2. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich September 8, 2015 Battery Storage as future Generation Solution Igor Aronovich Senior Deputy Operations Manager System Operation IEC

3. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Main presentation subjects IEC electricity system in a Nutshell  RES and storage technologies  Energy Storage types - current solution survey  IEC Battery Storage Pilot  Pros and Cons  Questions IEC electricity system in a Nutshell  RES and storage technologies  Energy Storage types - current solution survey  IEC Battery Storage Pilot  Pros and Cons  Questions

4. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Annual Peak Demand MW 2010-2015 Forecast Summer Peal Demand 13,158 MW Forecast Peak Demand in 2015 3 X ! Approx. 3%-4% per year 7.6% per year 1990-2008 Annual Peak Demand 1990-2015

5. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich World Generation by Fuel USA In the world EuropeJapan Planned 2010

6. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Annual Electricity Production IEC

7. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Orot Rabin 2,590 Rutenberg2,250 Haifa1,020 Reading428 Eshkol1,439 Alon Tabor 593 Gezer1,336 Zafit580 Hagit1,275 Ramat Hovav 1,020 Total Installed Capacity: 13,250 MW in 63 Generation Units Total Installed Capacity: 13,250 MW in 63 Generation Units Eilat 92 Kinnerot80 IEC Installed Capacity, MW Fuel Type Total Installed Capacity in MW Total Capacity in % Coal 4,84036.5% Natural Gas 6,82251.5% Fuel Oil 00% Gas Oil 1,59612% Coal units Natural Gas Fuel Oil Combine Cycle Gas Turbine

8. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Reserve in % 3.3 6.0 System Reserve in Israel

9. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich 16/07 17/0718/07 19/07 20/0721/07 44C41C43C36C43C44C 420 310 665 1200 580 אורות רבין 5 סנכרון גזר 40 סנכרון חיפה 30 נפסקה Noble shut Down for 2 hours אלון תבור 30 הפסקה Daily System Peak11920 MW Daily IEC Peak 11120MW Peak System reserve580 MW חיפה 30 סנכרון Heat rate 44 42 40 38 System Loads on 16-17/07/2012

10. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Electricity production by fuel 4914 MW 3632 MW 753 MW 1552 MW Peak Hours Load IEC10950 MW Fuel oil 5.2% of production Gas oil 7.5% of production Hours MW Daily Energy 221 GWH Daily Energy 221 GWH Daily production cost 14.4 million $ Daily Energy 221 GWH Daily Energy 221 GWH Daily production cost 14.4 million $ Coal 50.8% of production Gas 35.9% of production 200 MW Demand Response Photovoltaic

11. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich European Gas Market map 38% 51% 61%

12. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Possible Gas Storage

13. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Bar 21:20 Noble Shut down 08:45 End of event 22:40 Noble Is back Noble disturbance 31/7/2011

14. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Bar 4924 2640 2135 4908 1577 2104 563 4861 1305 547 1170 21:28 אשכול 3 צפית 2 21:32 21:28 - Unit Start - Load reduction 21:25 רידינג 4 אשכול 10 21:43 רמת חובב 4 + דוד 22:12 חגית 5 + דוד 22:17 22:27 גזר 30 חגית 20 22:40 אשכול 9+6 22:08 22:39 אשכול 8 22:39 אשכול 7 חגית 4 + דוד 23:47 Chain of events - Fuel transfer completion - Shut down

15. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich System capacity 9850 MW 7.5 hours 5 hours 5.5 hours Transmission constraints 9750 MW Transmission constraints in case of N-1 9550 MW What might happened? Explanation  Outages because of generation lack during 3 days up to 250MW  Additional outages because of line overload in Tel Aviv area – 100MW  Additional outages in case of N-1 fault in South to Hadera – 200MW Explanation  Outages because of generation lack during 3 days up to 250MW  Additional outages because of line overload in Tel Aviv area – 100MW  Additional outages in case of N-1 fault in South to Hadera – 200MW 550 Power outages

16. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich 2020 EU renewables’ target

17. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Israeli Renewables by 2020 2.9% 0.8% 0.7% 1.3% 4.3% Total capacity 27600 MW Pump and Renewable 3560 MW 3 21 0 Source: Israeli Ministry of Energy and Water, 2010 6 6

18. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Potential Storage Market

19. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Storage usage by purpose

20. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Energy storage range

21. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Storage scale applications

22. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich German Renewables’ Profile Source: www.verbund.com VERBUND Hydro Power AG/ESK/Dr. Otto Pirker

23. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Wind fluctuations in German Source: VERBUND Hydro Power AG/ESK/Dr. Otto Pirker

24. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich ES Technologies life time cost 10 year present worth cost $/KW Source:” A Study for the DOE Energy Storage Systems Program”,Sandia National Laboratories

25. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Storage Potential Analysis

26. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Potential Storage Market

27. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Attractiveness of Storage

28. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Storage 2015 forecast Source:Kema, Market Evaluation for Energy Storage in the United States USA

29. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich ES Attractiveness

30. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Operations modes/ Categories Representative Application Use/Duty Cycle Hours of Storage Category/ Definition # Load-leveling, source-following, arbitrage 1 cycle/day * 250 days/year 4 – 8* Long-duration storage, frequent discharge 1 Capacity credit20 times/year 4 – 8* Long-duration storage, infrequent discharge 2 Frequency area or regulation 4 * 15 minutes of cycling * 250 days/year = 1000 cycles/year*** 0.25 – 1** Short-duration storage, frequent discharge 3 Power quality, momentary carry- over 20 times/year 0.25 – 1** Short-duration storage, infrequent discharge 4 * This analysis uses 4 hours unless otherwise noted ** This analysis uses 1 hour unless otherwise noted *** Some technologies are capable and will be used up to 10,000 cycles/year Source:” A Study for the DOE Energy Storage Systems Program”,Sandia National Laboratories

31. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Choice of technologies Appropriate useTechnologies 1,2,3,4 Advanced lead-acid batteries (2000 cycle life) 1,2 Sodium/sulfur batteries 1,2,3,4 Lead-acid batteries with carbon-enhanced electrodes 1,2,3,4 Zinc/bromine batteries 1,2,3,4 Vanadium redox batteries 1,2,3,4 Lithium-ion batteries (large) 1 Compressed air energy storage (CAES) 1 Pumped hydro 3,4 Flywheels (high-speed composite) 3,4 Super capacitors (double-layer electrochemical) Source:” A Study for the DOE Energy Storage Systems Program”,Sandia National Laboratories

32. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Smart Grid City Research, Implementation and Testing Of Smart Grid Technologies for the first Israeli settlement And at a Demo Center Smart Grid C I T Y

33. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Smart City Location  Summary and questions

34. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Customer Solution Business Model Business Model Micro Grid Micro Grid Storage Installation Research PV, Storage Integrations Operations Communications, Interfaces Main Project Objectives

35. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Conceptual diagram Storage – Parallel mode LV Storage – Island mode Storage – Parallel mode HV

36. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Micro Grid Control Concept Setup Operations Configuration Setup Operations Configuration Photovoltaic Panels Diesel Generator Storage Battery Loads Start/Stop Mode Parallel / Isochronous Mode Load Setup Voltage Power (P,Q) Frequency Grid Conditions Price Signal Opt Power (P,Q) Consumed Voltage On-line status Generated Power Alarms, Status Availability Generated Power Charge/Discharge Power Consumed Availability Alarms/Status Generated Power Charge/Discharge Power Consumed Availability Alarms/Status Micro Grid Control Micro Grid Control

37. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Micro Grid mode capability  Synchronization  Work in the island mode Command and control  Examining the ability of STORAGE – life time, work regimes, scheduling work with other Generations means  Synchronization  Work in the island mode Command and control  Examining the ability of STORAGE – life time, work regimes, scheduling work with other Generations means

38. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Battery – Winter Case

39. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Battery – Summer case

40. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich PV – Summer case

41. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich PV Sunny day –Winter Case

42. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich PV Rainy day –Winter Case

43. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Operations Targets Operations regimes Micro Grid Control Command, control, alarms Safety issues Safety procedures Operating procedures Maintenance procedures Emergency procedures Protection coordination Parallel- island operations Building operational interfaces Remote control systems for MicroGrid Operations DMS / NIS control system Interface Generation system control Grid price signal Control

44. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Communications  Protection Scheduling among different generation (PV, STORAGE, DG) facilities and customer  Data gathering from the command and control system to DMS  Control station system interface for STORAGE, PV, DG and client.  Customer interface for data transfer.  Data transfer interfaces to the other partners (historical data and / or real time) without the ability to control.  Protection Scheduling among different generation (PV, STORAGE, DG) facilities and customer  Data gathering from the command and control system to DMS  Control station system interface for STORAGE, PV, DG and client.  Customer interface for data transfer.  Data transfer interfaces to the other partners (historical data and / or real time) without the ability to control. GPRS FO PLC

45. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Business Model Customer Solution Power Quality Demand Response Network Backup Distributed Generation

46. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Main Research Goals  Voltage stability  Different harmonics  Effect of grid disturbances on the STORAGE work  MicroGrid system stability in different regimes, for example - PV- STORAGE -CUSTOMER  PV and STORAGE INVERTERS operations  INVERTER stability in regimes 1-2-4  Voltage stability  Different harmonics  Effect of grid disturbances on the STORAGE work  MicroGrid system stability in different regimes, for example - PV- STORAGE -CUSTOMER  PV and STORAGE INVERTERS operations  INVERTER stability in regimes 1-2-4 Examination, research and study of different regimes of STORAGE work aspect of:

47. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Storage Pros and Cons Multi purpose Storage Regulation Policy Negative influence Power Quality Research Data Maturity Solution Customer Prototype Hot Backup Micro Grid Connectivity DG

48. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Thanks and your Thanks and your Questions Igor Aronovich Senior Deputy Operations Manager System Operations, IEC aronovich@iec.co.il

49. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Bar 4924 2640 2135 4908 1577 2104 563 4861 1305 547 1170 - Coal - Gas- Gas oil - Fuel Oil Chain of events 4% during 1 HOUR Lowest reserve

50. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Electricity Cost Comparison Average price per KWH, to the residential consumer consuming 7,500 KWH per year, including VAT and other taxes, correct to 1/1/2008 Source: Eurelectric Electricity Prices Survey 2008 

51. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich LS Storage use profile

52. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Energy storage & Flexible generation

53. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Hagit PRMS Shutdown 20.09.2010 Hagit site shutdown Hagit came back MW 90 MINUTES POWER OUTAGES Power Outages Load Shedding 1 Power Outages Load Shedding 2 Customers Lost Hz Customer damage – Unsupplied Energy 256 MWh Customer damage – Unsupplied Energy 256 MWh Alternative fuel cost 0.8 mil$ Up to 1.5 hour customer shortage

54. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Storage Integrations

55. Israel Electric Corporation National Dispatch © Designed by Igor Aronovich Storage Capital cost Source: ECOFYS,Kalin LEE,ACI luxemburg