Powergen International 2003 IMTE AG

Size: px
Start display at page:

Download "Powergen International 2003 IMTE AG"

Transcription

1 Las Vegas, USA December 2003 Advantages of Combined Wind-Biogas Energy Utilization for Distributed Power Generation Presented by Co-authors Miro R. Susta Kurt Stangl Peter Luby IMTE AG Switzerland Power Consulting Engineers IMTE AG 1

2 REFERENCES IMTE AG PAPERS Opportunities for Biomass Power Plants in Southeast Asia Region Presented at Powergen Asia 2002 in Singapore Biomass Energy Utilization & Environment Protection - Commercial Reality and Outlook Presented at Powergen Asia 2003 in Vietnam IMTE AG 2

3 WORLDWIDE SITUATION MORE THAN 2 BILLION PEOPLE AROUND THE WORLD LIVE WITHOUT CONNECTION TO THE POWER NETWORK IMTE AG 3

4 WORLDWIDE TREND STAND ALONE (DISTRIBUTED) POWER SYSTEMS WILL EXPERIENCE THE HIGHEST GROWTH RATES GROWING HIGH QUALITY ELECTRICITY DEMAND GRID-COUPLED SYSTEMS WILL CLEARLY DECREASE AFTER 2010 IMTE AG 4

5 WORLDWIDE TREND STAND ALONE (DISTRIBUTED) POWER SYSTEMS WILL EXPERIENCE THE HIGHEST GROWTH RATES GROWING HIGH QUALITY ELECTRICITY DEMAND GRID-COUPLED SYSTEMS WILL CLEARLY DECREASE AFTER 2010 IMTE AG 5

6 WORLDWIDE TREND STAND ALONE (DISTRIBUTED) POWER SYSTEMS WILL EXPERIENCE THE HIGHEST GROWTH RATES GROWING HIGH QUALITY ELECTRICITY DEMAND GRID-COUPLED SYSTEMS WILL CLEARLY DECREASE AFTER 2010 IMTE AG 6

7 WORLDWIDE PROSPECTS EU TO RAISE THE SHARE OF RENEWABLE ENERGIES FROM 13% TO 15% BY 2010 INDIA IS TO ACHIEVE 10% SHARE FROM RENEWABLES BY 2012 IMTE AG 7

8 WORLDWIDE PROSPECTS EU TO RAISE THE SHARE OF RENEWABLE ENERGIES FROM 13% TO 15% BY 2010 INDIA IS TO ACHIEVE 10% SHARE FROM RENEWABLES BY 2012 IMTE AG 8

9 Content Introduction Distributed Power Generation Hybrid Power Plants - Introduction Syngas Power Plants Biogas Power Plants Wind Power Plants Main Features od Distributed Hybrid Power Plants Commercial Aspects - Economic Viability Summary - Conclusions IMTE AG 9

10 ? IMTE AG 10

11 THE KYOTO PROTOCOL, ALTHOUGH NOT RATIFIED TO THE EXTENT INTENDED, HAS BECOME A MAJOR ISSUE FOR GOVERNMENTS WORLWIDE IMTE AG 11

12 FOSSIL FUELS CO 2 IMTE AG 12

13 GLOBAL WARMING! IMTE AG 13

14 FOSSIL FUELS ARE DEPLORABLE IMTE AG 14

15 POWER GENERATION SYSTEMS USING RENEWBLE RESOURCES DO NOT PRODUCE GREENHOUSE GASES IMTE AG 15

16 A COMBINATION OF BIOMAS ENERGY WITH WIND POWER FORMS SERIOUS ALTERNATIVE TO FOSIL FUELS IMTE AG 16

17 Introduction Distributed Power Generation Hybrid Power Plants - Introduction Syngas Power Plants Biogas Power Plants Wind Power Plants Main Features od Distributed Hybrid Power Plants Commercial Aspects - Economic Viability Summary - Conclusions IMTE AG 17

18 Distributed Power Generation refers to- ELECTRICAL POWER THAT IS GENERATED AT OR NEAR THE LOCATION WHERE THE ENERGY IS NEEDED INDEPENDENT ELECTRICTY SUPPLY ACORDING TO LOCAL AREA DEMAND IMTE AG 18

