The current state of the electrical grid And the technologies that will enable its transformation
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1 ABB POWER GRIDS The current state of the electrical grid And the technologies that will enable its transformation IEEE POWER & ENERGY SOCIETY - SUBSTATIONS COMMITTEE May 7-11 th
2 Agenda State of the Industry Technologies to enable the transformation of the electrical grid Energy storage Digital substations Modular and compact solutions Solutions for integrating renewables May 8, 2017 Slide 2
3 The State of the Electric Utility Industry 01 Physical and/or cyber security 02 Distributed resource policy 03 Rate design reform 04 Aging infrastructure 05 Renewable integration May 8, 2017 Slide 3 Source: THE STATE OF ELECTRIC UTILITY 2017, Utility Dive (April 2017) <
4 Physical and cyber security Physical Security Cyber Security Increase outages due to extreme weather events The use of Ethernet and TCP/IP based communications opens the door for trojans, worms, viruses and Internet based attacks May 8, 2017 Slide 4
5 Distributed energy resources (DERs) Moving towards two-way flow of electricity on the grid Traditional Grid New Grid Centrally located power generator supplying power to the load Electric Vehicles Wind and Solar Distributed Energy Storage Demand response May 8, 2017 Slide 5
6 Rate design reform How to respond to rapid growth in distributed resources Efficiency programs and increase in self generating loads is resulting in lower energy consumption DERs are being used to lower customer bills on an individual bases and provide individual power supply Evaluating new rate structures that includes fix charges, demand charges, time of use rate May 8, 2017 Slide 6 Source: EIA, Annual Energy Outlook 2017
7 Aging infrastructure Most of the existing grid was built years ago Recent transmission additions are still below 1960s and 1970s levels High level of transmission investment is expected to upgrade the existing infrastructure Since 2005, investment has increased but ongoing permitting issues, weather events and limited resources for maintenance is impacting system reliability May 8, 2017 Slide 7 Source: QER Report: Energy Transmission, Storage, and Distribution Infrastructure (April 2015)
8 MWs Large scale renewable integration Large scale wind and solar growth will continue US Wind and Solar Installations Annual installations will grow from 14 GW in 2015 to over 20 GW by 2020 State renewable portfolio standards increasing Cost of wind and solar declining Large industrial and commercial energy consumers signing long term PPAs from wind and solar generation e 2017e 2018e 2019e 2020e Wind Solar May 8, 2017 Slide 8 Source: IMS and Make consulting
9 Changing Power Generation Mix Increase in renewables combined with retirements of coal plants Nearly 18 gigawatts (GW) of electric generating capacity was retired in 2015 and more than 80% of was conventional steam coal Lower gas prices and renewable incentives are the main drivers for using alterative generation sources State Renewable Portfolio Standards are also mandating increases in renewable energy May 8, 2017 Slide 9 U.S. Energy Information Administration, Annual Energy Outlook 2017 Interactive Table Viewer
10 The State of the Electric Utility Industry The transformation of the utility grid Safely integrating new technologies Power Quality Solutions Hydro Residential Wind Accommodating to consumer demand Solar Battery Storage Increase in complex loads and generation Connection to Power Grid On demand culture is requiring faster lead times Conventional Battery Storage Industrial May 8, 2017 Slide 10
11 Agenda State of the Industry Technologies to enable the transformation of the electrical grid Energy storage Digital substations Modular and compact solutions Solutions for integrating renewables May 8, 2017 Slide 11
12 Technologies enabling growth and transformation Grid modernization requires flexibility, agility, and speed Storing power Going digital Modular and compact Integrating power generation Energy storage systems Digital substations Skid-mounted solutions GIS substations Renewable integration technologies Statcoms, SVC, and synchronous condensers May 8, 2017 Slide 12
13 Agenda State of the Industry Technologies to enable the transformation of the electrical grid Energy storage Digital substations Modular and compact solutions Solutions for integrating renewables May 8, 2017 Slide 13
14 Technologies enabling growth and transformation Where energy storage is being deployed WA The UTC issues a policy statement on including storage integrated resources plans OR Framework for utilities to study potential for storage in their systems is under development MISO is currently reforming market rules to make it easier for energy storage to provide ancillary services Ontario As a directive from the Minster of Energy, the Ontario Power Authority and the IESO was mandated to procure 50 MWs of energy storage in two phases PJM - In 2012 PJM introduces fast responding signal (RegD) ESS allowed to participate due to FERC 755 VT - backup storage determined eligible as Tier III RPS resource CA PUC mandated ESS targets of 1.3 GW by 2020 MA Passed energy bill that will set energy storage procurement targets for Target will be set July 1 st 2017 AZ- The PUC is discussing Clean Peak Standards to be including in the RPS NY ConEdison offering behind the meter storage incentives SB 2699 would direct PSC to set storage targets for 2021 by end of 2018 HI Utility resource plan adds 150 MW of storage to near future MD Passed energy storage tax credit for residential and commercial storage applications May 8, 2017 Slide 14 Energy Storage Markets (today) Energy Storage Markets (future)
15 Technologies enabling growth and transformation Benefits of energy Storage Frequency Regulation Peak Shaving Load Levelling Capacity firming Back up Power Supply Instantly balancing power supply and demand to ensure reliable power delivery Reducing peak demand charges by providing power when during peak demand Load shifting involves storing power during periods of light loading on the system and delivering it during periods of high demand The ESS will smooth the output and controls the ramp rate (MW/min) to eliminate rapid voltage and power swings often caused by intermittent sources (wind/solar) The ESS is maintained at a level of charge ready to respond to an outage and act as a back up power supply for the load May 8, 2017 Slide 15
