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GE Internal

Renewable Integration: An industrial R&D perspective

Kathleen O’Brien, PhDResearch Portfolio LeaderGE Global Research

February 2, 2015

2

'03 '06 '09 '12 '15e

Renewables going mainstream

Competitive costs enable growth

Technology making renewables more economic than ever

Global installations

Cumulative (GW)

4280

178

380

Wind

Solar PV

Source: GWEC, Navigant, REN21, Bloomberg, MAKE

2

Wind costs ~70% over the last

decade

• Wind >35% of EU/US installs ‘12-’13

• 9 states w/ >10% wind generation

Solar PV costs 75%+ last 5 years

• Record installs in ’13 … 37GW

• Solar passed 140GW installed base in

’13

Source: EWEA, AWEA, EIA, GE Marketing

~600

3

High penetration of Solar PV

http://www.caiso.com/documents/flexibleresourceshelprenewables_fastfacts.pdf

Net Load in California – March 31

2013 (actual)

Hour

28,000

26,000

24,000

22,000

20,000

18,000

16,000

14,000

12,000

10,000

Me

ga

wa

tts

12am 3am 6am 9am 12pm 3pm 6pm

9pm

2012

(actual)

Potential Solutions

• Time-of-use pricing

• Energy efficiency

from new building

codes

• Demand response

• South-to-West PV

orientation

• Smart inverter

regulations

• Grid energy storage

mandate

Challenges of the

“Duck Curve”

• Steep ramping needs

• Over-generation risk

• Decreased freq

response

4

Instantaneous penetration of Wind

Isn’t wind intermittent?

*Instantaneous penetration.

Sources: AWEA, America’s Power Plan

122% - Denmark

93% - Portugal

61% - Germany (w/ solar)

61% - Xcel (CO)

45% - Ireland

36% - ERCOT (TX)

34% - BPA (OR/WA)

33% - SPP (NE/KS/OK)

25% - MISO (Midwest)

… & more!

© 2014 General Electric Company

Flexibility of grid is dominant

factor in to predict disruption

due to high penetration

5

Operating wind as a power plant helps the grid and the economics

All power plants… Wind plants achieve this through …

Stabilize …grid during disturbances

Ride-thru controlsinterconnect site, avoid curtailment by supporting grid

Wind is a ‘good citizen’ of the grid… when allowed to act like a power plant

Forecasting free wind fuel 1st dispatched curtailment

Power controlscontrol flexibility curtailment, revenue opportunity

Voltage controls connect to weak grids, utility trust curtailment

Commit … power in advance

Dispatch …power as grid operators demand

Regulate …transmission voltage

5

© 2014 General Electric Company

Lower integration cost or avoid

penalties with 15-30min firm output

Integrated storage to improve flexibility

Storage enhances wind power plant controls

Get paid for controlling power output

quickly

Help grid operator control power

Help plant owner forecast output

Short-term predictability … when utilities want fixed power

Frequency regulation … offer additional power control services

6

© 2014 General Electric Company

15 min

30 min

1 hour

8 hour

100 kWh 1 MWh 10 MWh

Energy Level

Dis

charg

e D

ura

tion

10 sec

Range of energy storage grid applications

10 kWh 100 MWh

Frequency

Regulation

Load Leveling

Market Arbitrage

Distributed

Storage

Load Shifting

& Shaping

Investment

Deferral

Renewable

Firming

+ -+ -

+- +-

+- +-

Power

Capable

Energy Capable

CAES

FlywheelAdvanced

Batteries

Ultra Capacitors

Thermal

Gravity

P.Hydro

Advanced

Batteries

Power Quality

Ancillary

Services

Challenges to Conventional Systems

RooftopSolar

EnergyEfficiency

On-SitePower

Data &Analytics

EnergyStorage

8

What are the Disruptors?

Data &Analytics

Disruptors dramatically impacting the electrical power industry

“Optimizing power use through software”

Elec. Costs i 20%

RooftopSolar

“Biz models make it cheaper than grid”

25+GW/yr.

EnergyStorage

“The Holy Grail”

Cost i 40%

On-SitePower

“Reliable power is critical”

Efficiency 80%+

“Lowering Energy Costs”

~$3T/YrEnergyEfficiency

“Less kWhrs”

TWh i 10%+

Source: Washington Post, Bloomberg, GE Marketing Analysis9

10

• Variability of renewables

• Distributed generation

• Frequency response

• Reduced system inertia

• Wind relative to load centers

• Conservative margin limits

• Harmonics and overloading

• Shift in load timing

• Bi-directional power flow

• Contingency planning

• RPS and Storage mandates

• IEEE 1547, UL1741 BDEW

• Dispersed kW scale generation

• Dispersed generation

ownership

• Market transformation

• Economy of scale

Grid

Infrastructure

Planning &

Operations

Policy &

Standards

Grid Stability

Transmission

Distributed

Models

Electric

Vehicles

Transformational Challenges

Economic

Uncertainty

0

10,000

20,000

30,000

'10 '15 '20 '25

Growth centers are shiftingElectricity consumption

(TWh)Developing economies

2x demand ‘10-’25

60% of global economy

85% of kWh

CAGR

(‘13-’25)

GE © 2014 – All Rights Reserved

Source: IEA, GE P&W

estimates

~20k

~22k

~26k

~30k

Developin

g

~4%

Developed

~1%

11

Developing countries will account for +60% of electricity consumption by ‘25

12

Drivers for energy system innovation

• Real time grid stabilization

and control analytics

• Advanced resilience functions

• Phasor Measurement Unit

applications

• New market functions, Virtual

Power Plants (VPP)

• Substation and distribution

Automation

• Small scale solar and central

dispatch of micro-generation

• Mining and sub-sea

• Distributed and hybrid power

generation & grid integration

• Distribution grid stability

technologies

• HVDC standards evolution

• Dynamic Security Assessment/

Remedial Action

• High/Medium Voltage Substations

• Distribution Management, DG and

weak grid integration

• HVDC/HVAC infrastructure

• Wind integration with HVDC

• Similar to EU

• Renewable and Storage

for Mining

Original Source: IRENA

Drivers:

Tech development strategy depends on local needs

Questions/Comments?

14

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15

Renewables

Early stages Increasing GW

online• Frequency response

• Mandated globally fault ride-thru

• Virtual inertia

• No frequency support

• Optional fault ride –thru

Next Gen

Tech• Energy storage integration

• Virtual synchronous generator

Evolving requirements as penetration increases…

‘03 ‘11‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10

Reactive

Power

PSCOActive Power

Controls

Ireland

Fault

Ride Thru

PNM

Voltage

Control

Frequency

response

Hydro Quebec

WIND

SOLAR

Reactive Power

BDEW (Germany)

Voltage Control

CAISO (draft)

Fault

Ride Thru

FERC-

661a

Fault Ride Thru

BDEW

(Germany)

Forced disconnect

Anti-islanding

UL 1741 (‘99)

Frequency

response,

Reactive power

ERCOT

Fault Ride Thru

EEG

(Germany)

‘12

Voltage Reg. & PF Control

Requirements Set

APS

‘13 ‘14

Extended WECC

Compliant Freq. Ride Thru

SDG&E

Stricter Frequency

Response MTRs

ERCOT BAL-001-

TRE-1

Early stages Increasing GW

online• Ride-thru grid disturbances

• Dynamic voltage control

• Trip offline w/ grid disturbance

• No reactive power

Next Gen

Tech• Blackstart

• Smart distribution voltage reg.

Transmissio

n

Distribution

1

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