An ABB contribution to preparatory meeting of COP21 in January 2014.

1. Integration of Renewables
Challenges for the grid
Alexander Horch, ABB Germany – Paris January 7th, 2014

2. Triumphal procession of renewables
§ Why bother about renewable energy generation?
§ Drivers: Climate Change & limitation of fossile fuels
è Amount of renewables generation steadily increasing
§ Islands of renewables (<1985)
§ Contribution to power generation (<1995)
§ Rising awareness (<2005)
§ Proper grid Integration (<2015)
§ In the future: Backbone of the electricity grid
§ Electricity: major part from renewables
§ Additionally: Electrify transportation
§ Additionally: Electrify / change heating / cooling
è Main future grid challenges: Capacity, Reliability, Efficiency, Sustainability
From maverick to saviour?
© ABB Group
March 3, 2014 | Slide 2

3. Integration of renewables matters!
A) New geographic distribution:
§ Increasing distance between generation and consumption
èTransport large amount of energy over long distances
§ Many small sources
èChanges in power flow direction and strength
B) Inherent and unavoidable volatility
§ Pure supply side management not sufficient any more
èStorage
èDemand side flexibility («smart grids»)
C) Renewables = little power per unit area (decentralized)
§ Renewable will cover large parts of the country
èCollection systems
On any level
© ABB Group
March 3, 2014 | Slide 3

4. Renewable energy is low-
density = requires space
Source: David JC MacKay.
Sustainable Energy – Without the hot air.
www.withouthotair.com 2009
§ What does this mean?
§ Living only on (own) renewables
alone is not possible ein Central-
Europe
§ Pumped Hydro Storage in NO
and CH sufficient for EU?
§ Even if a (technical) solution can
be drafted, it requires tremen-
dous changes for everyone
§ Cost needs to be considered
separately
© ABB Group
March 3, 2014 | Slide 4

5. What technology can contribute
Drivers Problems to solve Technologies
Distant generation Transport of energy
…
High-voltage DC
transmission; >2 GW
transmission; FACTS
Decentralised generation Bi-directional distribution grid
…
Control and protection of
distribution grids
Volatility Energy storage
…
Electrical: Batteries; Thermo-
electric energy storage;
electric vehicles (?)
Heat: geothermal; …
Electrification of transport
Volatility Demand side flexibility
…
Storage in production; active
demand;
Power per unit Space requirements, … DESERTEC
Increased energy
consumption
Energy efficiency
…
Grid efficiency; industrial
efficiency
…
Technology is most often not the bottleneck
© ABB Group
March 3, 2014 | Slide 5

6. What technology can contribute
Drivers Problems to solve Technologies
Distant generation Transport of energy
…
High-voltage DC
transmission; >2 GW
transmission; FACTS
Decentralised generation Bi-directional power flow in
distribution grids
…
Control and protection of
distribution grids
Volatility Energy storage
…
Electrical: Batteries; Thermo-
electric energy storage;
electric vehicles (?)
Heat: geothermal; …
Electrification of transport
Volatility Demand side flexibility
…
Storage in production; active
demand («smart grid»)
Power per unit Space requirements, … DESERTEC
Increased energy
consumption
Energy efficiency
…
Grid efficiency; industrial
efficiency
…
Technology is most often not the bottleneck
DC – Direct Current
GW – Giga Watt
FACTS – flexible alternating current transmission system
www.desertec.org
© ABB Group
March 3, 2014 | Slide 6

7. Smart Technologies - Flexible AC* Transmission Systems
§ A flexible alternating current transmission
system (FACTS) is a system composed of
static equipment used for the AC transmission
of electrical energy. It is meant to enhance
controllability and increase power transfer
capability of the network. It is generally a
power electronics-based system.
§ Early grids: power flows where physics leads it
§ Mature grids: operators govern power flow
§ Future grids: control power flow in real-time
§ FACTS increase capacity up to 50%
§ FACTS stabilize power grids
More power through the same line
Source: http://spectrum.ieee.org/energy/the-smarter-grid/flexible-ac-
transmission-the-facts-machine
*AC – Alternating Current
è Both is heavily needed for integration of renewable power
© ABB Group
March 3, 2014 | Slide 7

8. Transport of energy over large distances
§ Enabled by modern power electronics
§ More efficient than AC transmission
§ > 100 km subsea (cable)
§ > 500 km overhead line
§ Decouple grids from each other
§ Backbone for energy from deserts
§ Grow to a global grid one day?
High-voltage direct current transmission (HVDC)
© ABB Group
March 3, 2014 | Slide 8

9. © ABB Group
March 3, 2014 | Slide 9
Energy Efficiency – a comprehensive task
Generation, transport and better utilization of electricity
Up to 80 percent losses along the energy value chain
Some losses inherent to the generation of electricity
Energy efficiency along the value chain can reduce losses by 30 percent
Availableenergy
More efficient
fuel combustion
Improved
pipeline flows
Improved well
efficiency
Lower line losses,
higher substation
efficiency
Improved
productivity Building
management
Primary energy Transport Generation T&D Industry
Commercial
Residential
80%losses
30%saving

10. Energy Storage – Key component for future grids
§ Pumped hydro is the most efficient storage facility
§ However,
§ Bound to mountain areas
§ Potential locations (largely) already explored
§ Alternatives (location-independent, environmentally friendly)
§ Battery technology à research ongoing and needed
§ Thermo-electric energy storage (TEES)
Pumped Hydro alone not sufficient
© ABB Group
March 3, 2014 | Slide 10
1500 € / kw
> 50 MW
> 60% efficiency
Pilot application planned
by ABB
Charging cycle: store electrical energy
as heat («fridge»)
Discharging cycle: generate electrical energy
by heat engine («power plant»)

11. Wide Area Monitoring and Control (WAMC)
§ Introduced in the last decade.
§ Provides dynamical wide area view.
§ Based on local measurements of current and
voltages synchronized by accurate GPS data.
§ Contributes significantly to grid stability.
§ Increased necessity due to increasing intermittent,
volatile energy sources.
The complete grid in focus
Month DD, Year | Slide 11
© ABB Group

12. Industrial Demand Side Management
§ Flexibility on the consumption side should include large concentrated
consumers such as
§ Steel plants, Pulp mills, Cement plants, …
§ Load shedding already common practice
§ Flexibility can also be provided by production re-scheduling with different
energy constraints
Example: Energy Storage in Production
© ABB Group
March 3, 2014 | Slide 12

13. Conclusions
§ Main enabling technologies
§ Stable and reliable power grids (FACTS, WAMC, …)
§ Energy Storage (TEES, Pumped hydro, batteries, …)
§ Bulk energy transfer (HVDC, …)
§ Balance of demand and supply (Smart Grid, Demand
& supply flexibilization, …)
§ Technology alone does not suffice, also need
§ Standards (make sure technology «fit together»)
§ Regulations (reliable framework for investements)
§ Mind of change in people
§ The world needs to change – but the world works.
Integration of Renewables – not only technology
© ABB Group
March 3, 2014 | Slide 13

14. Contact Details
3/3/2014 | Slide 14
© ABB Group
Department Head
Automation Device Technologies
ABB AG
Corporate Research Center
DE-68526 Ladenburg
Mobil +49 171 307 6403
E-Mail: alexander.horch@de.abb.com
Alexander Horch