Ward Gommeren Managing Director

Alstom Renewable Belgium

4 september 2014

Energieopslag op zee

Greenbridge - Oostende

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 2

Agenda

Energy Storage :

Key Challenges & Benefits

From Production & Transmission

Perspectives

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 3

Utilities Power

generation Oil & Gas Industry &

infrastructures

Energy storage market challenges

• Integrate intermittent renewable energies

• Maximise energy flows with minimum losses

• Power supply reliability and stability

• Market arbitrage opportunities particularly in deregulated markets

• Adapt to growing complexity of electrical grids / distribution grids

Key challenges

Eco-cities

Energy storage potential markets

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 4

Reminder : “20-20-20” European Union targets Integration of increasing renewables

20-20-20 European Union targets by 2020:

o -20% of CO2 emissions

o -20% of energy consumption

o 20% of energy from Renewable Energy Sources

Renewables expected to increase to 16% of energy mix by 2035

Source: IEA 2010

Challenges

Unpredictability of renewables

Ageing grids unaccustomed to substantial intermittent

renewable energy

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 5

Impact of intermittent renewable generation

Source: www.worldenergyoutlook.org

Increase in renewable power capacity…

Source: European User Group Conference 2013

…is causing grid stability issues

and imbalance of energy supply

versus demand

Wind energy: supply and demand gap Worldwide power capacity

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 6

Energy challenges in Northern Europe Unpredictability of renewable energy sources

NEGATIVE PRICE

A real situation that happens in

May, 11th 2014 in Germany

Wind Peak power

production

21.3 GW at 1 PM

Impacts for conventional power plants

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 7

Power Generation Perspectives

Energy Storage :

Key Challenges & Benefits

From Production Perspectives

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 8

Power Generation Hydro Solutions – Pump Storage Key development drivers

Thermal &

Nuclear

Fixed power

production

Match production &

consumption

Renewable

Time Shift Shift the excess production to

provide the peaks

Firming

Compensate non predicted

power variation thanks to fast

power adaptability

Transmission

Close to production Suppress peak from intermittent

production

Close to

consumption

Smoothen peak from

consumption

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 9

FRANCE

Pump Storage Projects Worldwide (since 2000)

REVIN

4 units of 200 MW

Rehabilitation

240 m – 300 rpm

CHINA

HEIMIFENG

4 units of 306 MW

295 m - 300 rpm

SHA HE

2 units of 51 MW

98 m - 300 rpm

HUIZHOU

8 units of 306 MW

517 m - 500 rpm

BAOQUAN

4 units of 306 MW

510 m - 500 rpm

ZHANGHEWAN

4 units of 255 MW

305 m – 333.3 rpm

BAILIANHE

4 units of 306 MW

195 m - 250 rpm

HOHHOT

4 units of 306 MW

521 m - 500 rpm

PUSHIHE

4 units of 306MW

308m–333.3 rpm

KOREA

YANG YANG

4 units of 258 MW Dbl regulated stages 798 m - 600 rpm

YECHEON

2 units of 408 MW

450 m - 400 rpm

SWITZERLAND

NANT DE DRANCE

6 units of 150 MW Variable Speed 305 m – 428.6 rpm

LINTH-LIMMERN

4 units of 250 MW Variable Speed 613 m – 500 rpm

MOROCCO

AFOURER UR2

2 units of 60 MW

198 m - 500 rpm

AFOURER UR1

2 units of 176 MW

577 m - 750 rpm

PORTUGAL

ALQUEVA II

2 units of 130 MW

305 m – 428.6 rpm

SALAMONDE II

1 unit of 209 MW

115 m – 166,7 rpm

INDIA

TEHRI

4 units of 250 MW Variable speed

188 m - 233 rpm

VARIABLE SPEED = 40% OF EUROPEAN PSP MARKET

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 10

Pump Storage Projects Off Shore Solutions

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 11

• Voltage Source Inverters (VSI) on stator,

designed for full power

• «Conventional» Generator-Motor

• Large speed variations

• Pumping power range only limited by pump turbine

• Very short transition time

HIGH SPACE REQUIREMENT

Fully fed solution

Concept of Variable Speed Generator-Motor

P

n n

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 12

• Voltage Source Inverters (VSI) on rotor designed

for reduced power

• Speed variation (~10%) around synchronous speed

• Rotor fed starting in pump mode

• Larger sized rotor

Double fed asynchrous machine

FREQUENCY REGULATED ROTOR POWER IS REQUIRED

P

n n

Concept of Variable Speed Generator-Motor

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 13

Discharge

Head

nsync

Fixed speed

Variable speed

H max

H min

Head

Variation

H min

H max

H min

H

1.25

Discharge variation

Power adjustment

1 operating

point

Cavitation limit

Stability limit

Variable Speed in Pump Mode

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 14

HYDRAULIC DESIGN IS A KEY FACTOR FOR THE PLANT OPTIMIZATION

Hydraulic Design for Variable Speed Units

Generator rating

Regulation

capacity

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 15

Pump Storage Projects - Development Trends

Performance improvement

• Efficiency: 70 to 80% in 40 y.

