German Norwegian Energy Forum Conference 2012 in Berlin

1. Dr.-Ing. Peter Birkner, Executive Member of the Board, Mainova AG
Frankfurt am Main, Germany, October 23, 2012
The Power to Change –
The Contribution of Municipal Companies
Transforming the Energy Sector – Looking beyond National Borders

2. Curriculum Vitae
Peter Birkner
Study of electrical power engineering and doctoral thesis
at Technische Universität München (Dipl.-Ing., Dr.-Ing.)
Positions within RWE Group
Lechwerke AG, Augsburg, GER (11/1987 – 12/2004; Vice President, Business Unit Grid)
Wendelsteinbahn GmbH, Brannenburg, GER (1/2004 – 12/2008; Managing Director)
Vychodoslovenska energetika a.s., Kosice, SK (1/2005 – 8/2008; Member of the Board)
RWE Rhein-Ruhr Netzservice GmbH, Siegen, GER (9/2008 – 6/2011; Managing Director)
Mainova AG, Frankfurt, GER (7/2011 to today; Chief Technical Officer and Member of the Board)
Chairman Networks Committee, Eurelectric, Brussels (6/2008 to today)
Visiting Professor (Electrical Power Engineering) Technicka Universita v Kosiciach, (6/2005 to today)
Lecturer (Electrical Power Engineering) at Universität Bonn (1/2009 to today) and
Universität Wuppertal (6/2010 to today)
Numerous publications and lectures on power engineering and economics

3. Mainova AG, a German player–
Generation, sales and grid
Generation area
Sales area house- Grid area
hold customers Sales area big
customers
Sales volumes: Complete supply, partly heat
• Electricity : 8,609 Mio. kWh Complete supply except electricity, partly heat
• Gas: 14,077 Mio. kWh Service area natural gas
Service area of Mainova affiliated companies
• Heat: 1,973 Mio. kWh
• Water: 42,318 Tsd. m3 Service area of local and regional gas companies
supplied by Mainova

4. Agenda: The power to change –
The contribution of municipal companies
1 Physical consequences of the German „Energiewende“
2 Providing electricity at the right time – smart market
3 Providing electricty at the right place – smart grid
4 Interaction of smart grids and smart markets
5 Technical strategy of Mainova
6 New technologies and new challenges
4

5. 1
The German „Energiewende“ is ambitious and
is based on renewables, tough savings and imports
*)
GER
EU
?
? Limited import and export capacities
All European countries are increasing the
installed capacity of renewables
Renewable energy sources show a
synchonous generation pattern
Are the electricity savings realistic?
*) Assuming substantial efficiency increase
and energy savings but also signigicant We have to do some homework!
electricity imports! 5

6. 1
A rate of 35 % of renewable Energy
means to double the installed generation capacity
Percentage
of power generation
Pumped hydro storage
Maximum consumption
Import / Export
(conventional)
Power
Available power plants
5% 18 % 35 % 80 %
122 %
100 %
50 % + Note: The national energy
concept assumes
2000
2010
2020
2050
substantial efficiency
increase and energy
savings but also
0% signigicant electricity
Installed capacity of renewables imports!

7. 1
Increasing the installed capacity of renewables
without reversible storage results in a saturation
Demand of Installed Generation power /
energy renewable Power consumption
(100%) power
Renewable generation
curves (today and tomorrow)
Conventional
energies Absorption
35% Renewable Storage +
energies Conventional
load curve
Installed capacity
In the case that there are more than
35 % of renewables within the total Storage -
energy mix, the installed capacity has Supplement
to be higher than the sum of maxi-
mum consumption, storage and export Time
Energy absorption Energy storage
Additional loads (electrolysis, thermal storage, export) Reversible storage, shifting loads and generation
(P2G, batteries, pumped hydro storage)
Energy supplement
Import / export 7
Additional generation (gas turbine, import)

8. 1
The presented scenario is modified through
supporting and hindering factors
Supporting factors (less renewable capacity, less storage capacity)
Import and export of energy
Creating an European overlay grid (DC)
Coordination of demand and generation on a national level (reduction of synchronism)
Available power Available power
Synchronism Diversity
(T↓) (T↑)
Total
Total
Region Region Region Region
1 2 1 2
Time Time
Hindering factors (more renewable capacity, more storage capacity)
Grid congestions on a national level
Congestions on cross border lines
Installation of renewable energy sources in neighboring countries

