Powering good for sustainable energy

HITACHI ABB POWER GRIDS© Hitachi ABB Power Grids Ltd. 2020. All rights reserved. 1

Power Solutions for Sustainable EnergyDigital Construction Summit Madrid 2020Torben Sjöholm & Tommy Östling, 19/11/2020Hitachi ABB Power Grids, Sweden

© Hitachi ABB Power Grids Ltd. 2020. All rights reserved.HITACHI ABB POWER GRIDS 2

AGENDA

o IntroductionHITACHI ABBPower Grids

o Offering

o Swedish financedproject,Cooperation withEPC – case study

HITACHI ABB Power Grids

Torben SjöholmRegional Sales ManagerHITACHI ABB Power GridsSweden

Tommy ÖstlingSenior Customer Finance AdvisorHITACHI ABB Power GridsSweden

© Hitachi ABB Power Grids Ltd. 2020. All rights reserved.HITACHI ABB POWER GRIDS

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Our heritage: Hitachi ABB Power Grids

1891

1883

1893First 3-phasetransmissionsystem, Sweden

1932World’s largest self-coolingtransformer1

1968Pioneered gas-insulated substations(GIS)4

1954FirstcommercialHVDC2 linkPioneeringFACTS3

2012HVDC breakersolving a 100-year-old puzzle

2017/18First digitaldistribution& powertransformers

1997HVDC Light™ deliversmany environmentalbenefits

2010World's most powerfuland longest UHVDClink

First utilitycommunicationnetwork withQuantum-Safecybersecurity

2019

2004Pioneeredimplementation ofIEC 61850, opencommunicationsstandard

First eco-efficientGIS and First HVDCoffshore windconnection

2015

Led developmentof first SCADAsystem

1970 2011First digitalsubstationsold

1988 2020


Power Grids global footprint - the world’s #1 power grids business

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UtilitiesIndustry

Transport &Infrastructure

Customers

Products

Systems

Software &Automation

Services

Offering

EuropeAMEA

Americas

Geographies

Business mix (by revenue)

World’s largest installed base

4 business units– Grid Automation– Grid Integration– High Voltage Products– Transformers

Present in ~90 countries200 offices globally

115 factories

36,000 employees

+100 years of pioneering innovation

~5,500 sales employeesand field engineers

~2,000 engineers& scientists in R&D

Headquarters inZurich, Switzerland

HITACHI ABB POWER GRIDS


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Our Swedish operations

Roughly 4000 employees

Located in 13 offices from Luleå in the north to Malmö in thesouth, with headquarters in Västerås

Ludvika – the world’s power center- Factories for high voltage equipment, capacitors and transformers- Headquarters for the global HVDC business- R&D with unique testing facilities and laboratories

An encompassing offering within the areas of– Operations monitoring, power station automatization, energy

storage and micro grids.– Substations as well as HVDC and FACTS– High-voltage products– Transformers– Control and protection systems and devices

Main part of the operations in Swedish is exported

Contact us+46 10 – 738 00 00 www.hitachi-powergrids.com/se/sv


Hitachi & Power Grids: Powering good for sustainable energy

Energy platformDigital platforms

Data

Solutions

We co-create innovative solutions with customersand partners across the value chain

(plan-build-operate) leveraging energy platformsand a focus on intelligent grids

Data

Solutions

Technology and business model innovation leveraging collaboration on Digital & Energy Platforms

Operational Technology (OT) X IT People X Technology X Services

Energy/Utilities Industry Mobility Smart Life (Cities) IT

Solutionsfor

buildings& cities

Powergeneration

Mobility solutionsTransmission &

distribution

Wind

SolarIndustrysolutions

EnergyStorage

Data CenterOptimization… …

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More than a product supplierWe are a system integrator

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We deliver grid-compliant, integrated solutions with full lifecycle support

Product Bundles and Packages

- Group of standard products(typically LV or MV) purchasedand delivered together

- Group of products with interfaceengineering

Examples:Machine/Drive packageE-houses and skids

Solutions

- Turnkey substations- Engineered packages- Electrical balance of plant (EBoP)- Consulting services

