April 2017

Contents

Ⅰ. About Hyosung
Ⅱ. The concept of ESS
Ⅲ. Applications of ESS
Ⅳ. ESS for Renewable Integration
Ⅰ. About Hyosung
I. About Hyosung
$12B Revenue Company with 7 Performance Groups(PG*). Power and industrial systems performance group’s
major business area is T&D, motor and pump solutions.

 GIS  Tire Cord  Spandex  TPA  Banking  Steel  Apartment

 Transformer  Steel Cord  Nylon  Film Solution  Chemical  Civil
 Smart Grid  Bead Wire  Polyester  Storage  Digital Engineering
 Energy  Dyeing Solution  Machinery  Factory
Storage System
 STATCOM
 PV PCS
 Wind Turbine * PG : Performance Group

Large-Scale Energy Storage System for Renewable Energy 3

I. About Hyosung – ESS Business

Strengths of HYOSUNG for ESS

Reliable products
 Hyosung experienced lots of ESS national project.
 Hyosung has a lot of experiences to provide ESS to customers
(KHNP, KEPCO etc.) that require high reliability.
ESS experts and Maintenance
 Hyosung has been a lot of projects and has strong project pipeline,
so problems encountered during the project implementation could to
minimize.
 When a problem occurs, Hyosung’s ESS experts will respond quickly
to problems.
ESS engineering & design capabilities
 Through Korea's no.1 power equipment manufacturer experience,
Hyosung holds a high understanding for the grid.
 Hyosung can suggest ESS specifications and operational plans for
the customers.

Large-Scale Energy Storage System for Renewable Energy 4

I. About Hyosung – ESS Business

PS FR RI MG

Turn-key Solution PCS PMS

 Based on power electronics and  Hyosung manufactures and  For maximize performance of
energy management technology, supplies 250kW, 500kW and energy storage system,
Hyosung provides various 1MW, 2MW PCS units for ESS. Hyosung’s power management
equipment, system and service  All of the PCS have isolated system provides various
for energy storage system, system operating functions. operation algorithm and
including PCS, power Based on high efficiency and functions.
management system and high reliability, Hyosung’s PCS  By monitoring, controlling, and
turnkey solution. can be applied various interoperating with other system.
environment, including building, Power management system can
plants, substation and improve power quality and cost-
renewable energy. effectiveness of energy users.

Large-Scale Energy Storage System for Renewable Energy 5

I. About Hyosung – ESS Track Records

FR Frequency RI Renewable PS Peak Shaving MG Micro-Grid

Regulation Integration (Peak shifting)

Project End User Installation site PMS PCS Battery Applications Installation period

Haeng won wind farm Dynamic 800kW Li-ion 200kWh

2009 JEJU Smart Renewable KEPCO (Jeju Island) Power Control [800kW X 1] Samsung SDI / 20min RI ’09. 12 - ’11. 05

Sehwa middle school Building Energy 120kW Li-ion 180kWh

JEJU Smart Place Korea Telecom (Jeju Island) Management [20kW X 6] Samsung SDI / 1.5hour PS ’09.12 – ’11. 05

Jo-cheon Substation Dynamic 4MW Li-ion 8MWh

2011 Jo-cheon Substation Project KEPCO (Jeju Island) Power Control [1MW X 4] Samsung SDI / 2hour
PS RI FR ’11. 07 – ’14. 06

Samsung SDI Gi-heung Building Energy 1MW Li-ion 1MWh

2012 Samsung SDI Project Samsung SDI Plant Management [1MW X 1] Samsung SDI / 1hour PS ’12. 03 – ’12. 10

2012 Smart Grid Project for Community Energy 250kW Li-ion 500kWh
Korea Telecom Guri Agricultural Market PS ’12. 08 – ’12. 12
Peak shifting Management [250kW X 1] LG chemical / 2hour

Dynamic 500kW Li-ion 300kWh

Hong Kong CLP Project CLP Hong kong Kowloon PS RI ’12. 11 – ’13. 08
Power Control [250kW X 2] Samsung SDI / 1hour

Mozambique Off-grid Mavago, Mecula, Off-grid 900kW Lead Acid 20MWh

2013 PV generator
FUNAE Muembe PV Control [5kW X 180] Sae-bang / 20hour MG ’13. 01 – ’13. 12

Frequency Regulation Korea Power Korea East West Power Frequency 4MW Li-ion 2MWh
ESS Exchange Company (EWP) Regulation [1MW X 4] SK innovation/30min FR ’13. 06 – ’16. 06

2013 Smart grid Project for Duzon Biz-on at Chun- Building Energy 500kW Li-ion 1.6MWh
Duzon Biz-on PS ’13. 08 – ’13. 12
Peak shifting cheon Management [250kW X 2] Samsung SDI / 3hour