• Availability, Reliability, Cycling

Overcoming topological limitation

• Very High or Very Low Head

• Head range increase

• Underground reservoir

• Sea water operation

Maximising flexibility

• Variable Speed offering

• Power range increase

• Reaction time reduction

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 16

Pump Storage Project - Variable Speed

• Adjustable pumping power

• Turbine global efficiency

• Compatible with more challenging sites

• Faster power adjustment

Advantages

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 17

Transmission Grid Perspectives

Energy Storage :

Key Challenges & Benefits

From Transmission

Perspectives

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 18

Congestion

management

Renewable

integration

+ grid stability

Storage benefits across the electrical landscape

Challenges Key benefits

Integration of renewable or distributed energy

resources

Stabilization of intermittent renewable energy

Ageing of the electrical grid Better grid stability (ancillary service)

Management of energy flow variations Congestion management

Battery Energy Storage Solution = Multi functionalities

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 19

Transmission Grid Perspectives

Alstom Solution for

Battery Energy Storage Solution

BESS

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 20

Alstom Grid Solution for BESS

Our product :

A turnkey BESS solution

…

MaxSine eStorage

BESS

Substation

Control System

eSMS

S/S Mgt & Reg

System

v Alstom control system :

eStorage Management

System (eSMS)

Partnership with

battery technology

provider

BATTERY

v Alstom solution

MaxSine eStorage.

PCS

v

Alstom turnkey

solution & service

maintenance contract

MV

GRID HV

GRID

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 21

MaxSineTM

eStorage : a power conversion solution

MW-scale POWER BLOCK

• IGBT power block

• Equipped with a DC-DC converter

• Connects AC grid to DC battery

• Less interfaces and lower risk of failure

• Plug & play inverter: easy to install and maintain

LOCAL CONTROL SYSTEM

FULLY CONFIGURABLE

• Remotely configurable

• User chooses optimum solution

from predefined operating modes

20 feet ISO container up to 2,5 MVA

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 22

An Integrated Solution for Control System

Power conversion

system (PCS)

Battery (provided by battery supplier)

PCS control Battery control

eStorage

Management

System (eMS)

eStorage Management System (eSMS) • Integrate Renewable energy forecast for a “day-

ahead” production plan

• Adjust production plan in real-time

• Decide when best to distribute energy

• Optimize battery operation & lifecycle

• Open communication to external control systems

(SCADA, etc.)

PCS Control Communicates with eMS, operates battery and

synchronises the converter to the grid

Battery Control Exchanges info with PCS control, and monitors

battery behaviour

PCS and Battery are connected to each

other, and they behave according to

control demands

High Voltage Grid

Medium Voltage Grid Grid connection via PCS • AC-DC connection

• Grid stability

• Grid standards compliance

1

2

3

1

3

2

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 23

Agenda

Use case = Renewable Integration

How does it work ?

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 24

MW Consumption

Local Production(PACA Region)

Project reference – Nice Grid (France) Nice Grid challenge : Reduce consumption peaks + electricity bill

Daily consumption peak

around 7pm

Daily significant increase of local consumption

Strong dependency on transmission national

network and interregional energy supply

Imported energy from

400 kV line during peak

hours tariff Off-peak

hours tariff

Typical winter day in 2013

High electricity costs

+ low energy efficiency + =

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 25

MW Consumption

Local Production(PACA Region)

Project reference – Nice Grid (France) Nice Grid challenge : Reduce consumption peaks + electricity bill

Less energy supplied

by 400kV line

Storage

= additional local generation

Compensation of peak load thanks to newly installed storage

Compensation of peak load

Reduction of interregional dependency

Lower electricity costs

+ better energy efficiency + =

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 26

Project reference – Les Renardières (France) Energy Storage demonstration project

Les Renardières project : Under a frame agreement signed with EDF, MaxSineTM eStorage and control

system, associated to Li-ion battery, will be tested into EDF network “Concept Grid” in order to validate the

contribution of the battery energy storage to regulate the frequency.

Customer : EDF

PCS & local control : Alstom’s Maxsine eStorage (1MW)

Battery : Saft (Li-ion - 1MW / 560 kWh)

Scada : Alstom solution

In operation : December 2014

Applications : Frequency regulation

Energy Storage 1 MW / 500 kWh

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 27

Agenda

BESS Market Perspectives

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 28

Market trends

• Expected overall growth in grid-scale Energy Storage Solutions

*Source: Energy Storage on the Grid, Pike Research 2012

• 2020: almost 70% of energy

storage market will be driven by

renewables integration*

• 2022: grid-scale energy storage

market may surpass 15 GW in

capacity*

• US + Europe will represent

approximately 50% of the market

in the coming decade*

Key drivers to sustain this growth:

regulatory framework to remunerate storage + battery cost competitiveness

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Smart Grid Paris 2014 - MaxSineTM eStorage – 11/06/2014 – P 29

European energy storage market trend

By 2020, 3.7GW of energy storage is expected to be installed in Europe with the majority in Germany, UK, and Italy

*Source: Energy Storage Forecast 2013-2020 - Bloomberg, June 2014

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