THE TRES AMIGAS SUPERSTATION

ABB Western Utility Executive Conference

September 28, 2010

UNITING THE NATION’S ELECTRIC POWER GRID

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20th Century Electric Transmission Grid

Utility Controlled

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21st Century Electric Transmission Grid

Customer Desires & Configurations

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LARGE INTERCONNECTED AC TRANSMISSON SYSTEMS

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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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Next Step – The Evolution to Fast Acting HVDC

• The only way to interconnect large AC power grids with different phases is via HVDC (High Voltage Direct Current) facilities– AC/DC/AC Stations– Hybrid Transmission systems (AC/DC…DC/AC)– Multipoint nodes – Long distance DC Transmission lines

• HVDC has the ability to control the direction and magnitude of the power flow at each node of a multipoint configuration thereby facilitating the precise needs of the interconnection points without adverse impacts to the interconnecting grid

• HVDC has the flexibility not only to adapt to grids with different AC system real time characteristics but to also facilitate optional ancillary services to each interconnection node

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“PRESENTLY, ONLY 30% OF ALL POWER GENERATED USES POWER ELECTRONICS SOMEWHERE BETWEEN THE POINT OF GENERATION AND END USE.  BY 2030,

80%OF ALL ELECTRIC POWER WILL FLOW THROUGH POWER ELECTRONICS .”

Power electronics moves beyond devices that simply provide increased awareness, such as Phasor measurement systems. These devices will respond to, interface with and control real time power flows.

From USDOE Office of Electric Delivery and Energy Reliability

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Benefits of Power electronics

• Increased power system reliability and security

• Increased efficiency and loading of existing transmission and distribution infrastructure

• Huge gains in real time power flow control

• Improved voltage and frequency regulation

• Improved power system transient and dynamic stability

• More flexibility in siting transmission and generation facilities

• The distinction between consumer devices and utility devices will largely be eliminated electrically

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21st century smart grid technologies compared with those in use today.

Source: IBM Institute for Business Value

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Hierarchical View of the Issues facing the European Transmission System Operators (TSOs)

Single

European Electricity Market

•Pan-European Transmission Grid•Load-Generation Balance

•Congestion management•Ancillary services

•Settlement•Balancing Mechanisms

•Variable Renewable energy Generation•Storage

•Demand Side Management

Source: ENTSO-E: The pathway towards common European network operation

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China: Current HVDC National Grid Plan

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Europe: Extended Grid Plan

• From Iceland (Northwest) to Israel (Southeast)= 3,200 mi

• Concept of grid is 25,000 miles of line

Solar Power

Wind Power

Geothermal

Hydro

Biomass

The new high-voltage network would range from the Sahara to the polar cap. The concept calls for main lines that are 40,000 kilometers long. And parts of it already exist.

Connections already in place or planned

Vision of ABB and DLR

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The Location

Tres Amigas Is Ideally Situated in Eastern New Mexico Near the Borders of CO, OK and TX Serving as a Three-Way Interconnection of

WECC, Eastern and ERCOT

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The Location: Regional Renewable Resource Potential

Significant Regional Wind & Solar Capacity Factors in Excess of 35%

Source: NREL

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From the 2010 Transmission Summit in Sweetwater

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w/ HVDC Proposals

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The Tres Amigas SuperStation

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Tres Amigas SuperStation….

Uniting the Electric Grid