—Offshore wind connectionChallenges and solutionsPeter Sandeberg, Global Product Manager

STOCKHOLM 12.03.2019

—ABB: the pioneering technology leader

March 12, 2019 Slide 2

What(Offering)

For whom(Customers)

Where(Geographies)

Utilities Industry Transport & Infrastructure

~35% of revenue ~40% of revenue ~25% of revenue

Globally

Asia, Middle East, Africa 38% Americas 29% Europe 33%

~$34 bn revenue ~100 countries ~147,000 employees

Pioneering technology

Products 58% Systems 24% Services & software 18%

—Offshore Wind Connections

OffshoreAC substation

Wind farms

Offshore HVDCconverter station

DC cabletransmission

Onshore HVDCconverter station

—Offshore wind connections

March 12, 2019 Slide 4

• General

• High market demand

• Limited supply base in some areas

• LCOE too high

• Huge and complex projects involving many stakeholders

• Long lead times

• Coordination

• Interface management

• Grid

• Security of supply

• Remote connections

• Grid resiliency

• Lack of standards

• Harsh environment

• ……

Challanges

——Offshore wind connectionsCustomized solutions

HVDC best suited for long distances

HVAC with reactive power comp.

LFAC (16.7 Hz)

HVAC33 kV

66 kVLFAC

5 – 8 MW

Generation Collection Transmission Power grid

Grid codes must be metwith any solution

Holistic design is necessary to have the optimal grid connection solution

——ABB in Offshore WindSolutions for offshore segment – AC concept

PQequipmen

t

Wind turbinesoffshore

Substation Onshore

ConverterAuxiliarycontrolcircuit

Secondaryswitchgear

(RMU)Transformer HV switchgear

SubstationautomationMV

Switchgear

Step-uptransformer

Grid

Service & Asset ManagementAutomation & Digitalization Energy tradingsolutions

ABB AbilityTM

Battery

Substation Offshore

Safety &Protection FACTSReactor

——ABB in Offshore WindSolutions for offshore segment – HVDC concept

Onshore converter stationGrid

Service & Asset ManagementAutomation & Digitalization Energy tradingsolutions

ABB AbilityTM

HVDC link

66kV

Converter Secondaryswitchgear

(RMU)

Transformer Safety &Protection

Generator

Offshore converter station

• Offshore and onshore AC and DC stations

• Training and advise on operation

• System studies including grid code compliancesolutions and advise on connection to onshore maingrid

• Maintenance contracts

——There is a place for everyone – DC vs. AC with cable connectionApplies to subsea and underground connections

Investment HVDC Value

Investment

Distance

HVDC terminalcosts

AC terminal costs

HVDC

Breakeven distance

HVAC

Controlled power flows

Smaller footprint

More power

More stability andversatility

More sustainable

Lower losses

——HVAC vs. HVDCPros and Cons

March 12, 2019Slide 9

+ Well known and proven technology

+ Short deliver time

+ Moderate sized offshore platforms => Large supply base

+ Light weighted platforms => Many HLV

– Limitation in maximum cable length due to high chargingcurrents

– Long distances may require mid point compensation

– Higher losses

– Many cables => Capacity issues on supply side?

– Demanding ROW

– Cable installation

– May require Statcoms to fulfill Grid Code Requirements

+ Superior dynamic behavior and features

+ Onshore and offshore grid support e.g. AC voltage andfrequency stabilization

+ Black start capability

+ No minimum short-circuit power requirement for weak ACnetworks

+ Inherent Statcom functionality => easy to fulfill Grid Code req.

+ Less cables => Easy cable installation and ROW

+ Low losses

+ No limitation in distance

– Large offshore platforms

– Longer lead time than AC

– Less cost efficient if short distance and/or low power rating

HVAC HVDC

——HVDC becoming mainstream in all corners of the worldInterconnecting Grids

Heavyweight market

~3xGrowth ratevs. world GDP

~200 GWOperating worldInstalled base

Up to 12GWCapacity range of one HVDC installation

(1) Average over 5 years, subject to substantial fluctuation year on year(2) Average over 10 years

70%World installed baseequipped with ABB

—HVDC is a growing technology

March 12, 2019 Slide 11

Applications

Connecting remote generation Interconnecting grids Offshore wind connections DC links in AC grids

Power from shore City center infeed Connecting remote loads Upgrades

—HVDC technologies

March 12, 2019 Slide 12

HVDC Classic 300 – 12,000 MW HVDC Light 50 – 4,800 MW

– Transistor (BIGT)controlled

– Continuous reactivepower control

– Easily expandable tomore terminals

– Dynamic voltageregulation

– Black start capability

– Typical design: moreequipment incompact building

– Extruded cables

– Thyristor controlled

– Switched reactivepower control

– Typical design: valvebuilding plusswitchyard

– Overhead lines ormass impregnatedcables

—HVDC technologies

* HVDC LightMarch 12, 2019 Slide 13

Technology features and customer benefits

Customer value HVDC features Benefits

Security of supply Frequency decouplingNo limitation in circuit lenghtFast control of active and reactive power

Possibility to interconnect gridsEnabling markets

Remote RES integration Lower transmission lossesHigher power per circuitNo limitation in circuit lenght

