SMART POWER GENERATION

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1 SMART POWER GENERATION

2 ENABLING THE TRANSITION TO A MODERN, SUSTAINABLE POWER SYSTEM Electricity consumption will continue to grow rapidly all over the world during the coming decades. At the same time, concerns related to global warming and declining fossil fuel resources have created political pressure and a need to reduce carbon emissions through renewable power. In 2011, 68% of global electricity production was based on fossil energy sources. At present, renewable sources, hydro power excluded, cover a good 3% of total production, although the share is growing rapidly. Together with daily load variations, however, the intermittency of renewable power brings along new challenges to power systems. 2 Towards a new low carbon power system Electricity demand fluctuates depending on the time of day, the day of the week, and the season of the year. Current power systems have been designed to handle these variations, but it is becoming increasingly problematic to match power generation with the ever growing demand. Wind and solar power are by nature intermittent. As wind conditions change, the output of wind power varies accordingly. This has to be balanced by other power plants. For example, when the wind speed calms from 10 m/s to 7 m/s which can happen many times a day and within a time frame of less than 15 minutes the output of modern large wind turbines is reduced by 60%. Imagine a fleet of e.g. 100 GW of wind power, which is being planned in many regions of the world, reducing the output with 60 GW in 15 minutes! How will the power system handle this? Obviously, current power systems have not been designed for such variations. This type of operation would cause serious suboptimisation, increased generation costs, and insufficient CO 2 reductions. Forecasting the magnitude and speed of wind and solar power variations is complicated and the inaccuracy just an hour ahead is considerable. Therefore, the low carbon power system of the future must be capable of continuously balancing such rapid, large scale variations. Wind-based electricity production does not follow power demand. In a power system with a high share of wind power, nights with high wind are particularly challenging since the major part of the thermal power production would have to be stopped. Furthermore, weather conditions in Europe, for example, are such, that low pressure fronts arriving from the west result in high winds simultaneously across the continent. Therefore, wind power cannot balance itself over larger geographical regions, and thus is a problem that cannot be solved by any grid solution. The current power systems, which consist mainly of non-flexible steam power plants,

3 Werner Nystrand/Folio need to be complemented with dispatchable, dynamic capacity to overcome this problem. There must be the capability for frequent system balancing on a large scale in the form of fast starts, stops and load ramps. The low carbon power system of the future will require a capacity which corresponds to ~ 50% of the installed intermittent power capacity Combined wind power output (GW) Spain Denmark North-East Germany North-West Germany Smart Power Generation is the ultimate solution There are many ways to improve power system balancing capabilities. Reservoir hydropower can be used where available. Similarly, smart grids with demand response offer a means of shifting some of the load, and the existing power system can also assist by regulating its output. Nevertheless, in the majority of cases these offer just a partial solution. By complementing the power system with Smart Power Generation, all system balancing challenges can be solved, even with the maximum quantity of intermittent renewables Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 The combined wind power output of Germany, Denmark and Spain shows that similar wind conditions occur simultaneously over large geographical areas, making it impossible for wind power to balance itself. Jan 16 Jan 17 Jan 18 Jan 19 Jan 20 Jan 21 Jan 22 Jan 23 Jan 24 Jan 25 Jan 26 3

4 ENERGY EFFICIENCY SMART POWER GENERATION FUEL FLEXIBILITY OPERATIONAL FLEXIBILITY Smart Power Generation enables a smart power system Smart Power Generation is the missing piece of the puzzle. It is a unique, modern combination of features that enables the transition to a more sustainable, reliable and affordable energy infrastructure. And it is available. Today. 4 Operational flexibility Smart Power Generation means excellent operational mode flexibility, and outstanding dynamic response. Being able to operate in multiple modes, from efficient base load power production to dynamic system balancing, makes these plants the key factor in power system optimisation. They can generate megawatts to the grid in 30 seconds from start-up and reach full load in two. They are designed to start and stop at the push of a button time after time without creating maintenance problems. Fast reserve, load following and peaking. We have it all covered complete with ancillary services and grid support. With a typical plant availability of 97%, plant reliability of 99% and starting reliability of more than 99%, one simply can t make a smarter choice. Smart Power Generation plants are also easy to locate next to critical load pockets, i.e. in cities, thanks to their plant size, and low emission and noise levels. The infrastructural requirements are also modest, with little or no water consumption, and low pipeline gas pressure (5 bar) needed. Energy efficiency Smart Power Generation plants based on multiple generating units are far more reliable and fuel efficient than single or several large power stations. They also serve efficiently on part load and in demanding ambient conditions,

