Hardened Smart Microgrid®

A World of Solutions

Hardened Smart

Microgrid® Process

presented at:

Solar Business Festival 2016

December 2, 2016

Austin, Texas


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This presentation contains forward-looking statements regarding CB&I and represents our expectations and beliefs concerning future events. These forward-looking statements are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties. When considering any statements that are predictive in nature, depend upon or refer to future events or conditions, or use or contain words, terms, phrases, or expressions such as “achieve”, “forecast”, “plan”, “propose”, “strategy”, “envision”, “hope”, “will”, “continue”, “potential”, “expect”, “believe”, “anticipate”, “project”, “estimate”, “predict”, “intend”, “should”, “could”, “may”, “might”, or similar forward-looking statements, we refer you to the cautionary statements concerning risk factors and “Forward-Looking Statements” described under “Risk Factors” in Item 1A of our Annual Report filed on Form 10-K filed with the SEC for the year ended December 31, 2011, and any updates to those risk factors or “Forward-Looking Statements” included in our subsequent Quarterly Reports on Form 10-Q filed with the SEC, and in our Form S-4 filed with the SEC on November 20, 2013, which cautionary statements are incorporated herein by reference.

Safe Harbor Statement


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Corporate Overview

• Focus on safety: 0.01 LTI

through December 2015

– 2015 recipient of the

Green Cross for Safety Award

• 40,000+ employees worldwide

• $30B in ongoing services

• 125+ years of experience

and expertise in reliable

solutions

• ISNetworld Member

• Corporate HQ

– The Woodlands, Texas


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Program Management for Grid Modernization

Energy Efficiency/Load Reduction Programs

– Program Management

– Program Implementation

Smart Grid/Microgrid

– Power Distribution System Upgrades

• Advanced Metering Infrastructure / SCADA

• Two-way Communications with Customers (via AMI)

• Integration of Utility+Small Scale Renewable/Distributed Generation

• Power Delivery Reliability at Desired/Prudent Levels

Existing Plant Heat Rate/Performance Upgrades

New Plant Delivery (Utility-Scale/Distributed Gen)

– CCGT, SCGT, CHP/Cogeneration

– PV, wind, energy storage

– Biomass, Hydro Electric, fuel cell

Plant Decommissioning

SAP Accounting System

– Fully Integrated with AMI

– Meets Strictest GAP Criteria

Financing Partners

– T&D/Smart Microgrid/Energy Efficiency using REIT Investment Model, State/National Loan Programs, Bank/Investor Loans

Grid Modernization Services


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Most smart microgrid applications will be retrofits – the existing power distribution system(s) design within the new microgrid will be unique and non-standard on each project

To realize advantages of scaling and replication where there is no standardized product/system base to start with, using a standardized process brings some degree of consistency to realize scaling, replication and lessons learned benefits

The patented Hardened Smart Microgrid® engineering process was developed for utility-connected military base applications, but a commercial application of the process brings project-specific prioritized benefits to any smart microgrid being considered for islanding

Hardened Smart Microgrid® Process


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What is a microgrid and what can make it smart?

Typical Microgrid (from EPRI)

Gen

Bulk supply connection

(sub-transmission)

Partial Feeder

Micro-grid

Gen

Single

Customer Microgrid

Feeder

Other

FeedersFull Feeder

Microgrid

Full Substation

Microgrid

Distribution Substation

Gen

Gen

Gen

Bulk supply connection

(sub-transmission)

Partial Feeder

Micro-grid

Gen

Single

Customer Microgrid

Feeder

Other

FeedersFull Feeder

Microgrid

Full Substation

Microgrid

Distribution Substation

Gen

Gen


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Typical Microgrid - HSM™

AMI Renewable: Solar, Wind, Hydro, Biomass

Nuclear: Small Modular Reactors

Fossil: Natural Gas, Fuel Oil, Coal

Fuel Cells, Hybrid Vehicles

Hardened Smart Microgrid™

(HSM)

The Utility interface may consist of

multiple interconnects at various

voltage levels.

HSM load control & energy management

Smart Grid technology integration

Cyber-security & communications

Demand-side management

AMI AMI AMI AMI

AMI

AMI

AMI

AMI

Large Storage Batteries

Hydrogen Storage

Pumped Storage (hydro)

Capacitor Banks, Flywheels

Minimum load necessary to

maintain facility operations

Facility auxiliary load

supported by onsite generation

Facility auxiliary load not

supported by onsite generation

when isolated from the grid. Note: AMI = Advanced Metering

Infrastructure - includes smart metering,

smart switching devices, communications

capabilities, etc.