Connection of large scale hydroConnection of offshore wind

Grid resiliency Fast control of active and reactive powerFast detection and restart at DC line faultsBlack start capabilityPower oscillation damping

Special protection schemesIncreased stability marginsSupport during grid restoration

Operational flexibility Fast control of active and reactive power Variable RES integrationBetter utilization of existing AC system

Public acceptance Compact overhead linesLower magnetic fields, corona and noiseNo limitation in circuit length

Smaller Right-of-WayUndergroundingEasier permitts

—

Example bipole – operational flexibility

Footprint and layout

March 12, 2019 Slide 14

1. AC equipment

2. Transformers

3. AC Yard

4. Valve hall

5. Control building

6. Cooling

7. DC switch-yard

3,600 MW, ±640 kV

1

2

3

4

5

6

7

—VSC HVDC Light onshore station

March 12, 2019 Slide 15

Valve hall

Converterreactor hall

Servicebuilding

AC yard

Coolers

Transformers

1000 MW, 320 kV

—Offshore HVDC converter station

March 12, 2019 Slide 16

Integration of HVDC Light into an offshore platform

• Continues improvement of HVDC modularizeddesign and interface management

• Adaptable for different types of platformconcept, e.g. GBS or topside/jacket

• Primary equipment

• Converter Valve Hall (2)

• Converter Reactor Hall (can be divided into2)

• Transformer Room (2 or 4)

• 66kV AC GIS, 400kV AC GIS

• Auxiliary Power Transformer Room (2)

• Secondary Equipment

• HVDC Control Equipment

• HVDC Cooling Equipment

• HVDC Auxiliary Power Distribution

—

AC STATION AC STATION AC STATION

HVDC STATION

Before

HVDC offshore wind solution concept

March 12, 2019 Slide 17

Eliminating the need for AC substations

—Connection arrangementsExample of different options for 2000 MW

Onshore Station

66 kV

VSC

VSC

1000 MW ±320 kVSymmetrical Monopole

66 kV

1000MW ±320 kVSymmetrical Monopole

VSC

VSC

VSC

1000 MW,Symmetricalmonopole

66 kVxx km

+500 kV

-500 kV

VSC

+50

0 kV

DC

VSC

-50

0 kV

DC

66 kV

1000 MW,Symmetricalmonopole

2000 MW ±500kVSymmetrical Monopole

Onshore Station

66 kV

VSC

Onshore Station

+50

0 kV

DC

VSC

-50

0 kV

DC

66 kV

2000 MW ±500kVBipole

Neu

tral

,0V

VSC VSC

—Connection arrangements

March 12, 2019 19

Examples of different options

VSC

+320

kV

DC

VSC

-320

kV

DC

66 kV

0-1800 MW, ±320 kV,Symmetrical Monopole

66 kV

Onshore Station

Onshore Station

VSC0-1800 MW, ±320 kV,Symmetrical Monopole

900 MW, ±320 kVSymmetrical monopole

900 MW, ±320 kVSymmetrical monopole

VSC

—Dual-purpose interconnections

March 12, 2019 Slide 20

Example: North Sea Power Hub Advantages

Strengthens European energy markets

Connecting markets and integrating remote generation

© TenneT, Study on International Wind Power Hub

Allows higher utilization of infrastructure

Increases security of supply across Europe

Supports larger volumes of offshore wind

—PROMOTioN 2016-2019

March 12, 2019 Slide 21

Source: Doggerbank.nl

System StudiesProtection

StudiesDC Switchyard demos

—ABB references in offshore windDesign based on experience

Borwin 1 Dolwin 1 Dolwin 2

Thornton Bank Princess Amalia (Q7) Various projects: equipment supply

—

Germany

BorWin1

March 12, 2019 Slide 23

Main data

Customer TenneT

Customer needs • 200 km long subsea andunderground power connection

• Robust grid connection

ABB’s response • Turnkey 400 MW HVDC Lightsystem

• Full grid code compliance

Customer benefits • Environmentally friendly powertransport

• Reduce CO2 emissions by nearly1.5 million tons per year byreplacing fossil-fuel generation

• Supports wind powerdevelopment in Germany

Year • 2015

—DolWin1

March 12, 2019 Slide 24

Germany

Main data

Customer TenneT

Customer needs • 165 km long subsea andunderground power connection

• Robust grid connection

ABB’s response • Turnkey 800 MW HVDC Lightsystem

• First ± 320 kV extruded cabledelivery

Customer benefits • Environmentally sound powertransport

• Low losses and high reliability• Reduce CO2 emissions by 3 million

tons per year by replacing fossil-fuel generation

• Supports wind powerdevelopment in Germany

Year • 2013

—DolWin2

March 12, 2019 Slide 25

Germany

Main data

Customer TenneT

Customer needs • 135 km long subsea andunderground power connection

• Robust grid connection

ABB’s response • Turnkey 900 MW HVDC Lightsystem

• ± 320 kV extruded cable delivery

Customer benefits • Environmentally sound powertransport

• Low losses and high reliability• Reduce CO2-emissions by 3

million tons per year by replacingfossil-fuel generation

• Grid connection 90 km inland

Year • 2015