Get Connected to HVDC 6 November 2018

Cigdem Demirel HVDC Product Management Leader Grid Solutions

EC Grid Solutions VISION & STRATEGY OUR VISION OUR STRATEGY Grow the business Be our customers’ 1st choice Take cost out of our products Be the premier digital company in our industry Strengthen supply chain and improve quality Deliver double-digit operating profit … >10% Master project execution Simplify our business and structure

EC Grid Solutions HVDC Strategy OPTIMIZE TODAY EPC Excellence Series 6 Controls Reference Solution and Cost Out – “Blueprint” Capacity Growth CREATE TOMORROW Technology Differentiation Business-Model Differentiation Optimized Off-shore Wind Connection Solution as a Service Digital Solution

A more complex global utility environment with new challenges Increasing demand for electricity Ensuring security of supply Reducing carbon footprint Growing offshore wind Integrating remote renewables Less predictable embedded generation Utilities are looking for cost effective AC and DC solutions to improve the quality, stability and reliability of the grid © 2017 General Electric Company - All rights reserved

Why HVDC? Move more Power, further Interconnect Grids Integrate Renewables Improve Quality and Stability, Maximise Network Performance Enable the bulk transport of electricity over long distances Enable the exchange of energy between two unsynchronized AC systems Connects renewable generation such as offshore wind farms Provides real and reactive power with less losses than AC solutions Developing nations Global Mainly EU Global Primarily developing nations with energy reserves many kilometers from population centres e.g. China, Brazil, India Connected AC networks can leverage lower generation costs and reduce the risk of cascading outages Predominately EU market demand to improve energy management and reduce carbon footprint Highly controllable HVDC systems can improve the stability and performance of the connected AC networks

HVDC Technology

2 different technologies Line-Commutated Converters (LCC) Voltage Source Converter (VSC) MOVE MORE POWER, FURTHER INTEGRATE RENEWABLES © 2017 General Electric Company - All rights reserved

LCC technology for bulk transfer of power Line-Commutated Converters (LCC) Mature cost effective HVDC technology based on thyristor power semiconductors Enables the bulk transfer of power of up to 8 GW with low losses and inherent DC fault protection Very limited control of the excess of energy produced Require AC filters to smoothen the flow of electricity

VSC technology for renewables integration Voltage Source Converter (VSC) Newer technology based on power transistors Reduced footprint compared to LCC technology Better control systems Lower electrical losses and less radio interference compared to LCC technology

A proven technology supporting projects all over the world North America Europe Clean Line (US) - Develop America’s largest clean energy infrastructure project Lower Churchill (Canada) - Connect a new hydro generation source McNeill (Canada) – performing continuously and entirely unmanned since 1989 France-Italy – Build Europe’s energy grid DolWin3 (Germany) – Connect Offshore wind energy to the grid SWL (Sweden) – Our first VSC technology project In the world Asia and India Champa 1 (India) – Our first 800 kV HVDC project Kepco (Korea) – digitalization of HVDC technology Buk Dangjin (Korea) – 2nd Turnkey HVDC project in South Korea South America Rio Madeira (Brazil) - The longest DC Interconnection in the world Melo (Brazil-Uruguay) – trading clean energy between countries $15B market by 2026 (Future Market Insights)

Our HVDC journey From small player in a niche market to HVDC Digital Industrial Leader 2009 2014 2015 2017 $4.5B market $5-7B market next 3 years Aggressive ABB and Siemens Challenging Chinese players Growing but lumpy market Only 2 Point-to-point players ~ $3B market 2016 low year, moved to 17 Market: +21% CAGR 3rd player to ensure competition IFA 2000 France-UK/ Melo Brazil-Uruguay/Rio Brazil Jeju Korea/SWL Sweden/Champa1 India/DolWin3 Germany BukDangjin Korea/Champa2 India/LCP Canada FIL France-Italy Focusing on Swedish project and Control Software Transforming into Digital Industrial Leader We are Back-to-back Player Re-entering Market Leveraging GE © 2017 General Electric Company - All rights reserved

Differentiating through digital solutions Customer problem statement Loss of revenue and negative impact on reputation due to unplanned system outages Cost of unavailability up to $500K/day on HVDC High CAPEX re-investment: Asset use not at optimum level High OPEX: Lack of knowledge to operate and maintain HVDC /FACTS stations O&M running costs up to 2% of the initial contract price on a yearly basis, i.e. up to 50% over total life cycle Differentiated solution 99% availability for 5 years - 50% unplanned outages Losses of <0.8% for VSC © 2017 General Electric Company - All rights reserved

Want to know more? Download the app HVDC explorer, improve power quality and maximize grid performance

And get connected with our HVDC resources Visit our website Download our brochure Get to know about our projects DolWin3 | France-Italy

Concluding remarks Growth lever for GE: $4 to 6B annually Ambitious 2017 Op plan… Closure of existing projects 3 global turnkey OEM’s (GE, ABB, Siemens)… Chinese players challenging Differentiating with our Digital Solutions © 2016 General Electric Company - All rights reserved

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