1. ABB Group March 18, 2014 | Slide 1 Grid Stabilizing versus Energy Storage Applications to Integrate Renewable Energy into Microgrids Remote Area Power Supply Conference: Juergen Zimmermann ABB Microgrids Solutions

2. Renewable Energy in Microgrids The goal is NOT 100% energy contribution Source: HOMER ENERGY Newsletter 06-2013 Need for Integration Technology Annual Renewable Energy Contribution ABB Group March 18, 2014 | Slide 2 3. Inherent volatility of renewable energy can compromise grid stability The renewable energy 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 Renewable energy generation capacity should be sized to maximize ROI and fuel savings Renewable Energy in Microgrids Managing renewable power output fluctuations (ROI: Return on investment) ABB Group March 18, 2014 | Slide 3 4. Microgrid Technologies Energy Contribution versus Power Penetration ABB Group March 18, 2014 | Slide 4 Microgrid Integration Technologies Average Renewable Energy Contribution Maximum Renewable Power Penetration No integration technology 7 - 10% 20 30% Power control & Optimization (GEN+RE) 10 - 15% 20 50% Microgrid stabilising (high power; low energy) 25 - 40% 100% Power control & Optimization (Gen+RE+Load) 60 - 80% 100% Energy storage (low power; high energy) 100% 100% Note: Percentages vary between wind/diesel and solar/diesel Energy contribution is the measure for fuel savings 5. Networked Power Control & Optimization System Microgrid Plus System Retrofit to any existing diesel/gas plant Integrate generators and loads ABB Group March 18, 2014 | Slide 5 Uses simple non proprietary Interface Configuration by Power System Engineers MGC600-G controller 6. Microgrid Stabilising using Flywheel or Battery PowerStore Grid Stabilising System fast absorb inject ABB Group March 18, 2014 | Slide 6 7. Grid Stabilizing versus Energy Storage The 7S Applications in Microgrids ABB Applica'on TimeFrame Energy Power 1 Standalone(dieselo) millisec low high 2 Stabilize(f,Vsupport) seconds low high 3 Statcom(PowerQuality) seconds zero high 4 SpinningReserve seconds/ minutes medium high 5 Smoothing(Renewable Energy) minutes medium medium 6 Shaping(PeakLopping) minutes/hours medium Low 7 ShiLing(Loadlevelling) hours high low 8. Grid Stabilizing versus Energy Storage 7S Applications ABB Group Shifting: Load leveling Stabilizing: Frequency regulation Shaving: Peak lopping Smoothing: Capacity firming STATCOM: Power quality Standalone: Island mode Seasonal storage Spinning: Provision of Spinning Reserve Spinning Reserve to allow generator to be taken offline 9. Grid Stabilizing versus Energy Storage Standalone Stabilising Statcom Shifting Shaping Spinning Reserve Smoothing GRID STABILISATION* ENERGY STORAGE ms hrs ABB Group Higher Investment Costs Larger footprint Lower System Integration complexity Lower Investment Costs Smaller footprint Higher System Integration complexity 10. Features Grid Stabilising Scalable & Modular Frequency Control Introducing SYNTHETIC INERTIA Voltage Control Fault ride through Grid forming 1.5MW in 40ft container Microgrid technology solutions PowerStore Grid Stabilising System 18 MWs flywheelInverters 100 1,500 kVA MG 440Vac 60-120Hz 440Vac 50/60Hz Reactive Power Real Power Real Power Fixed Frequency Variable Frequency 2.9T 1,800 - 3,600 RPM Virtual Generator Flywheel Inverter ABB Group March 18, 2014 | Slide 10 1 MWhr Li Ion Battery Real Power Battery System 11. ABB On-grid and off-grid Microgrid Technology Reference List ABB Group March 18, 2014 | Slide 11 Wind/Diesel Power Stations (11) Country wind / solar/ other power/ renewable/ kW Microgrid Plus System PowerStore Battery or Flywheel Peak renewable penetration Customer / Operator Year of start of operation Denham AU/WA Wind 4x230/330 x 90% Verve Energy 2004 Rottnest Island AU/WA Wind 600 x 65% Rottnest Island board 2005 