Italo Freitas, CEO, AES Tiete Energia

Transcription

1 AES Asset Management System Italo Freitas, CEO, AES Tiete Energia MATERIAL CONFIDENCIAL MATERIAL CONFIDENCIAL

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3 Parque Gerador AES Tietê Typ e Nº UGs COD (MW) Água Vermelha UHE Nova Avanhandava UHE Promissão UHE Bariri UHE Barra Bonita UHE Ibitinga UHE Euclides da Cunha UHE Caconde UHE Limoeiro UHE Mogi Guaçu PCH ,2 São Joaquim PCH São José PCH Name 35 Generation units GW

4 The asset management system impact on the Business Asset management mindset; The context of AES Tietê in 2009 and the need for Asset Management; Asset Management for the future acquisition 4

5 The main objective Balance among among conflicted conflicted drivers drivers Balance Performance Performance Risk Risk Cost Cost Life Cycle Identificatio Identificatio nn Approve Approve Specificatio Specificatio nn Acquisiti Acquisiti on on Development Installation Installation O&M O&M Decomi Decomi Maintain Maintain Renew/ Disp Use Use

6 Organization Alignment Organisation Strategic Plan = Corporate or Business Plan AM Policy (Common principles & what must be achieved) AM Strategy (How policy will be delivered; Entire portfolio) AM Objectives (Specific Asset/ System Contributions) AM Plans (Who does What, When & Where) Existing Assets Maintenance strategy & mgmt Life-extension & refurbishment Modification or Disposal e.g. Asset Reference or Whole Life Plans New Assets Life Cycle Evaluation Project planning & management Construction & commissioning e.g. Investment/ Construction programs, operating & maintenance plans, purchasing & contracting policies etc.

7 The three roles work in a chain Determine Objectives Asset Owner Asset Manager Service Provider Manage Stakeholders Regulatory affairs Compliance Funding Setting targets (by means of the BVF) Evaluate plans to preconditions Determine overall Business Strategy Tariff determination Draw up plans and Source Services Specificatio n of Plans Realizing Plans Evaluate performance based on reporting Stakeholder dialogue based on performance Influence Regulator and other Stakeholders Formalized (SLA s) Create/manage risk register Develop investment and maintenance strategies Prepare investment and maintenance plans (shortand long-term) Assign work to service provider Manage progress of plans Information Management Report and Evaluate Audit performance (quality, service, costs, planning, etc) Analyse progress on plans Evaluate/benchmark market conformity Prepare reports to Asset Owner Formalized (SLA s) Translate plans to activities Work planning Resource planning Obtain work permits Order materials and subcontract services Project management Efficiently carry out the planned activities Supervise subcontractors Operational management Data collection and register, Performed activities, Technical and financial administration of performed activities (hand over to operational management)

8 Significant changes in approach to asset based businesses are required Culture Shift Engineering focused company View service provision and quality as primary to success. Asset management is viewed as either maintenance or capital related. Management role is to allocate resources to appropriate work. Maintenance led by engineering specifications. Service oriented company Understanding risk associated with decisions. Asset management is viewed as investment appropriate to needs. Management decisions are based upon performance rather than activities required. Assets are managed against specific business-led indicators. To achieve the change in focus requires a complete transformation of the way an asset-based business is managed.

9 The road to best in class Asset Management can be split into 5 distinct phases Road Map to Best-in-Class Asset Management PHASE III PHASEII PHASE I Diagnose Create the Right Environment Go/ No go Fix the basics PHASE IV Learn to work in the new organisation PHASE V Getting excellent Go/ No go Enable technology for Asset Management Wks. 3-6 months. Xx months Xx months Xx months

10 The Diagnostic is performed alignment with the ISO55001 maturity scale Innocence Learning Applying Awareness Maturity Level 0 The elements required by PAS 55 are not in place. The organisation is in the process of developing an understanding of PAS 55 Optimising & Integrating Embedding Development nce Competence Innovating e Excellence Maturity Level 1 Maturity Level 2 Maturity Level 3 Maturity Level 4 The organisation has a basic understanding of the requirements of PAS 55. It is in the process of deciding how the elements of PAS 55 will be applied andhas started to apply them The organisation has a good understanding of PAS 55. It has decided how the elements of PAS 55 will be applied and work is progressing on implementation All elements of PAS 55 are in place and are being applied and are integrated. Only minor inconsistencies in application may exist Using processes and approaches that go beyond the requirements of PAS 55. Pushing the boundaries of asset management development to develop new concepts and ideas

11 Challenges Commitment top management / broad basis of commitment Clear defined roles and responsibilities (Asset owner, -manager, service provider) Consistency between the AM plans Reviewing strategies of operation and maintenance systematically (Besides finance, also quality, safety, etc.) Data quality & aligning data collection to subsequent data usage Performance measurement, motivation and rewarding (Contractors & suppliers) Getting life cycle and risk consideration into all projects Development of the right level of competence of risk management Time!

