POWER GENERATION SPG FLEXIBILITY VALUE ENGINE DEVELOPMENT - METHANOL

Transcription

1 POWER GENERATION SPG FLEXIBILITY VALUE ENGINE DEVELOPMENT - METHANOL 2015 European Methanol Policy Forum Agenda 13 & , Brussels Toni Stojcevski, Project Manager Methanol Wärtsilä

2 Power System evolution increasing need for flexibility Past Current Future Slow Intermittent Dynamic Generation Predictable Net Load Dynamic Load 0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00 0:00 0:002:004:006:008:0010:00 12:00 14:00 16:00 18:00 20:00 22:00 0:00 0:002:004:006:008:0010:00 12:00 14:00 16:00 18:00 20:00 22:00 0:00 Trading Long term Limited integration More short term More integration Mostly short term Fully integrated Market Based on old system Adjust to changes Ready to deliver

3 Sources of flexibility Generation Interconnectors Demand response Storage Hydro Power Flexible thermal capacity ICE / SPG* Balance RES between countries Smart Grid concept Flexible demand side Consumers would adjust their load Various storage technologies pump hydro, batteries, etc. All the sources of flexibility are needed Level playing field is needed *ICE = Internal Combustion Engines / SPG = Smart Power Generation / 18 Wärtsilä Doc.ID: Revision: Status:

4 Comparison of technologies that can provide flexibility IEA study from 2014, shows that the generation side is clearly the most affordable way to provide flexibility; the more flexible the dispatchable generation, the more affordable is the flexibility 400 Cost of flexibility by sources IEA report, The power of Transformation LCOF USD/MWh SPG = Smart Power Generation ICE* SPG CCGT Coal Nuclear 50 km 100 km 250 km 500 km Water heat Al. Smelter Pum hydro CAES Generation Interconnections Demand Response Storage Li-ion LCOF = Levelized cost of flexibility Source: International Energy Agency, 2014, The Power of Transformation *ICE = Internal Combustion Engines

5 Most efficient 4-stroke ICE in the world I could also operate on methanol and renewable fuels 5 Wärtsilä

6 Technology MD System layout Sealing oil 700 bar Control oil 350 bar Oil unit Methanol tank and LP feed system Nitrogen purge* 10 bar Water tank for dilution of fuel return SSV Methanol 600 bar EHSV Diesel pump Methanol pump Nitrogen generator SSV: Shutdown and Safety Valve EHSV: Electro-Hydraulic Solenoid Valve * All methanol lines can be flushed with nitrogen.

7 Regulations compliance - PPM & NOx Typical Diesel Fuel Methanol Fuel * * E. Svensson, B. Johansson, M. Tunér, Lund University, Zero particulates Much lower Nox

8 Technology Test results of Wärtsilä Sulzer ZA40S-MD r o x O N C O IS ific ] 8.00 h c W e /k 6.00 p [g S e 4.00 rin a M ZA40S_reference Z40_reference 2014_LFO_CS Z40_reference 2003_HFO_CS 2.00 Z40_load swing_450bar pinj Z40_load swing_600bar pinj Filter Smoke Number Meas 1 [FSN] ZA40_reference Z40_reference 2003_HFO_CS Z40_reference 2014_LFO_CS Z40_load swing_450bar pinj Z40_load swing_600bar pinj t5 Temp b Turbine [ C] BMEP [bar] ZA40S_reference Z40_reference 2003_HFO_CS_norm Z40_reference 2014_LFO_CS_norm Z40_load swing_450bar pinj_norm Z40_load swing_600bar pinj_norm BMEP [bar] * BMEP [bar] Z40_reference Z40_reference 2014_LFO_CS ] h 235 Z40_load swing_450bar pinj W230 /k Z40_load swing_600bar pinj [g 225 Z40_reference_HFO_2003 d 220 c te 215 re 210 o 205 C200 V H195 L 190 C F 185 ~2% S 180 B l 175 ta 170 T o Engine Power % [%] No reduction in output and unchanged load response Full fuel redundancy * Preliminary tests - Engine consumption - Further investigation on engine efficiency to be performed - (Heat Balance and heat release to be calculated)

9 9 Value of flexibility on system level Case California Study results from DNV Kema Inc How to Manage Future Grid Dynamics: Quantifying Smart Power Generation Benefits October 16, 2015

10 Key features of most advanced electricity markets Stable regulatory environment Balancing responsibility for all market players Market close to real time Transparency in pricing Price volatility accepted especially in the balancing markets No or low existence of subsidies Market based procurement of system services 10 Wärtsilä

11 Are there markets that reward the flexibility? ERCOT Texas, USA Free electricity markets can reward flexibility deliver adequacy be cost-efficient NEM Australia 11 Wärtsilä

12 Advanced Electricity markets Case US, Texas ,000 MW wind power 10% of electricity 20,000 MW by 2017 already decided Market did not deliver no new investments in flexible capacity Choose the way forward No capacity mechanism Incremental changes in market design, e.g. Limit the TSO activity & higher price cap Investor confidence Emerging project activity Over 8,000 MW of new flexible capacity in the pipeline Market based investments Enhanced market will deliver 12 October 16, 2015 Doc.ID: Revision: Status:

13 Changes In Operating Environment Goals Recent focus Change Consequences Reason Security Sustainability Affordability Competitiveness Decarbonisation High RES* Power System CHALLENGES Higher consumer prices Utility business model challenge System reliability challenges Increased emissions Subsidies Decreased system efficiency Higher maintenance costs Lower prices Less operating hours Lack of flexibility Decreased system efficiency Installed RES not fully utilised Flexibility need System efficiency Investment environment Security of supply *RES = Renewable Energy Sources

14 Key question for Europe How to rebuild the trust on electricity market and boost the investments in flexibility? / 18 Wärtsilä Doc.ID: Revision: Status:

15 What should the EU do? = level playing field Fix the flaws Market signals Effect Balancing responsibility for all Target balancing cost to the origin not to consumers Marginal pricing and cost reflective imbalance charges Short-term markets more important Volatile wholesale prices Improved system efficiency will decrease overall electricity costs Increased exposure for all market players Hedge against volatility Signal the need for new investments Learnings from other markets: Market will find its balance as new business models evolve market should provide incentives In the current European situation old capacity should exit the market - market environment has changed and some old capacity is not competitive anymore why to subsidize it? New players will enter to market if they see opportunity Trust on market is the key 15 / 18 Wärtsilä Doc.ID: Revision: Status:

16 Wärtsilä Flexible Power Plants Estonia, 250 MW, Grid reserve Brazil, 330 MW, Hydro balancing USA, 204 MW, Wind enabler South Africa, 180 MW, Base load

17 What flexibility brings to us reduces generation costs lowers consumers energy bill and improves the competitiveness of European industries improves security of supply mature technology high system efficiency methanol as clean liquid fuel alternative reduces CO2 and other emissions renewable methanol fuel possible 7 October 16, 2015