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Pablo Astorga, ABB, June 22 2016

Key considerations for islandrenewable microgrid development

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Key considerations for remote/island microgridsAgenda

§ Island microgrids in context

§ Overview and drivers

§ Integration technologies

§ Penetration vs contribution

§ Typical project scenarios

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Microgrid segments and main driversCovering a diverse range of applications

P: Main driver(P): Secondary driverIPP: Independent Power Producer

Main drivers

Social Economic Environmental Operational

Segments Typical customers Access toelectricity

Fuel & costsavings

Reduce CO2footprint and

pollution

Fuelindependence

Uninterruptedsupply

Off-

grid

Island utilities (Local) utility, IPP* P P P (P)

Wea

kgr

id

Remotecommunities

(Local) utility, IPP,Governmental

development institution,development bank

P P P

Grid

-con

nect

ed

Industrial andcommercial

Mining company, IPP, Oil& Gas company,

Datacenter, Hotels &resorts, Food & Beverage

P (P) P P

Defense Governmental defenseinstitution (P) (P) P P

Urbancommunities (Local) utility, IPP (P) P

Institutions andcampuses

Private educationinstitution, IPP,

Government educationinstitution

(P) P (P)

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Islanded microgridLower cost and environmental impact

§ © ABB Group

§ June 22, 2016 | Slide 4

Islanded microgrid example

Solar

Conventional CHP

Wind

BatteryStorage

Industrial

Residential

Stabilization

CHP: Combined Heat and Power

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Driver: fuel independence and lower LCOESecure power generation and fuel cost savings

§ Fuel cost is volatile

§ Renewable energy cost is less volatileand decreases over time

§ Renewable energy is economicallycompetitive today

§ Steady decline of renewable energyinstallation costs is opening new marketopportunities

§ An optimized energy mix leads to a lowercost of electricity

Sources: 1) US Energy Information Administration – Independent Statistics and Analysis2) Alliance for Rural electrification (ARE). Projections made from a case study based in Ecuador with real natural conditions.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Average Oil price USD$/Barrel is volatile

$133.88 June ‘16$50.03

$13,000/kW

$5,000/kW

$93/Barrel

$7,000/kW

$3,500/kW

LCOE: Levelized Cost of Electricity

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Dieselpower

Windpower

Solarpower

ResidentialloadsIndustrial

loads

Hybrid power systemsIntegration technologies

DesignTools

AutomationSystem

Storage /Stabilization

RemoteService

6/22/2016

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Renewable energy integrationEnergy contribution & Power penetration

Note: Percentages vary between wind/diesel and solar/diesel

§ Average energy contribution reflects fuel savings over a year§ Maximum power penetration reflects maximum share of renewable power injected into the system at any

moment in time without causing stability issues

Microgrid Integration Technologies Controlled system Energycontribution

Max powerpenetration

Limited control / basic fuel savingRenewables control only

7-10% 20-30 %

Power control and optimisationControlling renewables + generator

10-15% 20-50 %

Power control and grid stabilisationControlling renewables + generator + storage

25-40% 100 %

Power control and load managementControlling renewables + generator + storage + load

60-80% 100 %

Power control + energy storageControlling renewables + storage + load

100% 100 %

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Automation and grid stabilizationTechnology overview

Microgrid Plus system PowerStore

Specially designed networked control systemresponsible for efficient and reliable powerflow management

Compact and versatile grid stabilizing systemcapable of stabilizing power systems againstfluctuations in frequency and voltage

• Maximizes fuel savings• Optimizes use of renewable energy• Guarantees optimum loading and spinning

reserve in fossil fuel generators• Distributed logic enhances reliability and

scalability for future system expansions• Modular and scalable

• Stabilizes an electricity network by rapidlyabsorbing/injecting power in order tomaintain voltage and frequency

• Battery or flywheel based. Includes state-of-the-art inverters and virtual generatorcontrol software

• Applicable to isolated grids or in gridsupport mode

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Consulting and remote serviceProper design and maintenance are key

Consulting and Design tools Remote services for Operation andMaintenance

Our experience, capabilities and tools enableyour resources to plan and operate themicrogrid reliably and at maximum economicbenefit.

A comprehensive solutions for unattendedsites to increase productivity, improve energyefficiency and reduce operation costs.

Consulting is offered through out the completelifecycle of a project with the goal to find theoptimal solution that maximizes the value ofthe assets and financial investment.• Feasibility studies and simulations• Grid studies• Renewables engineering

Management of customers and plants from thesame web portal, providing• Energy production reports• Interventions• Energy production forecasts• Real time data production• List of customers and plants

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Optimized microgrid integrationFaial, wind/diesel

Project nameFaial wind/diesel stabilizationCountryThe Azores, PortugalCustomerElectricidade dos Acores (EDA)Completion date2013

Logos sd ABB solution

§ Design, supply, installation and commissioning of aMicrogrid Plus System

§ The control system optimizes the wind penetration into themicrogrid and helps dispatch the HFO generators optimally

Customer benefits§ Optimized wind penetration to ensure minimum fuel

consumption and grid stability§ Reduced maintenance through automatic management of

the wind farm power setpoint

The integration of wind energy combined with ABB’sinnovative solution will save an estimated 3.5 million litersof fuel per year

About the project

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Ancillary power system servicesLa Gomera, grid stabilizing system

Project nameLa Gomera PowerStoreCountryCanary Islands, SpainCustomerEndesaCompletion date2014

ABB solution

§ Supply, install and commission of a PowerStore-flywheel500 kW grid stabilizing solution

§ Solution upgradable to 1MW

§ PowerStore adds inertia in the 22MW isolated powersystem of La Gomera

Customer benefits§ Reduced frequency and voltage deviations§ Reduced load shedding events

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Ancillary power system servicesKodiak Island, grid stabilizing system

Project nameKodiak IslandCountryAlaska, United States of AmericaCustomerKodiak Electric Association (KEA)Completion date2015

ABB solution

§ Deliver two PowerStore-flywheel units to stabilize thepower grid and increase renewable energy

Customer benefits§ Provide voltage and frequency support for a new crane§ Extend the life of the battery systems by up to 6 years§ Help to manage the intermittencies from a 9 MW wind farm§ Reduced reliance on diesel generators

§ Two PowerStores act in parallel in order to deliveroptimal grid stabilization on Kodiak island

§ “Not only will the ABB PowerStores allow us to shave thepeaks off our cranes’ load, it will also reduce the stressesplaced on our battery systems and extend their lifespans,which was a key deciding factor to move forward withthis project.” Darron Scott, president and CEO of KodiakElectric Association

About the project

Image by, KarlMusser, created tbasedon USGS data.{{self|cc-by-sa-2.5}} Category:Mapsof Alaska