Renewable & Micro-grid Jeju Provincial 1MW Li-ion 1MWh

Integration Government
Gapado Island Micro-grid
[1MW X 1] Samsung SDI / 1hour MG ’13. 08 – ’14. 06

Renewable & Micro-grid 1.25MW Li-ion 3MWh

2014 Integration
KEPRI Gasado Island Micro-grid
[250kW X 1/500kW X 2] KOKAM / 3hour MG ’14.03 – ’14. 09

2015 KOSEP Wind Farm ESS Korea South Young-Heung Renewable 4MW Li-ion 16MWh
RI ’15. 06 – ’15. 10
Project Eastern Power Wind Farm Integration [1MW X 4] LG chemical / 4hour

KHNP Demand Response Korea Hydro & Building Energy 1MW Li-ion 2MWh
ESS Project Nuclear Power
KHNP HQ
Management [1MW X 1] LG chemical / 2hour PS ’15. 09 – ’15. 12

2016 Renewable & Micro-grid Jeju Provincial Gapado Island 1.25MW Li-ion 2MWh In progress
Integration Government (※ additional installation)
Micro-grid
[1MW X 1/250kW X 1] Samsung SDI / 2hour MG (2016)

500kW Li-ion 2MWh In progress

DC Grid ESS KEPRI Go-chang Test center DC Grid ESS
[250kW X 2] Samsung SDI / 4hour MG (2016)

Frequency 48MW Li-ion 12MWh In progress

KEPCO FR ESS KEPCO Kimjae Substation
Regulation [2MW X 24] LG Chemical / 0.25hour FR (2016)

Large-Scale Energy Storage System for Renewable Energy 6

Ⅱ. The concept of ESS
II. The concept of ESS
BESS(Battery Energy Storage System), so-called ESS, meaning that it can actually store electrical energy and use
the stored electrical energy whenever the need arises.

Concept Summary

 Storing electrical energy to Secondary batteries (Li-

Principle
ion, Lead-acid, NaS, etc)

 PMS: Control PCS, BMS

Composition  PCS: Convert AC/DC, Power quality control
Role  BMS: Control and Monitoring batteries
 Battery: Store electrical energy

Life Expectancy 10~20 years

Efficiency More than 85%

 Reserving Power electricity

 Frequency Regulation
 Improving Power quality
Benefits  Supporting Renewables
 Supporting Users for efficient power usage
 Voltage control
 T&D investment Deferral

Construction
Less than 1 year
Period

Large-Scale Energy Storage System for Renewable Energy 8

II. The concept of ESS
ESS is composed of PMS which control all the component of ESS, PCS which convert AC to DC and Batteries and
BMS which control battery Modules and cells.

The main configuration of ESS PMS(Power Management System)

 Monitor and estimate power consumption and active operation
 A real-time information received from PCS to monitor the ESS
 the ESS management according to the host controller command
Cooling System  Management system history and version
 Faulty condition, remote maintenance for recovery available

PCS(Power Conditioning System)

 Invert DC power stored in batteries to AC
power with voltage and frequency of
commercial
 Convert AC power to DC and charged in
batteries

FFS(Fire Fighting System)

Battery
 Electrical energy stored in DC
 Discharge the electrical energy to grid via PCS

BMS(Battery Management System)

 Monitoring battery’s current, voltage, temperature, SOC, devices
status
 Exchange information and data to communicate with PCS

Large-Scale Energy Storage System for Renewable Energy 9

II. The concept of ESS - Specification of Battery

Battery System is composed of Cell, Module, Tray and Rack with BMS(Battery Management System).

Battery Specification Remarks

198Cells are connected

Configuration 198S 32P
series and 32 parallel

Applied Cell type 94[Ah] (NCM type) Ni, Co, Mn

Tray 16 Cells Including BMS

Rack 198 Cells Including BMS

Number of Rack 32 Racks 32P

Rack Operation
Rack(198S1P + BMS) 633.6 ∼ 821.7 [Vdc]
Voltage
Nominal Voltage of
736.56 [Vdc] 3.2 [Vdc] x 198Cells
Rack
2,216[kWh]
Energy Capacity
69.24 [kWh]
per Rack

Nominal Energy 2,216 [kWh]

Large-Scale Energy Storage System for Renewable Energy 10

II. The concept of ESS – PCS(Power Conditioning System)

PCS can convert to AC power from DC power such as the battery. It can also convert to DC power from AC power.
That is possible to control bi-directional power flow.