- Collection grid & grid integrationfor solar plants and wind farms

- Air & Gas insulated substations- Hybrid substations- Mobile substations- Digital substations- Compact substations

Value creation

Complexity

Products

- Switchgear (AIS/GIS)- Power transformers- Instrument transformers- Breakers and switches- Surge Arresters- Busbars- Protection and Control- Telecom for power lines


Masters in project executionWe support you every step of the way

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Consultingand studies

Engineeringand design

Projectmanagement

Logistics andprocurement

Civil works, installation,and commissioning Service

Plan Execute Maintain

Health, safety and environment


World class expertiseUnrivalled experience in delivering grid solutions for a variety of applications

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Solar Rail Power SupplyWind E-mobility

Data centers Ports Industry Utility


HAPG offering, collection grid and grid integration for solarPower Block/ Power Converter Unit

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Inverter

PowerTransformer

Medium VoltageSystem + Localmonitoring system


HAPG offering, collection grid and grid integration for solarConnection to main grid on higher voltage levels

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New HVSubstation

Power Blocks

Extension in existing HVSS


HAPG offering, collection grid and grid integration for solarConnection to local isolated grid on medium voltage levels

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E-House in PVplantE-House in City

Power Blocks


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Customer: Minister of Energy and Water AngolaCustomer needsConnect the Sub-Saharan Africa’s largest solar project to Angola’s transmissionnetworkHitachi ABB Power Grids’ responseA system solution including design, main power equipment supply, testing andcommissioning services to meet the ambitious integration of the Government ofAngola’s renewable energy program.The project will be developed by a consortium composed by the developer Sun AfricaLLC, a US renewable energy company based in Chicago, Illinois, and the PortugueseM. Couto Alves S.A., part of the EPC conglomerate, MCA Group,Customer benefitsThe project supports the UN's Sustainable Development Goal 7 – ensuring thatpeople have access to affordable, reliable, sustainable and modern energy.The initiative will also help to increase the share of renewable energy in the globalenergy mix.FinancingThe financing for the total project is made under the Swedish Export Credit Systemwhich was enabled through a co-operation with the Swedish Trading House ElofHansson, who coordinated supplies from 10+ Swedish suppliers in order to fulfill therequired Swedish interest for the Swedish Export CreditFinancial close: May 2020Case study AB SEK Hitachi ABB Pressrelease

A Swedish Export Credit driven project – MEUR 560Sub-Saharan Africa’s largest photovoltaic project, 370 MW

https://www.sek.se/en/case/hitachi-abb-power-grids-and-other-swedish-companies-building-solar-power-in-angola/

https://www.hitachiabb-powergrids.com/news/global-news/press-releases/hitachi-abb-power-grids-wins-major-order-to-support-sub-saharan-africa-s-largest-solar-venture-in-angola


Supplier C, D…..

Case study - project Set-up during negotiation phase

Slide14

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DEVELOPEREPC

HITACHI ABBPower Grids

Sales/Engineering/Financial

Advisory/GIR

Supplier B

Supplier A

TeamSweden

1.Team Sweden2.EKN. EKN, The Swedish Export CreditAgency, is a government agency that promotesSwedish exports by insuring the risk of...3.SEK. The Swedish Export Credit Corporation(SEK) is owned by the Swedish Government.Their mission is to ensure access...4.Swedfund. Swedfund is the DevelopmentFinance Institution of the Swedish state.Their mission is to combat poverty by...5.Almi. Owned by the Swedish state,Almi offers loans to companies with growthpotential and supports their business...

HITACHI ABBPower Grids

Sales/Engineering/Financial

Advisory/GIR


Case study - Project Set-up supply and financing phase – overview

END CUSTOMER

EPC

Power GridsSupplier Supplier

Sweden Country X Country Y

Supplier

Country Z

Swedish Export Credit – 85%

Arranging and Agent BankGuaranteed by EKN 100% coverAB SEK funding

Letter of CreditsIssuing Bank: First ClassConfirming: by Supplieraccepted bankAdvance Payment Guarantees

Sweden

Swedish SuppliersA,B,C….

Down payment financing – 15%

Local content


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Powering good for sustainable energy