“Micro-Grids”

Energy Network Roadmap to

Sustainability,

Security,

Reliability and Ubiquity

THANK YOU

National University of SingaporeNational University of Singapore

&

Energy Studies Institute

special Thanks to

Dr. Cheng-Guan Michael Quah

The Vision

To enable a CO2 neutral energy solution for our customers with an attractive CAPEX and OPEX value proposition

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Electricity Supply & Demand: Global Perspective

Asia: Singapore, S. Korea, Japan & Australia 35%+ margin

In China, India, Indonesia, Bangladesh, Pakistan & SE Asia demand outstrips supply

European Union: 1.5% margin (peak demand vs. max capacity)

Energy Policy of each country limits major changes to overall structure

North America: 30% margin (peak demand vs. max capacity)

Transmission & Distribution Investment at -3% for the last 30 yearsNOT Enough

Capacity

Peak Capacity

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Grid design no longer fits with load pattern

Peak demand CAGR +8%

Average demand +1.6%

Peak Capacity

Average Demand

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Electricity Supply & Demand: Global Perspective

Inflationary Pressure Example:

10,000 m2 manufacturing facility using on

average 12MW-h/day will have to pay for

6.86 Ton of CO2 per day

an extra $54,330 of carbon taxes and

$31,680 of electricity costs per year ($86k)

Operational Expenses (OPEX)

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Triple bottom line pressure: financial, social and environmental ownership

$31,680 of electricity costs per year ($86k)

Social & Environmental Pressure:

Coal is 60%+ of the global energy mix and

has largest carbon and water usage footprint

with >1.0 Ton CO2 equivalent/MWh and

2.0m3/MWh respectively

NOT built into total cost of ownership

Efficiency of centralized network is 35% Every watt saved at the load ≈ 3W saved @ generation

From Central Generation to Distributed & Networked

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Efficiency of centralized network is 35% Every watt saved at the load ≈ 3W saved @ generation

A Distributed Network is at least 50% more efficient and 2 nines more reliable

Last Trasformational progression – The computer and networks in general (still underway)

1) Mainframes Central Generation

2) Mini-computers Mini-grids and micro-grids

3) Desktop/laptop personal comp’s on a LAN Networked local femto, pico and nano-grids

4) Cloud computing(IP based) on personal smart devices Energy smart devices in the palm of our hand

5) Bio-chip w. inmersed heads-up user interface Ubiquitous source, optimized for real time loads

Enabled freedom to do anything, anywhere, anytime at an acceptable cost

Electrical Grid Infrastructure

Communications Network Infrastructure

Traditional markets in Asia, E.U. and N.A., with transformation driven by utilities

Reliability = 1 – Q,

where Q is unreliability of components

When we add more complexity and/or

components, reliability decreases

Current Implementation: Reliability concerns

components, reliability decreases

New Reliability = 1 – (Q1 + Q2)

or if each system is @ 99% then Rnew = 1 – (0.01 + 0.01) = 98.0%

What is required to increase reliability is a parallel system

Parallel or 1+1 approach where Reliability = 1- (Q1 x Q2)

or if each system is @ 99% then R parallel = 1 – ( 0.01x0.01) = 99.99%

Inherent reliability will be reduced with utility implementation

APPLICATION

GEN- SET

Central Grid

Backup

MICRO-GRIDStorage

TO

DA

YT

OM

OR

RO

W

Architectural Transformation

EDM

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APPLICATIONS

MICRO-GRID

(Backup)

Distributed Generation Sources

Central Grid

Storage

Power RouterTO

MO

RR

OW

To meet tripple bottom line, central grid must turn into the insurance

Customer expectations – service at an affordable price

A micro-grid is platform that canbe customized to fit the app’n

Scalable and flexible

Robust and Reliable

Renewable and sustainable

Cost effective

Revenue generator as a service platform

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n

$2.50

Per kWh

$0.50

$1.00

Security, Privacy, Independence

Energy balancing, Power Quality

Power Quality & ReliabilityD

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Platform to offer new services and applications

platforma

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c

i

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l$0.10

$0.25

-$0.10

-$0.50

Economic Arbitrage

Basic quality of life

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E

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G

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OLegislative requirementsFixed cost reduction

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Micro-grids: Sustainability view

Biodiversity loss

Climate change (CO2 emissions)

Fresh water table loss

De-forestation

Micro-grids enable:

Lighting:

Rural Learning

Productivity

Type Water

(m3/MWh)

Nuclear 2.5

Coal 2.0

Gas 1.0

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Reduce coal, water and lumber use

Productivity

Refrigeration:

Reduced land use

Communications:

Economic prosperitywithout large CO2 footprint

New business platform for services

Alternate to coal, water & timberuse

Oil/Petrol 4.0

Conc. Solar 68.0

Biofuel 178.0

Wind 0.001

Solar 0.001

Migration is micro-grids to intelligent micro-grids

Largest power segment is 100kW to 2,000kW per

Largest markets are in North America and Asia

Source: Roland Berger Strategy Consulting, Q1, 2010, Micro-grid market review

Product and Market size plus geography

Diverse customer centric solutions to meet the needs of the app’n

Off-grid requirements not included in study

Opportunity size in terms of population without electricity today is greater then 1 Billion

Need to show relevance and economic impact still TBF

Asian market view

Source: Roland Berger Strategy Consulting, Q1, 2010, Micro-grid market review

Diverse customer centric solutions to meet the needs of the app’n

Service Level = security and independence

LV Line

MV Line

Renewables Line

Micro-grid example to show security, reliability and value plus potential service

revenue platform

Need to finish still

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Critical LoadsEssential Loads

Non-essential Loads Storage Sol’n Renewable Sources

Application

Specific Load

Profile

Power

Electronics

Application

Specific Load

Profile

Generic

Loads

Generic

Loads

Generic

Loads

PE PE PE PE PE

Power for PQ and

Energy for time

dependence

PE

Cont’s

Sources

PE

Intermitt’t

Sources

Intelligent Router IR IR IR IR IR

Solid State

Transformer SST SST SST SST

µGrid

α

µGrid

β

µGrid

π

µGrid

Ω

.

.

.

Service Level = basic quality of life extension

Pico-grid example to show lowest cost solution, but scalable and flexible to create

service revenue platform

2kW Comm. + 2kW Data/IT + 10kW Grid

Lead with comm. Platform in terms of

a BTS co-located site plus 48Vdc grid

Equivalent to micro loans in India or

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Platform for service providers to increase customer base

Equivalent to micro loans in India or

wireless deployment equivalent in Africa

Need to finish stillRemote

MonitoringRemote

Monitoring

AEG’s functional targets in Singapore

Technical Center of Excellence for Asia

R&D, application engineering, test & service engineering

Engineering, Procurement, Construction (EPC) center for exports

Financing and other partnership center for Asia

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Full suite of functions for Asia in Asia

Financing and other partnership center for Asia

Sales, service and product management center

Policy and legislation development

Customers want choice

p 16Whether be for economic or security reasons

Q & A Session

What is today’s electricity

supply carbon footprint?

p 17

References

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