Charge (From Power Grid to Battery)

Discharge (From Battery to Power Grid)

IGBT

PCB

Lithium Ion Battery System PCS Transformer

Large-Scale Energy Storage System for Renewable Energy 11

II. The concept of ESS - PMS(Power Management System)

PMS can communicate with PCS in the real time, monitor the status of PCS, and control charging and discharging battery.

PMS’s main functions

 Operation control
 Measure data
 System monitoring

 Data storage/search
 Setting of Control condition

 Confirmation of alarm  Report

 Alarm data storage

Large-Scale Energy Storage System for Renewable Energy 12

Ⅲ. Applications of ESS
III. Applications of ESS: A Matter of Balance in Electric Power Grid

The electric grid balances supply and demand at all times and operates at timescales from seconds to days.

Supply Demand
Components Components

Renewable Electric
Generators Vehicles

Conventional Stationary
Generators End Use

Large-Scale Energy Storage System for Smart Grid 14

III. Applications of ESS
ESS is applicable to power system area entire from generation to end user and has multiple benefits such as
improving & stabilizing power quality, supporting renewables and off-grids.

1 Generation 2 T&D 4 End User 5 Off-grid

3 Renewable

1 Generation
 Improving Generation efficiency
– Aiding generators by smoothing load fluctuation 4 End User
– Decentering peak load / Improving power quality
– Supplying seconds-scale reserve  Supporting Effective Power usage
– Providing spinning reserves – Charge at off-peak, discharge at on-peak
– Prevent blackout & voltage drop
2 T&D – Power usage management and UPS
 Ancillary services
– Defer additional investments by reduce load
– Responding sharp drop of voltage in a grid 5 Off-grid
– Stabilizing power grid with regulating frequency
 Supply power to the grid insufficient area through
renewables integration
3 Renewables
– Store produced electricity through renewable energy in the areas
 Controlling Renewable output of power does not reach such as island and desert
– Smoothing irregular output power
– Profit obtained by the difference between REC’s weighting*

Large-Scale Energy Storage System for Smart Grid 15

III. Applications of ESS

Large-Scale Energy Storage System for Smart Grid 16

III. Applications of ESS – Peak Shaving

ESS is able to reduce electricity rates by discharging during peak time. It increases efficiency of generation capacity.

PS Peak Shaving

As-is (without ESS) To-be (with ESS)

With
ESS

 Total generation capacity should be larger than sum of peak  ESS charge during off-peak and discharge during peak to reduce
load and reserves. peak load.
 Massive investments to power plants for peak load are
required in conventional ways.  Peak shifting makes grid operation costs lower and possible to
postpone additional investments of power plants construction.

Large-Scale Energy Storage System for Smart Grid 17

III. Applications of ESS – Frequency Regulation

ESS can maintain Frequency constantly that change caused by a matter balance of Supply and Demand.

FR Frequency Regulation

Frequency Up ESS
Charging

Standard Frequency

ESS
Frequency Down Discharging

Generator Failure Generator Failure

Frequency

ESS Active Power

[Seoansung S/S] [Sinyongin S/S]

Large-Scale Energy Storage System for Smart Grid 18

 III. Applications of ESS – Micro-Grid

ESS is essential to build stand alone Micro-grid system by integrating renewable resources and conventional
generator. It enables to mitigate the irregular supply of renewable energy by charging and discharging.

MG Micro-Grid

As-is To-be

Conventional Micro-Grid Function of ESS in Micro-grid

 Micro-grid can be stand-alone power system or mini-grids typically to provide  ESS can provide stable frequency and voltage with renewable energy
a smaller community with electricity. Diesel generator control frequency and source such as solar, wind in the Micro-grid.
voltage in the conventional Micro-grid.

Large-Scale Energy Storage System for Renewable Energy 19

III. Applications of ESS – Renewable Integration

ESS compensates for intermittency of renewable energy, such as wind and solar.
ESS is a solution for renewables integration by output smoothing and constant power control.

RI Renewable Integration

Output smoothing Constant power control

① PCS : observing power(usual time) ① PCS : observing power(usual time)

② PMS→PCS : smoothing command ② PMS→PCS : power control command
③ PCS : smoothing operation ③ PCS : constant power control operation
④ PCS→Battery : charge/discharge order ④ PCS→Battery : charge/discharge order
⑤ Battery : charge/discharge ⑤ Battery : charge/discharge

Large-Scale Energy Storage System for Smart Grid 20

Ⅳ. ESS for Renewable Integration
IV. ESS for Renewable Integration - Large-Scale ESS Pilot Project

 Period : 2011.7 ~ 2014.6 (36 months)

 Participants
- KEPCO : PMS development
- HYOSUNG : 4MW PCS
- Samsung SDI : 8MWh Li-ion Battery
 Contents
- Peak shaving and load leveling
- Renewable Energy Integration (Wind Power Plant)
- Frequency Regulation

[4MW/8MWh ESS of Substation in Jeju] [PMS for ESS]

Large-Scale Energy Storage System for Renewable Energy 22
IV. ESS for Renewable Integration - Large-Scale ESS Pilot Project

ESS integration can improve power quality and stabilize renewable output by providing constant power control, smoothing
control and energy shifting. And these functions would give grid operators benefits of reducing link cost of renewable and
improving power quality and compliance grid code.

