Flexible Power Generation Enabling Wide Integration of RES

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1 The European Power Generation Strategy Summit & Power Project Financing and New Technologies Forum 3rd-5th December 2012 Four Seasons - Prague Czech Republic Flexible Power Generation Enabling Wide Integration of RES Kenneth Engblom, Marketing Director, Power Plants Wärtsilä Corporation

2 Wind chasing in Colorado, US Load Grid operator data from: Coal power plants Wind generation Gas generation Plains End 1 & 2 power plants Flexible generation In systems with high wind penetration, thermal power plants face Lower average load & more part load operation Faster ramp up s and down s More starts and stops

3 GW This is how it used to be! Production by technology OC GT CC GT COAL 5 0 NUCLEAR Hour

4 GW This is where it is heading! FLEX OC GT GEN 1 SOLAR FLEX GEN 2 CC GT WIND COAL 5 0 NUCLEAR Hour

5 GW Commercial challenge Conventional Plants -shorter Operating hours -reduced thermal efficiency -increased wear & tear FLEX GEN 1 SOLAR FLEX GEN 2 WIND COAL 5 NUCLEAR Hour

6 GW Technical challenge 45 Quick Starts & loading Quick Stops & de-loading FLEX GEN 1 SOLAR FLEX GEN 2 WIND COAL 5 NUCLEAR Hour Part load & Spinning reserves

7 Smart Power Systems Commercial challenge How can market support investments in flexibility? How to differentiate between capacity and adequacy? Regulation/Subsidy vs. market driven? Affordable Reliable Smart Power System Sustainable Technical Challenge What type of flexibility do we need? How is the flexibility technically achieved? How to maintaining high efficiency and low emissions? How to avoid increasing Wear & Tear?

8 Options to make Power Systems smarter? Smart Power Generation Demand Side Management (Smart Grid) Smart Power System Interconnection (Larger Smart Grids) Energy Storage

9 What makes Power Generation Smart? High efficiency Immediately & at any load Fuel flexibility Gas, Diesel, HFO, Bio Fuels, Hydrogen Reliable, Dependable and committable Energy Efficiency Multiple generating units & Firm capacity Operate on multiple markets Energy markets (kwh) Capacity markets (kw) Ancillary services markets (+/ - kw / s) Optimum plant location close to consumers Fuel Flexibility Smart Power Generation Operational Flexibility CHP opportunities Fast access to income through fast-track project delivery Modular design, Step-vise investments Competitive O&M costs No impact of varying running conditions

10 What does this technology look like?

11 Modern Gas Engines Superior flexibility From Stand-still: Power out in <60s From stand-still to 100 % load in less than 5 minutes From 100 % - to total stop in 1 minute While running: From 0 100% load in <60s

12 Combustion engine fast starting, loading and unloading Only 5 minutes from start command to full load Only 1 minut from full load to stop Loading (< 4 minutes) Load % rpm 750 Synchronisation (<5s) Speed acceleration (25s) After only 5 minutes, loading again Prelubrication (30s) rpm Load seconds 330 Engines in HOT STANDBY mode, i.e. preheated (HT water temp. >70 C) 0 * Wärtsilä 34SG C2 50 Hz/750 rpm

13 Multiple Units (Efficiency) Engine 3 Engine 4 Engine 6 Engine 8 Engine 9 Engine 10 Highest efficiency over wide plant load range %

14 Multiple Units (Step Wise investments) MW Combined Cycle MW Simple Cycle MW Simple Cycle Power Generation based on multiple engines

15 Fuel flexibility Fuel flexibility is important in locations where: Gas infrastructure becomes available later Gas supply interruptions occur Wärtsilä DF (dual fuel) engines can operate on a wide variety of fuels, including: Natural gas (NG), Liquified natural gas (LNG) Light fuel oil (LFO), Heavy fuel oil (HFO) & Liquid biofuels (LBF) DF engines can transfer from gas to liquid fuel operation, or vice versa, during operation, at any load, instantaneously and automatically Sangachal, Azerbajan 18X18V50DF, 308 MW Tri Fuel: Natural gas & LFO & HFO Year of completion: 2009

16 Gas combustion engine, 50SG Highest efficiency existing today among all simple cycle power plants 50 Hz/500 rpm 18,3 MW Power (e) 60 Hz/514 rpm 18,8 MW Power (e) Heat rate 7411 kj/kwh * Electrical efficiency 48.6 % * With the Flexicycle solution the advantages of a flexible simple cycle plant are combined with the superb efficiency of a combined cycle plant * Heat rate and electrical efficiency at generator terminals, including engine driven pumps, ISO 3046 conditions and gas LHV > 28 MJ/Nm3. Tolerance 5%. Power factor 0.8. Gas Methane Number > 80. Nm3 defined at NTP ( K and kpa). Example of a 480 MW combined cycle power plant with 24 generating units of Wärtsilä 18V50SG and 1 steam turbine

17 WÄRTSILÄ 500 MW FLEXICYCLE Combustion Engine: From standstill to Power Out in 1 min 10-90% load in < 1 min 400MW in 1 min! Steam Turbine: % Load in < 15 min 100MW in 15 min Dispatchers Dream: TIME: 0 Min LOAD: 0 % Efficiency: 0 % -> 1 min -> 10% -> 30% -> 2 min -> 90% -> >48% -> 17 min -> 100% -> >50% G Summit, Prague, Dec Kenneth Engblom, Wartsila Corporation

18 SMART POWER GENERATION - VALUES & FEATURES Output (%) ALL in ONE! FASTSTART 2 BASELOAD 3 LOAD FOLLOWING 4 LOW-LOAD OPERATION 5 FAST STOP VALUE Grid stability support Ancillary Service market VALUE Competitive life cycle generation cost Any output, same generation cost VALUE Wind balancing Ancillary Service market VALUE low load = No load Not running when no revenue VALUE Not running when no revenue PV enabler FEATURES Power to grid in <1min 5 min to full power Start up efficiency FEATURES Highest simple cycle efficiency Multi unit -> high firm capacity Flexicycle FEATURES Part load efficiency unaffected No EOH cost for cycling FEATURES 1min shutdown No minimum down time Zero fuel cost Zero emissions FEATURES 1min shutdown No minimum up time No EOH calculation EOH: Equivalent Operating Hours

19 Do these Smart Power Generation type plants exist?

20 Some Natural Gas Power Plant references STEC Pearsall, USA Output: 202 MW Fuel: Natural Gas Prime movers: 24 x Wärtsilä 20V34 SG Operating mode: Wind following Start of commercial operation: 2009

21 230 MW, USA Plains End I and II, Colorado, USA Fuel: Natural Gas Prime movers: 20 x Wärtsilä 18V34 SG, 14 x Wärtsilä 20V34SG Output: 231 MW Operating mode: Peaking / Wind following Year of completion: 2001 & 2006

22 163 MW, USA Humboldt Bay Generating Station, California, USA Fuel: Dual (Natural Gas & LFO) Prime movers: 10 x Wärtsilä 18V50DF Output: 163 MW Operating mode: Flexible Baseload Year of completion: 2010 Scope: EPC

23 260 MW, Estonia Kiisa Power Plant, Estonia Fuel: Dual (Natural Gas & LFO) Prime movers: 27 x Wärtsilä 20V34DF Output: 250 MW Operating mode: Grid stability (200 operating hours per year) Year of completion: Planned 2013 Scope: EPC

24 Conclusion, Smart Power Generation Energy Efficiency Affordable Enable! Fuel Flexibility Smart Power Generation Operational Flexibility Reliable Smart Power System Sustainable Making Power Generation Smarter!