ABB Power Generation Microgrids and renewable energy integration ABB solution and offering overview

Global energy challenges Significant forecasted demand in emerging economies EU and North America 10% 14% China 82% 140% M. East and Africa India Latin America 63% 85% 61% 87% 143% 210% Source: International Energy Agency (IEA), World Energy Outlook 2012 IEA scenario 2010-35 Growth in primary energy demand Growth in electricity demand

Global energy challenges Social, economic and environmental Access to electricity and water For all, including in remote locations At an economically viable cost For an increasing global population Reduce levelized cost of energy Increase renewables contribution Hedge against fuel price volatility Reduce dependence on imported fuel Climate change and protection CO2 reduction goals Sustainable power generation Energy efficiency Significant infrastructure investments are needed to provide sustainable access to energy in high growth emerging countries

Microgrids and renewable energy integration Decentralized, self-sufficient power networks Grids Microgrid Macrogrid Isolated Grid Interconnected Central Generation Distributed Generation Fossil Fuel Based Strong grid Fossil Fossil + Renewable Weak grid Renewable Low Penetration Strong Grid High Penetration Weak Grid Slide 4

Grid-connected Weak grid Off-grid Microgrids and renewable energy integration Microgrid market segments and drivers Main drivers Social Economic Environmental Operational Segments Typical customers Access to electricity Fuel & cost savings Reduce CO2 footprint and pollution Fuel independence Uninterrupted supply Islands (Local) utilities P P P (P) Remote research centers Rural electrification Remote communities Industrial and commercial Defense Governmental research institutions P P P Governmental development institutions / development banks P P P (Local) utilities P P P (P) Mining companies / IPPs / Oil & Gas companies / Hotels & resorts P (P) P P Governmental defense institutions (P) (P) P P Institutions and campuses Private education institutions / IPPs / Government education institutions P P (P) Slide 5 P: Main driver (P): Secondary driver

Sustainable access to electricity anywhere Microgrids powered by renewable energy sources Wind power Solar power Residential loads Industrial loads Fossil- fuel generation Microgrids achieve secure power generation with grid-quality electricity while integrating renewable energy Slide 6

Wind power variations Solar power variations Renewable energy integration challenges Managing power output fluctuations Inherent volatility of renewable energy (RE) can compromise grid stability The RE integration solution must address requirements traditionally fulfilled by diesel generation (base load) Frequency and voltage control Sufficient spinning reserve Sufficient active and reactive power supply Peak shaving and load levelling Load sharing between generators Fault current provision RE generation capacity should be sized to maximize ROI and fuel savings Slide 7 ROI: Return on investment

ABB microgrids and RE integration Technology overview Microgrid Plus system Specially designed networked control system responsible for coordinating the operation of hybrid power stations PowerStore Grid stabilizing system that offers real and reactive power to enable intermittent renewable energy to be integrated into grids Maximizes fuel savings Optimizes use of renewable energy Guarantees optimum loading and spinning reserve in fossil fuel generators Distributed logic enhances reliability and scalability for future system expansions Can be used in isolated grids or in grid support mode Maximizes fuel savings through highest possible renewable penetration Ensures high power quality by stabilizing renewable energy generation Slide 8

Renewable Integration Challenges High penetration leads to maximized fuel savings Low renewable energy (RE) contribution Peak Power 25% Annual Avg Energy/ fuel savings 10% High renewable energy (RE) contribution Peak Power 100% Annual Avg Energy/ fuel savings 60% Control system: none/simple Grid frequency: within operational limits Control system: sophisticated Grid frequency: stable Solarfarm Windfarm Renewable integration Solarfarm Windfarm Renewable integration Fossil Fuel Power Station Load Fossil Fuel Power Station Load Grid Stabilization Slide 9

Microgrid Plus System Efficient and reliable power flow management PV plant MGC600-P Wind Turbines MGC600-W M+ Operations Local and remote Distribution feeder MGC600-F Residential Communication Power Micro-Grid Network Diesel Generator MGC600-G Grid Stabilising System MGC600-E Distribution feeder MGC600-F Industrial & commercial Grid connection MGC600-N Slide 10

