Peter Lundberg, Global Product Manager, November 2016 ABB Power Systems Offshore wind connection

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Peter Lundberg, Global Product Manager, November 2016 ABB Power Systems Offshore wind connection Slide 1

Integrity, Health, Safety and Environment Always most important our core values Integrity Code of conduct Regular trainings Personal responsibility Leadership and culture Health, Safety and Environment (HSE) Hard work, never relax Leadership and culture Personal responsibility Focus on full value chain Risk assessments and mitigation Regular trainings 24/7 right balance Resource efficiency Slide 2

Offshore Wind Markets - Global Installed offshore wind mainly in Europe, China offers highest growth Europe Current activity mainly in UK, DE, and DK FR, NL and BL emerging - projects in development, large grid connections expected 2018/19 North America Limited to small demonstration projects, no significant projects until 2020 or later 1.2 GW 11.2 Europe 2025: 42 GW 24.4 China 2025: 46 GW China 1.1 0.3 S. Korea 0.3 0.4 Taiwan Japan 2015 GW Installed & grid connected 8.6 2020 GW 2025 GW Expected grid connection Expected grid connection Asia Current activity concentrated mainly to CN, fast growth expected starting in 2018 KR, TW, JP emerging (albeit slowly) Offshore Wind Market Slide 3 Source: MAKE, Global Offshore Wind Power Market march 2016

Installed base and outlook 12 GW installed. 20 GW to be installed in next 5 years. Additional 60 GW expected between 2020 and 2025 Installed capacity by countries. YE 2015 (Source: Make) Installed capacity by countries. YE 2020 (Source: Make) Installed capacity by countries. YE 2025 (Source: Make) 12 GW 33 GW 95 GW Slide 4

Offshore Wind Connections ABB offering Offshore and onshore AC and DC stations including buildings Reactive power control systems (FACTS) HV-Cables including land and subsea cable laying Training and advise on operation System studies including grid code compliance solutions and advise on connection to onshore main grid Maintenance contracts Slide 5

ABB Offshore Wind Connections Grid code compliance AC faults are not propagated through the HVDC system Grid code compliance done by HVDC Relaxed requirements on wind turbines Slide 6

ABB Offshore Wind Connections Fault ride-through Fault in the main AC grid No shut-down of the wind park Reduce stress on the turbines Increase energy yield Slide 7

ABB Offshore Wind Connections VSC technology Voltage sourced converters Self-commutated IGBT valves Multi-level topology ensures low losses < 1 % Requires no reactive power compensation Slide 8

ABB Offshore Wind Connections Transmission distance < 50 km < 100 km > 100 km AC cables DC or AC cables DC cables Slide 9

ABB Offshore Wind Connections Offshore HVDC wind power connections Wind farms Offshore AC substation Offshore HVDC converter station DC cable transmission Onshore HVDC converter station Slide 10

ABB Offshore Wind Connections Eliminating the need of AC substations Wind farms Offshore AC substation Offshore HVDC converter station DC cable transmission Onshore HVDC converter station Slide 11

ABB Offshore Wind Connections Eliminating the need of AC substations Wind farms Offshore AC substation Offshore HVDC converter station Offshore HVDC converter station DC cable transmission Onshore HVDC converter station Slide 12

An HVDC offhore wind solution concept Objective and customer benefits Objective Customer benefits Reduced total cost and delivery time Ensure predictable execution, based on defined scope/concept including well defined interfaces Modular approach A conceptual platform design, enhanced flexibility with regards to different requirements, site conditions and general business models Minimize offshore hook-up work and offshore commissioning Direct connection of Wind Turbine Generators Significantly (50-60%) reduce the topside weight as compared to the platform used in DolWin 2 (award date 2011) Increased number and smaller lifting vessels offshore can be utilized Increased number of yards for manufacturing Minimized interface work Pre-approved technical systems, smooth handling authority approvals No need for AC collector platforms Slide 13

Modularized platform 2 concepts 4A 3A REF DWA Model 3A 2 valve hall modules 1 ABB/YARD General Module 1 Jacket Minimize number of systems onboard. Planned to be built modular onshore, tested as far as possible Assembly of modules can be completed onshore or offshore, as best fits the project. HVDC functionality similar for 3A & 4A. One module common among yard and ABB Model 4A 2 valve hall modules 1 ABB General Module 1 YARD Module 1 Jacket Planned for client options and more systems is therefore added in the base case. Planned to be built modular, integrated onshore and tested, lifted offshore as a single lift. HVDC functionality similar for 3A & 4A. ABB scope in dedicated ABB Modules and YARD scope in separate module Slide 14

Evaluation of HVDC Platform Structures REDUCED WEIGHT AND VOLUME MODULAR TOPSIDE & JACKET Slide 15

Modular Approach The key benefits with a modular approach Parallel Engineering and manufacturing, Many potential yards/workshops and lifting vessels Equipment on ground level, separate testing. Reduce complexity / Manage Interfaces Dedicated ABB and yard module Easy to adapt options Drawbacks with a modular approach To a certain extent Increased Weight Some more engineering required. Slide 16

