EnBW Generation

Grid Integration of Renewable Energies

EnBW Asia Pacific Dr. Hannah König Agenda

1. EnBW Generation at a Glance

2. 2006 European Blackout and Lessons Learned for Wind Energy

3. Volatile generation and electricity price

2 ➢ EnBW and the Transformation of its Generation Portfolio

3 EnBW at a glance

State-owned and fully integrated utility – Know-how and tradition along the whole energy value chain since 1899

Our business segments We are vigorously expanding our portfolio in hydropower, off- and onshore wind and . We transport electricity, gas and water across all voltage and pressure levels via our grids. In the trade and generation segment we optimise our

conventional power plants in terms of economy and CO2 and trade energy for our customers and ourselves on the stock exchange. We are evolving from an energy provider to an infrastructure partner.

4 EnBW Generation – Core Business

EnBW Energie Baden-Württemberg AG (EnBW) Generation Division is EnBW´s Center of Competence for Planning, Construction and Operation of Power Plants and has a well-balanced generation portfolio consisting of own power plants, shares of power plants and long-term power purchasing agreements. Generation is based on : › Gas › Coal › Nuclear Energy › Water › Wind on- and offshore › other Renewable Energy Sources As a subsidiary company of EnBW EnBW Kernkraft GmbH (EnKK) operates the following nuclear power plants and is responsible for decommissioning and dismantling: › › Philippsburg › Obrigheim 5 International perspective Offshore wind: EnBW will become a multinational specialist for wind power by 2025

Business segments and markets of EnBW in 2025 Business rationale Third party services

EnBW offshore wind portfolio › Development of EnBW onshore wind portfolio new markets in neighboring European Home market Europe countries and market New developed markets entry into selective

Perspective markets global markets to consolidate EnBW´s confirmed growth path Way forward - 2025 › Establishment of new USA › Focus on offshore local offices with local Taiwan wind project employment and network development in › Introduction of local promising market, project & supply international chain development markets, such as › Long-term presence in USA and Taiwan perspective markets, such as USA and Taiwan 6 6 EnBW Generation – Vision 2025

volatile: run-of-river power plant wind offshore wind onshore other power plant based on renewable energy

controllable: lignite-fired power plant coal-fired power plant gas-fired power plant other thermal power plant storage and pump storage power plant nuclear power plant - 28% MW + 288% 12,438 12,500 11,000 9,684 10,000 8,974 7,500 5,077 5,000 3,377 2,500 2,054 1,310 0 volatile controllable volatile controllable volatile controllable volatile controllable 2014 2017 2020 2025

7 ➢ Renewable Energies and System Stabilization

8 2006 European Blackout

Analysis by the European Commission gave three main reasons:

▪ Firstly, E.ON Netz, the electricity transmission system operator who was at the origin of the fault, did not have the security procedure in place and did not even have the full technical tools to verify that the system operated within the security limits. ▪ Secondly, other European transmission system operators did not receive information on the actions taken by the German transmission operator. ▪ Thirdly, the lack of sufficient investment both at the level of the reliability and of the operation of the grid are also to be blamed. Other issues to be tackled are the behaviour of distribution networks and in case of disturbances, the disconnection and reconnection of loads and generators.

9 Regulation on ancillary services Systemdienstleistungsverordnung – SDLWindV

In early 2009, a new regulation was introduced in . It gave incentive to Wind Power Plants to participate in the stabilization of the grid. In the years to follow, provision of ancillary services and support of system stability became mandatory for all large renewable energy power plants.

The justification of this regulation stated in particular: „Die Aufrechterhaltung der Netzsicherheit nach Netzfehlern wird erschwert, wenn sich Windenergieanlagen während eines Netzfehlers großflächig abschalten und dadurch ein Leistungsdefizit nach Klärung des Netzfehlers entsteht.“ „Wind Power Plants disconnecting from the grid extensively during a grid failure make it difficult to maintain system safety as they cause a generation deficit after clearance of the failure.“

10 ➢ Volatile Generation and its Implications

11 Power Generation, Consumption and Market Prices in Germany, April – May 2018

Source: SMARD.de

12 Key Messages

➢ Integration of Renewables needs to be planned carefully, with the right requirements established.

➢ Within an Island Grid, integration of volatile generation becomes more difficult. What to do with surplus energy?

➢ Keep the right balance between volatile and controllable energy. Offshore Wind is less volatile than other renewable energy sources and therefore a good fit for Taiwan.

13 Thank you for your attention

EnBW Energie Baden-Württemberg AG Dr. Hannah König Generation Technology Fischertwiete 1 D-20095 Hamburg, Germany [email protected] +49 40 533268248