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

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

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 2

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

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 ( ) Remote research centers Governmental research institutions Off-grid Weak grid Grid-connected Rural electrification Remote communities Industrial and commercial Defense Institutions and campuses Governmental development institutions / development banks (Local) utilities ( ) Mining companies / IPPs / Oil & Gas companies / Hotels & resorts ( ) Governmental defense institutions ( ) ( ) Private education institutions / IPPs / Government education institutions ( ) Slide 5 : Main driver ( ): Secondary driver

Microgrids and renewable energy integration Secure power generation and fuel cost savings Assumption based on IEA International Energy Outlook Fuel cost is volatile and rising over time Renewable energy costs are less volatile and economically competitive today Steady decline of renewable energy levelized cost of electricity is opening new market opportunities Source: Lazard s levelized cost of energy analysis v8.0 An optimized energy mix leads to a lower levelized cost of electricity Wind LCOE decrease from 2009 to 2014 PV LCOE decrease from 2009 to 2014 Slide 6

Renewable energy integration challenges Managing power output fluctuations Solar power variations Wind power variations 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 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 Central vs. networked control systems Controller failure System maintenance Upgrades Future extensions Central control systems Failure of the central master controller can be catastrophic System maintenance requires complete shutdowns Modification requires extensive testing Scalability and expansion is a complex and expensive task Microgrid Plus System The failure of one controller has a minimal impact. Replacement capacity can be brought online immediately Parts of the system can be shut down while the rest of the system continues to operate independently Easy upgrades thanks to independence and modularity The system is more scalable and extendable (not limited to on-board I/O of central master controller) A networked architecture ensures maximum reliability and the most cost effective solution Slide 11

PowerStore Grid stabilization Compact and versatile grid stabilizing generator capable of stabilizing power systems against fluctuations in frequency and voltage The PowerStore consists of: Flywheel 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

Microgrids and RE integration Comprehensive solution from a single source ABB technology enables high penetration, up to 100%, into diesel microgrids Expertise in engineering and consulting 25+ years of microgrid experience and system design optimization Intelligent control and management of all interconnections Microgrid Plus System Grid stabilization PowerStore Additional expertise and capabilities Renewable energy generation Solar PV plant/farms turnkey solutions Wind farm integration Renewable energy generation ABB PowerStore MGC system Diesel generators Loads Slide 13

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 14

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 15

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 16

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 17

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 18

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 19

ABB microgrids and renewable energy integration Our offering 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) Hopetoun (wind/diesel) Coral Bay (wind/diesel) Ross Island (wind/diesel) Rottnest (wind/diesel) Esperence (wind/diesel) Denham (wind/diesel) Faial (wind/diesel) Flores (wind/hydro/diesel) Carnegie (wave) Kalbarri (wind) SP Ausnet (GESS) Leinster Mine (peak lopping) Endesa (grid connection) REE (grid connection) February 2, 2016 Slide 21

ABB s microgrid offering Summary ABB is a trusted microgrid technology supplier with 25+ years of experience ABB is able to deploy a complete microgrid solution that can be tailored to each power system s needs ABB ensures microgrid stability through proven and reliable products as well as comprehensive plant engineering ABB is able to provide an engineered microgrid solution including renewable energy products and systems through its global reach Slide 23