Eaton Corporation An Overview February Eaton Corporation. All rights reserved.

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1 Eaton Corporation An Overview February 2012

2 Powering businesses worldwide for 100 years Founded in 1911 by J.O. Eaton World Headquarters in Cleveland, Ohio USA Regional Headquarters in Shanghai, China; Morges, Switzerland; Sao Paulo, Brazil Innovation Centers in the USA, Czech Republic, China and India Customers in more than 150 countries 2011 sales of $16 billion, 55% of sales outside the U.S. Approx. 73,000 employees Chairman & CEO Alexander M. Cutler 2

3 2011 Financial Highlights Business Unit Sales Sales $16 Billion 11% 23% 16% 19% 18% 19% 10% 9% 45% 31% Electrical Aerospace Hydraulics Truck Automotive Net income Operating Earnings per share (EPS) Revenue $1.35 Billion $3.96 Electrical $7.2B Aerospace $1.7B Hydraulics $2.8B Truck $2.6B Automotive $1.7B 3

4 Eaton Corporation Innovation in Power Management Pete Theisen Principle Engineer Power Systems and Architectures March 2012

5 Goals and Agenda Utility/Facility power distribution systems focus Microgrids, Net Zero, and Renewable/Storage Systems all share common control needs, protection requirements and unsolved problems Modern Controls will not have the luxury of controlling new equipment; must integrate Legacy Hardware and provide dynamic Protection 5

6 Smart Grid Implementation Strategies Supergrid and Microgrids SUPERGRID Microgrids Supergrid -- Top Down Grid Modernization Strengthen Transmission Automate Distribution Overlay intelligence Assumed method of Smart Grid implementation Driven by Utilities Microgrid -- Bottom Up Grid Innovation Integrate and automate small portions of the grid Reduce grid congestion by optimizing generation-distribution-loads locally Can be owned by either the Utility or privately Microgrids will be driven by End User (owner) benefits, not by Utility T&D infrastructure requirements 6

7 Microgrids An islandable dynamic power distribution system capable of optimizing multiple power generation assets and loads through advanced controls and communication. Two modes of operation: Grid-tied and Islanded Advanced control systems ensure system stability and perform economic optimization Distributed control for graceful degradation Droop control and other techniques accommodate reduced inertia Dynamic and reconfigurable distribution enhances reliability and energy security 7

8 Microgrid Owner Benefits & Typical Configuration Reliability / Energy Surety Continuous electrical supply with or without availability of Utility grid due to natural disaster or terrorist attack. Typical Military Microgrid Configuration Efficiency Optimization of local generation options and demand (loads) to reduce consumption and energy costs Sustainability Balancing and optimizing Utility grid to reduce need for new, central generation and to alleviate transmission congestion 8

9 MicroGrid Requirements Fundamental: Capable of operating at islanding and/or on-grid modes stably Mode switching with minimum load disruption and shedding during transitions After a transition, stabilize in a certain amount of time (how fast?) Today s goals: Decentralized peer-to-peer: no master controller or communication Plug-and-play concept for each component Transitions between modes Protection in the MG that does not depend on high fault current Voltage and frequency stability in islanding mode Tomorrow s needs: Layered control architecture: device MG grid, defined functions Standardize: modularized with high flexibility for legacy hardware Device: local control and protection MG: info. exchange with device and grid, situation awareness, adaptive protection Limited dependence on MG control and communication Optimal power flow and energy utilization 9

10 MG Protection Challenges Operating conditions are constantly changing: Intermittent DERs Network topology change including islanding Short-circuit currents vary (both amplitude and direction) depending on MG operating conditions Availability of a sufficient short-circuit current level in the islanded operating mode of MG. A generic over current protection with fixed settings is inadequate. It does not guarantee fault sensitivity or selective operation for all possible faults! 10

11 Present MG Protection Philosophy Same protection strategies for both islanded and gridconnected operation. The main MG separation switch is designed to open for all faults. With the separation switch open, faults within the MG need to be cleared with techniques that do not rely on high fault currents. Microsources should have embedded protection functions and plug and- play functionality. Peer-to-peer architecture without dependence on master device. 11

12 MG Protection R&D Needs Communication-Assisted and Adaptive Protection How to turn existing radial time-current-coordinated schemes into fast, selective, and sensitive, transmission system like protection? Incorporate existing protection devices (reclosers, sectionalizers, fuses) Minimize additional transducers (CTs, VTs) What is the depth of protection awareness? Complete MG state (topology, grid or island mode, type and amount of connected DERs) Local and adjacent protection zones Local protection zone only How to achieve reliable, fast, and cheap communications? Bandwidth vs cost vs reliability What are the most appropriate backup protection schemes? What central (MG-level) protection functions are needed if any? 12

13 ECE Talent Needs over the next 5+ years Electrical Power Systems Micro-girds (concrete solutions with legacy equipment) Grid-tied systems Hybrid systems, storage management Power Electronics Design, control and optimization of high performance devices Inverters, transformers, motor drives, switches Increasing emphasis on DC Embedded Control Systems & supervisory control for complex systems Simulation & modeling tool chain System diagnostics, prognostics, fault detection and safety Leadership, entrepreneurial & innovation skills Especially PhD, but also BS and MS 13

14 For more information on innovation technology, contact: For more information on student employment opportunities contact: 14