Intelligent power superhighways

Intelligent power superhighways Innovation at Siemens Press and Analyst Event December 8, 2015 siemens.com/innovation

Content 1 2 3 ULTRANET New transmission link for the Energiewende (Energy Transition) Intelligent power superhighways The Ultranet project and its technical challenges Dr. Werner Götz TRANSNETBW Dr. Jan Mrosik Siemens AG Dr. Klaus Kleinekorte Amprion Siemens AG 2015 Page 2 8. December 2015 Dr. Jan Mrosik

Ultranet New transmission link for the Energiewende Innovation at Siemens Press and Analyst Event December 8, 2015 Dr. Werner Götz, TRANSNETBW siemens.com/innovation

AGENDA / Our company / Energy Transition - paradigm shift / Energy Transition - supply security / Energy Transition - solution component Ultranet

Our company TRANSMISSION GRID OPERATOR IN BADEN-WÜRTTEMBERG / Employees 540 (December 2015) / Revenue 5.9 billion (fiscal year 2014) / Business model Wholly owned subsidiary of Energie Baden-Württemberg AG and certified independent transmission grid operator / Control area 34,600 km² / Circuit length of overhead lines 3,472 km / Load in Baden-Württemberg 11 GW / Electrical demand max. 62 TWh Page 5

Energy Transition - paradigm shift THE TRANSITION IN FIGURES: ~1.3 MILLION PROSUMERS IN GERMANY TRANSITION IN FIGURES: ~1.3 MILLION PROSUMERS IN GERMANY / 450 central power plants vs. 1.5 million decentral generation systems / More than 25% of electricity is produced from renewable energies a tripling of the total since 2000 and, as a result, a significant rise in volatile production / Spatial separation from generation and usage with generation centers in the north and usage centers in the south / Occasional reversal of current flow from low to higher voltage levels / Ring currents in neighboring countries DIMENSIONS OF SUPPLY SECURITY / National vs. European: Self-supplier or copper plate? / Integration of renewable energies / System stability Page 6

Energy Transition - supply security 2015: REDISPATCH DURING HIGH WINDS (1) Germany's future energy landscape / Long distances between generation and usage sites / Power transport of up to 800 km / European electricity internal market and power trading / Large volumes of fluctuating renewable generation already today! Bottleneck Page 7

Energy Transition - supply security 2015: REDISPATCH DURING HIGH WINDS (2) Quelle: TransnetBW Page 8 / Today, high wind situations and storm fronts (see Niklas) produce supplies from wind farms of 30 GW (~85% of installed capacity). / Today, about 20% of this capacity must be reallocated by the transmission system operator!

Energy Transition - supply security 2015: OVERLOADING "SIDE STREETS" ABROAD / Strong north-south trade flows toward southern/southeastern Europe / Strong physical transit flows through such countries as Poland, the Czech Republic and Slovakia on the way to the south physical flows (DACF) (MW) trading volume (day-ahead) (MW) Ex 7435 31,40 DE 1800 0 Im 0 76,06 PL L / Load on other countries' power grids / Example August 2015: Poland was unable to meet the demand for electricity because additional power station support was unavailable and was forced to cut off industrial customers FR 1349 Im 1928 35,06 CH 913 262 IT CZ AT Ex 1626 32,13 Im 3176 31,40 SK 589 0 HU Quelle: TransnetBW, D-1-Handelsflüsse & Lastflüsse, Augusttag 2015. Page 9

Energy Transition and supply security 2023: DECLINE OF CONTROLLABLE OUTPUT Page 10 Quelle: NEP 2025

Energy Transition and supply security 2023: RISE IN RENEWABLE PRODUCTION Page 11 Quelle: NEP 2025

Energy Transition and supply security 2023: REDISPATCH DURING NORMAL WINDS Page 12 / High redispatch volumes not just during storm fronts / More than 5 GW of redispatch will be needed during nine months of the year / Southern Germany's power station potential will be insufficient / Large amounts of power station output must be obtained abroad Quelle: TransnetBW

