energy and mines australia summit; perth...
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ENERGY AND MINES AUSTRALIA SUMMIT; PERTH 29TH TO 30TH JUNE 2017
MicrogridsThe economics of solar & battery energy storage for off-grid mines
Juergen Zimmermann, ABB Australia
Incremental hybridization to a low carbon & energy cost future with renewables and energy storage
Energy transformation of off-grid mining
June 30, 2017 Slide 2
ABB supports mining customers to capture the economic and operating benefits along the transformation
Status quo: Diesel or gas generation the main provider of off-grid mine electricity
Today: Up to 50% fuel reduction possible without subsidies leading to increased shift to renewables
Next few years: Clear business case to further reduce diesel in increments moving towards 100% renewables
1. Introduction
2. Story of ABB Microgrid Technology in Australia
3. Microgrid Technology Overview
4. Economic drivers for solar & storage versus diesel
5. Summary
June 30, 2017 Slide 3
Agenda
June 30, 2017 Slide 4
Utilities Transport & InfrastructureIndustry
Digitalisation & grid automation
Analytics & operational technologies
Microgrids & Renewables
Energy storage
Power quality & reliability
Electrification network equipment
Consultancy & whole of life service
Productivity
Digital optimisation
Data integration
Automation control systems
Industrial Internet of Things
Energy efficiency
Power quality / reliability
Collaborative operations
Remote monitoring
Motion forecasting
Energy efficiency & management
Sustainable, electric transport
Power quality / reliability
Decentralised power generation
Power and automation
ABB in Australia
June 30, 2017 Slide 5
Revenue Dec 2016
$654 MAUD
In Australia, global R&D and technical lead centres for Enterprise Software, Microgrids, Metal Enclosed Capacitor Banks, and Pole Mounted Switches
Manufactures LV systems, instrumentation systems and HV capacitors and power quality equipment, and Metal Enclosed Capacitor Banks
Headquartered in Sydney with Sales offices and Service centres across Australia supporting all ABB systems and products
Total workforce
1,350Orders Dec 2016
$651 MAUDNorthern Territory
WesternAustralia
Queensland
South Australia
New South Wales
Victoria
Tasmania
Darwin
Brisbane
Perth
SydneyACT
Chinchilla
Gladstone
Adelaide
Melbourne
Geelong
A History of firsts in increasing renewable energy penetration
ABB Microgrids in Australia
June 30, 2017 Slide 6
1998 – 40% RE penetration
– Wind Diesel System
• Western Power
• Denham Power Station
• 3 x 230kVA wind turbines
2016 – 50% RE penetration
– Solar Diesel Stabilizing System
• DeGrussa Mine
• 10MW Solar PV
• 4/6 MW battery stabilizing system
1990 – energy efficiency
– Diesel Battery Storage System
• PowerWater Corporation
• 10 sites across NT
• 60kW storage for spinning reserve
2010 – 100% RE penetration
– Solar Diesel Storage System
• Marble Bar & Nullagine Stations
• 300kW SolarPV
• 500kVA flywheel stabilizing system
Technology evolved from off-grid to grid-connected Microgrids
27 years of building microgrid knowledge
Global references with 40+ successfully executed projects
June 30, 2017 Slide 7
ABB in Microgrids
Kodiak Island
Chugach Hybrid Storage
La Gomera Island
Lanzarote Island
Marsabit Wind FarmICRC Logistics Center
Longmeadow
Mawson Station, AntarcticaRoss Island, Antarctica
Shin Hidaka PV PlantShin Chitose Kashiwadai PV Plant
Cocos (Keeling) Island
Marble Bar
Faial IslandFloresIsland
DeGrussa MineLaing O‘Rourke Construction Camp
AusNet Services
Robben IslandGarden Island
WEB Aruba
Vadodara
Common technology platform reduces cost and risk
Microgrid: grid-connected versus off-grid systems
June 30, 2017 Islanded mode: ability to provide power independently from the main power gridSlide 8
Distributed energy resources and loads that can be operated in a controlled, coordinated way either connected to the main power grid or in “islanded”* mode.
Microgrids are low or medium voltage grids without power transmission capabilities and are typically not geographically spread out.