19 Distributed Power Generation refers to- ELECTRICAL POWER THAT IS GENERATED AT OR NEAR THE LOCATION WHERE THE ENERGY IS NEEDED INDEPENDENT ELECTRICTY SUPPLY ACORDING TO LOCAL AREA DEMAND IMTE AG 19

20 Distributed Power Generators up to 60 MW Main Limitations: Power Demand at selected Location IMTE AG 20

21 REMOTE SMALL VILLAGES AND RURAL AREAS DO NOT HAVE POWER NETWORK ACCESS IMTE AG 21

22 AROUND 30% (54 MILLIONS) OF BRASIL s POPULATION LIVES IN RURAL AREAS AROUND 50% OF THEM HAVE NOT ACCESS TO ELECTRICITY IMTE AG 22

23 MORE THAN 90% (18 Mio) OF TANZANIAN POPULATION HAVE NOT ACCESS TO ELECTRICITY IMTE AG 23

24 DISTRIBUTED POWER GENERATION SYSTEMS ARE GRID-CONNECTED OR STAND ALONE TECHNOLOGY SYSTEMS THAT CAN BE INTEGRATED INTO SMALL TOWNSHIPS, COMMERCIAL OR INSTITUTIONAL BUILDINGS, INDUSTRIAL FACILITIES AND OTHER GROUP OF POWER CONSUMERS IMTE AG 24

25 IMTE AG IMTE AG 25

26 Distributed Generation for- Base Load - Peak Load - Back-up - Remote - High Quality Power Production. IMTE AG 26

27 Benefits SMALLER, MODULAR POWER GENERATING UNITS CLEANER & EFFICIENT INDIVIDUAL POWER CHOICE SATISFACTION MORE POWER OPTIONS INCREASED AVAILABILITY & RELIABILITY LOWER POWER GENERATION PRICE MORE COMPETITION IMTE AG 27

28 Distributed Energy Solutions Applications Uninterruptible Power Supplies Power Supplies for Wireless Communications and Emergency Management Systems Network Load Management Generation Load Management Energy Production Efficiency IMTE AG 28

29 Syngas Raw Biomass Storage Place Biomass Delivery Dryer Gasifier Untreated Biogas Air Steam Hot Gas Clean-up Air Gas Turbine G G Heat Recovery Steam Generator Flue Gas Steam Turbine Process Steam IMTE AG 29 G M IMTE AG

30 Introduction Distributed Power Generation Hybrid Power Plants - Introduction Syngas Power Plants Biogas Power Plants Wind Power Plants Main Features od Distributed Hybrid Power Plants Commercial Aspects - Economic Viability Summary - Conclusions IMTE AG 30

31 Hybrid energy systems combine two or more different power generation applications. IMTE AG 31

32 Hybrid energy systems combine two or more different power generation applications. When integrated, these systems overcome limitations inhered in either one. IMTE AG 32

33 < 1000 kw WIND GENERATOR AC CONSUMER BIO WASTE COLLECTION TANK DIGESTER GAS TANK ENGINE GENSET SOLID WASTE IMTE AG 33

34 Biomass Fuel ± 30 MW IMTE AG 34

35 Wind & Biomass < 60 MW IMTE AG 35

36 Biogas - Wind 10 kw 1 MW Main Limitation: Balance betwen Windpower & Biopower IMTE AG 36

37 Biomas/Syngas - Wind MW Main Limitations: Biomass Suply Balance between Windpower & Biopower IMTE AG 37

38 HYBRID POWER PLANTS POWER OUTPUT MW Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Wind Power Biomass Power Total Hybrid Power IMTE AG 38

39 HYBRID POWER PLANTS 12x1.6 MW WIND +15 MW BIOMASS POWER OUTPUT ELECTRICAL ENERGY PRODUCTION MW kw h Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Wind Power Biomass Power Total Hybrid Power Wind Biomass Total IMTE AG 39

40 Wind Speed vs. Power Generation MW CUT-IN WIND SPEED 18km/h (11 mi/h) Rated Wind Speed 60-80km/h (40-50 mi/h) *0 *5 *10 *15 *20 *25 Wind speed (m/s) CUT-OUT WIND SPEED 90km/h (56 mi/h) IMTE AG 40