Energy Transition - solution component Ultranet NEW TRANSMISSION SOLUTIONS DC transmission corridors: planned construction in Germany / Length: 2,300 km / Transmission capacity: 12 GW / To Belgium, Denmark, Norway: 200 km AC grid: planned construction / Length: 1,300 km DC/AC grid: planned strengthening / Length: 5,300 km Investment volume: around 23 billion Need politically approved, legally assured Page 13

ULTRANET A CRITICAL SOLUTION COMPONENT CONCLUSIONS / The Energy Transition is moving forward, and we are experiencing the successful integration of renewable energies every day. / The current challenges for transmission system operators in Germany and neighboring countries are huge and will get even tougher in the future. / The key to the success of the Energy Transition is grid expansion: reducing domestic grid shortfalls while adding grid capacities. / ULTRANET is a critical solution component and the first step toward grid completion Page 14

FOR A SECURE AND RELIABLE POWER SUPPLY

Intelligent power superhighways Innovation at Siemens Press and Analyst Event December 8, 2015 Dr. Jan Mrosik, CEO Energy Management siemens.com/innovation

What do these three gentlemen have in common? Nicola Tesla Angus Young Thomas A. Edison Siemens AG 2015 Page 17 December 8, 2015 Jan Mrosik

The war of currents Tesla (alternating current) vs. Edison (direct current) + Easy transformability: High transmission voltages reduce losses + Simple generators and engines + Simple switchability - Limited transmission distances AC : alternating current Siemens AG 2015 Page 18 December 8, 2015 Jan Mrosik

The war of currents Tesla (alternating current) vs. Edison (direct current) + No transmission route restriction Complex transformation High transmission losses at low voltage DC : direct current Siemens AG 2015 Page 19 December 8, 2015 Jan Mrosik

The winner of the war of currents at that time: alternating current AC Alternating current prevails Direct current becomes a niche technology DC Starting in the 1960s: DC makes a comeback Modern power electronics renders DC transformable Siemens AG 2015 Page 20 December 8, 2015 Jan Mrosik

The Energiewende poses new requirements for the power grid Precise power supply Variability Distance Security of power supply Distinction between producers and consumers becoming less pronounced Fluctuating generation of renewable energy sources Large distances between producers and consumers Increasing complexity of power generation requires intelligent equipment and systems Siemens AG 2015 Page 21 December 8, 2015 Jan Mrosik

AC alone is no longer enough AC AC+DC Precise power supply Variability Distance Security and reliability of power supply! Siemens AG 2015 Page 22 December 8, 2015 Jan Mrosik

The interaction between alternating current and direct current in high voltage transmission AC DC AC Converter Converter alternating current diirect current Siemens AG 2015 Page 23 December 8, 2015 Jan Mrosik

Requirements governing new direct current transmission Transfer Power plant function to consumer centers Future expandability DC grids High relibility Use of existing transmission line routes High efficiency Multi-terminal Power feed-in Voltage control Grid stabilization Black-start capability High redundancy Rapid fault detection, comparable to AC grids Fault prevention under adverse weather conditions Siemens AG 2015 Page 24 December 8, 2015 Jan Mrosik

The innovation: Converter using intelligent control software Siemens AG 2015 Page 25 December 8, 2015 Jan Mrosik

Functional principle of power converter/inverter U dp U dc / 2 UU ac U d / 2 U dn Siemens AG 2015 Page 26 December 8, 2015 Jan Mrosik

Example of incidents in the power grid: Environmental factors Lightning strike Siemens AG 2015 Page 27 December 8, 2015 Jan Mrosik

Example of incidents in the power grid: Mechanical influences Falling branches Siemens AG 2015 Page 28 December 8, 2015 Jan Mrosik

Restart in a blink Intelligent control Time < 450 ms Siemens AG 2015 Page 29 December 8, 2015 Jan Mrosik

