Microgrid:Enabling resilient and cost effective accessto power

Sandip Sinha , Vice President , Microgrid

ABB India Limited

Energy and grid transformationTransition from a centralized to a distributed grid

New developments are accelerating the transitionNew developments are accelerating the transition

New gridTraditional grid

Energy and grid transformationTrending towards increased complexity and lower cost

DER: Distributed Energy Resources

Small installationswith few DERs

Commercialinstallations,someoptimization

Larger installations: manydifferent DERs, power &heat, grid services

Energy and grid transformationMicrogrid participation

Power gridPower grids are largerconventional and spread outgrids with high voltage powertransmission capabilities.

Microgrid technology can be applied toweak grids making the network morerobust.

MicrogridDistributed energy resources andloads that can be operated in acontrolled, coordinated wayeither connected to the mainpower grid or in “islanded”*mode.

Microgrids are low or medium voltagegrids without power transmissioncapabilities and are typically notgeographically spread out. Nanogrid

Low voltage grids that typicallyserve a single building.

Islanded mode: ability to provide power independently from the main power grid

Microgrid segments and main driversCovering a diverse range of applications

P: Main driver(P): Secondary driverIPP: Independent Power Producer

Main drivers

Social Economic Environmental Operational

Segments Typical customers Access toelectricity

Fuel & costsavings

Reduce CO2 footprintand pollution

Fuelindependence

Uninterruptedsupply

Off-

grid

Island utilities (Local) utility, IPP* P P P (P)

Wea

kgr

id

Remotecommunities

(Local) utility, IPP,Governmental development

institution, developmentbank

P P P

Grid

-con

nect

ed

Industrial andcommercial

Mining company, IPP, Oil &Gas company, Datacenter,Hotels & resorts, Food &

BeverageP (P) P P

Defense Governmental defenseinstitution (P) (P) P P

Urbancommunities

(Local) utility, IPP (P) P

Institutions andcampuses

Private educationinstitution, IPP, Government

education institution(P) P (P)

Grid connected microgridGrid resiliency, power quality, self consumption and lowerenvironmental impact

Industrial

WindSolar

BatteryStorage

Stabilization

Hydro

Residential

CHP*Conventional

Connection toPower Grid

PCC: Point of Common CouplingCHP: Combined Heat and Power

PCC*

Hybrid or Islanded microgridAccess to power in remote locations, power quality plus lowercost and environmental impact

Islanded microgrid example

Solar

Conventional CHP

Wind

BatteryStorage

Industrial

Residential

Stabilization

CHP: Combined Heat and Power

Driver: fuel independence and lower LCOESecure power generation and fuel cost savings

§ Fuel cost is volatile

§ Renewable energy cost is less volatileand decreases over time

§ Renewable energy is economicallycompetitive today

§ Steady decline of renewable energyinstallation costs is opening new marketopportunities

§ An optimized energy mix leads to a lowercost of electricity

Sources: 1) US Energy Information Administration – Independent Statistics and Analysis2) Alliance for Rural electrification (ARE). Projections made from a case study based in Ecuador with real natural conditions.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Average Oil price USD$/Barrel is volatile

$133.88 June ‘16$50.03

$13,000/kW

$5,000/kW

$93/Barrel

$7,000/kW

$3,500/kW

LCOE: Levelized Cost of Electricity

Driver: uninterrupted power supplyManaging power fluctuations

• Inherent volatility of renewable energycan compromise grid stability

• The renewable energy integrationsolution must address requirementstraditionally fulfilled by dieselgeneration (base load)

• Renewable energy generation capacityshould be sized to maximize ROI* andfuel savings

Sol

arpo

wer

varia

tions

Win

dpo

wer

varia

tions

ROI: Return of Investment

Microgrid operational goals and power systemfunctions drive choice of technology

• Maximize reliability

• Resilience in the face of severeweather or natural disasters

• Resilience in the face of a weak,unreliable grid

• Meeting environmental targets

• Maximizing penetration of renewableenergy sources

• Minimizing operating expenditures

• Energy independence

• Participation in regulation or ancillaryservices markets

Operational goals

1. Stabilizing

2. Spinning reserve

3. STATCOM (static synchronouscompensator)

4. Seamless transition betweenislanded and grid-connected states

5. Standalone operation

6. Smoothing

7. Shaving

8. Shifting

Power system functions – “8S”

ABB in microgridA leader in technology, solutions and execution

ABB in microgridGrid stabilization and energy storage

PowerStoreTM

Compact and versatile grid stabilizing system capable of stabilizing power systems againstfluctuations in frequency and voltage.

• Can stabilize an electricity network by rapidly absorbing power surges or by injecting power tomake up for short term decline, in order to maintain high-quality voltage and frequency

• Battery or flywheel based and includes state-of-the-art inverters and virtual generator controlsoftware

• Applicable to isolated grids or in grid support mode

ABB in microgridControl system

Microgrid PlusSpecially designed networked control system responsible for efficient and reliable power flowmanagement.