100% Uptime Required

HSM Communications, Control & Security

Customer Substation

Utility Interconnect

Distributed Generation

Energy Storage

UPS &

Battery

Vital Electrical

Loads

Non-Vital Electrical

Loads

Non-Vital Electrical

loads

Mission Critical Electrical

Loads

AMI


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Typical Microgrid - Graphic

Roof-

mounted

PV

Panels

Battery Storage &

Inverter System

Microgrid

PV Asset

Controller

HMI

Base

Electric Grid

Existing Site

Distribution

Microgrid

System

Level

Controller

HMI

Microgrid

Enterprise Level

Controller

Typical for

Buildings with

Diesel Backup

Gensets (Optional)

Microgrid

Generator Asset

Controller

Typical for Buildings

requiring load

shed/add control only

Shed/Add On/Off &

kW Control

Microgrid

Remote

Load

Controller

Shed/Add

Isolated Microgrid Virtual Local Area Network (VLAN)

Point of

Common

Coupling

Data Link

(typical)

4

7

5

6

1

2 3

Operations Center

2


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HSM™ is a quality-controlled, structured and disciplined process of defining endpoints and the actions to connect them

It’s a Process

Current Configuration Perform assessment to

document existing facility

Desired Configuration Optimized power security with

dynamic economic functionality + minimal environmental impact

Process Six Sigma controlled,

structured, disciplined, key stakeholders involved

Up to 10+ yrs execution plan


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The Hardened Smart Microgrid® Process

Typical Project Sequence Hardened Smart Microgrid® Process

Using 6-sigma

quality methods,

create energy

Master Plan to

identify mission

critical and

facility non-

critical loads,

system to meet

needs of the

loads and

installation

criteria; includes

analysis of

power surety,

economic and

evinronmental

optimization

methods, funding

investigations,

and potential for

eventual sale of

the system. This

analysis used to

create the HSM

Design Criteria

Perform energy

useage

assesment for

potential

efficiency gains,

load balancing,

momentary/contin

uous load

reduction,

procurement

options,

environmental

impact

reductions, etc.

Includes:

renewable energy

enhancements,

new renewable

energy

recommendations

, energy

efficiency, power

security, etc.

System design

and integration

engineering using

FMEA analysis

to specify a

Design Basis to

meet for the

project Design

Criteria

Output is a 35%

design package;

Final design pkg

results from

iterations of this

task and is

completed prior

to EPC task

DOE labs,

university

partners bring

advanced IP

knowledge

and capability

to support the

team

The CB&I

team is

exclusively

comprised of

best-of-breed

equipment

and software

suppliers.

Diligent vetting

of partners is

critical in the

emerging

technology

field the HSM

is founding.

Master

controller

coordinating

equipment

functions

(both loads

and power

distribution)

according to

normal or

emergency

mode of

operation;

provides

intelligence for

power supply

routing and

grid vs. island

mode mission

critical load

powering.

Overlaying

comms for the

entire point-to-

point (loads-to-

substation)

power

distribution

system;

includes

equipment

comms

language,

data

management,

display

dashboards

and

notification

systems

HSM can be

implemented

in a phased

approach to

match annual

budgeting

strategies/app

rovals or may

be 3rd party

funded

Explore

embedding

portions of

system in

ESPC/UESC

projects.

Work w/local

utility for DOE

grants.

Proper project

execution of

this new and

critical

system must

be performed

by a well-

qualified

organization.

CB&I can

provide these

services on a

direct or

oversight

indirect basis

(e.g., Final

Design, PM

services,

Owner's

Engineer,

Banker's

Engr., etc.)

Ongoing O&M

of this

specialized

equipment, as

well as

software

updates, will

assure

continued

functionality

and

inpenetrability

of mission

critical

systems.

CB&I can

provide all

O&M services

on direct or

oversight

indirect basis

Key aspect of a

successful

installation is

effective use of

data that is

able to be

recorded and

analyzed.

Proper use of

data allows for

verification of

supplier

billings, smart

power

procurement,

feedback to

personel for

power usage

culture change,

tracking of

equipment

performance &

identification of

poor performing

equipment, etc.

In order to

execute

ownership

transfer,

this point

should be

considered

in the initial

6-sigma

evaluations

of project

developmen

for

boundary

definitions

to assure

ease of title

transfer

Project Development Technology Providers Project Delivery

EquipmentSuppliers

EngineeringPartner

OrganizationO&M Monetize

Asset

Microgrid / Grid

InterfaceEnergy

ConsultingFunding

Project Definition M&V

EnterpriseLevel

ControlEPC


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Two primary modes of operation

A. Grid-connected parallel mode

B. Disconnected island mode

Hardened Smart Microgrid® – Design Criteria


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A. Grid-connected parallel mode: Normal operating mode Energy supply to all facility loads from the commercial utility grid and multiple in situ

sources (i.e., “inside the fence”)

Multiple substation/power supply paths

Two-way communications backbone overlaying the electric distribution system

Cyber Security for Critical Infrastructure Protection (CIP)

Solar and man made electromagnetic pulse (EMP) protection

Physical attack protection for critical equipment

Self-healing capability to delivery system interruptions

Active and passive protection against locally severe weather

In situ supply of fossil fuel for generators

SCADA functionality for directing predictive maintenance program

Cost payback functions – Market participation, load control, utility bill reconciliation, energy culture change, etc.

Environmental stewardship enablement – Interconnect renewable energy systems, improved environmental stewardship culture from improved communications



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B. Disconnected island mode: Supply to mission critical loads isolated

from the utility grid

All power supply + design criteria from mode A., but no utility grid

Switch to only supply energy to mission critical loads

• Automatically isolate from the grid electrically and digitally

• Automatically switch to emergency power to mission critical loads

• Automatically activate long-term power supply systems

• Manual remote switching and power supply to discretionary loads

Indirectly required mission-critical commodities – water and food supply – must be considered in the Design Criteria for not only mission critical loads but basic functionality of the facility’s fundamental mission



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Contact

Contact

Darrell Thornley

Director, Energy Technologies

CB&I

+1-512.230.6277

[email protected]

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