CHP: Combined Heat and Power

Microgrid operational goals and power system functions drive choice of technology Operational goals Access to electricity Maximize reliability Uninterrupted supply Reduce environmental impact Maximize renewable energy contribution Fuel & cost savings Fuel independence Provide grid services Renewable power Microgrid control system Energy storage and grid stabilization Power system functions 8S 1. Stabilizing 2. Spinning reserve 3. STATCOM (static synchronous compensator) 4. Seamless transition between islanded and grid-connected states 5. Standalone operation 6. Smoothing 7. Shaving 8. Shifting November 15, 2017 Slide 6

Key microgrid technology: energy storage 8S application response times and energy and power requirements Application Time frame Energy requirement Power requirement S1 Standalone milliseconds low high S2 Seamless transition milliseconds/seconds low high S3 Stabilize (V & f support) seconds low high S4 Statcom (power quality) seconds zero high S5 Spinning reserve seconds/minutes medium high S6 Smoothing minutes medium medium S7 Shaping (Peak lopping/shaving) minutes/hours medium low S8 Shifting (load leveling) hours high low November 15, 2017 Slide 7

Microgrids optimize DER behind and in front of the meter Value stacking for maximum ROI Microgrids optimize local power supply behind the meter - Lowest Levelized Cost of Energy - Self consumption - Power quality - 24/7 power resiliency Grid Operator Can view and control microgrid as a single entity Microgrids can realize further value through interaction with the local utility with all 8S functionalities - Reducing peak demand - Deferring distribution network upgrades - Grid services (through aggregation) Microgrid Microgrids optimize local power supply and add further value by interacting with the grid November 15, 2017 Slide 8

ABB in microgrid A leading solution provider Leading global expertise Broad portfolio of products & services 25+ 25+ years experience 40+ executed projects Renewable power Energy storage and grid stabilization Innovation, technology & productization leadership AND Microgrid control system Conventional power Power distribution and protection Global sales & service network Consulting Service 3 rd party financing November 15, 2017 Slide 9

ABB in microgrid: selected references ICRC, Nairobi, Kenya (Solar, Diesel, Storage) AusNet Services, AU (Storage, Diesel, Grid) Johannesburg, ZA (Solar, Diesel, Storage, Grid) The Microgrid system consists of: PowerStore Battery (150 kw/100kwh) Microgrid Plus Control System Rooftop solar PV plant (30 kwp) Diesel generators (1 x 150 kva) Customer benefits: Reliable and stable supply despite outages and power quality issues. Seamless transition between gridconnected and islanded mode Reduced fuel costs and carbon footprint The Microgrid system consists of: PowerStore-Battery Transformer and diesel generator Microgrid Plus Control System Customer benefits: Manage peak demand Active and reactive power support during high demand periods Transition into isolated/off-grid operation without supply interruption Delay of power line investments The Microgrid system consists of: 750 kwdc rooftop PV plant 1 MVA/380 kwh PowerStore Battery Microgrid Plus Control System Customer benefits: Reliable and stable power supply Optimized renewable energy contribution to the facility Transition into isolated/off-grid operation without supply interruption CO2 reduction: over 1,000 tons/year November 15, 2017 Slide 10