THE TRES AMIGAS SUPERSTATION ABB Western Utility Executive Conference September 28, 2010 UNITING THE NATION’S ELECTRIC POWER GRID

1 20 th Century Electric Transmission Grid Utility Controlled

2 21 st Century Electric Transmission Grid Customer Desires & Configurations

3 LARGE INTERCONNECTED AC TRANSMISSON SYSTEMS

4 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

5 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

6 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

7 “ 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

8 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

9 21st century smart grid technologies compared with those in use today. Source: IBM Institute for Business Value

10

11 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

12 China: Current HVDC National Grid Plan

13 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

14 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

15 The Location: Regional Renewable Resource Potential Significant Regional Wind & Solar Capacity Factors in Excess of 35% Source: NREL

16 From the 2010 Transmission Summit in Sweetwater 16 w/ HVDC Proposals

17 The Tres Amigas SuperStation

18 Tres Amigas SuperStation…. Uniting the Electric Grid