Håkan Johansson – ABB Global Smart Grid ISI – Bangkok, June 6 – 2012 Smart Grid, integration of renewables. Long term planning for a sustainable energy system, from source to socket

WW expected development Background to Smart Grid & EE drivers © ABB Group September 18, 2018 | Slide 2 Source: BP Energy Outlook 2030 (2011)

Smart Grid, a puzzle based on: an evolution challenging the entire power system (OT) Increased transfer capacity Connecting large scale renewables Active Consumer Micro gen Charging infrastructure E-mobility Improved control of the distribution system Increased need of balancing power Improved control and security of the network Improved power quality Business Models Standards Energy Efficiency 3 3 3

Smart Grid IT Solution Map Physical Asset & Work Mgmt. Mobile Workforce Mgmt. Customer Mgmt. Asset Mgmt. -Operations Mgmt. -Supply Chain -Safety & Compliance -Work Mgmt. Forecasting & Planning Scheduling & Dispatch Mobile Work Execution Customer Information Billing Management Call Center Management Network Management Systems SCADA: Supervisory Control & Data Acquisition Generation Coordination & Control -Security Control & Assessment -System Monitoring -Automated Generation Control -Switching Control -Switching Orders -Real Time Market Communications -Transmission Coordination -Reliability Control -Control Area Function -Reliability Management -Volt/VAR Optimization Energy Commercial Operations Load & Rev Forecasting -Unit Optimization & Bidding Demand Response -Physical Scheduling Trading & Risk Mgmt -Market Comms & Settlement Smart Grid Operations Energy Planning & Analytics Forecasting & Analysis -Market Data Intelligence Market Price Formation -Advisory Energy Consulting -Portfolio Analysis and Planning

Energy efficiency the biggest opportunity to potential emission decreases The Worlds energy related CO2 -savings according to the 450 policy scenario relative reference scenario Source: IEA, World Energy Outlook 40 CO2 emissions (Gigaton) 57% Energy- efficiency Present trend Renewable energy sources 20% 30 Bio fuels (3%) 10% Nuclear 450 policy scenario 10% CCS* *Co2 storage 20 2000 2007 2020 2030

Efficient generation, transport and better utilization of electricity Commercial Residential Available energy More efficient fuel combustion Improved pipeline flows Improved well efficiency Lower line losses, higher substation efficiency Improved productivity Building management Primary energy Transport Generation T&D Industry 80 % losses 30 % saving Up to 80 percent losses along the energy value chain Some losses inherent to the generation of electricity Network losses in EU are an estimated 50 TWh, the annual consumption of 13 million households* Energy efficiency along the value chain can reduce losses by 30 percent © ABB Group September 18, 2018 | Slide 6 * Source: European Commission 6 6

Today's vs. future electrical power systems Today's vs. future electrical power systems. Aspects & challenges to be considered for renewables A “new way” of looking into the future network. For a long-term sustainable energy supply, renewable power offers an attractive alternative. Globally, investments in renewable energy sources is growing, which reduces costs by growing volumes and improved technologies. Renewables are environmentally clean, and its energy (e.g. wind and solar) is transmitted free of charge But exploiting renewable power is not without challenges How to maintain stability? Production some times far away from consumption Large in feed at maximum generation Intermittent production Storage High power in feed have to be supported by existing strong transmission and distribution systems © ABB Group September 18, 2018 | Slide 7

Integration of renewable energy sources Availability of emission free balance power Consumption Source: SvK Production Wind and Solar requires more balance power

DynaPeaQ ( ABB SVC Light with energy storage ) Handles intermittent energy production issues such as voltage control, grid stability during and after faults, as well as frequency regulation. Used during peak load situations and as emergency reserve during power outages. Energy Storage as alternative to investment in increased grid distribution capacity Current Project Two wind farms connected to 11 kV distribution system. Rated 200 kW/1 h , 600 kW/10 min © ABB Group September 18, 2018 | Slide 9

HVDC Grids Regional to continental grids with HVDC technology DC Grids vs DC single links or AC “Only” relevant offshore solution Loss reduction for long transmission lines Increased power capacity vs. AC Less visual impact Why now: Offshore wind, remote solar, grid constraints HVDC Light systems and components mature Challenges: DC Breakers & DC/DC Converters Regulatory framework Hydro Offshore wind Solar © ABB Group Slide 10 PowDoc id 10

This vision is now a shared vision MoU European Energy Ministers Round the North Sea © ABB HVDC Slide 11 10MP1795 © ABB Group September 18, 2018 | Slide 11