An HVDC offshore solution Key data Performance Capabilities Dimensions Location Rated Power: 800-1,200 MW Design lifetime: 25-30 Y DC Voltage (outgoing): ±320 kv AC Voltage (incoming): 72 kv Reliability: 98.5% Size: 40 x 60 x 26 m Weight: 7,000 T Volume: 45,000 m 3 North Sea conditions Water Depth 20-50m Ambient-T -3 to +30 deg.c RH = 100% winter and 51% in summer Slide 17 Flexibility Parallel manufacturing, several workshop can be utilized Equipment lifted in on ground level, separate testing Divide the scope/interfaces into modules Separate lifting of individual modules possible if needed A modular approach is well suited to offer various options Wider range of lifting vessels available on the market (cost reduction and risk mitigation) Size Reduced Volume Reduced to ~40x60m, compared with DolWin2 80x100m Reduced Weight More than 50% weight reduction compared with DolWin2 Structural configuration Topside weight ~ 6,000-7,000T ; can be divided into 3-5 modules at lower weights 4-leg jacket is the best option for the understructure Living quarter, helideck, cranes, etc. optional

ABB Offshore Wind Connections Features of VSC technology Independent control of active and reactive power flow Voltage and frequency control Connection to passive loads Enhancement of connected AC networks No short-circuit power needed Black start capability Proven high reliability and availability Compact station design Multi-terminals Slide 18

Our knowledge is based on a number of completed and ongoing offshore power projects Princess Amalie 120 MW AC-connection Borwin 1 400 MW HVDC-connection Valhall 80 MW HVDC Power from shore Thornton Bank 325 MW AC-connection Troll 1 & 3 80+80 MW HVDC Power from shore Dolwin 1 800 MW HVDC-connection Dolwin 2 900 MW HVDC-connection Slide 19

Experience - Princess Amalia HVAC-connection of 120 MW Windfarm Project Owner: ENECO 50% and Q7 Holding (Econcern & EIH) 50% In operation 2007 120 MW, 60 WTG:s Located 28 km from shore, water depth 19-24 m ABB Supply and Services Electrical System design Off-shore 150/36 kv substation Project Utility SCADA 150 kv Export Cable 22 kv Array Cables Slide 20

Experience - Thornton Bank phase 2 & 3 HVAC-connection of 325 MW Windfarm Customer: C-Power, Belgium System responsibility for Electrical balance of plant 325 MW Offshore AC Substation Supply of 38 km of 150 kv Export sea cable Supply of 55 km of 36 kv Array sea cables Supply and installation of 6 km of 150 kv land cable Demolish temporary substation onshore Completion July 2013 Slide 21

Experience - Germany, BorWin 1 400 MW HVDC Offshore Wind Power Connection Customer: TenneT, Germany/Netherlands First HVDC Offshore Wind Power Connector 200 km cable connection (125 km sea, 75 km land) Turnkey supply including buildings and platform Contract Sep 2007 Completion Nov 2009 Slide 22

Experience - Germany, DolWin 1 800 MW HVDC Offshore Wind Power Connection Customer: TenneT, Germany/Netherlands 800 MW HVDC Offshore Wind Power Connector 166 km cable connection Turnkey supply including buildings and platform Contract 2010 Completion 2015 Slide 23

Experience - Germany, DolWin 2 900 MW HVDC Offshore Wind Power Connection Customer: TenneT, Germany/Netherlands 900 MW HVDC Light 135 km cable connection Connects offshore North Sea wind farms to the German grid Turnkey supply including buildings and platform Contract 2011 Delivery 2015 Slide 24

VSC based HVDC Let our experience work for you VSC-HVDC projects by ABB VSC-HVDC projects by others 1 1 2 3 4 2 3 5 6 7 4 8 10 11 14 17 18 8 16 5 12 13 15 9 6 7 19 1. Eagle Pass 8. Troll 1 & 2 2. Macinac 8. Troll 3 & 4 3. Cross Sound 9. DolWin 1 4. Maritime 9. DolWin 2 5. East West Interc. 9. BorWin 1 6. CMS 7. NSL 10. Valhall 10. Johan Svedrup 11. Skagerrak 12. Tjæ reborg 13. NordLink 13. Kriegers Flak 14. Hällsjön 15. NordBalt 16. Gotland 17. Ål-link 18. Estlink 19. Caprivi 20. Murraylink 21. Terranora 1. Trans Bay 2. INELFE 3. Italy-France 4. NEMO 5. SylWin 6. HelWin 1 6. HelWin 2 6. COBRAcable 7. Ultranet 8. South West Link 9. DolWin 3 9. BorWin 2 9. BorWin 3 20 21 Slide 25

Offshore wind connections Summary Offshore wind connections will increase Transmission distance more than ~100 kilometers by HVDC HVDC system enabled for offshore DC grid Fulfillment of Grid Codes Slide 26