Siemens solution offers maximum security against power outages 97% of temporary faults and disturbances are controlled and managed by full bridge Siemens AG 2015 Page 30 December 8, 2015 Jan Mrosik

Siemens solution offers maximum security of power supply under all weather conditions Voltage reduction Siemens AG 2015 Page 31 December 8, 2015 Jan Mrosik

Full-bridge technology makes possible the Vision 2050: a Europe-wide DC overlay grid Transfer Power plant function to consumer centers Future expandability DC grids High reliability Use of existing transmission line routes High efficiency Full brigde technology from Siemens supports the Energiewende Siemens AG 2015 Page 32 December 8, 2015 Jan Mrosik

Thanks to full-bridge technology we have successfully combined the positive properties of AC and those of DC in a single solution Siemens AG 2015 Page 33 December 8, 2015 Jan Mrosik

The Ultranet project and its technical challenges Innovation at Siemens Press and Analyst Event December 8, 2015 Dr. Klaus Kleinekorte, Amprion siemens.com/innovation

Contents 1. Where is Ultranet? 2. What is Ultranet? 3. When is Ultranet coming? 3 Siemens AG 2015 35 Page 35 December 8, 2015 Jan Mrosik

The HVDC line Ultranet is an important part of the energy transition and has been ever since the 2012 network development plan Ultranet Source: Federal Network Agency Confirmation network development plan electricity

Requirements & goals of the Ultranet project Requirements Fast implementation (closure of the Philippsburg NPP) Achievement of goals Use of the existing infrastructure Conversion of an AC circuit to a DC circuit High transmission capacity Contribution to system stability Compared to AC circuit: 15% more effective power transmission Double the usable capacity Use of innovative VSC MMC technology with voltage and reactive power compensation Practical proof of the high functionality of a DC link in a strongly meshed AC network Ultranet pilot project DC link between Osterath and Philipsburg 37

Pilot project Ultranet Conversion from 380 kv AC to approx. ±400 kv DC DD DD Bipole to increase availability AD AD + + n n - Length: ca. 400km - Constant current of today's VSC technology 1350 A 2000 A per valve group For optimal utilization of the overhead line, including weather-dependent operation, 2700 A 3500 A are needed Requirement: multiterminal capability 38

What is a hybrid transmission tower? AC tower AC/DC tower or Hybrid tower 380 kv AC system 380 kv AC system 380 kv AC system ± 380 kv DC system R R R + S T S T S T k - R S T R S T R S T R S T 110 kv AC system 110 kv AC system 110 kv AC system 110 kv AC system 39

Key results The border field strength of Al/St 265/35 is within the permitted range for DC current < 450kV. Existing conductor ropes need not be replaced The distances in the mast configuration (in the Amprion network) are usually designed for the use of porcelain insulators. A conversion is possible by using composite insulators with much better water repellency and shorter creepage distances compared to porcelain insulators. Replacement of insulators necessary With the determined insulator lengths, conductor ropes and an operating voltage of <450kV, the LIOV and SIOV are similar to the 380 kv AC circuit Operation with AC and DC possible 40

Coupling phenomena in a hybrid network 380 kv AC system R ±400 kv DC system + R Ohmic coupling Capacitive coupling S T k - C Inductive coupling R S T 110 kv AC system R S T 110 kv AC system AC wire L2 M L1 DC wire 41

When is ULTRANET coming? Order Volume ~ 900 million Schedule according to 2012 NDP: Ultranet should be ready for operation by the time Philippsburg is closed in 2019. Schedule as of December 2015: Due to procedural delays, Ultranet will only be able to go into operation in 2020. Transmission system operators have identified provisional solutions and operational measures to ensure that the lights in the south won't go out in 2019. However, this will generate additional costs. 42 42

The strong power network www.amprion.net

Questions and answers Innovation at Siemens Press and Analyst Event December 8, 2015 Werner Götz, Jan Mrosik, Klaus Kleinekorte siemens.com/innovation