Large-Scale Energy Storage System for Renewable Energy 23

IV. ESS for Renewable Integration - Large-Scale ESS Pilot Project

KEPCO presents the grid Integration Regulation of Large-scale Wind Power in Transmission Line.

- More than 20MW wind power generator

- Low Voltage Ride Through Function

- Reactive Power Control Function

: Lead Power Factor 0.95 ~ Lag Power Factor 0.95

- Active Power Control Function

: Less than 10%/min. Power Fluctuations of rated power

Large-Scale Energy Storage System for Renewable Energy 24

IV. ESS for Renewable Integration - Large-Scale ESS Pilot Project

• Smoothing Control of ESS

• After compensation of ESS wind power fluctuation is below 1.2%/min.

[kW]

Wind Power Wind power

Wind + ESS output

Grid
(After compensation)

[sec]

[kW]
Wind power
Fluctuation

[sec]

Wind Power Fluctuation : 1.2%/min

Large-Scale Energy Storage System for Renewable Energy 25
IV. ESS for Renewable Integration - Large-Scale ESS Pilot Project

• Constant Control of ESS

• After compensation of ESS wind power fluctuation is below 6.9%/min.
[kW]

Wind Power
Wind power
Wind + ESS output

Grid
(After compensation)
[sec]

[kW]

Wind power
Fluctuation

[sec]

Wind Power Fluctuation : 6.9%/min

Large-Scale Energy Storage System for Renewable Energy 26

IV. ESS for Renewable Integration - Large-Scale ESS Pilot Project

• Smoothing Control of ESS

• Operation Start (SOC 10%)  End (SOC 10%)
• ESS (Discharge 1,644.1kWh / Charge 1,791.3kWh)

Wind power
Wind + ESS output
ESS output
Cumulative ESS
output

Large-Scale Energy Storage System for Renewable Energy 27

IV. ESS for Renewable Integration
By integrating ESS to wind turbine it enables to provide smooth output to grid and WT power plant can be expected to get
additional incomes like subsidies REC(Renewable Energy Certificate).

Wind turbine ESS operating scheme  Power provided during peak time via ESS gets REC
weight
Period Peak time

Spring 17/03 ~0 6/06 (82days) 09~ 12(3hour)

Summer 07/06 ~ 20/09 (106days) 13~ 17(4hour)

Fall 21/09 ~ 14/11 (55days) 18~ 21(3hour)

Winter 15/11 ~ 06/03 (122days) 09 ~ 12(3hour)

Target and standard

REC
Type criteria

On shore wind turbine,

1.0 stationary
Hydro-power, Biomass
Renewable
energy 5.5 2015

5.0 ESS liked WT 2016

4.5 2017

“Charge the ESS using generated power during off peak, discharge it through peak time
Acquire additional monetization”

Large-Scale Energy Storage System for Renewable Energy 28

IV. ESS for Renewable Integration - Large-Scale ESS Commercial Project

Hyosung has delivered ESS in Youngheung Wind Power Plant belongs to South-East Power aims to improve profitability
through the acquisition of REC.

Contents

Project 46MW Wind Power ESS Commercial Project

Customer South-East Power
System ESS [4MW PCS – 16MWh Battery]
2nd
Engineering Hyosung
Supplier Hyosung (PCS, PMS), LG Chemical (Battery)
EPC period `15. 6 .12 ~ `15. 11. 9
1st
Business period 12 years

1st ESS building 2nd ESS building

Large-Scale Energy Storage System for Renewable Energy 29

IV. ESS for Renewable Integration - Large-Scale ESS Commercial Project

1 PCS First floor

2 Battery 4
3 Protection panel
2
4 HVAC
5 Fire Fighting System
3
6 Operation Center

5 Second floor

1 3
2
6 4 6

1
5

Large-Scale Energy Storage System for Renewable Energy 30

IV. ESS for Renewable Integration - Large-Scale ESS Commercial Project

Youngheung Wind Power Plant get 17,070[REC/year] by ESS charging/discharging everyday. Annual revenue from ESS is
about US $1.2M.

ESS discharge
ESS charge

ESS discharge
ESS charge

Large-Scale Energy Storage System for Renewable Energy 31

ESS for Future Energy Solution