Gary Rackliffe, VP Smart Grids North America “Smart Grid : A network in transition” Association de l'industrie électrique du Québec © ABB Inc. September 18, 2018 | Slide 1

Smarter Grids – Integration of OT and IT New chart to emphasize the how ABB is leveraging OT and IT integration. Bought Ventyx and then merged in our operations software. OT is the control, operation, engineering of the grid and IT is the utility enterprise-level systems such as customer information system, geographic information system, mobile workforce management, work and asset management, meter data management, and business intelligence. The four corners represent core smart grid technology solutions that NAM utilities are implementing. ABB is strong across all four areas.

End-to-end communication infrastructure © ABB Group Optional if you have time. The acquisition of Tropos enables ABB to offer the AMI-WAN and DA-WAN as an integrated communications solution that supports AMI data backhaul and distribution automation applications such as FDIR and VVO. We are seeing transition from siloed communications to a layered communications infrastructure. The layers are enterprise level applications bus, fiber or microwave to substations, local area networks in the substations, wide-area wireless broadband to backhaul AMI data and to support distribution automation, local radio-frequency mesh networks for AMI, and home automation networks. Source: Pike Research September 18, 2018September 18, 2018 | Slide 3

Integrated Operations – Convergence of IT/OT IT/OT Convergence Employee Dashboards, Queries, Outage Reports, KPIs External Communications to Customers, Media, Regulators Operational Business Intelligence T&D Systems Work & Asset Management Mobile Work Management Demand Response Management Graphic User Interface OMS Applications Trouble Call Management Outage Analysis Interface to AMI Outage Management Operations Management Switch Order Management Crew Management Network Applications Volt/VAR Optimization Automatic RSA Fault Location Unbalanced Load Flow Overload Reduction Switching State Estimation Simulation mode CIS GIS IVR AVL / GPS AMI / MDM Network Model – Connectivity and Impedance Supporting IT systems SCADA Communication Front Ends Field Devices – RTUs, IEDs, Sensors IT/OT across operations layers. Top is business intelligence, next are enterprise IT applications. The DMS applications are in the middle, then the network model extracted from GIS, SCADA, communications, and the distribution automation field devices and controllers.

Integrated distribution operations platform Business Intelligence Switch orders, outages Distribution grid management spans control room, enterprise-level system integration, communications, controllers, and smart devices in the field for FDIR and VVO. Includes management of distributed energy resources (DG, ES, EV, and DR). AMI/MDM – Advanced metering infrastructure, meter data management system MWM – Mobile workforce management WMS – Work and asset management GIS – Geographic information system CIS – Customer information system IVR – Integrated voice response system – automated phone system that customers use to report outages (less valuable at utilities that have deployed smart meters)

Levels of Distribution Automation Efficiency – Volt/VAr Control Manually or remotely control capacitors at the local level utilizing settings based on historic metrics of customer power usage Adding two-way communications and Volt/VAr control software to coordinate and control capacitors, voltage regulators and load tap changers in real time Utilizing network management software and an impedance model of the distribution system to optimize the reduction in energy losses and demand Self Healing – FDIR A group of reclosers, load break switches, and circuit breakers on a feeder operate together to restore power in the most optimal manner Coordinated control between groups of reclosers, load break switches, and substation circuit breakers within a substation and possibly with adjacent substations Coordinated control between groups of reclosers, load-break switches, and substation circuit breakers across the distribution grid Device level and/or peer-to-peer Substation level Centralized

Asset Health Center – Information Flow & Analysis Transformers … Circuit Breakers Batteries Advanced BI Solution BIM Data Sources Databases, Historians, SCADA ETL & Performance Models Offline Data; Excel, CSV, Paper… Actionable Intelligence Continuous Feedback SME Support Thermal Winding Risk Short Circuit Risk Dielectric failure Risk Packaged SME EAM Solution 7

Smart Transmission Phasor Measurement Units and Wide-Area Monitoring HVDC FACTS – SVCs and Series Capacitors Utility Scale Energy Storage SCADA/EMS © ABB Inc. September 18, 2018 | Slide 8

Integrating OT/IT with virtual power plants Distribution Management Energy Management / Generation Management Energy Markets Bids and Schedules Demand response, Distributed generation, Distributed energy storage, EV charging, Microgrids We are now integrating demand response and distributed energy resource functionality into DMS. We can model, forecast, aggregate, and control distributed energy resources (DERs) shown at the bottom of the slide (DR, DG,ES, & EV). This capability allows us to manage grid impact from DERs such as feeder voltage management with high concentrations of PV solar connected to distribution feeders. We can also follow the money and monetize DERs by dispatching the virtual power plant created by the DER aggregation. VPPs can be incorporated into generation economic dispatch for vertically integrated utilities or bid into capacity and ancillary service markets in deregulated markets.

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