THE TRES AMIGAS SUPERSTATION

WORLD WIDE EMERGING DEVELOPMENT IN HVDC

2013

UNITING THE NATION’S ELECTRIC POWER GRID

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Common Interconnected AC System Problems

Long Distance Transmission

• Line losses

• System Voltage Stability/Levels

• Reactive Power Loading

• Steady state

• Transient Stability

• Subsynchronous Oscillations

• Latency issues (ie Spinning Reserves)

• Inductive and Capacitive limitation factors

Interconnections

• Uncontrolled Load flow problems and bottlenecks– Congestion Issues– Inter Area loop flow– Cascading Blackouts

• Oscillation Stability

• Frequency control

• Voltage Stability

• Physical interactions between power systems

Diminishing Returns with large interconnected AC Systems

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Common Interconnected AC System Problems

High Cost of Interconnections– Reliability Costs: NERC, RC, Relaying– N-1 criteria often creates underutilization of transmission

lines– Complex coordinating arrangements (RTOs, IA, JOAs, etc.)– Need for sophisticated and costly system impact studies– Participation agreement complications with multiple

impacted entities– Regional/Subregional perturbations/phenomena difficult

and costly to analyze and manage – Deterministic planning practices do not capture the true

economic value of transmission additions/upgrades

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China Plans for Point to Point HVDC

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“a pan-European transmission network facilitating the integration of large-scale renewable energy and the balancing and transportation of electricity, with the aim of improving the European market”.

Friends of the Super Grid

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“Sun and wind: SEMCs have limitless wind and solar energy potential. The MSP, launched in November 2008, aims to install 20 Gigawatts (GW) of new generation capacity by 2020.”

MedGrid – Opening New lines for Sustainable Electicity

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Under Planning:Colombia – Panama600 MW – 400 kV

Under Planning:Central - North1000 MW – 500 kV

Under Planning:Central - South2000 MW – 500 kV

Under Planning:Chile - Argentina2000 MW – 500 kV

South American HVDC projects in operation, construction or planned

Under Planning Manaus - Roraima – Venezuela 600 MW – 400 kV

Under Planning:B Monte Tapajos2x 4000 MW 800 kV

Under Construction:Rio Madeira2x 3150 MW 600 kV

Under Construction:Melo500 MW BtB

Under Planning:Brazil – Uruguay 500 MW BtB

In operation:Itaipu 2x 3150 MW 600 kV

In Oeperation:Garabi2x 1000 MW BtB

In Oeperation:Rivera70 MW BtB

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• "Supergrid" is the future electricity system that will enable Europe to undertake

a once-off transition to sustainability.

• “The full significance of a switchable HVDC innovation has not yet been appreciated

by policy makers or by the business community. It is clear that a network incorporating

a HVDC grid with the redundancy and reliability of current AC grids is now a reality

and that the limits of what is technologically possible have been greatly expanded.”

• “HVDC technology will open markets, strengthen security of supply and create another

global opportunity for European companies to export sustainable energy technology.

The technology underpinning the Supergrid will give competitive advantage to the

companies involved with its specification and design. This type of integrated AC/DC

grid will be a template for what will be needed in other global markets including the US

and China.”

Friends of the Super Grid Quote:

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Alstom Grid HVDC MaxSine Technology

• Voltage Sourced Converter (VSC) technology

• Modular multi-level converter design

• Control of real and reactive power flow into AC grids

• Harmonic free output voltage

Ideal for use on weak AC grids

+ V

- V

+ V

- V

= chain link module

VSC HVDC scheme

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Folded Back-to-Back Convertor Layout

Provides for AC and DC HTS businterconnections

DC Bus Connections

AC Bus Connections

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First Phase Scope of Construction

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Design

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Products & Services - How Will Customers Use TA Services?

Customer Action Tres Amigas Service Customer

Genco LoadEnergy

Merchnt DSM

Third-Party

StorageLocal

Genco

ERCOT PNM SPP

Transport electricity from one interconnect to another

● PTP Transmission

Move electricity in/out of station-connected storage

● PTP Transmission

Buy and sell spot/cash electricity and RECs

● Trade Execution (cash) & Clearing (cash)● Delivery Integration

Buy and sell forward electricity and RECs

● Trade Execution (forward) & Clearing (forward)● Market Information

Offer ancillary services produced from one interconnect into another

● PTP Transmission● Ancillary Service Coordination

Provide electricity storage services ● Direct Connection● Energy Storage Management

Move electricity into market of choice

● Direct Connection● PTP Transmission● Scheduling, System Control & Dispatch● Trade Execution (cash) & Clearing (Cash)● Delivery Integration

Firm/shape renewable generation ● Firming & Shaping Utilize system control services Scheduling, System Control &

Dispatch

Purchase reactive power ● Voltage Control

Purchase other ancillary services ● Ancillary Service Coordination (with AS providers)

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Products & Services - Operations Services

Tres Amigas Operations can be mapped against a generic electricity market structure, illustrating TA Operations core functions – system operations, spot market operations and information services. Tres Amigas will most likely engage an established clearinghouse to support forward trading and clearing.

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Products & Services - Transmission

Transmission service will be sold in blocks ranging from one to 20 years in duration, as well as on a seasonal, monthly, weekly, daily and hourly basis.

Three distinct mechanisms will be used to sell transmission service:• Negotiated, long-term ‘Anchor Tenant Agreements’• Competitive ‘open seasons’, mostly for annual service, but also including

an initial ‘Anchor Tenant Auction’ for terms up to 20 years.• Web-based real-time portal, for non-firm and shorter-term firm capacity,

with a duration less than one year (e.g. monthly, weekly, daily, hourly).• Additionally, the real-time portal will facilitate a secondary market for Tres

Amigas customers to trade transmission capacity purchased previously.

Anchor Tenant Agreements

Spot Sales(via Portal)

FIRM SALES

NON-FIRM SALES

Up to 50% of firm capacity

remaining available firm capacity after Anchor Tenant Agreements

remaining available firm capacity after Anchor

Tennant Agreements and Anchor Tennant Auction

Any available long-term firm capacity

Additional short-term firm capacity

All non-firm capacity

Secondary trading of previously purchased capacity

Open Season

AT Auction Annual Auction

20 years Annual Monthly Daily Hourly

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Startup: research, regulatory and local filings, ROW, preliminary engineering, environmental, economics and business plan.

Startup 8M

Preconstruction12M

Phase I 500 M

Preconstruction: detailed engineering, vendor selection/contracts, product development, additional filings and detailed business plans.

Phase I: construction & operations, East/West transmission node, including HVDC converters, buildings and business infrastructure, EMS Operations

Funding – Tres Amigas Merchant Transmission

Unlike traditional transmission facilities, merchant transmission project owners assume all market risk. Tres Amigas has been successful in receiving significant capital through investors and private placements.

Phase II – III1.5B

Phase II-III: construction & operations, Texas node, additional HVDC converters, facilities, and business infrastructure

2013

2010

2012

2015

Concept 2M

2008

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Tres Amigas SuperStation….

Uniting the Electric Grid