Agenda

LG Overview

Case Study : Microgrid

Water Energy Food Nexus

1

Proposes policies

of Renewable Energy

Agenda

LG Overview

Case Study : Microgrid

Water Energy Food Nexus

2

Proposes policies

of Renewable Energy

Proposes policies of Renewable Energy in Korea

RENEWABLE PORTFOLIO STANDARD

- As of 2016, 17 power generators, including six power generation subsidiaries of Korea Electric Power, are obligated to achieve the pre-set RPS ratio in their production volumes (Year 2018 5%, 2019 6%, 2020 7%, ~2024 10%) - RPS Calculation: . RPS mandatory volume = mandatory supplier fossil fuel power generation volume X yearly RPS mandatory ratio . RPS penalty is to be less than the following calculation: (RPS mandatory volume - actual renewable power generation) X average REC price X 150% - Certificates per unit renewable power: KEMCO will issue REC( in terms of the amount of power generation - unit based on 1MWh) and weight of various renewable energy sources. The weight for onshore wind are 1.0, less than 5km offshore wind are 1.5, for over 5km offshore wind 2.0. Biomass are 1.5, hydro 1.0, tidal 1.0 (with seawall) and 2.0 (without seawall), solar is ranging from 0.7 to 1.5. The transaction fee is KRW 50 for each REC. - Revenue of Independent Power Plant : = The amount of power generation X (System Marginal Price + weight of REC-Renewable Energy Certificate-X REC Price)

Others

- 1 Million Green Homes Project to support households to use solar thermal, photovoltaic, geothermal, biomass and small-scale wind energy . Central government provide US$1,700 subsidy and Local government provide US$700 subsidy - Special discount of Charging and Peak Saving of ESS . 10% discount of charging cost at off-peak time and Additional discount for peak saving amount with ESS - Special REC for ESS . Wind + ESS REC 5.0, Photovoltaic + ESS REC 4.0~5.0(Will be implemented soon) - Mandatory installation of ESS especially for Public Building : More than 5% of contract electricity - Special subsidy for Electric Vehicle . Central government provide US$11,000 subsidy and Local government provide US$6,800 subsidy especially for EV purchasing . Central government provide US$3,700 subsidy for installation of normal speed of EV Charging Station at home

3

Agenda

LG Overview

Case Study : Microgrid

Water Energy Food Nexus

4

Proposes policies

of Renewable Energy

Electronic devices and components through innovative technologies

Chemical products and materials essential to people’s lives

Smart services anytime anywhere for better life

...

...

...

16 Companies 20 Companies 30 Companies

Business Outlook

5

Global Top Tier Products and Services

6

Refrigerator LCD TV Mobile Phone Display

Cosmetics Household

Goods Mobile Battery Chemical

Materials

Data Center IT Service LTE Service IPTV

Washing

Machine

EV Battery

Global No.1 Global No.2 Global No.1 Global No.3

Global No.1 Global No.2

EPC

LG Energy Product, Service & Solution

1) T&D : Transmission & Distribution, 2) PCS : Power Conditioning System, 3) PMS : Power management System 4) DCU : Data Concentrate Unit, 5) EMS : Energy Management System, 6) BdMS : Building Management System, 7) HVAC : Heating, Ventilating and Air Conditioning 8) EPC : Engineering Procurement Construction 9) SI : System Integration 10) O&M : Operation & Maintenance

7

LG Microgrid Solution

1) OT : Operational Technology 8

LG Reference : Ulleung-Island Microgrid 1st Energy Self Reliance Island in Korea

9

Eco-friendly Energy Infrastructure Public Energy Welfare

LG Reference : Jeju-Island Smart Microgrid Carbon Free Island, Renewables 50%(1GW) by 2020, 100%(1.8GW) by 2030 Electric Vehicle 30% by 2020, 100% by 2030

10

Population : 617,038

Client : 216,000

Electricity : 1,086MW

LG Reference : EV Charging infrastructure in Jeju-Island

Transformation Plan of

Electricity Sources

Photovoltaic

ESS

Fuel Cell

Wind

Renewable Rate

Y2014 ~Y2020 ~Y2030

0.05GW 0.2GW 0.25GW 0.3GW

- 0.66GWh 1.0GWh 1.9GWh

- - 0.06GW 0.52GW

0.16GW 0.5GW 1.1GW 2.35GW

19% 35% 55%↑ 85%~100%

~Y2018

Major Road

~Y2016 EV Charging Station

Government Office

Number of Fast charger 888

EV Rate 5%

Major Public

~Y2018

Packing Tower

2,869

20%

Garage Gas Station

Every Public Parking Tower

~Y2020

3,100

~Y2030

5,100

40% 100%

11

LG Reference : EV Charging IT infrastructure

Total Operating Center Main System

Toc Security Help Desk ICT Mgt. Info. Operation DB Payment Platform Call

Telecom

M2M

User(Public) EV

EV OBD Quick Normal Home Quick Normal Home

Charger Charger

Charging EV Sharing Map Interface

DMZ

EV Sharing

E-Taxi

E-Bus

Smart Grid

EV Service

Financial

Company

Overview of EV Operating System

M2M wireless network

1)

1) OBD : On-Board Diagnostics

12

PV

ESS

BECON manager / microgrid

Geo-Thermal

Lighting

HVAC

- Capacity : 2.7 MW

- Modules : 5,446 EA

- Capacity : 2 MW(0.5C)

- # of sets : 4 sets

- Points : 200,000 (Approx.)