Understanding drivers is key to developing projects
Microgrid definitionOff-grid Microgrid
Grid OperatorCan view and control
microgrid as a single entity
Grid-connected Microgrid
Microgrid operational goals and power system functions drive choice of technology
June 30, 2017 Slide 9
– Access to electricity
– Maximize reliability
– Uninterrupted supply
– Reduce environmental impact
– Maximize renewable energy contribution
– Fuel & energy cost savings
– Fuel independence
– Provide grid services
1. Stabilizing
2. Spinning reserve
3. STATCOM (Static reactive power compensation)
4. Seamless transition between islanded and grid-connected states
5. Standalone operation
6. Smoothing
7. Shaving
8. Shifting
Operational goals Power system functions – “8S”
Renewable power
Energy storage and grid stabilization
Microgridcontrol system
ABB Microgrid Technology
The global microgrid solution partner
June 30, 2017 Slide 10
ABB in microgrids
AND
Consulting
Service
3rd party financing
25+ years experience 40+ executed projects25+
Innovation, technology & productizationleadership
Global sales &service network
Microgridcontrol system
Energy storage and grid stabilization
Renewable power
Conventional powerPower distribution
and protection
Leading global expertise Broad portfolio of products & services
Microgrid Integration Technologies Controlled systemEnergy contribution
(Fuel reduction)Power penetration
(At peak solar/wind)
Limited control/ basic fuel savingNo Renewables control, negative load
7-10% 20-30%
Power control and optimisationControlling renewables + generator
10-15% 20-50%
Power control and forecastingControlling renewables + generator
15-30% 50-70%
Power control and grid stabilisationControlling renewables + generator + storage
25-40% 100%
Power control and load management Controlling renewables + generator + storage + load
60-80% 100%
Power control + energy storage Controlling renewables + storage + load
100% 100%
Increasing renewable penetration requires enhanced microgrid control capabilities
Microgrid Integration Technology
Slide 11 Note: Percentages vary between wind/ diesel and solar/ diesel
Broad range of technical solutions possible – design choice based mainly on economic criteria
The vendor independent Microgrid integration platform
Microgrid Plus System
June 30, 2017 Slide 12
ABB Microgrid Controller
Solar PV power plant
Wind power plant
Remote asset management
and data analytics
Advanced powerdistribution and
protection
Conventional power
Grid connection
Modular scalable energy storage and grid
stabilization
Commercial loads
Industrial loads
Distributed control system Residential
loads
Islanded mode: ability to provide power independently from the main power grid
The modular grid stabilizing system with virtual generator functionality
PowerStore
June 30, 2017 Slide 13
91kVA to 2850kVA
Fuel
Frequency Control
Voltage Control
Vact
fact
Vset
fset
Power Flow
Frequency Control
Voltage Control
Vact
fact
Vset
fset
Conventional Generator PowerStore- Virtual Generator
Power Flow
~G
Using solar and storage to lower cost of energy
Case Study: incremental hybridization of mines
June 30, 2017 Slide 14
Power System
– 5 MW average load
– 6.3 MW peak load
– 6 x 1.2 MW diesel generators
Business Case
– Delivered Fuel Cost: $1US/l
– Solar installed cost: $2US/Wp
– Average cost of capital: 11%
Diesel Parity: Solar LCOE now lower than diesel
Example: remote gold mining operation
Four incremental hybridization scenarios
We analyzed the benefits of a hybrid power system
June 30, 2017 Slide 15
1. Base case – Diesel 2. Diesel + BESS 3. Diesel + solar PV 4. Diesel + BESS + solar PV
5 MWavg
6.3 MWp
Up to 4.5 MWp
Remote mine Remote mine Remote mine Remote mine
+/- 1.7 MW(2.1 MWh)
+/- 4 MW(4.4 MWh)
Up to 8.1 MWp
5 MWavg
6.3 MWp
5 MWavg
6.3 MWp
5 MWavg
6.3 MWp
Generators can be off during daytime
– 6 generator system (1.2 MW each)
– 1 generator equivalent required as operating reserve at all times
– All generators that are on typically operate at same level
– BESS removes need for operating capacity
– BESS can also delay or remove need to start up a generator during short term peaks
– Solar PV size limited in this case due to generator ramping limitation
– Additional generators must stay online in case of shading for 75% of solar production (potential reductions when using advanced forecasting)
– BESS provides required ramping
– During daylight hours all generators can be shut down completely
Genset status
On
On (For reserve)
Off
ABB Microgrids: 30 to 50% fuel reductions today
Source: IHS PV Demand Market Tracker - Q2 20171 https://www.greentechmedia.com/articles/read/Sunshot-1-Per-Watt-Solar-Cost-Goal-Mission-Accomplished-Years-Ahead-of-S
– PV prices have reduced over 30% in past 2 years and continue to fall globally
– Commercial and utility scale systems reducing faster than household solar with the $1/Wp already reached for utility scale1
0.5
1.0
1.5
2.0
2.5
-32%
20212019201720152013
Global Large Commercial PV system prices (1 to 5MW) USD/ Wp
Marble Bar & Nullagine, PowerStore/ PV/ Diesel
– Generates 1,048 MWh PV/ year
– Saves 35-40% diesel consumption per year
Johannesburg, PowerStore/ PV/ Diesel
– Up to 50% reduction in electricity bills and fossil fuel consumption
DeGrussa Min, PV/ Diesel stabilizing system
– ~50% diesel saving opportunity
– 10MW Solar PV
– 4/6 MW battery stabilizing system
ABB references already show 30 to 50% fuel reduction possible Rapidly decreasing Solar PV costs supporting business case
Slide 19
Lower solar PV and storage costs remove need for subsidies
Microgrids with solar or storage have lower cost of energy
Summary
June 30, 2017 Slide 20
1. Technical integration of solar with diesel and storage is proven
2. Installed cost in remote sites of solar continues to fall
3. Commercial integration (lowering cost and risk)through new business models
4. Single point of technology responsibility for solar/diesel/storage from DC of solar panel to the Generator controller and battery storage
5. Ability to integrate brownfield or greenfield sites
Diesel parity: Solar has lower cost than diesel
ABB a trusted technology partner
Consulting
Design & Engineering
Simulation& Test
Technology
Supply
Installation Supervision
& Commissioning
After sales service
