TATSUYA NOGUCHI - PRESIDENT, ABB BAILEY JAPAN LTD. Business Model Enabler Integrated edge and optimizing solutions to allow large scale introduction of renewable energy
ABB: the pioneering technology leader Leading market positions in main businesses ~147,000 employees In revenue (2017) $34 billion Formed in In ~100 countries 1988 merger of Swiss (BBC, 1891) and Swedish (ASEA, 1883) engineering companies, headquartered in Zürich, Switzerland October 10, 2018 Slide 2
ABB: the pioneering technology leader What (Offering) Pioneering technology Products Systems Services & software For whom (Customers) Utilities Industry Transport & Infrastructure Where (Geographies) Globally Asia, Middle East, Africa Americas Europe ~$34 bn revenue 1 ~100 countries ~147,000 employees October 10, 2018 Slide 3 1 SOURCE: Q4 2017 published financial results; ABB analysis
ABB Bailey Japan Limited Leading company of the Control Systems for the Domestic Thermal Power Stations 50% Thermal Power Station 250 Employees Market Share Control System 30% LNG Receiving Terminal 1971 6 - Headquarter: Izunokuni-shi Shizuoka - 6 offices among the 6 cities across Japan branches and offices Established in - Established 47 years ago as a joint venture between Bailey Controls & KBK - Became a ABB group member in 1999 and changed the company name ABB Bailey Japan in 2008 October 10, 2018 Slide 4
ABB Ability solutions & platform 210+ ABB Ability solutions What Delivers customer value (safety, uptime, speed, yield ) ABB Ability Utilities solutions Industry solutions Transportation & Infrastructure solutions Platform (common technologies for device, edge, and cloud) How Provides ABB with efficiency and scale October 10, 2018 Slide 5
Energy and grid transformation Transition from a centralized to a distributed grid Traditional grid New grid New developments are accelerating the transition October 10, 2018 Slide 6
Energy and grid transformation Global trends Big shift in the electrical value chain Generation mix Renewable share: ~40% of capacity by 2035 Greater volatility, less predictability More feed-in nodes Power transmission and distribution Increasing complexity Control/ information flow is key value driver Transmission: Longer distances, higher voltages Growth in distributed energy resources Consumers and prosumers Control & optimization at local level Customer profile change from static to dynamic Maximum value extraction and flexibility from distributed assets October 10, 2018 Slide 7
Energy and grid transformation New opportunities for digital solutions and services at the edge of the grid Generation Transmission Wholesale markets Retail Digital solutions enable Grid Advanced distribution network management Transactive energy System performance optimization Digital solutions Asset Health Microgrid Energy Management Solution Aggregation Grid reliability Energy services Physical Assets Generation Flexible Demand Energy Storage New business opportunities for energy providers Maximize customer value Consumers / prosumers Residential Commercial Industrial Community October 10, 2018 Slide 8 Enabling digital solutions & services Distributed energy resources
Grid Edge Technologies Grid edge solutions enabled and accelerated through secure communications and edge / cloud computing Edge Computing High processing power at low cost Large storage Communications Internet Wired/wireless Standard protocols Cyber secure Edge Gateway Digitally Enabled Device APP APP APP Digitally Enabled Device Cloud computing Big data & large storage AI & machine learning Accessible anywhere New applications run in cloud Edge Gateway Edge Gateways High processing power Large storage Multiple communications channels Local analytics & optimization October 10, 2018 Slide 9 APP: Cloud application
ABB in Grid Edge Technologies Enabling new business opportunities while improving reliability and performance Microgrid Site optimization Utility operations ADMS / DERMS Solar PV Energy storage EV Charging Communications & cyber-security Asset health Aggregation Home and building automation Lifecycle services (consulting, design, engineering, operations and maintenance) October 10, 2018 Slide 10 ADMS: Advanced Distribution Management System DERMS: Distributed Energy Resource Management System EV: Electric Vehicle
