Breaking the Gridlock and Averting Blackouts:

1

• Breaking the Gridlock and Averting Blackouts
• Key Technologies and Policy Recommendations
• Massachusetts Restructuring Roundtable
• Boston, MA
• September 19, 2003

2
Breaking the Gridlock and Averting BlackoutsKey
Steps

• Recognize the role of the grid and the limits of
  DG. Grid investment and innovation must
  be supported!
• Improved industry / policy understanding of the
  unique (reactive power) requirements of AC
  Grids
• Near-term solution dynamic reactive power
  equipment (STATCOM, D-VAR, SuperVAR etc.)
• Longer-term new approaches to control AC power
  flows with controllable VLI superconductor
  cable
• Islands and Bridges Should our grid be
  redesigned with more DC transmission to reduce
  the threat of blackouts from regional reactive
  power imbalances?

3
The Grid is Overstressed and While Distributed
Generation Can Help, It Is Not The Solution!

• Increased demands on the same grid infrastructure
  means, in effect, too many cars and not enough
  lanes
• Distributed generation can actually compound the
  reliability problem by raising fault current
  levels
• For DGs role to expand, system-level issues must
  be addressed (e.g., single fuel dependency,
  access to remotely located renewable energy
  resources)
• Its tough to make predictions, especially about
  the future. (-- Yogi Berra)
• We dont know what the future fuel mix will be
  but we can predict energy use will be
  electrified. Therefore the grid must be robust
  enough to handle power flows under a wide range
  of scenarios!

4
GDP Remains a Close Function of Power Use
1950
2000
1975
Data Sources kwh Energy Info
Administration GDP Federal Reserve Bank of St.
Louis
We are becoming more energy-efficient -- yet more
electricity-intensive!
5
Whats Needed Public Policies to Support
Development of a 21st Century Grid That Is...
Strong
and Flexible
Smart
6
Reactive Power and Real PowerBalance is Critical
This is reactive power.
This is real power!
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Reactive Power and Real PowerBalance is Critical
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Low-Environmental-Impact Strategies to Strengthen
the Power Grid

• Dynamic Reactive Power Support -- D-VAR
  Shock Absorbers for the Power Grid
• SuperVAR Synchronous Condenser
• Controllable VLI (Very Low Impedance)
  Superconductor Cable
• DC Transmission a new vision of Islands and
  Bridges to block the propagation of disturbances
  across broad regions

9
D-VAR Technology Description

• What are D-VAR Devices?
• Dynamic VARs Fully Integrated Statcom with
  proprietary 3X overload
• Instantaneously injects precise amounts of
  reactive power into a network
• Optional real power with SMES energy storage

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Dynamic Reactive Power SupportShock Absorbers
for the Power Grid

• Dynamic VAR (D-VARTM)
• Power Quality Industrial Voltage Restorer
  (PQ-IVRTM)
• Distributed SMES (D-SMES)

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Dynamic Reactive Power SupportShock Absorbers
for the Power Grid

Wisconsin Public Service 200 MW Grid
100 miles
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Typical D-VAR device
Highly Mobile Scalable Easy to Install...
Self Contained Typical
installation takes less than 1 week!
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HTS Rotating MachinesA Rapidly Developing Field

• 5,000 hp HTS Industrial Motor
• AMSC Self Funded Technical Development Project
• Built and Tested in 2000 2001
• 7,000 hp peak load, 5,900 hp steady state
• 5 MW HTS Propulsion Motor
• AMSC Navy Contract Awarded February 2002
• Delivered to U.S. Navy in July 2003
• 10X torque of 5,000 hp motor
• 36.5 MW HTS Propulsion Motor
• AMSC Navy Competitive Contract Award
• February 2003
• Sized for DD(X) Class Warship Design
• All U.S. Team
• 13X Torque of 5 MW Motor

14
SuperVAR Synchronous Condenser Product
Design Leverages Existing Technologies

• Takes advantage of HTS Machine Technology base
  already developed
• AMSC 5000HP motor project supports HTS Coil
  Performance at 1800 rpm operating speed
• 5 MW Navy Program Experience Supports Torque
  Transfer and Exciter Design
• Maximize Utilization of COTS (commercial
  off-the-shelf) components
• Stator standard, air-cooled, iron core stator
• Cooling components utilize MRI technology
• Commercially available journal bearings and oil
  system
• Designed for Manufacturability

15
SuperVAR Synchronous CondenserA New Grid
Reliability Solution in Fall 2003

• Contract Awarded on January 29, 2003.
• Factory Testing starts in October 2003.
• TVA testing at Hoeganaes Steel Plant near
  Nashville, TN with a commissioning date of
  November 12, 2003.
• TVA has ordered 5 commercial production units
  rated 10 MVA at 13.8 kV for delivery in 2005.

