THE TRES AMIGAS SUPERSTATION

1. UNITING THE NATION’S ELECTRIC POWER GRID THE TRES AMIGAS SUPERSTATION IMPLEMENTING HVDC WITH EXISTING INTEGRATED AC SYSTEMS CIGRE 2012

2. 20thCENTURY ELECTRIC Utility Controlled

3. 21stCENTURY ELECTRIC Customer Desires & Configurations

4. THREE MAJOR TECHNICAL CONSIDERATIONS IN HVDC IMPLEMENTATION: HVDC IMPLEMENTATION WITH AC SYSTEMS INFUSION OF POWER ELECTRONICS THE DISPATCH OF POWER

5. IMPLEMENTING HVDC CONNECTIONS InterconnectedAC Systems require a huge investment in study & analysis Long Distance Transmission • Line losses • System Voltage Stability/Levels • Reactive Power Loading • Steady state • Transient Stability • Subsynchronous Oscillations • Latency issues (ie Spinning Reserves) • Inductive and Capacitive limitation factors Interconnections • Uncontrolled Load flow problems and bottlenecks • Congestion Issues • Inter Area loop flow • Cascading Blackouts • Oscillation Stability • Frequency control • Voltage Stability • Physical interactions between power systems

6. Implementing HVDC connections – The Evolution to Fast Acting HVDC • The only way to interconnect large AC power grids with different phases is via HVDC (High Voltage Direct Current) facilities • AC/DC/AC Stations • Hybrid Transmission systems (AC/DC…DC/AC) • Multipoint nodes • Long distance DC Transmission lines • HVDC has the ability to control the direction and magnitude of the power flow at each node of a multipoint configuration thereby facilitating the precise needs of the interconnection points without adverse impacts to the interconnecting grid • HVDC has the flexibility not only to adapt to grids with different AC system real time characteristics but to also facilitate optional ancillary services to each interconnection node

7. Implementing HVDC connectionsChina: Current HVDC National Grid Plan

8. Implementing HVDC connections Europe: Extended Grid Plan From Iceland (Northwest) to Israel (Southeast)= 3,200 mi Concept of grid is 25,000 miles of line Solar Power Wind Power Geothermal Hydro Biomass Connections already in place or planned Vision of ABB and DLR The new high-voltage network would range from the Sahara to the polar cap. The concept calls for main lines that are 40,000 kilometers long. And parts of it already exist.

9. REQUIRED: IMPLEMENTING HVDC CONNECTIONS DEVELOP A MULTINODE HVDC OVERLAY SCHEME DEVELOP THE EMS/INTERFACES TO ENABLE AC EMS TO RELIABLY OPERATE HVDC OVERLAY CONNECTIONS DEVELOP THE SECTIONALIZING EQUIPMENT TI ENABLE FAULT RECOVERY AND SAFE REAL TIME OPERATIONS

10. INFUSION OF POWER ELECTRONICS From USDOE Office of Electric Delivery and Energy Reliability “Presently, only 30% of all power generated uses power electronics somewhere between the point of generation and end use.  BY 2030, 80%of all electric power will flow through power electronics .” Power electronics moves beyond devices that simply provide increased awareness, such as Phasor measurement systems.  These devices will respond to, interface with and control real time power flows.

11. Benefits of Power electronics INFUSION OF POWER ELECTRONICS • Increased power system reliability and security • Increased efficiency and loading  of existing transmission and distribution infrastructure • Huge gains in real time power flow control • Improved voltage and frequency regulation • Improved power system transient and dynamic stability • More flexibility in siting transmission and generation facilities • The distinction between consumer devices and utility devices will largely be eliminated electrically

12. INFUSION OF POWER ELECTRONICS 21st century smart grid technologies compared with those in use today. Source: IBM Institute for Business Value

13. The Grid is RELIABLE as long as:GENERATION = LOAD THE DISPATCH OF POWER • It is a single machine that operates at the speed of light • Information is the key to successfully integrate HVDC (multinode fast acting) and secure the advantages of the availbility of the rapid advances in Power Electronics

14. DISPATCH EQUATION The Dispatch of the Power - The “CASH” Register • Dispatch Equation • Generation + Imports (or- Exports)=Load • Generators (known) • Ties (Import/Export) (known) • Load is increasingly being measured in real-time • Transmission with real time measured • New Solution every 5 minutes (SCED) • Generation and Load share equally in the • benefits of reliable electric operations

15. TresAmigas - Scope of the Business Source: The National Institute of Standards and Technology (NIST) Smart Grid Conceptual Model The Tres Amigas Transmission Superstation can be mapped against the NIST Smart Grid Conceptual Model to illustrate the scope of the Tres Amigas business. 2 Transmission: The fundamental offering of Tres Amigas is transmission service using systems of advanced HVDC, multinode design and Power Electronics. Operations: Tres Amigas Operations will serve as the hub for both the transmission operator and market/exchange services. These functions will utilize Power Electronics and advanced technologies to provide for firming, storage, multiphase use generation and storage. Clean: TresAmigas will be a totally green site using very little natural resources empowering opertions to enable the clean dispatch of esources. 1 1 2

16. The TresAmigasSuperStation

17. SUMMARY • The Electric industry is rapidly evolving to a more customer driven and controlled configuration. • HVDC is worldwide the solution to “improve” the historically developed and mostly dependable integrated AC systems. • Implementing HVDC successfully: • Multinode solutions • Integration with AC control systems • Equipment to operate safely in real time • The advent of sophisticated power electronics is the means to not only provide the real time situational awareness to improve the reliable operations of the existing integrated AC systems, but will leap the industry to the future with devices that will respond to, interface with and control power flows. • Both load and Generation should benefit equally in the system dispatch.

18. Tres Amigas SuperStation…. Uniting the Electric Grid