IEEE PES 2014

Balancing and Reserve Power by PV Plants

Ken Christensen MSEE, BSEE Global Product Manager, SMA Utility-Scale and Hybrid Solutions

Disclaimer

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IMPORTANT LEGAL NOTICE

This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of SMA Solar Technology AG (the "Company") or any present or future subsidiary of the Company (together with the Company, the "SMA Group") nor should it or any part of it form the basis of, or be relied upon in connection with, any contract to purchase or subscribe for any securities in the Company or any member of the SMA Group or commitment whatsoever. All information contained herein has been carefully prepared. Nevertheless, we do not guarantee its accuracy or completeness and nothing herein shall be construed to be a representation of such guarantee. The information contained in this presentation is subject to amendment, revision and updating. Certain statements contained in this forward-looking statements presentation may be statements of future expectations and other forward that are based on the management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those in such statements as a result of, among others, factors, changing business or other market conditions and the prospects for growth anticipated by the management of the Company. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements which speak only as of the date of this presentation. This presentation is for information purposes only and may not be further distributed or passed on to any party which is not the addressee of this presentation. No part of this presentation must be copied, reproduced or cited by the addressees hereof other than for the purpose for which it has been provided to the addressee. This document is not an offer of securities for sale in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933 as amended.

Progression of PV Grid Integration Residential / Small Commercial

• On and Off the grid

• “Environmentally Conscious”

Commercial / Utility

• Allowed on the grid (UL1741, IEEE 1547, BDEW, etc.)

• Restricts Inverter Capabilities

• “Good Citizen”

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Utility Scale (10 MW to 750 MW+) installations

• EPRI, PREPA, HECO, CAISO, IEEE 519, etc.

• Intelligent, “Instantaneous” PV power controls

• Voltage regulation

• Frequency regulation

• Disturbance response

• Dispatchable power

• Storage / Hybrid Systems

• PV has become a “Utility Cornerstone”

2012 2013 2014 2015 2016

WW Utility-Scale Inverter Market Size

Elements for Advanced Grid Interaction

Utility-Enabled Inverters

• Remotely controllable parameters

• VAR production technology

• Sub-cycle control capabilities

High Speed Communication Network

• > 1 ms propagation / processing delays

Intelligent Power Control – Utility Cornerstone

• Fast Response Control Network and Inverters

• Advanced grid integration features

• Abnormal Voltage and Frequency Assistance

• Coordinated inverter and storage controls

• Balancing distributed generation (DG) assets

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LVRT

SMA LVRT

UL 1741

PV Grid Management Functions

Remote On/Off

Active Power (P) Set point (kW)

Reactive Power (Q) Set point (kVAR)

Reactive Power Fixed Power Factor: Cos(φ)

Q-On-Demand

Reconnect Delay Control

Reconnect Ramp Rate Control

Ride-Through (LVRT, HVRT, ZVRT)

Setpoint Slew-Rate Control

Scheduled Commands / ”Supermodes”

Autonomous Frequency/Watt Control

Closed-loop Watt / VAR Control

Closed-loop Volt / VAR Control

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Grid Stabilization – VAR Support

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Grid Stabilization - Frequency Support

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Intelligent Control Produces More Value

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Power Ramp Rate Control

UL 1741 “Must Trip”

“Must Trip”

Utility Inverter

Envelope “Must Stay Connected”

“Must Stay Connected”

BDEW Global Curves

Voltage Ride-Through

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“Must Trip”

“Must Trip”

“Stay Connected”

Voltage Ride-

Through + Island

Detection

> Higher DC/AC ratios

> Operation to Voc

> Curtailment to 0kW

> Increased Energy

> Time-of-Day (TOD) Optimization

> Eliminate DC Curtailment

100%

160%

140%

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Increased Energy Production

Reduced System CAPEX

Expanded Energy Harvest

Time of Day

Ener

gy

Higher DC/AC Ratio

Clipping

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Grid Optimized PV Hybrid Systems

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Why Energy Storage?

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Challenges Benefits of storage solutions

The growing installed base of fluctuating renewable energy sources requires Flexible grid integration/ancillary grid services

Management of back-up power capacities

Alignment of power consumption and

production

Security of power supply and grid quality

PV plants become “dispatchable”

Capacity of backup power-plants can be reduced while still securing supply security Expensive roll-out of transmission grid can be reduced while still securing power quality Distribution grids are stabilized and relieved from heavy energy shifting Energy self-consumption on-site can significantly be increased

1 Storage in All Parts of the Grid

Storage for Grid Integration and Ancillary Services

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Ramp rate control (upward and

downward ramp per grid regulations) Peak Shaving and

ToD shifting capabilities

3 Sunny Central Storage

Battery Charge & Discharge and

Active and Reactive power on demand

Active power management

(setpoints, P(f),…)

Renewable Firming

8 Storage/Inverters enables: • Advanced grid interconnection features • Compliance to interconnection requirements • Safeguards power quality standards

Reactive power supply / on demand

(Q(U),fix cos φ, Q setpoints, Q at Night)

Fault ride trough capabilities

(LVRT, HVRT, ZVRT)

Four quadrant operation

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Energy Storage - Applications

230 kV/

69 kV

230 kV/

69 kV

230 kV/

69 kV

Transmission Grid

500 kV / 230 kV

69 kV

Distrib. Grid

69 kV / 4 kV

13 kV

Distrib. Grid

13 kV

69 kV

69 kV

Distrib. Grid

69 kV

Conventional

Power Plants

34 kV

Large

Commercial Loads

Renewable

Integration

Ramp Rate Control

Reactive Power

Low Voltage or Fault Ride Through

Active Power Management

Various

Residential

&

Commercial

Loads

Renewable

Power Plants

Low Voltage

Grids

Peak Shaving & Shifting

Zero Export

Utility

Applications

Ancillary Services: Frequency Response

(*) Load Balancing, Capacity Firming, Ramp Rate Control, Power Factor Control, Spinning Reserve, Congestion Relief, Cap EX / Upgrade Deferrals

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Energy SMRT Site - Tucson, AZ

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350kW

140kWh

li-Ion

battery

1.6 MW

DC

1.5 MW

AC

500kW

Bi-directional

(1) 500kW Bi-directional

SMA Sunny Central Inverter

Energy SMRT - Frequency Response Results

350kW - Power

140kWh - Energy

li-Ion battery - - - 1.6 MW DC - - -

8 Conclusion: 150kWh of storage can provide the same amount of ancillary services as a 10MW generator !

TEP frequency bias (+/-) published by WECC can be scaled to a 10MW generator, operating at 9MW +/- 500kW for continuous load balancing

Ancillary Services Frequency Response

(3) 500kW

SMA Sunny Central Inverters

(1) 500kW

bi-directional

Sunny Central Inverter

350kW - Power

140kWh - Energy

li-Ion battery

10MW Power Plant

9 MW typical operation with +/- 500 kW load balancing

8 Ancillary service market has arrived Grid Stability (*) & Arbitrage (**) applications just need a financial mechanism

(*) Load Balancing, Capacity Firming, Ramp Rate Control, Power Factor Control, Spinning Reserve, Congestion Relief, Cap EX / Upgrade Deferrals

(**) Peak Shaving, Shifting, TOU Charge / Discharge

Ancillary Services Frequency Response

Tesla battery @ 85kWh each X2 = 170kWh of storage

Energy SMRT - Frequency Response Results

PV Market with Energy Storage is Growing

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IHS Research:

• 6 GW Storage in 2017

Navigant Consulting:

• 21.8 GW needed in the next 10 years for the renewables integration

PV + Storage = Utility Cornerstone

THANK YOU!