41 Introduction Distributed Power Generation Hybrid Power Plants - Introduction Syngas Power Plants Biogas Power Plants Wind Power Plants Main Features od Distributed Hybrid Power Plants Commercial Aspects - Economic Viability Summary - Conclusions IMTE AG 41

42 5 30 MW Main Limitation: Biomass Supply IMTE AG 42

43 15 MW SYNGAS PLANT Biomass Consumption tons/month 12'000 10'000 8'000 6'000 4'000 2'000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Rated Production Maximum Production IMTE AG 43

44 Solid fuel gasification is enjoying a steeply growing market share. IMTE AG 44

45 Solid fuel gasification is enjoying a steeply growing market share. Due to high investment costs the biomass gasification market is not following this trend yet. IMTE AG 45

46 Strong growth of biomass gasification can be expected in 5-10 years time when the costs are further decreased, and commercial risks reduced IMTE AG 46

47 IMTE AG 47

48 IMTE AG 48

49 Introduction Distributed Power Generation Hybrid Power Plants - Introduction Syngas Power Plants Biogas Power Plants Wind Power Plants Main Features od Distributed Hybrid Power Plants Commercial Aspects - Economic Viability Summary - Conclusions IMTE AG 49

50 <500 kw Main Limitation: Digester Size IMTE AG 50

51 Typical Parameters Biogas-production ~ m 3 / kg TS Retention time days Average lower heating value ~22 MJ/m 3 IMTE AG 51

52 Typical Biogas Composition CO2 30% Others H2S,N,H2,O 5% CH4 65% IMTE AG 52

53 IMTE AG IMTE AG 53

54 Introduction Distributed Power Generation Hybrid Power Plants - Introduction Syngas Power Plants Biogas Power Plants Wind Power Plants Main Features od Distributed Hybrid Power Plants Commercial Aspects - Economic Viability Summary - Conclusions IMTE AG 54

55 PLANT OUTPUT DEPENDS ON AVAILABLE LAND AREA AND SELECTED UNIT SIZE Unit Size 1 kw and 4.5 MW IMTE AG 55

56 WORLDWIDE WIND POWER GENERATION CAPACITY GW *1990 *1991 *1992 *1993 *1994 *1995 *1996 *1997 *1998 *1999 *2000 *2001 *2002 Year IMTE AG 56

57 MAJOR WIND GENERATORS GW Sweden Japan Greece China UK Netherlands Italy India Denmark Spain USA Germany Rest of World IMTE AG 57

58 kwh PAID TO WIND GENERATORS US /kwh Irland Canada Sweden Japan Greece UK Netherlands Italy Denmark Spain USA IMTE AG 58

59 WIND POWER CAPACITY GROWTH FORECAST FORECAST GW *1990 *1992 *1994 *1996 *1998 *2000 *2002 *2004 *2006 *2008 *2010 *2012 *2014 *2016 IMTE AG 59

60 IMTE AG 60

61 Introduction Distributed Power Generation Hybrid Power Plants - Introduction Syngas Power Plants Biogas Power Plants Wind Power Plants Main Features od Distributed Hybrid Power Plants Commercial Aspects - Economic Viability Summary - Conclusions IMTE AG 61

62 Distributed Energy PROVIDES REMOTE COMMUNITIES WITH COST EFFECTIVE ENERGY GENERATION AND SUPPLY OPTIONS IMTE AG 62

63 Distributed Energy PROVIDES REMOTE COMMUNITIES WITH COST EFFECTIVE ENERGY GENERATION AND SUPPLY OPTIONS DRIVES INVESTMENT IN LOCAL INDUSTRY AND BUSINESSES IMTE AG 63

64 Distributed Energy PROVIDES REMOTE COMMUNITIES WITH COST EFFECTIVE ENERGY GENERATION AND SUPPLY OPTIONS DRIVES INVESTMENT IN LOCAL INDUSTRY AND BUSINESSES MOVES REMOTE REGIONS TOWARD MORE SUSTAINABLE ENERGY MANAGEMENT IMTE AG 64

65 Distributed Energy PROVIDES REMOTE COMMUNITIES WITH COST EFFECTIVE ENERGY GENERATION AND SUPPLY OPTIONS DRIVES INVESTMENT IN LOCAL INDUSTRY AND BUSINESSES MOVES REMOTE REGIONS TOWARD MORE SUSTAINABLE ENERGY MANAGEMENT PROVIDES OPPORTUNITIES FOR GREATER LOCAL CONTROL OF ELECTRICITY DELIVERY AND CONSUMPTION IMTE AG 65