16 How storage is solving California s grid problems The CAISO Duck Curve California PUC adopted a 1,325 MW procurement mandate for energy storage by 2020 to address duck curve Taking excess generation from solar PV and using it to provide power during peak demand periods Actual net-load and 3 hour ramps are approximately 4 years ahead of the original estimate May 8, 2017 Slide 16 Source: CAISO, April 2017, <
17 Agenda State of the Industry Technologies to enable the transformation of the electrical grid Energy storage Digital substations Modular and compact solutions Solutions for integrating renewables May 8, 2017 Slide 17
18 What is a digital substation Substation automation protection and control system with IEC station bus Advanced system and equipment supervision for efficient asset management Non-conventional instrument transformers increase safety and reduce footprint Communication system IEC process bus, connecting the switchyard to the protection and control system Stand-along merging units, bridging the gap between analog and digital world. Compliant to IEC May 8, 2017 Slide 18
19 Comparison of conventional and digital Digital substations reduce cabling, need less space and increase safety. Conventional substation Digital substation May 8, 2017 Slide 19
20 The #1 Benefit of digital substations Reduced risk of electrical shock Handling of current transformer circuits and signaling voltage poses a threat to life and equipment Process bus eliminates the galvanic connection between protection and control panels and the switchyard. Eliminates CT and VT circuits in the protection & control panels Replaces conventional 125/250VDC indications with fiber optics Eliminates the electrical connection between primary and secondary May 8, 2017 Slide 20
21 Benefits of digital substations IEC International communications Standards to future proof power systems Up to 50% Outage time reduction Reduction of feeder outage time during secondary system upgrades Up to 80% Cooper cable reduction *Applies only to AIS substations Up to 60% Less space in the relay house 30t Less material transported Up to 40% Reduction of installation time For new protection & control systems May 8, 2017 Slide 21
22 Digitalization opens up new, large opportunities Increased productivity: uptime, speed, yield Digital equipment Digitally-enhanced systems Operations and asset optimization software Real-time supervision Higher reliability Maintenance optimization Faster installation, more configurable Power quality Better integration of renewables Managing volatile supply & demand Real-time control Smart asset management Planning optimization Digitalization via intelligent products, communication and software May 8, 2017 Slide 22
23 Agenda State of the Industry Technologies to enable the transformation of the electrical grid Energy storage Digital substations Modular and compact solutions Solutions for integrating renewables May 8, 2017 Slide 23
24 Technologies enabling growth and transformation Skid-mounted substations Rapid Deployment Substation Minimal Site Work (Civil Works, Ground Grid, Connections) Engineering savings (design performed only once) Common Design to Facilitate Low O&M Costs Traditional Components and standardized equipment One fundamental design with options May 8, 2017 Slide 24
25 Technologies enabling growth and transformation Skid-mounted BESS Rapid Deployment Minimal Site Work (Civil Works, Ground Grid, Connections) Plug n play approach Able to provide back up power supply Integrate renewables Reduce peak demand charges May 8, 2017 Slide 25
26 Technologies enabling growth and transformation Gas Insulated Substations Significant reduction in footprint Easily installed in busy urban areas Withstand harsh environments and extreme weather Increased reliability, safety & efficiency Minimum operating costs (low maintenance) May 8, 2017 Slide 26
27 Agenda State of the Industry Technologies to enable the transformation of the electrical grid Energy storage Digital substations Modular and compact solutions Solutions for integrating renewables May 8, 2017 Slide 27
28 Technologies enabling growth and transformation Flexible AC Transmission Systems for improved grid performance STATCOMS Solutions that can instantly and dynamically inject or absorb reactive power Safely and reliably integrate wind and solar on distribution or transmission networks STATCOM at one or more suitable points on the network is a powerful and cost effective method to increase grid transfer capability and enhance voltage stability May 8, 2017 Slide 28
29 Technologies enabling growth and transformation Flexible AC Transmission Systems for improved grid performance STATIC VAR COMPENSATORS (SVCs) Regulate and control the voltage and provide dynamic, fast response reactive Benefits include increase transfer capability, reduce losses, mitigate active power oscillations and prevent over voltages at loss of load May 8, 2017 Slide 29
30 Technologies enabling growth and transformation Flexible AC Transmission Systems for improved grid performance SYNCHRONOUS CONDENSERS Can balance voltage fluctuations through reactive power compensation and offering additional short-circuit power capacity. Provide instance transmission capacity, fault ride through capability, grid inertia for stability, and deliver grid support during prolong voltage sags May 8, 2017 Slide 30
31 Power Grids Division Enabling a stronger, smarter and greener grid Stronger Smarter Greener Robust and compact grid using modular solutions and new technologies such as GIS substations and energy storage Providing digital substations for increased productivity and enhanced connectivity Enabling integration of renewables with energy storage and Flexible AC Transmission Systems May 8, 2017 Slide 31
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