- Clients SW : 26 EA

- Commercial Air Con. (Heat pump)

- Chillers(Turbo, Absorption),

- AHU(Smart AHU, Under Floor Ventilation)

- Capacity : 2.5 MW

- LED to support Sensor networks

- LED lamp, luminaries, Plasma etc.

DC Microgrid

LG Reference : LG Science Park Microgrid World Largest Eco-Friendly R&D Lab

13

• Location : Aomori, Japan

• Completion : Dec. 2015

• Installation Capacity : 71 MW

• Expected energy yield : 83 GWh per year

3MW Otae Reservoir

• Location : Gyeongsang Bukdo Province, South Korea

• Completion : Jun. 2015

• Installation Capacity : 3 MW

• Expected energy yield : 3.8 GWh per year

14

LG Reference : Solar Power Plant

• Location : Tehachapi, CA, USA

• Completion : Sep. 2014

• Installation Capacity : 8 MW PCS/32MWh Battery

• Turnkey based project - Overall project and construction management

- System engineering and design

- Battery systems supply

• Location : Gyunggi-do, Korea

• Completion : Dec. 2014

• Installation Capacity : 24 MW PCS/17.66MWh

Battery

• Frequency Regulation for KEPCO Main Grid

15

LG Reference : ESS(Energy Storage System)

Agenda

LG Overview

Case Study : Microgrid

Water Energy Food Nexus

16

Proposes policies

of Renewable Energy

Case Study : As-was Ulleung Island

Ulleung-Island (As-was)

Annual Subsidy was 19 million USD due to High cost of electricity from Diesel generator

17

The Clean disruption of energy will happen, it’s inevitable.

The industrial age of energy and transportation will be over by 2030

…Exponentially improving technologies such as solar,

...will disrupt and sweep away energy as we know it

Tony Seba, Serial Entrepreneur and Lecturer at Stanford University

Dramatic Changes in the Global Energy Industry…..

The Uncertainty

of Oil Prices

ㅊ

Expanded

Efforts to Reduce

GHG Emissions ㅊ

The Significant

Progress of

Renewable Energy ㅊ

Why Microgrid with Renewable Energy?

18

Question #1 : Grid Parity ?

Diesel PV + ESS

45cents/Wp 41cents/Wp

19

Question #2 : Reliability of supply ?

[Peak shifting] [Renewable Integration] [Black Start]

Wind

Hour

kWh

PV

Installed Capacity : 3,000kW

Relies heavily upon the weather for sources of supply: rain, wind, and sunshine

20

kWh

Average : 467

Install ESS

Origin Final Output

With ESS

CHARGE

DISCHARGE

ESS Functionality

Wind Microgrid Center

ESS(Energy Storage System) Photovoltaic

Small Hydro

Old Diesel (Emergence Only)

Old Diesel (Emergence Only)

Renewable

Energy

Theme Park

Fuel Cell

LNG Storage

Theme Park

Geothermal Smart LED

Streetlight

EV Car Sharing Electric Boat

Ulleung-Island will transform into a zero-diesel and eco-friendly energy independent island

Present& Future: Ulleung Island

As-was (Fossil fuel 96%)

Phase 1 by 2017 (Renewal Energy 30%)

Phase 2 by 2020 (Renewal Energy 100%)

21

Eco-friendly

Energy Town

Expansion of Energy Independence Island

3rd Expansion of Energy Independence Island

Deokjek

Population House Electricity

1,669 1,345 2.9MW

Sabshi

435 370 0.9MW

Jo

3,227 2,280 3.5MW

Geomoon

1,893 1,452 2.0MW

Chuja

2,260 1,455 5.5MW

2nd Jeju Population : 617,038 House : 216,000 Electricity : 1,086MW

1st Ulleung

Population : 10,673 House : 7,392 Electricity : 19.4MW

South Korea

22

Agenda

LG Overview

Case Study : Microgrid

Water Energy Food Nexus

23

Proposes policies

of Renewable Energy

“Changing

People’s Lives

for the better”

Strategic Direction of Water/Energy/Food Nexus

Water

Treatment

Smart

Farm

24

Microgrid

Energy

Water Food

around 40% of

Total Generation Cost

of Water

Key factor of

Economical efficiency

Essential element of plant growing

Water Solution : SWRO with Microgrid

Containerized SWRO System

Solar Panels

Seawater Intake Pipe

Pump House

Treated Water Tank

Elevated Water Tank

ESS

Seawater Pump House

Gen-set (Back up)

Well

RO membrane

Portable water supply solution with SWRO+Solar+ESS without commercial power resource

25

MF membrane

SWRO(SeaWater Reverse Osmosis)

Innotek Electronics

Electronics

Electronics

LG Electronics

Food Solution : Smart Farm integrated with Water and Energy

26

Flexible Height Management

Water

Recycling

Rate :

more than

90%

Uplus / LG CNS

Electronics

Electronics

Hausys

See http://www.lgenergy.com Contact us at lgenergy@lge.com

For more information about LG Energy Solutions,

Thank You

Grow with LG