Smart Grid challenges Improve efficiency along the whole process Demand response Integration of renewables Integration of electric vehicles Reliability and efficiency © ABB Group September 18, 2018 | Slide 12

Smart Grid Integration of renewables Availability of sufficient emission free balance power and sufficient grid capacity efficient long distance transmission remote monitoring and control of wind farms remote monitoring and control of solar farms increasing grid capacity and stability balance load to supply demand response remote grid operation with distributed generation balance load to supply demand response management of green house gases emission trading emission monitoring and control balance load to supply spinning reserve energy storage © ABB Group September 18, 2018 | Slide 13

Smart Grid Reliability and efficiency Increasing both grid capacity and power quality. Peak-load shaving grid operation with improved: cyber security customer outage information underground power cables increasing grid capacity and reduced transmission losses reduced peak-load house automation reduced peak-load process automation grid operation with distributed generation micro grids efficient outage management based on meter information energy storage stationary & mobile emergency power peak power efficient outage management local monitoring and control zone concept © ABB Group September 18, 2018 | Slide 14

increasing grid capacity Smart Grid Integration of electric vehicles Sufficient grid capacity and infrastructure for charging and billing plug-in vehicles integration charging billing increasing grid capacity increased stability by energy storage stationary plug-in vehicles load management demand response real time pricing © ABB Group September 18, 2018 | Slide 15

Smart Grid Demand response Business model and customer interaction real time pricing tariffs demand response plug-in vehicles charging energy storage demand response home automation demand response process automation demand response energy storage demand response distributed generation © ABB Group September 18, 2018 | Slide 16

Two complementary ABB Smart Grid R&D sites Stockholm Royal Seaport A full scope ABB Urban Smart Grid for a sustainable city and harbor environment Focus on active consumers (residential and harbor) and peak load reduction Smart Grid Gotland A full scope ABB Rural Smart Grid with possibility to study island operation. With 30% intermittent renewable production it represents the challenge many regions and countries will face in the future. With both these sites ABB can demonstrate capability to solve the issues related to both an urban and rural grid environment. High level of international interest already shown © ABB Group September 18, 2018 | Slide 17

Smart Grid Gotland Large scale windpower E-mobility System Control Energy storage Grid automation Active customers Smart substations Develop and test Smart Grid solutions to realize: Large scale integration of wind Active consumers participation Reliable and secure grid operation Smart Grid System Control Grid Automation Smart Substations Energy Storage Power exchange with mainland by HVDC interconnection …and more © ABB Month DD, YYYY | Slide 18

Smart Grid Gotland © ABB Group September 18, 2018 | Slide 19

Stockholm Royal Seaport – A world class sustainable city, with a Smart Grid as the enabler Objectives Year 2030 fossil free Year 2020 CO2-emissions below 1,5 ton per person Adapted to future climate changes Focus areas Effective energy end-usage Environmental effective transports Local re-cycling Life style

Quote from Time Full system- and customer perspective coverage An open national arena for innovation and research around smart grids for urban areas. Stockholm Royal Institute of Technology, a hub for research Small and medium sized companies The energy industry © ABB Group September 18, 2018 | Slide 21

Smart Grid Roadmap Smart Grid evolution Time Smart Grid Residential/Community Energy storage Mature phase (7-15 years) Active houses Demand Response Emerging phase (3-7 years) AMI integration with operational system Distribution Automation Integration electric vehicles Smart Grid Initial phase (1-3 years) Smart Meters for billing Integration large scale wind/solar farms Pilots for energy storage, active houses, electric vehicles, demand response, distribution automation, AMI integration Shore to ship power Environmental and energy efficient equipments HVDC Light® system (FACTS) including SVC and STATCOM Substation Automation with IEC61850 Today’s business SVC Light® with Energy Storage Network Management Building and house control © ABB Group September 18, 2018 | Slide 22 © ABB Group September 18, 2018 | Slide 22 Time

Conclusions Smart Grid is the evaluation of today's systems and the enabler for a more sustainable energy system with a more consumer driven electricity market which includes: integration of renewable energy sources, efficient energy consumption, AMI etc. Both transmission and distribution both automation/IT and power devices both technology, business models and regulatory/market frameworks Smart Grid is still a learning process. An important arena to develop and demonstrate solutions for the future power system together with all stake holders including authorities and end users. Implementation started! Most of the components and systems needed exists today but new standards must be developed Smart Grid creates new jobs and attract new competences* Everyone has to reconsider the individual energy consumption behavior * WW 3.5 mill. 2010 in renewables alone, acc. to Renewable Energy Policy Network Technology Market Business model