Coral Bay AU/WA Wind 3x225 x x 95% Verve Energy 2008 Ross Island Antartica Wind 3x330 x x 60% Meridian Energy 2010 Flores Azores Wind 2x330 x x 100% EDA 2006 & 2010 Graciosa Azores Wind 2x330 x x 60% EDA 2006 Mawson Antartica Wind 2x330 x 90% Australian Antarctica Div 2004 Esperance AU/WA Wind 15x225/600 x 35% Verve Energy 2004 Hopetown AU/WA Wind 600 x 65% Verve Energy 2008 Bremer Bay AU/WA Wind 600 x 65% Verrve Energy 2005 Faial Azores Wind 5x850 x 40% EDA 2013 Solar PV/Diesel Power Stations (2) Marble Bar AU/WA PV 300 x x 100% Horizon Power 2011 Nullagine AU/WA PV 200 x x 100% Horizon Power 2011 Other Renewable(1) Legion House, Sydney AU/NSW Syngas 200 x x 100% KLM/Grocon 2013 Other Microgrid Stabilisation and Energy Storage (5+) Leinster Nickel Mine AU/WA Peak Lopping x BHP 2004 Zurich, Battery smoothing Switzerlan d PV x EKZ 2012 Long Island, Gas station US/NY - x NYPA 2011 La Gomera, Stabilisation Spain Wind x x Unelco Endessa 2013 La Palma, Stabilsation Spain Wind x REE 2013 12. Reference system Marble Bar, solar/diesel system, Australia Customer Horizon Power Office of Energy, Government of Western Australia Key objectives Minimize diesel consumption Reliable and stable power supply 182,000 liters of fuel saved annually 1,100 tonnes CO2 avoided annually 60% of energy supplied from PV plant ABB solution Implement a solar microgrid with PowerStore grid- stabilizing technology and microgrid automation The resulting system has Diesel (4 x 320kW) PV (1 x 300kW) PowerStore grid stabilizing system (1 x 500kW) ABB Group March 18, 2014 | Slide 12 13. Reference system Esperance Gas(Diesel)/Wind System, Australia Customer Verve Energy Horizon Power Key objectives Maximise windfarm output Maintain operating limits of diesel/gas plant Two windfarms connected to one IPP In operation since 2004 20% of energy supplied from wind ABB solution Implement a microgrid automation solution first for wind/diesel then for wind/gas The resulting system has Diesel Generators 14,MW Wind Turbine 5.6 MW ABB Group March 18, 2014 | Slide 13 14. Reference System La Gomera PowerStore System, Canary Islands Spain Customer Endesa, major utility in spain Key objectives Provide inertia to the power system in order to avoid load shedding 22MW Isolated Power System PowerStore 500kW upgradable to 1MW ABB solution Supply, install and commission ABBs PowerStore grid stabilzing solution The resulting system has Lower number of load shedding events per year ABB Group March 18, 2014| Slide 14 15. Reference system SPAusnet Grid Energy Storage, Australia Customer SP Ausnet Key objectives Low emission solution for grid support Peak lopping Power factor correction Voltage and frequency support Non network solution Mobile/transportable Automatic transition offgrid/ongrid Operate in grid parallel or islanded mode ABB solution Design, install, commission and 2 year service for Grid Energy Storage System with diesel generator The resulting system has Microgrid Plus System Diesel Generator 1MW PowerStore Battery 1MW/1h Transformer & RMU for 22kV connection ABB Group March 18, 2014 | Slide 15 16. Technology to install and operate Microgrids with high and low renewable energy contribution is now proven and commercially available Solar/diesel or Wind/diesel systems have lower levilized cost of energy compared to diesel only ARENA has a community and industry funding program available to increase uptake of renewable energy in off grid systems Challenge is to standardise system designs and reduce cost of integration (CSIRO & ABB are collaborating as part of a research project to standardise interfaces) Barriers to increase uptake of renewable energy can be overcome through partnerships and early engagement ABB Group March 18, 2014 | Slide 16 Renewable Energy in Off Grid systems Summary & Outlook 17. ABB Group March 18, 2014 | Slide 17