HVDC a key technology enablerShaping the evolving grid

Dr. Brice Koch, Head of Power Systems, Member ABB Group Executive Committee, Hanover April 23, 2012

© ABB Group April 23, 2012

Who is ABB ? A global leader in power and automation

Power Products Power SystemsDiscrete

Automation and Motion

Process Automation

Low Voltage Products

$38 billion revenues

135,000 employees in ~100 countries ; headquartered in Zurich, Switzerland

Over $1.3 billion invested in R&D annually ; 7,500 scientists and engineers

Power generation, transmission & distribution Solutions for utilities & industry

Energy efficiency solutions for process industries, factory automation and building & construction

$10.3 billion 35,000 employees

$7.7 billion 19,500 employees

$8.4 billion 27,500 employees

$7.8 billion 28,500 employees

$5 billion 21,000 employees

Relevant mega-trends 12 priority growth areas and ABB strengths

12 priority growth areas12 priority growth areas

1. Geographic market penetration2. Renewable generation

3. Smart Grid4. Oil & Gas frontiers5. Data Centers6. Service

7. Energy Efficiency8. Software9. Leader in Industrial Automation10. Mechanical equipment

11. Power Electronics12. DC Technology & application

Relevant MegatrendsRelevant Megatrends

Resource Economics

Green

Urbanization

Emerging economies & power shift

Transportation/ mobility

Electrification

Digital Information

ABB strengthsABB strengths

Portfolio across power & automation

Technology leadership

Performance driven organization

Global presence

Experienced and diverse leadership

Solid balance sheet, strong cash flow

© ABB Group April 23, 2012

The challenge we face Need for more power with lower environmental impact

Demandmanagement

Grid interconnections

Electric vehicles

Network management, control

& cyber security

Power quality

More power

Renewables integration

© ABB Group April 23, 2012

Traditional overhead line with AC

Overhead AC line with FACTS*

HVDC (high voltage direct current) Classic overhead line

Underground line with HVDC Light or AC cable

Different technologies :Same power transmitted

The transmission grid becomes increasingly important Continued development of AC and DC technologies

Capacity up 10 times; losses down from 3% to 1% per converter station since 2000

Losses %

3

1

HVDC Light

400

800

20102000

1000

Losses

Capacity

Tran

smis

sion

cap

acity

(MW

)

Capacity up 6 times since 2000; Voltage up from +/- 100kV to +/- 800kV since 1970

HVDC Classic

2,000

4,000

1970 1990 2010

6,000

Voltage kV

200

800

600

Voltage

Capa

city

Longer transmission distances

More power - lower losses - reduced cost per megawatt (MW)

Development of power electronics, cable and semiconductor technology

© ABB Group April 23, 2012

Integration of remote renewables and transmission to distant load centers (eg. hydro, wind, offshore wind, large scale solar etc.)

Grid interconnections to balance loads and facilitate power trading

Power supply to islands

Shore supply to offshore platforms

City center in-feed

Embedded DC to reinforce AC networks

HVDC - a key transmission enabler ABB pioneered HVDC in the1950s

Enabling stronger, smarter and more flexible grids

© ABB Group April 23, 2012

ABB has more than half of the145 HVDC projects The track record of a global leader

Troll 1&2 Troll 3&4Nelson River 2

CU-project

Vancouver Island Pole 1

Pacific Intertie

Pacific Intertie Upgrading

Pacific Intertie ExpansionIntermountain

Blackwater

Rio Madeira

Inga-Shaba

Brazil-Argentina Interconnection I&II

English ChannelDürnrohrSardinia-Italy

Highgate

Châteauguay

Quebec- New England

Skagerrak 1-3

Konti-Skan

Baltic Cable

FennoSkan 1&2

Kontek

SwePol

ChandrapurPhadge

Rihand-Dadri

Vindhyachal

SakumaGezhouba-Shanghai

Three Gorges-Shanghai

Leyte-LuzonBroken Hill

New Zealand 1&2

Gotland Light

Gotland 1-3

Murraylink

Eagle Pass

Tjæreborg

Hällsjön

Directlink

Cross Sound

Italy-GreeceRapid City

Vizag II

Three Gorges-Guandong

Estlink

Valhall

Cahora Bassa

SapeiSquare Butte

Sharyland

Three Gorges-Changzhou

Outaouais

Caprivi Link

Hülünbeir- Liaoning

Lingbao II Extension

Xiangjiaba-Shanghai

BorWin1

NorNed

Apollo Upgrade

EWIC

IPP Upgrade

Itaipu

DolWin1 Dolwin 2

NordBalt

Skagerrak 4

North East Agra

Jinping - Sunan

58 HVDC Classic Projects since 195814 HVDC upgrades since 199019 HVDC Light Projects since 1997

Mackinac

© ABB Group April 23, 2012

Australia

ABB’s track record of HVDC innovation Many firsts – some examples

World’s longest / highest power capacity - first 800

kV commercial link -

Integrating the world’s most remote offshore

wind farm

World’s longest underwater power link

China Germany Norway- Netherlands

World’s first offshore platform connected to

shore power

World’s longest underground cable link

Namibia

World’s first HVDC Light on an overhead line

Norway

© ABB Group April 23, 2012

Semiconductors

Converters

HV cables

ABB’s unique position in HVDC In-house converters, semiconductors, cables

Recent investments

HVDC simulation and test centers-Sweden ~$200 mn Semiconductors-Switzerland ~$90 mn HV land cables US ~$400 mn HV sea cables Sweden

© ABB Group

April 23, 2012

HVDC limitation today - point to point power highways No entry or exit points - a major hurdle

From joining the dots to connecting the lines

Europe China Desertec

© ABB Group April 23, 2012

ABB’s DC grid vision first conceived in 1999 Now a shared vision

Technology gaps to close

DC breaker

Control and protection

Power flow control

Future developments

Multi-taps

Multiterminal links

DC grids

Mixed AC/DC grids

Other gaps to close

Political consensus

Regulatory framework

Funding models

Technology will not be a stumbling block – planning can start !

Hydro powerSolar power

DC transmissionWind power

Hydro200 GW

Solar700 GW ; 8000 km2

90 x 90 km

Wind300 GW ; 25000 km2

5000 x 10 km

© ABB Group April 23, 2012

1890/91 Origins ASEA /BBC - first to transmit HV AC power

1897

First HV oil circuit-breaker

1901Frst steam turbine in Europe

Itaipu,Brazil - world’s largest hydro power plant

1984Murraylink , Australia - world’s longest u/ground cable

NorNed - world’s longest / most powerful sub-sea HVDC link

2008

2009Xiangjiaba-Shanghai - longest UHVDC link >2000 km

Jingmen, China - 1100 kV gas insulated switchgear

2010

1954Gotland , Sweden -first commercial HVDC

1939First combustion gas turbine for generating electricity.

Borwin 1- world's most remote offshore wind farm connection

DC Grid ?

2009

2002

On the verge of writing yet another chapter in the history of power !

125 year legacy of power technology innovation Keeping the heritage alive

© ABB Group

April 23, 2012