5 RELIABLE AFFORDABLE SMART POWER SYSTEM SUSTAINABLE Multiple operating modes The flexibility of Smart Power Generation is emphasised by its capability in serving various operating modes. These include: zbase load generation The technology is proven in base load applications with more than 53,000 MW of references worldwide zrapid load following in the morning zstarting and loading units one by one as the load increases zpeaking during high consumption periods zbalancing wind power, i.e. Wind chasing zstarting, loading and stopping rapidly when wind conditions change zsystem balancing Fast frequency regulation and efficient spinning reserve zultra fast zero-emissions non-spinning grid reserve for any contingency situation Starting and producing power in just 30 seconds, and reaching full power in just 2 minutes zfast grid black start in case of a power system black out Smart Power System Flexible power generation plays a significant role in creating sustainable, reliable and cost effective power systems. Smart Power Generation, together with modernised transmission and distribution, enables electricity to be generated when and where it is most affordable. At the same time, it allows the consumption of electricity to be better balanced and more controlled. Smart Power Generation enables the complete power system to operate in the most cost efficient way with the lowest possible carbon emissions, and the maximum utilisation of wind and solar power. In addition, Smart Power Generation secures the electricity supply by balancing the system even during extreme wind variations and contingency situations. enabling high dispatch even in hot climates and at high altitudes. We also offer the highest available simple cycle energy efficiency of current technologies, 49% or more. With the Flexicycle solution the advantages of a flexible simple cycle plant are combined with the superb efficiency of a combined cycle plant. Fuel flexibility Smart Power Generation enables the continuous choice of the most feasible fuel, including solutions for liquid and gaseous fuels as well as renewables. The possibilities gained from multi-fuel plants and fuel conversion solutions hedge for the future. The role of natural gas in power generation is expected to grow significantly over the next decades. Recent technical breakthroughs and the commercialisation of shale gas have resulted in a substantial extension of the perceived depletion time of gas reserves and reduced the price of gas. With Smart Power Generation plants running on gas the 20% renewable energy share target set for 2020 by many nations is within reach. 5

6 Speed rpm FAST STARTING AND LOADING Start up conditions +HT-water temperature >70 C Start up preparations 3. Speed acceleration and synchronisation Loading within 90 sec Full power reached within 120 sec PLAINS END I & II, COLORADO, USA The Plains End peaking power plant is based on 20 x Wärtsilä 18V34SG and 14 x 20V34SG gas engines. The plant has a total output of 231 MW and is used to balance Colorado s 1000 MW wind power capacity. Coal power plants Gas generation Plains End 1&2 power plants Flexible generation The Plains End power plant is used to balance Colorado s 1000 MW wind power capacity. Total PSCo wind generation PSCo obligation load PSCo total coal generation-pi calculation 5 Wind generation Total PSCo gas generation (calc) Plains End net MW PSCO.PCOG.NO-T.GEN.PEAG Load Power % Benefits The right amount of power at the right time is what Smart Power Generation is all about. It is a unique combination of features that benefit both power systems and power producers. For power systems For power systems, Smart Power Generation offers a number of tangible benefits. By enabling the maximum integration of wind and solar power capacity, and overcoming the challenges created by wind variability and curtailment, it offers a reliable, affordable and sustainable energy supply. Similarly, it removes the abusive stops and starts, and eliminates cyclic load from base load plants that are not designed for such variations. This serves to optimise the operation of the entire system and greatly enhances its overall efficiency and stability in variable wind and contingency situations, while also reducing the emissions of the whole system. The 20% by 2020 renewable energy targets become achievable, while the ability to locate Smart Power Generation capacity in load pockets shaves load peaks and notably reduces grid investment costs. For power producers For power producers, Smart Power Generation opens a number of possibilities. It allows them to operate on multiple markets, for example by selling power to energy markets and selling fast starting and ramping capabilities to ancillary services and capacity markets. The high efficiency levels enable high dispatch, which in turn increases revenues, while the multiple parallel generating units offer dependability in making commitments. The plants can be optimally located close to the consumers, and their fuel flexibility is an important hedge for the future. Delivery can be done on a fast-track basis, ensuring quick access to income. The maintenance is simple, and full OEM and O&M services are available. 6

7 References The conditions and needs of power generation vary tremendously from country to country. Some features may locally be more important than others, but Smart Power Generation will be an essential part of tomorrow s optimised and secure energy supply. STEC PEARSALL, TEXAS, USA The 202 MW STEC Pearsall power plant consists of 24 x Wärtsilä 20V34SG gas engines. The plant started commercial operation in 2009 and is utilised to balance variable wind power and supplies ancillary services to the ERCOT grid. ELERING, KIISA, ESTONIA The 250 MW Kiisa dual fuel power plant is based on 27 x Wärtsilä 20V34DF engines. The plant is scheduled to start commercial operation in 2013 and will operate as an emergency reserve power plant for the Estonian transmission system operator. SUAPE II, BRAZIL The 380 MW Suape II power plant is based on 17 x Wärtsilä 20V46F HFO engines. The power plant is mainly intended to supply power during the dry season when availability of hydropower is insufficient. ALIAGA, TURKEY The 270 MW Aliaga power plant consists of 28 x Wärtsilä 20V34SG gas engines. The plant has been constructed in three phases from 2008 to SANGACHAL, AZERBAIJAN The Sangachal dual fuel base load power plant is based on 18 x Wärtsilä 18V50DF engines with a total output of 308 MW. The plant can utilise natural gas, heavy fuel oil (HFO) and light fuel oil (LFO) depending on which fuel offers the most competitive operation. UTE LINHARES, BRAZIL The 204 MW Linhares power plant, based on 24 x Wärtsilä 20V34 engines, started commercial operation in

8 Wärtsilä is a global leader in complete lifecycle power solutions for the marine and energy markets. By emphasising technological innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland. WÄRTSILÄ is a registered trademark. Copyright 2013 Wärtsilä Corporation. PP-EN-DBAB / / Bock s Office /