9. 1
From a technology point of view the German
„Energiewende“ will be implemented in three steps
by 2020 by 2030 by 2050
Penetration of renewable energy
35 %
- Connection to the network
45 %
- Extension and increase of flexibilty Energy supply
of the network
and supplement 80 %
- Optimization and increase of flexibility
of thermal power plants
- Load shifts (DSM)
- Increase of conventional electricity storage Energy
- New efficient applications for electrical absorption
energy (e.g. heat pumps, electric vehicles)
- Reversible storage of electricity
- New types of power sources (OPV) New reversible
- Alternative use of CO2 (alga) storages
- Dynamic stability of the system
Mainova has the know-how and the ability to make „Energiewende“ a reality

10. 2
Existing devices can be used in order
to increase the flexibility of the system
Technologies for increasing 1 2
flexibility in the electrical system
CCGT power plants 1
(Irsching, block 4, η = 60%)
Flexible CHPs 2
(Frankfurt, thermal connection of
steam and gas turbines as well 3
as boilers decouples electicity
generation from heat production)
4
Virtual power plants 3
(Frankfurt)
Controlled electrolytic processes 4
(Frankfurt, 70 MW, production 5
of Cl2)
Controlled cold-storage depots 5
(Frankfurt)
(Concept) (Concept)

11. 2
Chemical and thermal energies are indispensable
in order to create enough storage capacities
Density of H 2O Elec- Elec-
tricity tricity
Compressor
(Frankfurt)
Mechanical energy
(1 m³ water, 4 000 m high)
Heat
Thermal energy
O2
(1 m³ water, 10 K warmer)
Electrolytic
Chemical energy reactor Sto- Sto-
(1 m³ gas, 0.8 kg) (Frankfurt)
H2
rage+ rage-
Batteries
(100 kg Li-Ion batteries)
Hydrogen should be able to fix
–to–gas–grid“
„Power–to–gas (H2)
–to–gas–tank“
„Power–to–gas (H2)
–to–others (industry)“
„Power–to–gas (H2)
the storage challenge. Extended
production of CH4 (energy con- (Concept)
tent three times higer) might be Electrical cooling device
not necessary (compression) with storage
* All numbers mentioned are corresponding with „Power–to–thermal–storage /
an energy volume of about 40 MJ (ca. 11 kWh) –to–thermal–grid“

12. 3
The coupling of energies is the
technical key competence of „Energiewende“
RES
Electrical power
- Organic - Elektrolytic
Rancine reactor H2
cycle - Sabatier
reactor CH4
- „Invertierted“ Heat
power plant
- Electrical
heating
- Heat pump
RES
G2P G2P G2H G2P H2P P2H P2G Natural gas
G2H G2H
CHP CHP CCGT Gas
steam turbine gas turbine boiler

13. 2
The urban power plant
becomes the energy hub of the future
Thermal storage with
Electrical grid electrical heating
Heat District
exchanger heating
H2 storage Temperature control
H 2O
~
Elektrolyse zur
H2 Erzeugung
Gas
grid
Control unit Closed gas
turbine cycle
13

14. 2
A mix from different storage concepts
will be used in the future
Storage concepts and their application
Middle till long time periods Short time period
(days, weeks, months) (minutes, hours)
x 100 MW, high voltage x 1 MW, middle and low voltage
Import and export Import and export
Pumped hydro storage Domestic thermal inertia
Air pressure storage Domestic demand (DSM, DR)
Power to gas (electrolysis, Batteries (immobile, mobile)
sabatier) Thermal storages
Compensation of days without Compensation of cloud fields or night-
wind or cloudy days time
All storage concepts can contribute to stabilize the grid! 14

15. 2
The current „energy-only-market“
neither awards flexible power plants nor storages
Flexible CCGT power plants are under price and volume pressure
Former price
Bisheriger Preisverlauf
Former volume
Bisheriger Mengenverlauf
?
Similar prices for peak and base put storages under pressure
?

