Vestas Power Plant Solutions Integrating Wind, Solar PV and Energy Storage

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Vestas Power Plant Solutions Integrating Wind, Solar PV and Energy Storage L. Petersen, B. Hesselbæk, A. Martinez, R. M. Borsotti Andruszkiewicz, G. C. Tarnowski N. Steggel, D. Osmond

Profile Lennart Petersen M.Sc. Electrical Power Systems Industrial PhD student Working on Hybrid Solutions (Configuration, Control & Operation) Presentation about PhD work in Session 5B System Design Aspects (Wed., 8.45) 2 11.06.2018

Wind Integrated Hybrid Power Plant Definitions General definition of hybrid power plants with renewables 1 : This is a power system, using one renewable and one conventional energy source OR more than one renewable with or without conventional energy sources, that works in stand-alone or grid-connected mode. Vestas definition of a grid-connected wind integrated hybrid power plant: A wind integrated hybrid power plant, is a sustainable energy solution in which wind energy is complemented by solar energy and/or energy storage. 1. I. Lazarov, V. D., Notton, G., Zarkov, Z., Bochev, Hybrid power systems with renewable energy sources types, structures, trends for research and development., Int. Conf. ELMA, 2005 3 11.06.2018

Wind Integrated Hybrid Power Plant Definitions General definition of hybrid power plants with renewables 1 : This is a power system, using one renewable and one conventional energy source OR more than one renewable with or without conventional energy sources, that works in stand-alone or grid-connected mode. On-Grid Hybrid Power Plant Off-Grid Hybrid Power Plant G grid-integrated power plant unit consumer-directed stand-alone unit (isolated microgrid) 1. I. Lazarov, V. D., Notton, G., Zarkov, Z., Bochev, Hybrid power systems with renewable energy sources types, structures, trends for research and development., Int. Conf. ELMA, 2005 4 11.06.2018

Agenda Value Proposition Combining Wind and Solar Combining Wind (& Solar) and Storage System Topologies & Plant Control WTG-coupled vs. Co-Located Hybrid Power Plant Controller Kennedy Energy Park (Australia) Operational use cases Weak grid connection 5 11.06.2018 June, 2018

Shift in Energy / Power Sector Maturity of renewable energy pushes governments to reduce and phase out incentives MARKET Fixed Power Purchase Agreements Three tier Power Purchase Agreements Merchant pricing GRID Power MW Making control and predictability contribution towards the power & energy system can enable higher penetration of renewable energy! 6 Time Increased power fluctuations and decreased control

Value Proposition Wind + Solar + Storage Potential for overall LCOE reduction Complementarity of generation profiles Hourly Increased Annual Energy Production (AEP) and Capacity Factor (CF) per substation capacity by complementarity of generation profiles store excess power (curtailment reduction) Example Seasonal CAPEX reduction El. Infrastructure ( overplanting ) Financing (higher P-value = lower project discount factor) OPEX reduction Simultaneous maintenance Share control & operation deliver power despite shut-down WTG 7

Value Proposition Wind (& Solar) + Storage Grid services: License to operate in new markets, comply to country specific grid codes Frequency Support Power Gradient Reduction (dp/dt) Power Oscillation Damping Black Start 8 J. Eyer, G. Corey: Energy Storage for the Electricity Grid: Benefits and Market Potential Assessment Guide (2010) 11 June, 2018

Value Proposition Wind (& Solar) + Storage Energy services: Enter into new markets, allow to capture additional revenue streams Forecast Error Reduction Energy Arbitrage A. A. Akhil, G. Huff et al.: DOE/EPRI Electricity Storage Handbook in Collaboration with NRECA (2015 Load / Demand Following Peak Shaving / Load Shifting J. Eyer, G. Corey: Energy Storage for the Electricity Grid: Benefits and Market Potential Assessment Guide (2010) 9 11 June, 2018

Hybrid Power Plant Topologies Small plants Low solar/wind ratio Large plants Hybrid Power Plant Controller (HPPC) WTG-coupled Co-Located (sharing substation and infrastructure) PCC PCC PCC PCC Substation SCADA Substation HPPC/SCADA Substation HPPC/SCADA Substation HPPC/SCADA 3MW DC or AC 372kW 24MW 1MW 12MW 1.2MW / 15min 0.4MW / 15min 43MW 15MW 2MW / 2h Wind and PV Wind and PV Wind and storage Wind, PV and storage Demonstrator in Spain Louzes, Greece Lem Kær, Denmark Kennedy, Australia Vestas scope of work: Full EPC & Service 10

Controlling the Hybrid Power Plant Plant level control and optimisation of individual assets Exemplary HPPC functionalities 1. Grid/Power services Voltage Control (V / Pf / Q) Frequency Control Power Gradient Reduction Power dispatch 2. Energy/Market services Firming / Reduce forecasting error Peak-shaving / Set schedule Energy Arbitrage Load/ Demand following 11 11.06.2018

Kennedy Energy Park (Australia) World s first utility-scale hybrid power plant combining wind, solar & storage 15 MW AC 6 x 2.5 MVA 43 MW 12 x V136-3.6MW 2 MW / 4 MWh 4 x 500 kw KEY BENEFITS Increased Energy Production Improved Capacity factor SMA / Jinko Solar Tesla Reduced cost 50 MW Transfer Limit Hybrid Power Plant Controller Fulfillment of Grid Requirements & enable new earning opportunities KEY CHALLENGE Controlling & operating the Hybrid Power Plant 12 EPC* & Service * Consortium with Quanta

Use Cases with Battery Energy Storage System Complementing Wind and Solar Energy at Kennedy Energy Park Curtailment Reduction ( Store curtailed energy ) Charge the battery at time when the available energy resource from wind and solar is above the allowed power transfer at the connection point (8-11am) Energy Arbitrage Charge the battery at times of low energy prices (typically 8-11am) Discharge the battery at times of high energy prices (3-8pm depending on the month of year) Frequency Support (FCAS) Contingency FCAS for the periods of time outside arbitrage and curtailment periods of operation. 13 11.06.2018

Kennedy Energy Park Complex Weak Grid Connection Normal SCR ~1.5 N-1 SCR ~0.7 350km+ radial connection SYNCON 5MVA 14 11.06.2018

Summary Hybrid power plants as sustainable energy solutions in which wind energy is complemented by solar energy and/or energy storage. Value proposition by: Business Case Certainty Complementarity & Flexibility Infrastructure utilization Fulfill grid codes and enter new revenue streams WTG-Coupled vs. Co-Located Hybrid power plant solution Main challenges: Right-sizing of assets & Hybrid power plant control Kennedy Energy Park as world s first utility-scale hybrid power plant combining wind, solar & storage 15 11.06.2018

Lennart Petersen Industrial Ph.D. Fellow Hybrid Solutions Innovation & Concepts lepte@vestas.com + 45 5221 1266 The authors would like to acknowledge the support of the investors and financiers in Kennedy Energy Park. These are the project owners Windlab and Eurus Energy, ARENA (the Australian Renewable Energy Agency) who supported the project with a refundable grant through the Advancing Renewables Program (ARP) and the Clean Energy Finance Corporation who provided senior debt.