ABB in Grid Edge Technologies Aggregation and Virtual Power Plants OPTIMAX for Virtual Power Plants, part of the ABB Ability Energy Management for sites suite Aggregates and integrates decentralized generation, flexible loads and storage systems to enable cost optimal participation in energy markets Central control and optimization system to create a Virtual Power Plant (VPP) Combine multiple, geographically dispersed DERs (from tens to thousands) into a single optimized entity Plan and adjust production dynamically thanks to advanced forecasting Trade intelligently on the energy market Flexible architecture Implementation of own business models Sector coupling for electricity, gas, heating & cooling, water and e-mobility October 10, 2018 Slide 11 DER: Distributed Energy Resource
ABB in Grid Edge Technologies Site Energy Management with microgrid capability OPTIMAX for Industrials and Commercials, with microgrid control Resilient operation while delivering energy cost reduction and new revenue streams for service providers Microgrid control with islanding capability Forecast & optimization of DERs and loads Enables participation in electricity markets (bulk trading & grid services 1 ) for additional revenue Allows cross-vector optimization (power, CHP 2, HVAC, water) Vendor agnostic communication standards 3 Solar Energy storage OPTIMAX Cloud support EV Charging Edge gateway Building automation Grid connection with islanding Combined Heat and Power (CHP) October 10, 2018 Slide 12 1. Grid services i.e. frequency response, reserve capacity, etc. 2. Combined Heat and Power 3. E.g., OCPP, Sunspec
ABB in Grid Edge Technologies Enabling Energy-as-a Service (EaaS) EaaS Site EMS enables EaaS business model Grid operators / Service providers increase customer retention through lower energy costs Grid operators increase distributed flexibility to help balance the grid Energy markets and TSO/DSO events Market participation EaaS provider / 3 rd party aggregator Information and energy trade requests ABB Site EMS 1 (SaaS) Information and control loop Commercial & Industrial Sites ABB Grid Edge Technologies Technology provision ABB technology, solution and after sales service October 10, 2018 Slide 13 SaaS: Software-as-a-Service; EaaS: Energy-as-a-Service 1 Site EMS: Energy Management Solution
Smart city district Västerås, Sweden Customer s need Customer: Mälarenergi AB Integrating the control rooms of multiple automation systems to create a unified operating environment. Managed assets include power generation, district heating, power and water distribution networks, and a fiber-optic communication network ABB Grid Edge Solutions ABB Ability Collaborative Operations Center for power generation and water industries Remote monitoring and operational support Analytics Predictive maintenance Optimization Industrial Cybersecurity and safety Customer benefits Optimizing asset operational performance Providing integrated infrastructure services to Mälarenergi s consumers The smart city solution will make the city more efficient, sustainable, and resilient making it more attractive as a community for citizens and industry October 10, 2018 Slide 14
Smart farm Energy Management System Allgäu, Germany Customer s need - Customer: 3connect project consortium, AUW (distribution system operator) - Cross-vector optimization on-site generation and e-mobility - Self-consumption maximization - Integration into energy markets for additional revenue ABB Grid Edge Solutions - OPTIMAX for Industrials and Commercials Demand forecasting Optimization of on-site assets (rooftop solar, battery energy storage, e-tractor charging) Optimization of site demand incl. flexible load Customer benefits - Reduced energy bill through selfconsumption and peak demand shaving - Smart e-tractor charging - Integration into virtual power plant for market participation Optimized operation of a complex, multi-energy site delivering maximum customer value October 10, 2018 Slide 15
Optimizing energy mix for sustainable island Aruba, Southern Caribbean Customer s need - Customer: WEB Aruba - 50% renewable generation by 2020 ABB Grid Edge Solutions - ABB Ability Microgrid Plus - OPTIMAX for Virtual Power Plants Advanced generation dispatching 24hr-ahead renewable forecast Dynamic load shedding Customer benefits - Enables high penetration of variable renewables - Optimized operations thanks to advanced forecasting - Increased grid resiliency The microgrid solution optimizes complex energy generation portfolio and maximizes the use of renewable energy October 10, 2018 Slide 16