16. 2
Today the data hub model
is used in most of the European countries
Data Hub Model – Used in most of the European Countries
Wholesaler
Data transfer
Request for and
data Retailer communication
management
TSO
Hub
(Data service provider)
DSO
Smart
meter
Meter One combined role as an option:
operator DSO as a data hub and market facilitator (Eurelectric)
In Germany there is a seperate role called
Meter operator / Data service provider (MSB / MDL)
16

17. 2
In Germany a new gateway model
is being designed at moment
Gateway Model – The future German (BSI) model
Offer of data
Wholesaler
Data transfer
Retailer
Communication
management
TSO
Remark: the
DSO „data service
provider“ (MDL)
Smart Gate-
role most
meter way
probabely will
Meter Gate- disappear
operator way Gateway administrator
operator
One combined role as an option 17

18. 3
Electrical grids play a central role in the future and
therefore they have to be developed into „Smart Grids“
Generation Central Dispersed
Solar park Solar cells
Wind park μ-CHP
CCGT Biomass
CHP …
…
Remote Close to Load
Grid
Load Central Dispersed
Cities Houses
Airports, skyscrapers Farms
Cold-storage depots …
…

19. 3
Renewable Energies have to be
integrated into the grid
Solar
Power generation
Wind
380 kV 110 kV 20 kV 0,4 kV
220 kV 10 kV
Grid integration
Voltage
Overload / congestions Challenges
Conventional DSM *** DSM *** DSM ***
generation * Conventional Batteries Batteries Storage options
Pumped generation * Power 2 Gas EV
hydro power Power 2 Gas (H2, CH4)
Compressed (H2, CH4) Biogas
air Compressed based
air generation ** * Generation using gas produced by power to gas
devices
** Biogas is stored in a tank and used when wind
No support for and sun are not available
distribution grid *** DSM is using thermal inertia as a storage

20. 2
Transmission grids have to integrate new powerful
and remotely positioned renewable energy sources
Challenges can be solved with
conventional / available technologies ++ ++
2012 –
2022

21. 3
Distribution Grids have to be adjusted
substantially and in a smart way to their new tasks
Load monitoring and load control allow the maximum use of assets
Feed-in Voltage
Today‘s Low load +
110 % UN high feed-in
grid feed-in
capacity
Voltage Low loard +
Load basic feed-in
100 % UN
Time
Partial load +
no feed-in
Today‘s 90 % UN
grid take-off High load +
capacity no feed-in
Voltage
Load
Length
Take-off
To control means to take grid-related measures (load flow, reactive power) or
to influence loads, generation or decentralized storage (active power)

22. 3
Integration of renewables is supported
by „Smart Grids“ – The pilot project iNES
22

23. 3
Prinziples of grid automation within the project iNES –
Grid interventions first – Customer impacts last
Active
element Operating principle
(customer)
+ -
The active grid elements (1) are
2
adressed first and the active ele-
ments on the customer side (2) last
iNES Sensor
Sensor Active
Sensor element
1 - voltage control transformer
2 - reactive power control grid
(grid) 3 - active power control customer side
1 Active
element
(grid)
The sensor is independent of any
Smart Meter system
Quality and network extension
The intervention frequency of the active element on the customer side is registered. This
parameter can be used as an indicator for the necessary grid reinforcement or extension
The more interventions on the customer side the DSO is allowed to execute within one
year, the smaller and later the network reinforcement or externsion will be. However, a
higher amount of renewable energy will be “deleted“ through these interventions 23

24. 3
iNES – The „Smart Grid“ project of Mainova –
Field tests in Frankfurt
Implementation
Two characteristic test sites in the
Frankfurt area with a high density of
PV have been choosen:
Rural radial LV-grid Bergen-
Enkheim
Relocated farms with large PV
systems,
1 MV/LV transformer station
Urban interconnected LV-grid
Bornheim
Properties from the ABG between
Dortelweiler Straße and Preun-
gesheimer Straße with large PV
systems,
3 MV/LV transformer stations
The smart grid project is carried out in two characteristic areas.
As a consequence the results are meaningful