66 Distributed Power Generation CAN PROVIDE INDEPENDENT FUL AND/OR BACKUP POWER AT CONSUMER s SITE or CAN BE HIGHLY INTEGRATED WITH ELECTRICITY NETWORK IMTE AG 66

67 kw h Jan Feb M ar Apr May Wind Max. Production Excess Production Jun Jul Aug Sep Oct Nov Biomass Rated Production Dec IMTE AG 67

68 Introduction Distributed Power Generation Hybrid Power Plants - Introduction Syngas Power Plants Biogas Power Plants Wind Power Plants Main Features od Distributed Hybrid Power Plants Commercial Aspects - Economic Viability Summary - Conclusions. IMTE AG 68

69 Specific Capital Costs vs. Fuel Costs for Miscellaneous Power Generation Systems Capital Costs GT CCGT Coal Conventional IGCC PFBC Nuclear Hydro Wind Biomass Combustion FB Combustion FB Gasification A.Digestion Solar Geothermal US$/kW USCents/kWh Fuel Costs IMTE AG 69

70 Price Estimation MW Syngas Windpower Plant USD / kw IMTE AG 70

71 Pos Item Unit Price 1 Turnkey Price (EPC) mio US$ Site Preparation mio US$ O & M Mobilization mio US$ Contingency mio US$ Land Costs mio US$ Reimbursed Development mio US$ Insurance mio US$ Consultants' and Advisors' Fees mio US$ Financing Fees mio US$ Interest during Construction mio US$ TOTAL mio US$ IMTE AG 71

72 Changes in interest rates and fees; Variation in exchange rates; Changes in applicable laws; Changes in imposition of any taxes; Project delay beyond the control of the Investor; Changes in financing draw-down schedule; Variations in scope of supply; Events or circumstances not within reasonable control of the Investor. IMTE AG 72

73 Pos Item Unit Worst Case Best Case 1 Gross Power Output MW Degradation factor % Power Plant Availability % Capacity Factor % Expected PPA Tariff US$/kWh Fixed O & M Escalation %/Year Variable O&M Escalation %/Year PPA Tariff & Capacity Escalation %/Year Biomass Price Escalation %/Year Auxiliary Consumption % Hybrid Plant Efficiency % Operational Months No Biogas/syngas LHV MJ/m Biogas/syngas production m 3 /kg SW Assumed Solid waste Price US$/ton 3 2 IMTE AG 73

74 IRR & Casfflow (0.225 USD/kWh) Net Present Value / IRR PROJECT CASH FLOW Year Discount Rate (%) IMTE AG 74

75 Introduction Distributed Power Generation Hybrid Power Plants - Introduction Syngas Power Plants Biogas Power Plants Wind Power Plants Main Features od Distributed Hybrid Power Plants Commercial Aspects - Economic Viability Summary - Conclusions IMTE AG 75

76 DISTRIBUTED HYBRID POWER SYSTEMS ARE EXCELLENT CHOISE FOR- COUNTRIES WITH LIMITED POWER NETWORK AND RURAL HOMES, FARMS, RANCHES, SMALL FCTORIES, OR INDUSTRIES LIKELY TO PRODUCE AND USE RENEWABLE POWER IMTE AG 76

77 Worldwide renewable energy portfolio standards; Energy tax credits tax incentives for development of renewable energy projects; Utilities should be encouraged to enter into longterm power purchase agreements with renewable energy power producers; Dissemination of distributed hybrid power systems advantages to the public; IMTE AG 77

78 DISTRIBUTED POWER GENERATING SYSTEMS ENTAIL A SIGNIFICANT FIRST- COST EXPENDITURE.. BUT BUSINESS THAT SUFFERS A POWER INTERRUPTION OR WHOSE POWER QUALITY DETERIORATES TO THE POINT THAT COMPUTER-RELATED OPERATIONS ARE COMPROMISED WILL LIKELY VIEW THAT COST AS JUSTIFIED. IMTE AG 78

79 THANK YOU IMTE Power Consulting Engineers Ltd. IMTE AG 79