Electric Buses Geneva, Switzerland An electric bus without overhead lines for Geneva Main Partners The Geneva public transport authority and operator (TPG), the Office for the Promotion of Industries and Technologies (OPI), the state-owned electricity provider of the city of Geneva (SIG) and the Geneva plant of ABB Sécheron Ltd. Other local partners are Hepia school of technology, architecture and landscape and Palexpo conference center Project Objectives Realize a full-scale demonstrator of the very first full electric high-capacity articulated bus running without overhead lines with feeding at bus stops ABB s contribution ABB has developed a new technology that helps to power the world s first flash charging electric bus system. The battery on the bus is charged at selected stops and at the end of the line using fast charging October 10, 2018 Slide 17
Optimization and control of Virtual Power Plants OPTIMAX for Virtual Power Plants, part of the ABB Ability Energy Management for sites suite, helps to build and operate one of the largest Virtual Power Plants in Europe Next Kraftwerke (Germany): Biomass power plant Industrial site Aggregation of >4 500 assets into a Virtual Power Plant Provision of ancillary services to grid operators in Germany, Austria, Belgium, France, Netherlands, Poland Thermal power plants Hydro power plant Direct energy trading at EPEX/EEX, demand response and trading of flexibilities Optimal unit commitment for secondary/tertiary reserve Storage Solar power plant Prequalified Tertiary Capacity Reserve: 813 MW Control center Prequalified Secondary Capacity Reserve: 761 MW Volume of power trading in 2016: 10 TWh Wind farm Demand forecast Production forecast Power price forecast Power grid Customer can modify and scale the models and implement their own business models October 10, 2018 Slide 18
Industrial demand side management in pulp and paper industry Co-ordination of production planning and energy management Typical (simplified) pulping process in an integrated pulp and paper mill Pulp refiner Wood chips Pulp tank Bleaching Pulp tank Paper machine Pulp refiner Reject pulp refiner Big electricity consumer Storage for intermediate product Storages and tanks offer flexibilities for industrial demand side management October 10, 2018 Slide 19
Industrial demand side management in pulp and paper industry Coordination of production planning and energy management Pulp production Continuous production with intermediate storages Pulp production is highly integrated with other parts of paper plant Paper output of plant is not reduced Electricity Price [ /MWh] 80 70 60 50 40 30 20 10 0 4 3 2 1 0 Spot Market Hourly Prices t1 t5 t9 t13 t17 t21 t25 t29 t33 t37 t41 t45 t49 t53 t57 t61 t65 t69 t73 t77 t81 t85 t89 t93 t97 t101 t105 t109 t113 t117 t121 t125 t129 t133 t137 t141 t145 t149 t153 t157 t161 t165 Reduced pulp production Time [hours] Running Tasks with idsm t1 t5 t9 t13 t17 t21 t25 t29 t33 t37 t41 t45 t49 t53 t57 t61 t65 t69 t73 t77 t81 t85 t89 t93 t97 t101 t105 t109 t113 t117 t121 t125 t129 t133 t137 t141 t145 t149 t153 t157 t161 t165 16. April 2015 Slide 7
Power Pool Balancing and Unit Commitment Reference Stadtwerke Trier Customer requirements Leitsystem Energiemenagment Energieprognose IKT im SWT-Leitsystem Interconnection of power generation, power consumption and energy storage systems in the balance group Integration of power generation, power consumption and energy storage system Integration in Day-Ahead- and Intra-Day-planning ABB Solution Project: Virtual Pool for Integration/ Interconnection Customer: Stadtwerke Trier Location: Trier, Germany Delivery: OPTIMAX for Virtual Power Plants, part of the ABB Ability Energy Management for sites suite Reduction of balancing power expenses Balance of fluctuating infeed from renewable energy generation in the balance group October 10, 2018 Slide 21
Smart city district Västerås, Sweden https://www.youtube.com/watch?v=lagjvdhpgp0&feature=youtu.be October 10, 2018 Slide 22