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SuperVAR Synchronous CondenserSummary of
Product Benefits

• HTS SuperVARTM will deliver 100 of its rating in
  both lagging and leading MVARS
• HTS SuperVAR will
• Deliver 6.5x fault current for up to first 5
  cycles during a terminal short-circuit
• Delivers up to 2 pu overload for 1 minute during
  a prolonged voltage depression

SuperVAR
10
Conventional
5
Fault Current (pu)
0
-5
-10
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Principal HTS Cable Designs --Single Phase vs.
Coaxial Very Low Impedance

• All HTS Cables offer high power density
  advantages
• HTS Cable architectures vary according to purpose

Single Phase
Coaxial VLI

• Single layer of HTS wire
• Retrofit installations --
• Urban distribution
• Low resistance losses
• Inductance conventional
• EMF conventional
• Demonstrated to 115 kV

• Two layers of HTS wire
• New installations --
• Urban regional transmission
• Very low resistance
• Very low inductance
• Zero EMF compact 3-in-1 design
• Demonstrated to 69 kV class

18
Comparison of Cable Technologies
345 kV 230 kV 138 kV 69 kV 34.5 kV
XLPE
XLPE
HTS - VLI
XLPE
HTS - VLI
XLPE
HTS - VLI
XLPE
0 25 75 50 100 150 200 300 400 500 600 700 800 90
0 1000 Power Capacity (AC 3FMVA)
Increase Capacity without the Need to Increase
Operating Voltage
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Grid Impacts of VLI Cables

• Significantly Lower Impedance Characteristics of
  HTS Cables Allow Utilities to Redistribute Power
  Flows within a Networked System
• Reduced reactive power losses provide more
  uniform voltage profile across the transmission
  network
• Effective electrical distances are significantly
  shortened
• Total efficiency higher than Al or Cu based
  systems when operated at high loads

A Comparison of Power Transmission Technologies 120kV Class A Comparison of Power Transmission Technologies 120kV Class A Comparison of Power Transmission Technologies 120kV Class A Comparison of Power Transmission Technologies 120kV Class
Technology Resistance (O/km) Inductance (mH/km) Capacitance (nf/km)
Cold Dielectric HTS 0.0001 0.06 200
Conventional XLPE 0.03 0.36 257
Overhead 0.08 1.26 8.8
Up to 20x Less Impedance Compared to Overhead
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HTS VLI Cable Solution to a DC Cable Project
Case 138 kV cable project from NJ power plant to
NYC to Long Island is an alternate to DC project

• Results
• DC control obtained with an AC VLI cable
• Multiple interconnect points increased
  flexibility
• Saves 200M on converter stations and real
  estate

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Benefits of VLI CableFinancial Economic,
Environmental, Policy

• Financial Economic
• Lower voltages, shorter lengths because of
  controllability
• A new strategy for life extension / improved
  asset utilization of existing, aging TD systems
• Enhanced generator dispatch -- reduced regional
  grid congestion costs
• Environmental
• Underground placement, shorter lengths, lower
  voltages and elimination of EMF make for a least
  environmental impact transmission solution
• Policy Implications
• More robust competition, improved reliability,
  enhanced air quality and easier transmission
  siting

22
NERC Regional Interconnections
Islands and Bridges Should We Have More
Interconnections?
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Smaller, Asynchronous Areas (Like Texas) Might
Isolate Disturbances More Effectively
WA
MT
ME
OR
ND
VT
MN
NH
MA
NY
ID
WI
SD
RI
CT
MI
IA
WY
NE
NJ
PA
IL
NV
OH
DE
IN
MO
MD
KS
UT
WV
CA
CO
VA
KY
OK
NC
AZ
TN
AR
NM
SC
GA
AL
MS
TX
Note Boundaries shown are purely illustrative
(could match NERC regions, RTO, state or other
natural boundaries)
LA
24
Market Forces Can Drive Investment
in Controllable DC Bridges Between Grids
WA
MT
ME
OR
ND
VT
MN
NH
MA
NY
ID
WI
SD
RI
CT
MI
IA
WY
NE
NJ
PA
IL
NV
OH
DE
IN
MO
MD
KS
UT
WV
CA
CO
VA
KY
OK
NC
AZ
TN
AR
NM
SC
GA
AL
MS
TX
Note Market Forces Could Determine the Number,
Size and Location of Regional Interconnections
LA
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Islands and Bridges a Unified Field Theory
of Electric Restructuring?

• Improved Reliability Contains Disturbances
  Within a Single Synchronous Grid
• Enhanced Competition Market Forces Determine
  the Number Size of DC Connections at the
  Cross-Border Seams
• Enhanced Regulatory Oversight Supports
  Formation of Regional Planning Boards
• Reduced Environmental Impacts Compact
  Corridors, No EMF, Possibility of Underground
  Placement of Cables

26
Whats Needed Public Policies to Support
Development of a 21st Century Grid That Is...
Strong
and Flexible
Smart
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American Superconductor Corporation

• Thank You!
• Questions?
• jhowe_at_amsuper.com
• www.amsuper.com