Microgrid Plus System Typical example of isolated PV / diesel microgrid Slide 11

PowerStore Grid stabilization The PowerStore consists of: Flywheel energy storage or Batteries energy storage Power converter system Operator interface The PowerStore is able to operate in: Grid Support Mode (GSM) for large networks Virtual Generator Mode (VGM) for isolated microgrids Slide 12

PowerStore Flywheel energy storage The flywheel is a robust and proven mechanical device used in UPS solutions It is failsafe, utilizing its own energy to supply the lifting magnets Flywheel Performance Data Net. energy content 18 MWs Max Input/output power 1650 kw Speed range 1800 to 3600 rpm Total weight 6000 kg Rotor weight 2900 kg Idling losses 10 kw Greasing frequency 5 years Bearing service life 8 years Magnetic Support Top Bearing Top Guard Bearing Rotating Rectifier Excitation Generator Main Machine Flywheel Bottom Bearing Bottom Guard Bearing Slide 13

PowerStore Ensuring a stable microgrid electricity network Slide 14

PowerStore Virtual generator mode 100% renewables Diesel-off / Virtual generator mode: The PowerStore operates as the only generator on the grid. Max RE penetration = 100% Benefits: Increased annual RE contribution Reduced diesel generator running time Additional considerations: Diesel-off functionality is to be studied case by case Business case is optimal when: Daily load with peaks during PV peak High price of fuel Expected increase in fuel price Slide 15

ABB microgrids and RE integration Five comprehensive solutions Hybrid Power plant Integrated Wind or PV Plant Optimized microgrid integration Renewable to grid connector Grid stabilizer Slide 16

ABB microgrid and RE integration Turnkey solution for a greenfield microgrid project Hybrid Power plant Integrated Wind or PV Plant Providing a complete solution for a greenfield project Lowest LCOE Grid stability and utility grade electricity Maximum availability Optimized microgrid integration Renewable Energy Diesel generators Renewable to grid connector Grid stabilizer Loads M+ system Grid stabilization Slide 17

ABB microgrids and renewable energy integration Our offering and some references Hybrid power station Integrated wind or PV plant Optimized microgrid integration Integration solution Renewable to grid connector Ancillary power system services What is it? Turnkey solution for a greenfield microgrid project Integration of renewable energy into fuel-based microgrids (HFO, diesel, gas etc.) Stabilization and flow optimization of renewable energy integration Stabilization of ongrid renewable energy plants connected to a weak grid Providing virtual inertia, grid stabilization, as well as other ancillary power system services References (sample) Marble Bar (solar/diesel) Nullagine (solar/diesel) Hopetoun Coral Bay Ross Island Rottnest Esperence Denham Faial Flores (wind/hydro/diesel) Legion House (Biogas/batteries) Carnegie (wave) Kalbarri (wind) SP Ausnet (GESS) Leinster Mine (peak lopping) Endesa (grid connection) REE (grid connection) May 18, 2015 Slide 18

ABB microgrid and RE integration Integration of RE to fuel-based microgrids Hybrid Power plant Integrated Wind or PV Plant Upgrading an existing fuel-generation based microgrid with RE generation Maximized fuel savings Increased security of supply Ensured grid stability Diesel generators Optimized microgrid integration Renewable Energy Renewable to grid connector Grid stabilization Grid stabilizer Loads M+ system Slide 19

ABB microgrid and RE integration Stabilization and flow optimization of RE integration Hybrid Power plant Integrated Wind or PV Plant Optimizing the performance of an unstable microgrid with existing RE and fossil fuel generation Maximized fuel savings Optimized production of RE Ensured grid stability Diesel generators Optimized microgrid integration Renewable Energy Renewable to grid connector Grid stabilization Grid stabilizer Loads M+ system Slide 21

ABB microgrid and RE integration Stabilization of on-grid RE connected to a weak grid Hybrid Power plant Integrated Wind or PV Plant Enforcing a compliant grid connection for wind and solar power plants Increased power quality and reliability Maximized utilization and ROI of renewable energy plant Ring main unit Weak grid Optimized microgrid integration Renewable Energy Renewable to grid connector Grid stabilization Grid stabilizer Loads M+ system Slide 23

ABB microgrids and renewable energy integration Our offering and some references Hybrid power station Integrated wind or PV plant Optimized microgrid integration Integration solution Renewable to grid connection Ancillary power system services What is it? Turnkey solution for a greenfield microgrid project Integration of renewable energy into fuel-based microgrids (HFO, diesel, gas etc.) Stabilization and flow optimization of renewable energy integration Stabilization of ongrid renewable energy plants connected to a weak grid Providing virtual inertia, grid stabilization, as well as other ancillary power system services References (sample) Marble Bar (solar/diesel) Nullagine (solar/diesel) Hopetoun Coral Bay Ross Island Rottnest Esperence Denham Faial Flores (wind/hydro/diesel) Legion House (Biogas/batteries) Carnegie (wave) Kalbarri (wind) SP Ausnet (GESS) Leinster Mine (peak lopping) Endesa (grid connection) REE (grid connection) May 18, 2015 Slide 24

ABB microgrid and RE integration Virtual inertia as an ancillary power system service Hybrid Power plant Integrated Wind or PV Plant Grid support through active and reactive power injection Fast response to grid frequency disturbance events Ensured grid stability Optimized microgrid integration Grid Substation Renewable to grid connector Grid stabilization Grid stabilizer Slide 25

References Leinster Mine, Peak Shaving Application, Australia Customer requirements Reduce the peak load of a newly installed winder by 1MW so that the total power demand is kept within the contractual limits with the IPP. ABB solution Install a 1MW PowerStore device that provides the 1MW to the winder and recharges when the total demand is within the contractual limits. Customer benefits Reduction of peak demand by 1MW Reduction of spinning reseve by IPP of 1MW Slide 27

ABB service A trusted partner through the microgrid s lifecycle For microgrids, especially in remote areas, it is critical to maintain constant power supply and have access to technical support 24/7 Service Consulting ABB technology enables remote access, monitoring and control of all microgrid assets Installation & Commissioning Design & Engineering ABB can perform routine service checks, regular maintenance and unscheduled service remotely, with minimal operational impact on the Microgrid. Supply Simulation & Test Slide 28

Power Systems PV Electrical Balance of Plant Optimized electrical system solutions to secure your large-scale PV project

ABB PV plant references Local expertise, global presence, >900MWp. Canada 120 MW Italy 137 MW U.S.A 24,8 MW Spain 20 MW Mexico 1,1 MW India 101 MW South Africa 176 MW Australia 266 KW Romania 7.5 MW May ABB 18, Group 2015 Slide 30

ABB value proposition in the PV industry Engagement in the entire project life-cycle Development stage ABB support and engineering expertise Project development Project design and optimization Yield and PR calculation Grid Connection, substation capacity Construction ebop electrical system integration Performance guarantee for electrical system Turn-key EPC executed by one of our tier-1 partners Operation Full O&M service ABB products and equipment lifetime services May 18, 2015 Slide 31

Electrical Balance of Plant from ABB From the back of the panels to grid connection Turn-key Consultancy ebop Vertically Integrated solution based on reliable and proven ABB products, including erection, commissioning, O&M and performance guarantee Plant automation Panels Protection Transformation centers Cables Structure DC boxes Inverters Transformers Switchgears Substation May 18, 2015 Slide 32

ABB products in PV used in the ebop Applications: Utility >1000 KW 12 13 4 5 3 2 8 14 11 10 15 18 1 1 12 5 6 7 9 16 1 17 19 1. Trackers Low voltage products: 2. Contactors: GAF series 3. Direct current string boxes Switchboards: Gemini series Consumer units: Europa series Junction boxes Fuse disconnectors: E90 PV Fuses: E 9F PV Surge protective devices: OVR PV Month DD, Year Slide 33 Miniature circuit-breakers: S284 UC Z Miniature circuit-breakers: S800 PV-S 4. Switch-disconnectors: OTDC series Miniature circuit-breakers disconnectors: S800 PV-M Switch-disconnectors: Tmax PV 5. Moulded-case circuit-breakers: Tmax Miniature circuit-breakers: S200 6. Contactors: A and AF series 7. Energy meters : DELTAplus : 8. Residual current devices: F202 PV B and F204B Residual current devices: RD3 9. Air circuit-breaker: Emax 10. Switch-disconnectors: OT Switch-disconnectors: E200 11. Surge protective devices: OVR T1 / T2 Solar inverters: 12. Central inverters: PVS 800 Remote monitoring portal 13. Megawatt station Medium voltage products: 14. Dry type transformers 15. Liquid filled transformers 16. Secondary switchgears 17. Primary switchgear 18. Compact secondary substations 19. Substations

Electrical Balance of Plant from ABB Inverter station Proven reliability & performance Features: Indoor Solution based on Power module with more than 100GW in references worldwide. From 500 kw to 2,4MVA EcoDry type transformer From 6,6 to 36 kv Up to 45º Ambient Temperature Monitoring services Grid Code Compliance service Pretested ready to plug and play. Benefits: All ABB proven and reliable components Compact, modular and robust design, easy transportability, reduced downtime Best in class efficiency, high ROI May 18, 2015 Slide 34

Service for PV plants Tailored according to customers needs PV plants service offering Service features ABB service packages ABB added value Advanced services Remote services PV energy production forecast Financial analysis tool Remote monitoring Reporting Recommended for optimal O&M Preventive and corrective maintenance Scheduled / unscheduled maintenance of the complete PV plant Typical FULL O&M by ABB, with guaranteed PR and availability Basic PV plant maintenance service PV module cleaning Vegetation control etc. May ABB 18, Group 2015 Slide 35

Plant Remote Center Solar plant automation Scalable architecture for managing large plants and the MV transformation centers Remote Management of Plants Real time monitoring of assets Power production management from Remote Control Center Plant maintenance planning from Remote Service Center Diagnostics algorithms to support maintenance activities Remote Mangement Center Plant SCADA Grid Management Plant Monitoring & Control System SCADA system to monitor all relevant field signals Real time control system to manage the production of the plant Grid code compliant functions for controlling active and reactive power, frequency and voltage TC1 Controller Plant Controller TC2 Controller TCn Controller Transformation Center Control Monitors and controls the inverters Monitors the String Boxes and/or the tracking systems Coordinates the production in the transformation center Interfaces with the upper level Section Controller May Slide 18, 362015 ABB Group

Main Features NEREO+ ϕ Power Regulation Maximum Ramp Power Factor Adjustment Hourly Based Forecast Daily Based Forecast March 18, 2015

Plant Control NEREO+ Symphony+ O&M UTILITY INVERTER 1 INVERTER 1 Plant Controler High level Set points RTU Online data INVERTER n ENERGY METER March 18, 2015

Solar power automation Nereo+. Forecasting of power production 6h Ahead Forecasting Day and week ahead forecasting Hours ahead forecasting Based on Artificial Neural Network algorithm Uses historical data for training and real time plant data to improve the forecasts accuracy Makes use of weather forecasts in the area where the plants are located Hourly values for a horizon of 6 hours Irradiance sensor Temperature sensor Energy meter Modbus OPC Direct I/O Modbus OPC Direct I/O Modbus OPC Direct I/O DCS / SCADA Daily values for a horizon of 7 days Database O&M E-Mail Hourly Forecast Daily Forecast UTILITY FTP Serve r E-Mail May Slide 18, 392015 ABB Group

Forecast Systems Forecast of Irradiation and production Assumtioons: The movement of the cloud is from West to East at constant speed of 6m/min~ 0.1 m/sec No deformation of the cloud ~ 66 % of shadowing of the plant GHI ramp rate 50 W/m 2 / t Inverters operating @ MPP Inverter 5 Inverter 2 Inverter 6 Inverter 4 GHI [W/m 2 ] 1200 1000 800 600 String Irradiation Signal 400 Inverter 3 200 Inverter 1 0 0 5 10 15 20 25 30 35 40 45 50 Time Step

Forecast Systems Forecast of Irradiation and production Partial shadowing over the PV plant Behaviour of inverters Inverters 1, 2, 3 & 4 are affected by shadowing The answer of invertes 3 & 4 is delayed over the inverters 1 & 2. The inverters 5 & 6 are not affecred by the cloud and remain producing at maximum point

Forecast Systems Forecast of Irradiation and production Partial shadowing over the PV plant Behaviour of inverters The production of inverters 1, 2, 3 & 4 drop nearly to 95 % (~ 30 min). The production of inverters 5 & 6 remains high being almost not affected by the shadows of the cloud.

Forecast Systems Forecast of Irradiation and production The loss of production is a consequence of the shadows over inverters 1, 2, 3 & 4. The inbverters 5 & 6 remain producing at maximum level and they are maintaining the power output of the plant. The loss of production is ~ 50 % during shadowing.