25. 3
The investment climat for European DSOs
leaves space for improvement
“The financial situation of European DSOs” – A Study of Eurelectric
In many European countries the regulatory return on invest (ROI) does not meet the
expectations of the capital market
Value creation and
value destruction of The switch from efficiency
European DSOs regulation to incentivising
smart grids is necessary
1 – DSOs who are not
investing are creating
values
3 – DSOs who are in-
vesting are destroying
values
Increasing number of
companies

26. 4
Smart markets and smart grids –
Basic functionalities and interaction
Smart market: Influencing the customer by price signals Power balance
Smart grid: Influencing the customer by phsical signals Maximum use of network
Supplier Market
Price
Price
Monitoring
Intervention
Grid 1 DSO of DSO
Reaction
Intervention Maximum
Impact
2 Load
Customer
Time
Intervention of DSO means: priority over market, however, minimum impact on customer
26

27. 5
Investment program and R&D of Mainova AG
are reflecting the principles discussed
Optimization and increase of flexibility of Business
the Frankfurt CHP system
Establishment of wind generation within a
radius of 100 km around Frankfurt
Using opportunities with respect to hydro
power plants (including pumped hydro
storages)
Analysis and observation of solar energy
(silicon and organic PV)
Analysis of storage technologies
R&D
Power plants close to consumers reduce
the necessary grid extension
Regional energy clusters make sense.
However, energy autarky should be avoided
Solar energy has the potential to become an
important urban energy source

28. 5
Rural and urban areas complete themselves
by constructing the „smart system“ of the future
Rural area (smart country):
Dominance of electric energy
Renewable power generation (wind,
solar, biomass)
Solar Wind Village
Urban area (smart city):
Media power, heat, gas (multi utility)
Frankfurt Coupling of the media for energy storage
and power buffering
Energy generation on the basis of CHP
Coupling of the media (smart system):
Heat storage Central or decentralized
Fernwärme
CHP Gas storage Small CHP Solar District heating

29. 6
Summary and conclusions –
Organic solar cells have a huge potential for urban use
Installation of organic solar cells at the premises of
Mainova AG, Frankfurt
Mainova is Europe's first energy company with an organic
photovoltaic system connected to the public grid
The 70 centimeters wide and two meters
long plastic solar cells have been installed
within one day
Opposite to conventional solar cells, organic
photovoltaic systems do not use any silicon,
but they are based on an organic semiconductor
consisting of hydrocarbon compounds (polymers)
Organic photovoltaic systems are able to produce power, even
in partial shade and in diffuse radiation
29

30. 6
Summary and conclusions –
Batteries are opening new options for stabilisation
Energy autonomous households
Volatility reduction of loadflow
Privat consumption (GER): 4 000 kWh/a, 11 kWh/day
Photovoltaic system: 4 000 kWh/a,
(0,1 kW/m², 40 m²)
Battery storage system: 11 kWh/day
Battery capacity: 100 Wh/piece
Number of laptop batteries: 110 pieces (possibly
used cells from the automotive industry)
x 110
30

31. 6
Summary and conclusions –
The environment is changing
Important changes with impact on
energy business
Migration within Germany (from East
to West; urbanization)
Changes in the population structure
(demographic change)
Automation of private houses
Use of new powerful technologies
like e-mobility or heat pumps
Expansion of data centers and
internet nods
Increasing use of information and
communication technology
Electricity tariffs and future develop-
ment of energy intensive industries
Source :Handelsblatt 31

32. 6
Summary and conclusions –
The technical challenges of the Energiewende
Fundamental task:
Integration of efficient
Regional and temporal and volatile
compensation of the generation and
differences between consumption parts
generation and
consumption with an Work on problem
adequate capacity solutions
~
Dynamic balance
Virtually stationary
between load and
compensation of load
generation
and generation
fluctuations
fluctuations
RES
Problem identification
begins Problem recognized
Appropriate Market Design Needed

33. Dr.-Ing. Peter Birkner, Executive Member of the Board, Mainova AG
Frankfurt am Main, October 23, 2012
Analyses – Conclusion – Action
Thank you for your attention!