• Maximizes fossil 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• Modular and scalable

ABB in microgridConsulting and Remote service

Consulting and Design tools Remote services for Operation andMaintenance

Our experience, capabilities and tools enable ourcustomers to plan and operate the microgridreliably and at maximum economic benefit.

A comprehensive solution for unattended sites toincrease productivity, improve energy efficiencyand reduce operational costs.

Consulting is offered throughout the completelifecycle of a project with the goal to find theoptimal solution that maximizes the value of theassets and financial investment.• Feasibility studies and simulations• Grid studies• Renewables engineering

Management of customers and plants from thesame web portal, providing• Energy production reports• Interventions• Energy production forecasts• Real time data production• List of customers and plants

ABB in microgridOur delivery during the complete lifecycle

• ABB offers a comprehensive portfolio of lifecycle management and services throughoutthe whole project life cycle

• The consulting and service offering is based onextensive process and application know-howas well as one of the largest installed bases inthe world

• ABB provides remote monitoring and controlof all microgrid assets; a crucial elementespecially for remote microgrids

Consulting

Design &Engineering

Simulation& TestSupply

Installation&

Commissioning

After salesservice

ABB in microgridGlobal references

Mawson Station, Antartica

Cocos Islands, AU

Ross Island, Antarctica

Canary Islands

Faial Islands

Marble Bar

Hybrid power plantMarble Bar, PV/Diesel

Project nameMarble BarCountryWestern Australia, AustraliaCustomer§ Horizon Power§ Government of WACompletion date2010

ABB solution§ Turnkey solution for a greenfield microgrid project§ PV/diesel Microgrid with PowerStore grid-stabilizing technology

and Microgrid Plus System§ The resulting system consists of:

§ Diesel (4 x 320kW)§ PV (1 x 300kW)§ PowerStore-flywheel (1 x 500kW)§ Microgrid Plus System

Customer benefits§ Minimize diesel consumption, 405,000 litres of fuel saved

annually§ Minimum environmental impact, 1,100 tonnes CO2 avoided

annually§ Reliable and stable power supply§ 60% of the day time electricity demand is generated by the PV

plant

About the projectMarble bar and Nullagine are the world`s first high penetration,solar photovoltaic diesel power stations

Integration of renewables and storage with dieselWestern Australia, PV/diesel and storage

Project nameDeGrussa Copper-Gold MineLocationWestern AustraliaCustomerjuwi Renewable EnergyCompletion date2016

ABB solution

§ Integration of a new 10.6 megawatt (MW) solar PV field and abattery storage system with existing diesel generation toprovide reliable base-load power.

§ The resulting system consists of: PowerStore™ grid stabilizationsolutions (2 x 2 MW), solar inverter stations (5 x 2 MW), solarMV stations, a transformer and the Microgrid Plus System

Customer benefits§ Expected diesel fuel saving is 5 million liters per year, cutting

diesel consumption by 20%

About the project

§ The new hybrid solar facility will be the largest integrated off-grid solar and battery storage plant in Australia.

§ Once fully integrated, the plant will reduce CO2 emissions by12,000 tons.

Integration of renewablesKenya, Wind

Project nameMarsabit wind farmLocationKenyaCustomerSocabelec East Africa Ltd (SEAL)Completion date2016

ABB solution

§ Supply, installation and commissioning supervision of aPowerStore-flywheel

§ Stabilizes the connection of 2 x 275kW wind turbines to the grid

Customer benefits

§ System optimization to avoid curtailment of excess wind power

§ Reliable and stable power supply

ABB solution allows the customer to maximize renewable energypenetration by stabilizing the system and avoiding curtailment ofexcess wind power

About the project

Reliable power in presence of a weak gridJohannesburg, PV/diesel and grid

Project nameLongmeadowLocationSouth AfricaCustomerLongmeadow Business EstateCompletion date2016

ABB solution

§ PV/diesel microgrid with battery-based system to maximizesolar contribution and ensure security of power supply at ABB’spremises in Johannesburg

§ The resulting system consists of:§ 750 kWdc rooftop PV plant, including ABB PV inverter§ 1 MVA/380 kWh battery-based PowerStore§ Microgrid Plus System

Customer benefits*

§ Reliable and stable power supply§ Optimized renewable energy contribution to the facility§ Ability to island from the grid in case of an outage§ CO2 reduction: over 1,000 tons/year§ Up to 100% renewable energy penetration

About the project

The microgrid solution is for the 96,000 sqm facility houseshosting ABB South Africa’s headquarters as well asmanufacturing facilities with around 1,000 employees. Theinnovative solution will help to maximize the use of solar energyand ensure uninterrupted power supply.