12 Benefits (1/2) Transparency in decision-making process over assets Compliance to the demand of a regulator Demonstrated in control of managing assets (Systems) Better insight in the quality and performance of your assets More awareness of the importance to optimally manage your assets Increase the reliability in realisation of the portfolio

13 Benefits (2/2) (Constant) development of the AM process Fulfilment of a mission statement like; Being leading in Asset Management Possibilities for benchmarking based upon an public standard Clear description of the activities and responsibilities (Placing them where they belong) Enforcing the organization tuning between different departments More consistency in methods of working and documentation

14 Asset Management System AES Tiete case The initial findings Recent fatalities; High forecast of losses in MRA (Mechanism of Reduced Assured Energy) ; No culture of Planning & Scheduling, acting basically correctively; High indicator of forced outages (EFOF); Misalignment between operational KPIs and Corporate Strategy; No definitions of critical equipments; Lack of criteria to prioritize investments and expenditures ; 14

15 Finanance Strategy F1. Optimize operational resources F3. Increase revenues from MRE People and Culture Internal Processes Customer and Society F2. Optimize Cost CS2. Reduce downtime Reliability PI1. Monitor asset lifecycle cost optimizing operating costs and process improvements PI5. Meet the maintenance plan effectively PI2. Reduce Administrative, Logistics, execution of corrective maintenance and preventive maintenance time delays CS3. Responsible operations Regulatory Aspects Producibility Operational Cost Maintainability/Supportability F4 Reduce exposure to MRA PI9. Increase the effectiveness of assets through optimal dispatch. PI4. Monitor critical equipment PI6. Improving the reliability of components / critical systems with high probability of failure PI7. Identify root cause and probability of failure to act proactively PI8. Quantify and act on human reliability PI12. Adjust assets to 100% of the rules and regulations established in the country. Safety Environmental PI10. Ensure compliance and effectiveness of SMS PI11. Ensure compliance and effectiveness of the contingency plan PI4. Ensure compliance and effectiveness of the EMS PI5. Search high environmental performance People Tecnology Culture P & C1. Managing by competencies P & C2. Quality in work P & C3. Management of reliable and secure information to support decision making P & C4. Integrated view of the business P & C6. Alignment with the values of AES P & C5. Continuous improvement APEX P & C7. safe behavior C8 & P Asset Management (PAS55)

16 Policy Top management of AES Tietê SA authorizes the following Policy Management System for Physical Asset: The company is committed to manage its physical assets in order to promote the welfare and development by providing safe, reliable and sustainable generation of energy by meeting regulatory requirements, legal and underwritten by AES Tietê, meeting the needs of stakeholders without compromising the health and safety of employees and the environment in which it operates. To optimize the use of its resources, the company put in place a comprehensive system for managing physical assets, which assesses risks and opportunities, based on the different stages of the life cycle of assets: Acquisition The new assets will be acquired with its functional characteristics in line with the company's strategy, the risk matrix and the criticality of the function will be exercised, measured by specific indicators that ensure: Greater ease of maintenance activities (Maintainability); Adequate care to the functions required in a definite time and in a particular operational context (Reliability); A maintenance strategy based operation and reliability, aligning activities with adequate logistical support (Supportability); A life cycle cost optimized to the required function (Cost Effectiveness). Operation and maintenance The assets will be operated and maintained by focusing on optimizing the availability, cost efficiency and compliance with regulatory requirements through: The proper fulfillment of plans and strategies for maintenance and operation; The continuous improvement of processes with innovations, new technologies and best practices; Consolidation of an integrated vision of the generation assets in resource sharing; The proper management of asset information to support the analysis and ensure decisions based on technical criteria; Risk assessment and adoption of safety measures to ensure no accidents or damage to the workforce, and community assets; Minimizing the impacts of activities on the environment, to meet all applicable legal requirements; Proactive management of costs, in which spending decisions are based on a multicriteria model and in line with the company's strategy; From a workforce internal and / or external skilled, motivated and accountable for their results. Decommissioning The assets to be decommissioned rules-based accounting, risk matrix and operating performance criteria and / or financial, in which they show: An increase related to the life cycle cost; Failure to meet the regulatory requirements, environment and safety; Failure to meet the required functions; The obsolescence of components. The decommission action must meet environmental and safety rules, optimizing the costs.

17 Plan and Initiatives

18 Information Management

19 Key Performance Indicator EFOF EFOF (%) (%) Reduction in EFOF around 70%. Asset Management actions are improving performance and reducing risks.

20 Ibitinga - 131,4 MW Promissão MW Euclides da Cunha 108,8 MW I S O Certified Bariri - 136,8 MW Limoeiro - 32 MW Nova Avanhandava - 347,4 MW Caconde - 80,6 MW Mogi - Guaçu - 7,2 MW Barra Bonita - 140,76 MW Água Vermelha ,2 MW

21 AAMS AES ASSET MANAGEMENT STANDARDS It was created by a team from more than 10 different AES businesses Based on different sources (PAS55, ISO55000, Australian STD, etc) Help to achieve the value Striving for excellence Uniformity among the businesses AMF was the starting point

22 STD0001 Asset Management System STD0002 Capital and Operating Expenditures STD0003 Management of Change STD0004 Risk Management STD0005 Asset Operation and Maintenance STD0006 Asset Supply Chain Management STD0007 Life Cycle Value Management STD0008 Training Awareness and Competence STD0009 Root Cause Analysis STD0010 Performance Monitoring STD0011 Recovery Plan STD0012 Information Management STD0013 Continuous Improvement STD0014 Business Continuity Management STD0015 Peer Review

23 Asset management as part of decision for future assets acquisition PORTFOLIO RISKS MITIGATION 1,60 1,40 1,20 1,00 0,80 0,60 0,40 0,20 0,00 06/ / / / / / / /2015 AES Tietê risk (Annual σ) Wind Portfolio risk (Annual σ) AES Tietê (2,667MW) + wind Wind10% 7.4% 7%

24 AES BRAZIL 2020 TARGET Create a lower-risk, sustainable generation platform in Brazil AES Tietê Hydro 2.6 GW Hydro 2.6 GW Wind 700 MW Solar 400 MW High hydrology exposure Diversified generation portfolio 3-4 year contracts Average 10 year contracts Concession ends in 2029 Extends life beyond end of concession 400 MW expansion obligation Meets expansion obligation Maintains projected dividends

25 Italo Freitas AES Tiete Energia produced by: