Power Insider Asia

PIINSIDER POWER

A S I A’ S L E A D I N G P O W E R R E P O R T

INDIA & CHINA COUNTRY FOCUS

BEYOND COPENHAGEN Are smart Grids the answer?, Laying the lines across Asia

A brave new revolution for rural electrification

NUCLEAR POWER

Dry cooling in Asia

RENEWABLE ENERGY IN ASIA Solar, Wind, Hydro, Biomass, Co-generation Advances

PLUS •Desertec Asia

•Project Cargo, •Asian Energy Investment Council

MAY 2010

FEATURES INSIDE INCLUDE: Solar PV, Wind Power Focus, CHP for Rural Electrification Funding Special – key funds and project tenders & finance!

At present, over 80% of all UK searches are carried out through Google.

Many companies have websites, but how are yours performing?

When you google your company, where do you sit on page 1, if at all!

The internet is a fantastic platform for you to do more business than your thought possible.

SKS Global ‘Digital’ have a specialist team that will carry out a free survey of your home page and see how best optimisation, and advertising can increase your page rankings. We are experts in adwords, social media and networking sites and will ensure that as a client we maximise your ‘e’ opportunities.

Speak to one of our experts for advice on google adwords, Bing, Yahoo, web optimisation and viral marketing techniques. For a small monthly fee we can handle your emarketing, online PR and advertising.

Contact Thomas Reilly Emarket Sales Director T: +44 (0) 1179 606452 or email sales@sks-global.com

WELCOME I would like to take this opportunity to welcome you to the most exciting and anticipated publication to reach Asia in many years. Working in partnership with the Asian Energy Investment Council, we have access to a huge wealth of decision makers and news when it happens in the market place.

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We are all very much aware that energy security and sustainable development have moved up the global agenda. There are two main reasons for this; first, the impact of high and volatile energy prices; second, concerns over environmental sustainability & particularly about the global climate. Both issues are critically important for Asia and the Pacific-a region in which impressive economic growth has boosted the demand for energy and put huge strains on the surrounding environment.

CONTACT US: Editor: Simon Taylor (Acting Editor) Creative Director: Colin Halliday Sales Director: Solomon King Sales Executive: Tom Barnes Digital Director: Thomas Reilly Accounts Manager: Katherine Godfrey Managing Director: Sean Stinchcombe SKS GLOBAL LIMITED Kingswood House South Road Kingswood Bristol UK BS15 8JF E: info@sks-global.com W: www.pimagazine-asia.com W: www.sks-global.com T: +44 (0) 1179 606452 F: +44 (0) 1179 608126

SKS Global Power Insider Asia magazine is published quarterly and is distributed to senior decision makers throughout Asia and the Pacific.

The publishers do not sponsor or otherwise support any substance or service advertised or mentioned in this book; nor is the publisher responsible for the accuracy of any statement in this publication.

Copyright: the entire content of this publication is protected by copyright, full details of which are available from the publisher. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electric, mechanical, photocopying, recording or otherwise without the prior permission of the copyright owner.

To pursue energy security, the countries of the region will want to ensure that energy supplies are available, sufficient, affordable and sustainable. At the same time they will need to consider the ecological and social implications. Throughout the region a staggering 1.7 Billion people still rely heavily on Biomass for cooking and heating, but shockingly, almost 1 Billion people still have no access to electricity.

Governments throughout the region are exploring new opportunities from coal and gas to renewable and nuclear to encourage more inward investment from international companies. Over $344 Billion is required over the next 7 years if Asia is to reach its demand for energy at current rates, but with industry growth and population growth, these figures are seen as relatively reserved.

It is clear that energy, more than any other single issue holds the key to future economic development in Asia and the Pacific. Oil and Gas prices are already higher than forecast in the current climate and are only set to increase as supplies dwindle. This has magnified the already enormous impact that energy has on social, economic and environmental sustainability in a region well known for wasting energy through inefficient use.

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Hydrogen Fuel Cells, Solar PV, Wind, Hybrid systems, Nuclear, Hydro, Cogeneration, Transmission and Distribution, are all areas in which huge development initiatives are being placed. However huge education and information is required in each area.

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Please fill out the free subscription form, sign on for our enews letters, send us your PR and news for consideration in the next edition.

These are exciting times for the markets of Asia, we will be on the front line ensuring we educate as many decision makers as possible.

I hope you enjoy this edition.

SIMON TAYLOR ACTING EDITOR

POWER INSIDER MAY 2010 3

NEWS DESK ADB PANEL HIGHLIGHTS ENORMITY OF CLIMATE CHANGE FINANCING NEWS FOR PI MAGAZINE ASIA TASHKENT, UZBEKISTAN - Glacial melt, drought, desertification and reduced river flows are among the serious climate change impacts being experienced by countries in Central and West Asia, a seminar audience heard today.

“The need for urgent actions on climate change at the local, regional and global levels cannot be overstated, and poor and vulnerable groups are at greatest risk,” said Ursula Schaefer-Preuss, ADB Vice-President for Knowledge Management and Sustainable Development.

“The good news is that there is a wide range of financing facilities now available that can help governments in Central Asia and elsewhere become more climate resilient and ensure their food and energy security.”

The seminar, “www.adb.org/AnnualMeeting/2010/Seminars/Climatechange. html” Financing Climate Change and Sustainable Development Action in Asia and the Pacific,” was held at ADB’s www.adb.org/AnnualMeeting/2010”43rd Annual Meeting in Tashkent, Uzbekistan.

Recent projections warn that increasing glacial melt and warmer temperatures may reduce river flows in Central Asia by as much as a third by 2040 to 2050. This in turn may disrupt hydropower, irrigation and potable

water supply, greatly affecting the well-being of the region’s people.

The seminar featured lively discussion on the need for and the terms of climate change financing for developing countries in the Asia and Pacific. While there was a divergence of thought on some issues, participants agreed on the urgency for action, the enormity of financial requirements, and the need to attract private sector partners as public financing alone will not be adequate to the task.

India’s former Secretary of Environment and Forests Prodipto Ghosh indicated that while many view as ambitious the Copenhagen Accord target of $100 billion in annual climate change financing from 2020, this amount is only a fraction of estimated future global GDP. He estimated that just 0.5% of the global GDP in the year 2030 would be somewhere between $560 billion and $675 billion. “So we are a long way from bridging this financing gap,” Mr. Ghosh said.

Despite the challenges, the panelists were unanimous in voicing their optimism that the world will make significant advancements in fighting climate change over the coming decade.

COMPANY NEWS FROM AROUND THE WORLD

Minesto raises 2m for testing tidal power kite

Minesto AB has raised over 2 million to test its Deep Green underwater tidal power kite off the coast of Northern Ireland in 2011.

The test aims to prove the functionality of the tidal power kite and support the cost of energy calculations.

Minesto was formed in 2007 4 MAY 2010 POWER INSIDER

to develop and commercialise plants using tides to generate electricity. The company is a spin-off from the Saab Group, which started to develop the product in 2003.

Deep Green

The underwater tidal kite consists of a turbine, generator, rudder, which is attached to the bottom with a tether.

It can produce energy in deep water with low flow velocity where no other known tidal technology can operate, Minesto says.

The tidal power kite is small in size and weight, making it possible to carry 0.5 MW works in the standard EU container.

Tenesol and NWG partner on Italian solar PV

Tenesol and NWG have signed a partnership on the Italian solar photovoltaic (PV) market for installations up to 50 kWp. Under the agreement, NWG will deliver www.tenesol. com/”Tenesol’s solar PV solutions up to 50 kWp to the Italian consumer market and for small businesses.

All solar PV systems over 50 kWp - for professional markets - will continue to be designed, manufactured and installed by Tenesol itself.

Centrosolar goes from loss to profit in Q1

Centrosolar recorded net earnings of 4.4 million in the first quarter of 2010, compared to a loss of 6.3m in Q1 2009.

IRAQ PUTS 3 NATURAL GAS FIELDS UP FOR BID

BAGHDAD Iraq’s oil minister on Thursday invited international energy companies to bid for contracts to develop three untapped natural gas fields in a latest move by the impoverished country to meet its growing need for power generation by developing gas.

Hussain al-Shahristani also announced that a separate multibillion-dollar joint venture deal with Royal Dutch Shell PLC to tap associated natural gas in the south has been submitted to the Cabinet’s energy committee for approval and could soon be signed.

The three gas fields on offer in Iraq’s third bidding round, set for Sept. 1, are the 5.6 trillion cubic feet Akkas field near the border with Syria, the 4.5 trillion cubic feet Mansouriya in Diyala province and the 1.1 trillion cubic feet Siba field near Kuwait and Iran.

Al-Shahristani said 45 international companies, which pre-qualified from previous two rounds last year, will be vying for the 20-year service contracts in which the companies will be paid a flat fee for their services rather than the more lucrative productionsharing contracts.

Akkas, which was discovered in 1992, was originally offered in Iraq’s first bidding round last June but received only one bid from a consortium led by Italy’s Edison, which was declined as it was higher than Iraq was willing to pay. Malaysia’s Petronas, China’s CNPC, Korea’s Kogas and Turkey’s TPAO were partnering with Edison.

Mansouriya gas field, which was discovered in 1979 received no bids in the June round. The Siba gas field, which was discovered in 1968, will be offered up for the first time.

“We have indications that there is renewed interest among companies to compete for these fields,” al-Shahristani told reporters at the Oil Ministry in Baghdad as he announced the new bidding round.

Revenues jumped 38% to 85m, and EBIT went from a loss of 7.3m in Q1 2009, to a profit of 8.2m in 2010.

“The operating result surpassed the company’s own expectations, taking it already more than half way towards the earnings figure forecast for the full year,” Centrosolar says.

Centrosolar saw very few

installations in January and March due to snow in Germany, but high international demand meant the solar company could operate at full capacity. German demand increased rapidly in March “in anticipation of the forthcoming reduction in the feed-in tariff.”

International revenue accounted for 53% of total revenue. Revenue in France more

than doubled, and Centrosolar has extended its position as a systems integrator in the USA and Italy.

SBM Offshore wind turbine jack-up vessels

SBM Offshore N.V. subsidiary SBM-GustoMSC will deliver design supply of two offshore wind turbine installation jackup vessels to Dubai-based

“We hope to find a real competition between the companies and to get competitive offers,” he added.

“We expect that these companies will come with offers better than the ones they gave before.”

On June 1, Iraq will submit the necessary data to the interested companies, which will then have two months to study them. They will hold a workshop on Aug. 1 before drafting the final contracts two weeks later.

Once these fields are put on stream, the production will be used to meet Iraq’s growing energy needs as well as possibly exporting to neighboring countries or the European Union, he added.

Iraq sits on an estimated 112 trillion cubic feet of natural gas reserves but it produces only about 1.5 billion cubic feet a day, of which 700 million cubic feet is associated gas being flared off daily due to lack of sufficient infrastructure.

In a bid to exploit the flared gas, Iraq and Shell signed in Sept. 2008 a preliminary deal, but the final signing was delayed by political wrangling and financial issues.

That deal was first designed to tap all the associated gas in the oil-rich province of Basra, but alShahristani said Thursday it will be confined to only three oil fields that were part of the 10 oil deals awarded in previous bidding rounds.

They are the 17.8 billion-barrel Rumaila field being developed by a BP-CNPC consortium, the 4.1 billion barrel Zubair field, handled by an Eni-led consortium and partners Occidental Petroleum Corp. and KOGAS, as well as the 8.6 billion barrel West Qurna Stage 1, which is being developed by Exxon MobilShell consortium.

Al-Shahristani said the two sides concluded the negotiations, drafted a deal and submitted it also to the Cabinet’s energy committee for approval. Japan’s Mitsubishi Corp. will hold a 5 percent in the deal.

Last month, Iraq approved an ambitious five-yearplan in which it is looking to increase its crude oil production to 4.5 million barrels a day by 2014 from the current 2.4 million barrels a day.

The plan foresees oil exports hitting 3.1 million barrels a day in 2014, up from current nearly 2 million barrels a day this year.

Iraq sits on the third largest oil reserves of at least 115 billion barrels but years of war, sanctions and neglect have hobbled its energy infrastructure. It also plans produce 2.75 billion cubic feet a day of gas by 2014, with the increase coming mainly from Akkas and Mansouriya fields.

Lamprell Energy. w w w. s b m o f f s h o r e . c o m / ”SBM-GustoMSC has received orders from the yard for the supply of the continuous jacking systems and large 800 ton offshore cranes that will be fitted on the offshore wind turbine jack-up vessels.

The units are of the GustoMSC NG-9000C type, a jackup vessel that has been specifi-

cally developed for the offshore wind farm installation industry.

The two vessels have been ordered earlier this year from Lamprell by Fred. Olsen Windcarrier and they are the 2nd and 3rd units of this type to be built so far.The total portfolio value of these orders is around 60 million.

POWER INSIDER MAY 2010 5

NEWS DESK ADB BACKS 73MW SOLAR POWER PLANT IN THAILAND THE ASIAN DEVELOPMENT BANK (ADB) has approved investment in a 73MW solar power plant in central Thailand. ADB will lend up to $70m equivalent in Thai baht to Natural Energy Development Company to build the plant.

The loan will come from ADB’s ordinary capital resources and the plant will be located in Lopburi province in central Thailand.

Joe Yamagata, deputy director general of private sector operations department at ADB, said: “Solar energy is an abundant resource throughout Thailand and therefore has huge potential to fill the rising demand from Thai businesses, communities and households.

“This private sector undertaking should demonstrate clearly to other investors the viability of investing in solar projects if the right financing structure including carbon credits is in place.”

The Electricity Generating Authority of Thailand will buy all of the net 55MW generated electricity from the plant. Natural Energy Development Company is also working with ADB to prefinance certified emission reductions under ADB’s Carbon Market Initiative.

In addition to the loan, ADB will provide a $2m grant from its Clean Energy Financing Partnership Facility to cover any contingency costs arising from the use of highly complex thin-film photovoltaic technology on a large scale.

VIETNAM TO SPEND BILLIONS ON ISLANDS AMID CHINA DISPUTE VIETNAM HAS ANNOUNCED an 8.5-billiondollar economic and defence development plan for a string of islands along its resource-rich coastline, as a broader sovereignty dispute simmers with China.

A copy of the plan, dated April 28, was obtained

by AFP on Tuesday.

It calls for development over a 10-year period of a string of islands stretching from Phu Quoc near Cambodia in the southwest to Cat Ba off Haiphong in the north near China.

The document says authorities aim to boost seafood, tourism, agro-forestry and other sectors under the plan, which will require an estimated investment of 162.5 trillion dong (8.5 billion dollars) over 10 years to 2020.

“That’s a significant wad of cash for Vietnam to be spending,” said Ian Storey, a fellow at the Institute of Southeast Asian Studies in Singapore.

The plan also calls for increased investment in the islands’ defences.

“It is essential to pay attention to security and defence tasks during arrangements for economic and civil projects on islands,” the document says, calling for them to become an “outer defence stronghold”.

The stronghold would include the Spratlys, the document says, although the South China Sea archipelago is not among the islands listed for the economic development initiative.

Vietnam and China are engaged in a long-running dispute over sovereignty of the Spratlys and another archipelago to the north, the Paracels, which China occupies.

The archipelagos are considered strategic outposts with potentially vast oil and gas reserves and rich fishing grounds.

Taiwan also claims the Paracels, while the Spratlys are claimed in full or in part by China and Vietnam as well as the Philippines, Malaysia, Brunei and Taiwan.

Over the past year Vietnam has reported cases of fishing boats and equipment being seized by China.

In the latest incident, reported by the state Vietnam News on Monday, China released 23 Vietnamese fishermen but allegedly kept one of their boats and gear worth 500 million dong. The men were arrested while fishing off the Paracels.

Among the islands included in Vietnam’s development plan are Phu Quy and Con Dao, off southern Vietnam, where the country already produces oil and gas.

Last year a US State Department official said Beijing told US and other foreign oil companies to halt work with Vietnamese partners in the South China Sea or face consequences.

While Vietnam’s island initiative appears to be about economic development, “another factor would be the need to protect these offshore oil and gas deposits” as well as fishing stocks, Storey said.

In December, Vietnam reached a major arms deal with Russia that was reported to involve the purchase of six submarines. Analysts said the deal aimed to bolster Vietnam’s maritime claims against China.

The islands contribute about 0.2 percent of Vietnam’s economy but this would more than double to 0.5 percent under the development plan.

COMPANY NEWS FROM AROUND THE WORLD Bank launches initiative to generate 3 GW of solar in Asia

The Asian Development Bank (ADB) says its Asian solar energy initiative will generate 3 GW of solar power over the next three years.

The Asia Solar Energy Initiative (ASEI) will identify and develop large-capacity solar 6 MAY 2010 POWER INSIDER

projects that will generate 3 GW of solar power by 2012.

ADB will provide US$2.25 billion to finance the initiative, which is expected to leverage an additional US$6.75bn in solar power investments over the period.

“With energy demand projected to almost double in the Asia and Pacific region by

2030, there is an urgent need for innovative ways to generate power while at the same time reducing greenhouse gas emissions,” explains ADB’s Director General Rajat Nag. “Sustainable solar energy can be the clean power of the future if there are appropriate incentive and financing mechanisms in place.”

AREVA and Keppel Verolme construct German offshore wind substation

AREVA’s Transmission and Distribution (T&D) division and Dutch consortium partner Keppel Verolme B.V. will build an offshore wind substation in German waters.

The 62 million contract for an Offshore High Voltage Sub-

station (OHVS) project was placed by Wetfeet Offshore Windenergy GmbH, a German wind energy project development company.

The turnkey offshore wind substation project involves the supply and installation of a selffloating, self-installing 155/33 kV OHVS to connect Wetfeet Offshore’s Global Tech 1, 400 MW

INCLUSIVE, SUSTAINABLE GROWTH KEY TO ASIA’S POSTCRISIS PROSPERITY TASHKENT, UZBEKISTAN - Developing Asian economies need to make growth more inclusive and sustainable with less income inequality and environmental degradation, says a forthcoming book by the Asian Development Bank (ADB) and the Asian Development Bank Institute (ADBI).

The book, Rebalancing for Sustainable Growth: Asia’s Postcrisis Challenge, argues that Asian economies export-led growth model, which was so spectacularly successful in Asia in earlier decades, has significant limits. Asia now needs to rebalance growth by adopting policies to promote a greater reliance on domestic and regional demand. Balanced growth, the book says, means growth that is consistent with smaller global imbalances and is less dependent on exports, as well as growth that is inclusive and environmentally sustainable.

“Although Asian economies have begun to recover from the global financial crisis, the longer-term implications of the crisis for Asia are perhaps even greater than the short-term ones,” said ADB Vice-President Laurence Greenwood, who introduced the book at ADB’s 43rd Annual Meeting in Tashkent. “The period of rapid Asian export growth was, at least in its later stages, accompanied by a sharp worsening of global payments imbalances, which contributed to the global financial crisis. Asia’s future growth path needs to avoid such large and risky imbalances.”

Mr. Greenwood said that the aftermath of the global financial crisis provides an opportunity to correct distortions and develop policy measures to support more balanced and sustainable growth.

Some of the book’s key recommendations to achieve these goals include: ● Establish an effective framework for monetary, macroprudential, fiscal, and exchange rate policies ● Deepen social protection to support social resilience ● Increase infrastructure investment to create a “seamless Asia” ● Enhance productivity in the services sector ● Establish a region-wide free trade agreement to encourage intraregional trade and investment ● Promote a shift to a low-carbon society and support green growth, and Deepen and integrate the financial markets to facilitate the recycling of Asia’s high savings for investment within the region.

offshore wind farm, located in the German Exclusive Economic Zone in the North Sea, to the offshore High Voltage Direct Current (HVDC) grid.

Vestas from profit to loss in Q1

Vestas saw a 82 million loss after tax in the first quarter (Q1) of 2010 compared to a profit of

THAILAND FUNDS ATERNATIVE ENERGY PROJECTS THE PROVINCIAL ELECTRICITY AUTHORITY (PEA) has earmarked Bt1 billion annually to spend on alternative-energy projects.

To be undertaken by subsidiary PEA Encom International, the first project will generate power from wood scraps at 100 operating sites belonging to the Forest Industry Organisation, which will cost Bt8 billion over several years.

PEA deputy governor Numchai Lowattanatakul, acting managing director of the subsidiary, said the first project under this scheme would be tabled for Cabinet approval this year.

Within two years, the project to generate power from used palm oil, in cooperation with farmers’ cooperatives in Krabi province, should also be kicked off.

Meanwhile, PEA Encom International has been approached to take a 20-per-cent equity participation in four pilot biomass power projects in the North using German technology, costing Bt80 million each.

Numchai said feasibility studies to invest in small hydropower projects in Laos and Bhutan were also underway.

Recently, the PEA signed a memorandum of understanding to invest in a small hydropower project in cooperation with the Royal Irrigation Department and Kasetsart University.

Encouraging investment in alternative-energy projects is a major part of the government’s goal of increasing commercial energy from renewable sources to 20 per cent by 2022, said PEA governor Adisorn Kiatchokewiwat.

56m in Q1 2009.

Revenue fell 32% to 755m and EBIT fell 172m to 96m in Q1. Shipments of the number of wind turbines fell 64% to 178. www.vestas.com/”Vestas says the decline in revenue and the fall into loss is due to lower activity levels combined with Vestas’ decision not to adjust its capacity due to what it calls

“short-term market developments.”

Indian Energy gets financing for 16.5 MW wind farm

Indian Energy Ltd has closed project finance with State Bank of India for its 16.5 MW wind farm at Theni in Tamil Nadu, India.

Under the alternative-energy development plan, renewable capacity will rise sharply to 5,608 megawatts in 2022, from 1,750MW now. At present, 90 per cent of Thailand’s power comes from natural gas, coal and lignite.

Construction-engineering firm Demco has also been drawn into the industry. It will invest Bt2.7 billion to Bt3 billion in a 30MW solar-power plant and seven wind-power plants, for a combined cost of about Bt10 billion.

The company is awaiting Electricity Generating Authority of Thailand agreement for the power supply. In line with the government’s push, the Asian Development Bank (ADB) recently approved a US$70million (Bt2.27 billion) loan to a solar-power plant in Lop Buri province. The developer, Natural Energy Development, is a joint venture between CLP Holdings, Japan’s Mitsubishi and Electricity Generating.

In addition to the loan, the ADB will provide a $2-million grant from its Clean Energy Financing Partnership Facility to cover any contingency costs arising from the use of highly complex, innovative thin-film photovoltaic technology on a large scale. Typically, such technology has been used only in smaller plants.

Thin-film photovoltaic technology uses thin-film semiconductors, which are cheaper to produce than other types of photovoltaic cells.

Thin films also work better in countries like Thailand that have higher average temperatures but where clouds create diffuse rather than concentrated light.

State Bank of India has underwritten the entire debt facility of INR680 million (~11.5m) and SBI Capital Markets Limited acted as lead arranger and advisor. w w w. i n d i a n - e n e r g y. com/”Indian Energy has entered in to an agreement with ReGen Powertech Private Ltd for the construction of a 49.5

MW wind farm at Theni.

The wind farm is being constructed and commissioned in two phases. The 16.5 MW represents phase I and is scheduled to be fully commissioned

by June 2010. The first 3 of 11 turbines have been commissioned and are generating power to the grid. Indian Energy has entered in to a 20 POWER INSIDER MAY 2010 7

NEWS DESK

CHINA’S HUNGER FOR COAL MEANS PRICE INCREASES AND ENVIRONMENTAL ISSUES CHINA’S DEMAND FOR COAL increased sharply in April, pushing world prices higher for the energy commodity. The world’s largest consumer and producer of coal posted record import volumes last month to feed its insatiable appetite for energy and growth.

Last week, the benchmark price for thermal coal at Australia’s Newcastle port – the coal most commonly used for burning in plants - hit a record of $108.87 per metric ton, the highest since October 2008. China imported 11.4 percent of the 8.4 million metric tons of coal that arrived at Newcastle’s Port Waratah Coal Services Ltd., in Australia last month. This compared to 9.3 percent and 8.7 percent in March and April last year.

While China’s growth in the midst of a financial recession is a positive note, the use of coal as a main energy source could lead to potential problems for the global environment, critics say. The burning of coal emits carbon dioxide, one of the greatest air pollutants, and a gas that is considered by some to be the leading cause of global warming.

“Global climate change is global. Acid rain is global,” said Judy Bramble, assistant professor of environmental science at DePaul University in Chicago. “Both of them affect biodiversity, and loss of biodiversity is something we worry about.

We’re sympathetic for underdeveloped nations to have what we have, but it can’t [happen] in a way that endangers the planet.”

Coal is an important industry in Illinois and it is mined in 12 counties. Its history spans a 250 years, and the Land of Lincoln has the largest bituminous coal resource, used to generate electricity, of any state. The industry is estimated to generate nearly $1 billion in revenue annually and accounts for about half of U.S. coal production. Considering how important the coal industry is to Illinois, high prices abroad may affect the state’s economy.

Coal is even a more important resource in China. The U.S. Energy Information Administration estimates that coal makes up 70 percent of China’s total primary energy consumption.

The attraction to coal is obvious: It’s a viable and cheap energy source because of its abundance and transportability. Bramble explains that coal is used to create energy through heating, while other fossil fuels like liquid natural gas that require a pipeline to transport are mainly for transportation.

According to China’s National Energy Administration statistics, China imported 44.4 million tons, or approximately 48.9 metric tons, of coal in the first quarter, more than a two-fold increase from last year. While Australia is China’s main supplier, the most recent data from the U.S. Energy Information Administration shows that coal exports from U.S. to China increased almost fourfold to 1.1 million tons of coal from 2008 to 2009.

“I think what we’ve seen in the increase in imports is a response to the global recession,” said Diane Kearney, operations research analyst at the U.S. Energy Information Administration. “[The Chinese] still have strong economic growth; they’ve restructured or have closed mines down in a province where they’ve historically had high production levels.”

While China is growing in consumption, the same cannot be said for the U.S. Coal production, exports and consumption all decreased in the last quarter of 2009, according to the U.S. energy administration. While consumption decreased by 11 percent and exports decreased by 28 percent, production only decreased by 8.5 percent, resulting in increased stockpiles.

Domestically, combating emissions has been a state-wide and federal initiative for years as part of the Clean Air Act. More recently, a joint public and private partnership called FutureGen Industrial Alliance Inc. was created to design, build and operate the world’s first coal-fueled, near-zero emissions power plant in Illinois.

“Generally, there will be environmental issues with the use of fossil fuels until technology is available such as FutureGen,” said Michael Murphy, manager of coal programs at the Illinois Office of Coal Development. “The question is what society is willing to pay extra to run their computers, televisions…to make the use of coal even cleaner.”

COMPANY NEWS FROM AROUND THE WORLD year Power Purchase Agreement with the Tamil Nadu Electricity Board for the sale of power at a price of INR3.39/ kWh (~0.06/kWh).

Siemens steam turbine for UK biomass power plant

Siemens Energy will supply a SST-800 steam turbine for a 50 8 MAY 2010 POWER INSIDER

MW combined heat and power biomass plant in the UK. www.akersolutions.com/ ”Aker Solutions, a provider of engineering, procurement, construction and commissioning services to the natural resources and energy markets, will design and build the biomass power plant next to

the Tullis Russell paper mill in Scotland under contract to the RWE npower renewables.

Commercial operation of the biomass plant is scheduled for late 2012.

DuPont solar sales to grow 50% this year

DuPont expects its sales of solar

photovoltaics (PV) to grow 50% this year due to increased market demand in Europe, North America and parts of Asia.

Sales of solar PV are expected to exceed US$1 billion in 2011, a year ahead of schedule, and the company has set a new goal to exceed US$2bn in sales by 2014.

“Our focus on delivering materials innovations that are essential to the photovoltaic industry’s future growth is paying off for our customers and for DuPont,” explains David Miller of DuPont Electronics & Communications.

“We not only have the materials that provide superior

IS CHINA FILLING THE GAP IN IRANIAN GASOLINE IMPORTS? Iran’s oil minister may have considered the threat of gasoline import sanctions a joke” last month, but a Reuters report on Wednesday suggests that the country’s motor fuel imports may have dropped as much as 20 per cent in May, compared to last month. Citing industry sources, the report says companies are pulling back from Iran, amid growing talk of sanctions over Iran’s nuclear programme. Total is continuing to sell gasoline to Iran — the company is famously bold in its dealings with politically sensitive countries — and accounting for 50 per cent of the country’s imports, according to the report. But with traditional suppliers such as Malaysia’s Petronas and Russia’s Lukoil bowing out, along with big commodities trading houses Glencore, Trafigura and Vitol, who else is filling the gap — to the extent that it is being filled?

Well, that might be China. As some observers have noted, China has added gasoline refining capacity in recent months. According to Barclays Capital, exports have more than doubled in the year-to-March, while imports were at zero.

This is despite domestic demand for gasoline lagging, as JBC Energy analysts wrote on April 9: In China, the strain of rising crude prices has been felt by refiners as the government has chosen not to change retail fuel price caps since November 10, 2009. The government has said it would make discretionary fuel price changes when the price of a crude basket moves by 4% over a working month. But no change has been forthcoming despite the recent uptick in the price of crude. Road transportation fuel demand, particularly for gasoline, has lagged behind the boom witnessed in vehicle sales, which can partly be attributed to Chinese retail prices being higher than those wealthier consumers have to pay in the US. As another Reuters report noted last month, both Sinopec and Chinaoil appear to be western refiners struggle with excess capacity, boosting its own capac-

performance and reliability to photovoltaic modules, but also the ability to match those products to the specific, individual needs of our customers and we are aggressively expanding to supply those materials in the volumes required by this high growth industry.”

ity - and finding a market. Although signs of a literally darker global environment are on the horizon, turning black to green may be a possibility. Peabody Energy Corp., the world’s largest private-sector coal company based in St. Louis, has a history of reducing emissions in coal production through advanced technology.

“If you look at coal’s track record, we’ve had a very successful record of reducing other transmissions,” said Vic Svec, senior vice president of Peabody. “We believe the same can be done through technology in reducing carbon and continue on a path toward green coal.”

Peabody is starting to ship coal in May from Newcastle at the NCIG terminal at a rate of 30 million tons per year. It owns 17 percent of the port, which equates to approximately 5 million to 6 million tons.

While it only exported approximately 4 million to 5 million tons to China from Australia in the past few years, that number is estimated to increase.

Despite the positive growth, there are other factors to consider: speed and safety. “Growing at such a rapid pace, it’s hard for them to keep up on the production side of coal. They’ve so much economic growth, so much growth in coal consumption. It’s hard to keep in balance,” Kearney said.

Although Kearney notes that most of what China produces in coal is consumed, there are many mines that are so dangerous that mining is not possible.

The Chinese coal industry has been clouded by a recent history of mining accidents. Flooding in a Chinese mine in early March left 32 dead, according to state news agency Xinhua. There are more than 30,000 coal mines in the country, and about two-thirds of the 6,000 coal mining fatalities per year occur in small coal mines, according to data from the World Bank.

“It’s not self-sustaining because there are a lot of inefficiencies in their coal mining,” Kearney said. The possibility of demand surpassing supply is another issue. While China’s consumption of goal has skyrocketed in the past few years, some analysts are hesitant to predict if there will be enough coal for these growing economies. “When you look back at last year… the fact that China sponged up much of the excess coal capacity that would’ve been in excess made for much tighter markets than what analysts expected,” Svec said. “The demand has been growing extremely rapidly in China. It has definitely been straining supply in recent years. We expect that may well continue.”

As Bramble explains, the worldwide supply of coal will eventually dwindle and nations will need better plans to deal with increasing energy needs.

“We’re going to run out of them [fossil fuels] eventually. If we’re going to find solutions, why not do them now to solve some of the problems of pollution and climate change,” Bramble said.

RECORD 19 PERCENT EFFICIENCY ACHIEVED WITH LOW-COST SOLAR CELLS California-based manufacturer of low-cost solar materials, Innovalight, has achieved record of 19 percent conversion efficiency for its silicon ink-based solar cells.

The conversion efficiency of a solar cell is the proportion of sunlight energy that a cell converts to electrical energy. Although conversion efficiency of greater than 40% has been achieved in the lab using multi-junction solar cells, the the average conversion rate for mass produced cells usually hovers around the 15 percent mark. The trick is to strike a balance between manufacturing costs and efficiency.

Innovalight’s impressive record has been independently tested by the Fraunhofer Institute for Solar Energy Systems (ISE) in Germany.

The silicon ink-based technology is compatible with existing production systems. Innovalight’s proprietary Cougar platform gives crystalline silicon solar cell manufacturers the ability to improve solar cell performance, reduce cost and boost output capacity by adding another basic step to already installed manufacturing lines, which this year will process collectively around 4 billion crystalline wafers into solar cells.

“We continue to push toward our goal of delivering over 20 percent conversion efficiency to our customers,” said Dr Homer Antoniadis, chief technology officer at Innovalight. “Our patented solar cell process with silicon ink is simple and optimized for use with silicon wafers and widely adopted industry printing tools,” he added.

Currently, Innovalight is working with several solar cell manufacturing companies and is ramping up silicon ink production.

In February, the company was awarded a key patent by the US patent and trademark office for the manufacturing of crystalline wafer solar cells with silicon ink. Innovalight has filed for over 60 patents for silicon ink and high efficiency solar cells using silicon ink processes.

Dr Antoniadis will present these results at the 2010 SNEC 4th International Photovoltaic Power Generation Exhibition and Conference which will take place this May in China.

POWER INSIDER MAY 2010 9

AEIC 2010

THE ASIAN ENERGY INVESTMENT COUNCIL 2010

AEIC Power & Energy Funding Solutions

Welcome to the first issue of Power Insider Asia, the official magazine of the Asian Energy Investment Council. Being a new organisation to the region, we have our work cut out to release tenders for many of the projects we have already approved.

Hen Jinhyuns Executive Director

T

HE MAIN GOAL OF THE AEIC is to bring high quality electrical power to the market of Asia and Pacific and bring more foreign business to the region. By using the western companies we are safe in the knowledge of high quality products and services and the people of Asia will only benefit from this.

Our membership is growing and a small selection of our international membership has been listed in these pages. We strongly urge you to contact these 10 MAY 2010 POWER INSIDER

companies if you have projects relating to the services in which they can provide. We have vetted them and of course highly recommend them. You will hear more from us over the coming months as many of our projects come online and tenders are released to our market and membership, so check back regularly.

Over the past few years, energy security and sustainable development have moved up the global agenda. Here are two main reasons for this: first, the impact of high and volatile energy prices; second,

concerns over environmental sustainability. Both issues are critically important for the Asia & Pacific – a region with impressive economic growth which has put huge strains on energy resources and power production.

To pursue energy security governments of Asia must ensure that energy supplies are available, sufficient, affordable and sustainable.

As yet, the countries of Asia and Pacific have taken relatively little advantage of renewable energy.

The entire region has abundant renewable resources, but these are contributing only around 6% of the commercial energy mix. This is partly because many investors feel and perceive renewable energy as being risky, involving many small projects with relatively high initial cost and transaction costs.

The Asian Energy Investment Council are dedicated to bringing more foreign business to Asia by funding governments and IPP’s to focus on renewable energy projects like Solar, Wind, Hydro, Cogeneration. We are introducing and educating governments and companies in the region on project development, management skills and the introduction of modern technologies to make the transition as easy as possible.

Everyone is fully aware that renewable and more efficient technologies help mitigate climate change.

Around 70% of greenhouse gas emissions are related

to energy, mainly from the combustion of fossil fuels for heat, electricity generation and transport.

Countries have many options for the reduction of GHG emissions – minimal, zero or net negative costs. These include energy conservation along with increases in efficiency, better energy management cleaner production and consumption, and changes in lifestyle. Countries in Asia can if they want to foster science based decision making that creates incentives for cleaner and more energy efficient economic activities, whilst also increasing peoples access to modern energy services.

Energy is one of the most critical areas for government policy. The choices made now will have profound implications across Asia and the Pacific – for economic and social progress & the protection of the environment. The options are not simple and will inevitably involve trade offs. But if they are made

on a well informed and rational basis, todays policy choices can not only ensure energy security and sustainable development for many decades, but also help alleviate poverty in many of the countries.

The Asian Energy Investment Council are always welcoming new members and also funding many projects throughout the region. We have an extensive contact list and very often bring many buyers and sellers together, so please contact us for membership enquiries, project development, funding applications.

Please visit www.asianenergy-information.com We look forward to a long and successful working relationship with all regions and companies.

POWER INSIDER MAY 2010 11

2-4 NOVEMBER 2010 MARINA BAY SANDS RESORT, SINGAPORE WWW.POWERGENASIA.COM

Singapore is one of the pioneers of deregulation of the electricity market, revolutionary in the region of South East Asia, and as a result, the region’s eyes have closely followed the outcome.

The energy industry is a major contributor to the Singapore economy and their goal is to increase the value-added of Singapore’s energy industry from $20 billion to around $34 billion by 2015.

Asia’s economic recovery is outpacing Europe and America’s and is also forecast to a sustain an increase in demand for power to meet the requirements of its growing economies and population.

Singapore is the ideal business hub, situated at the heart of South East Asia. With its open and transparent economy and attractive new Marina Bay Sands Resort, it makes the perfect business destination for the region’s power industry to meet, share ideas and experiences.

For further information on exhibiting contact:

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INDIA PROFILE

INDIA’S GROWING POWER REQUIREMENT Gurbir Singh Reports

E

NERGY IS A BASIC REQUIREMENT for economic development. Every sector of Indian economy agriculture, industry, t r a n s p o r t , commercial, and domestic – needs inputs of energy.

The economic development plans implemented since independence have necessarily required increasing amounts of energy. As a result, consumption of energy in all forms has been steadily rising all over the country.

This growing consumption of energy has also resulted in the country becoming increasingly dependent on fossil fuels such as coal and oil and gas.

Rising prices of oil and gas and potential shortages in future lead to concerns about the security of energy supply needed to sustain our economic growth.

Increased use of fossil fuels also causes environmental problems both locally and globally.

Against this background, the country urgently needs to develop a sustainable path of energy development. Promotion of energy conservation and increased use of renewable energy sources are the twin planks of a sustainable energy supply.

Fortunately, India is blessed with a variety of renewable energy sources, the main ones being

14 MAY 2010 POWER INSIDER

biomass, biogas, the sun, wind, and small hydro power.

(Large hydro power is also renewable in nature, but has been utilized all over the world for many decades, and is generally not included in the term ‘new and renewable sources of energy’.) Municipal and industrial wastes can also be useful sources of energy, but are basically different forms of biomass.

RENEWABLE ENERGY IN INDIA The very clear advantages of renewable energy are that it is; PERENNIAL t "WBJMBCMF MPDBMMZ BOE EPFT OPU OFFE FMBCPSBUF BSSBOHFNFOUT GPS USBOTQPSU t 6TVBMMZ NPEVMBS JO OBUVSF J F TNBMM TDBMF VOJUT BOE TZTUFNT DBO CF BMNPTU BT FDPOPNJDBM BT MBSHF TDBMF POFT &/7*30/.&/5 '3*&/%-: t 8FMM TVJUFE GPS EFDFOUSBMJ[FE BQQMJDBUJPOT BOE VTF JO SFNPUF BSFBT The Ministry of Non-Conventional Energy Sources in India has been implementing

comprehensive programmes for the development and utilization of various renewable energy sources in the country. As a result of efforts made during the past quarter century, a number of technologies and devices have been developed and have become commercially available.

These include biogas plants, improved wood stoves, solar water heaters, solar cookers, solar lanterns, street lights, pumps, wind electric generators, waterpumping wind mills, biomass gasifiers, and small hydro-electric generators. Energy technologies for the future such as hydrogen, fuel cells, and bio-fuels are being actively developed.

India is implementing one of the world’s largest programmes in renewable energy. The country ranks second in the world in biogas utilization and fifth in wind power and photovoltaic production.

Renewable sources already contribute to about 5% of the total power generating capacity in the country.

The major renewable energy sources and devices in use in India are listed below along with their potential and present status in terms of the number of installations or total capacity.

RENEWABLE ENERGY IN INDIA AT A GLANCE Cumulative

Estimated installed capacity / Source/System potential number*

45 000 MW 16 000 MW 3500 MW 15 000 MW

3595 MW 302.53 MW 447.00 MW 1705.63 MW

P Municipal solid waste 1700 MW P Industrial waste 1000 MW Family-size biogas plants 12 million Improved chulhas 120 million Solar street lighting systems Home lighting systems Solar lanterns Solar photovoltaic power plants Solar water heating systems 140 million m2 of collector area collector area Box-type solar cookers — Solar photovoltaic pumps — Wind pumps — Biomass gasifiers —

17 MW 29.50 MW 3.71 million 35.20 million 54 795 342 607 560 295 1566 kWp 1 million m2 of

Wind power Biomass power Bagasse cogeneration Small hydro (up to 25 MW) Waste to energy

575 000 6818 1087 66.35 MW

POWER INSIDER MAY 2010 15

INDIA PROFILE SECTORS ELIGIBLE FOR FINANCIAL ASSISTANCE The following sectors are eligible for financial assistance from IREDA and various other funding sources such as the Asian Energy Investment Council t )ZESP QPXFS t 8JOE FOFSHZ t #JP FOFSHZ t 4PMBS FOFSHZ t &OFSHZ FGmDJFODZ BOE DPOTFSWBUJPO t "MUFSOBUF GVFMT t /FX BOE FNFSHJOH SFOFXBCMF FOFSHZ UFDIOPMPHJFT t %FWFMPQNFOUBM BDUJWJUJFT OFX JOJUJBUJWFT JO SFOFXBCMF FOFSHZ 5:1&4 0' 4$)&.&4 t 1SPKFDU mOBODJOH t &RVJQNFOU mOBODJOH t -PBOT GPS NBOVGBDUVSJOH t .BSLFU EFWFMPQNFOU JODMVEJOH FYQPSU QSPNPUJPO

t &OFSHZ DFOUSFT t 'JOBODJBM JOUFSNFEJBSJFT t #VTJOFTT EFWFMPQNFOU BTTPDJBUFT t 3FOFXBCMF FOFSHZ FOFSHZ FGmDJFODZ VNCSFMMB mOBODJOH INDIA’S SOLAR REVOLUTION India lies in the sunny regions of the world. Most parts of India receive 4–7kWh (kilowatt-hour) of solar radiation per square metre per day with 250–300 sunny days in a year. The highest annual radiation energy is received in western Rajasthan while the north-eastern region of the country receives the lowest annual radiation.

Solar energy, experienced by us as heat and light, can be used through two routes: the thermal route uses the heat for water heating, cooking, drying, water purification, power generation, and other applications; the photovoltaic route converts the light in solar energy into electricity, which can then be used for a number of purposes such as lighting, pumping, communications, and power supply in Un-electrified areas. Energy from the sun has many features, which make it an attractive and sustainable option: global distribution, pollution free nature, and the virtually inexhaustible supply.

40-"3 1)05070-5"*$4 Solar photovoltaics (SPV) is the process of converting solar radiation (sunlight) into electricity using a device called solar cell. A solar cell is a semi-conducting device made of silicon or other materials, which, when exposed to sunlight, generates electricity. The magnitude of the electric current generated depends on the intensity of the solar radiation, exposed area of the solar cell, the type of material used in fabricating the solar cell, and ambient temperature. Solar cells are connected in series and parallel combinations to form

modules that provide the required power.

417 5&$)/0-0(: $3:45"--*/& SOLAR CELLS Most solar cells are made of a single crystal or multi-crystalline silicon material. Silicon ingots are made by the process of crystal growth, or by casting in specially designed furnaces. The ingots are then sliced into thin wafers. Single crystal wafers are usually of 125 Ă— 125 mm or larger sizes with ‘pseudo-square’ shape; multicrystalline wafers are typically square-shaped with a dimension of 100 Ă— 100 mm or larger. Using hightemperature diffusion furnaces, ‘impurities’ like boron or phosphorous are introduced into the silicon wafers to form a p–n junction. The silicon wafers are thus converted into solar cells. When exposed to sunlight, a current is generated in each cell. Contacts are attached to the top and bottom of each solar cell to enable inter-connections and drawing of the current.

5)*/ '*-. 40-"3 $&--4 Thin-film solar cells are made from amorphous silicon (a-Si), copper indium selenide/cadmium sulphide (CuInSe2/CdS) or cadmium telluride/cadmium sulphide (CdTe/CdS), by using thin-film deposition techniques. These technologies are at various stages of development and have not yet reached the maturity of crystalline silicon. Production of thin-film PV modules is also limited.

17 .0%6-& PV modules are usually made from strings of crystalline silicon solar cells. These cells are made of extremely thin silicon wafers (about 300m).

To protect the cells from damage, a string of cells is hermetically sealed between a layer of toughened glass and layers of ethyl vinyl acetate (EVA). An insulating tevlar sheet is placed beneath the EVA layers to give further protection to the cell string.

An outer frame is attached to give strength to the module and to enable easy mounting on structures.

‘SOLAR PHOTOVOLTAICS (SPV) IS THE PROCESS OF CONVERTING SOLAR RADIATION (SUNLIGHT) INTO ELECTRICITY USING A DEVICE CALLED SOLAR CELL. A SOLAR CELL IS A SEMI-CONDUCTING DEVICE MADE OF SILICON OR OTHER MATERIALS, WHICH, WHEN EXPOSED TO SUNLIGHT, GENERATES ELECTRICITY.’ 16 MAY 2010 POWER INSIDER

to the areas listed below. t 417 UFSNJOPMPHZ t .FBTVSFNFOUT PG DFMMT BOE NPEVMFT t .FUIPET PG DPSSFDUJOH UIF NFBTVSFNFOUT t 2VBMJmDBUJPO UFTU QSPDFEVSF GPS DSZTUBMMJOF TJMJDPO NPEVMFT t (FOFSBM EFTDSJQUJPO PG 417 QPXFS HFOFSBUJOH TZTUFNT t 1BSBNFUFST PG TUBOE BMPOF 417 TZTUFNT Standards are under preparation for BoS components such as batteries, inverters, and charge controllers.

These standards are based mainly on the corresponding International Electrotechnical Commission (IEC) or European standards.

A terminal box is attached to the back of a module; here, the two ends (positive and negative) of the solar string are welded or soldered to the terminals. This entire assembly constitutes a PV module. When the PV module is in use, the terminals are connected either directly to a load, or to another module to form an array. Single PV modules of capacities ranging from 10 Wp to 120 Wp can provide power for different loads. For large power applications, a PV array consisting of a number of modules connected in parallel and/or series is used.

STANDARD CAPACITY/RATINGS AND SPECIFICATIONS The wattage output of a PV module is rated in terms of peak watt (Wp) units. The peak watt output power from a module is defined as the maximum power output that the module could deliver under standard test conditions (STC). The STC conditions used in a laboratory are t XBUUT QFS TRVBSF NFUSF TPMBS

SBEJBUJPO JOUFOTJUZ t "JS NBTT SFGFSFODF TQFDUSBM EJTUSJCVUJPO t Ă—$ BNCJFOU UFNQFSBUVSF SPV modules of various capacities are available, and are being used for a variety of applications.

Theoretically, a PV module of any capacity (voltage

and current) rating can be fabricated. However, the standard capacities available in the country range from 5 Wp to 120 Wp. The voltage output of a PV module depends on the number of solar cells connected in series inside the module. In India, a crystalline silicon module generally contains 36 solar cells connected in series.

The module provides a usable direct current (DC) voltage of about 16.5V, which is normally used to charge a 12-V battery. In an SPV system, the components other than the PV module are collectively known as ‘balance of system’ (BoS), which includes batteries for storage of electricity, electronic charge controller, inverter, etc. These batteries are charged during the daytime using the DC power generated by the SPV module. The battery/battery bank supplies power to loads during the night or non-sunny hours. An inverter is required to convert the DC power from the PV module or battery to AC power for operating the load. Some loads such as DC pumps do not require an inverter or even a battery bank.

STANDARDS FOR SPV Photovoltaic standards in India have been established by the Bureau of Indian Standards (BIS). So far, there are eight standards prescribed by the BIS for SPV. These standards mainly relate

TESTING AND CERTIFICATION OF SPV The Ministry of Non-Conventional Energy Sources (MNES) has established facilities for testing of solar cells, PV modules, and systems at its Solar Energy Centre (SEC) in Gurgaon, Haryana. Apart from the SEC, some facilities for the testing of PV modules and SPV-based lighting systems are available at the Electronic Testing and Development Laboratory (ETDC), Bangalore; the Electronics Regional Testing Laboratory (ERTL-East), Kolkata; and the Central Power Research Institute (CPRI), Thiruvananthapuram. While the ETDC has facilities to test PV modules, the ERTL-East and the CPRI are mainly meant to test SPV-based lighting systems. The Ministry provides design/performance guidelines for SPV systems being promoted under its programmes. The test centres carry out tests on a sample SPV system and provide a test report on its performance based on the specifications laid down by the Ministry. India has currently about 14 PV companies that manufacture PV modules, and over 45 companies that manufacture SPV systems.

Manufacturers have to get their samples tested either by the SEC or by other test centres mentioned above for supply under the Ministry’s schemes. "%7"/5"(&4 0' 417 4:45&.4 The major advantages of using SPV systems are as follows. t "CVOEBOU TPMBS SBEJBUJPO JT BWBJMBCMF JO NPTU QBSUT PG *OEJB )FODF 417 TZTUFNT DBO CF VTFE BOZXIFSF JO UIF DPVOUSZ t 417 TZTUFNT BSF NPEVMBS JO OBUVSF )FODF UIFZ DBO CF FYQBOEFE BT EFTJSFE BOE VTFE GPS TNBMM BOE MBSHF BQQMJDBUJPOT t 5IFSF BSF OP SVOOJOH DPTUT BTTPDJBUFE XJUI 417 TZTUFNT BT TPMBS SBEJBUJPO JT GSFF t &MFDUSJDJUZ JT HFOFSBUFE CZ TPMBS DFMMT XJUIPVU OPJTF t 17 TZTUFNT IBWF OP NPWJOH QBSUT )FODF UIFZ TVGGFS OP XFBS BOE UFBS t "T NPTU PG UIF DPNQPOFOUT PG 417 TZTUFNT BSF QSF GBCSJDBUFE UIFTF TZTUFNT DBO CF JOTUBMMFE RVJDLMZ )FODF 17 QSPKFDUT IBWF TIPSU HFTUBUJPO QFSJPET t 417 NPEVMFT IBWF MPOH MJGF BOE SFRVJSF OP NBJOUFOBODF 0OMZ #P4 DPNQPOFOUT TVDI BT CBUUFSJFT BOE JOWFSUFST SFRVJSF NJOPS NBJOUFOBODF 417 -*()5*/( 4:45&.4 SPV lighting systems are becoming popular in both POWER INSIDER MAY 2010 17

INDIA PROFILE the rural and urban areas of the country. In rural areas, SPV lighting systems are being used in the form of portable lanterns, homelighting systems with one or more fixed lamps, and street-lighting systems. Applications in urban areas include glow-sign display systems on the streets, traffic signalling, message display systems based on light-emitting diodes (LEDs), and systems to illuminate advertisement hoardings.

SOLAR LANTERN The solar lantern is a portable lighting system.

Being light in weight, it is easy to carry around and therefore ideal for both indoor and outdoor usage.

A typical solar lantern consists of a PV module of 8 Wp to 10 Wp capacity, a sealed maintenance-free battery of 12 V, 7 AH (amperehours) capacity, and a compact fluorescent lamp (CFL) of 5 W or 7 W rating. A solar lantern is usually meant to provide light for three to four hours daily, and designed to have a three-day ‘autonomy’, that is, to function in this manner for three days without sunlight.

OPERATION No installation is required for a solar lantern. During the day, the PV module is placed in the sun and is connected through a cable to the lantern unit. The incident solar radiation is converted into electricity, which, in turn, charges the battery. A green LED light indicates the charging of the battery. At night, the lantern is simply detached and used wherever required. The battery provides power to the lamp. The cost of a solar lantern with the above specifications is in the range of Rs 3000–3300.

Low-cost models with smaller PV modules and battery capacity are also available.

SOLAR HOME SYSTEM A solar home system (SHS) provides a comfortable level of illumination in one or more rooms of a house.

There are several SHS models featuring one, two, or four CFLs. It is also possible to run a small DC fan or a 12-V DC television with the system.

The SHS consists of a PV module of 18, 37 or 74 Wp capacity; a sealed, maintenance-free, or flooded lead–acid battery of 12 V and 20, 40 or 75 AH capacity; and CFLs of 9 W or 11 W rating. The system is designed to provide service for three to four hours daily, with an autonomy of three days, that is, the system can function for three cloudy days.

OPERATION A PV module is usually mounted on the roof of the house so that it is exposed to direct solar radiation throughout the day, avoiding any shadow. The module converts incident radiation into electricity, which, in turn, charges the battery, which is placed inside the house. The battery provides power to the CFLs, and to the television and/or fan as required.

A change controller prevents overcharging and deep discharge of the battery.

COST The cost of an SHS depends on the load to be supported, the capacity of the PV modules used to meet the load requirement, and the capacity of the battery to meet the required autonomy. The indicative costs of five different SHS models are listed below.

18 MAY 2010 POWER INSIDER

t .PEFM * POF 8 $'- 3T t .PEFM ** UXP 8 $'-T 3T t .PEFM *** POF 8 $'- BOE POF GBO

3T t .PEFM *7 UXP 8 $'-T BOE B GBO 57

3T t .PEFM 7 GPVS 8 $'-T 3T The cost of the fan/TV is not included in the above costs. There could be variations due to local taxes, additional transportation costs, etc.

SOLAR STREET LIGHTING SYSTEM A solar street-lighting system (SLS) is an outdoor lighting unit used to illuminate a street or an open area usually in villages. A CFL is fixed inside a luminaire which is mounted on a pole. The PV module is placed at the top of the pole, and a battery is placed in a box at the base of the pole. The module is mounted facing south, so that it receives solar radiation throughout the day, without any shadow falling on it. A typical street-lighting system consists of a PV module of 74 Wp capacity, a flooded lead–acid battery of 12 V, 75 AH capacity, and a CFL of 11 W rating. This system is designed to operate from dusk to dawn (that is, throughout the night). The CFL automatically lights up when the surroundings become dark and switches off around sunrise time.

The cost of an SLS is about Rs 19 000.

Variations in the cost are possible on account of local taxes, additional transportation costs, etc. The Indian Ministry for Renewable Energy provides financial assistance for the promotion of some of the above solar lighting systems among eligible categories of users.

40-"3 108&3&% 53"''*$ 4*(/"- SYSTEMS Conventional signal systems to control and regulate traffic are based on incandescent lamps, and are powered by the normal city supply.

Failures in power supply often lead to chaos at traffic junctions. These conventional systems can be replaced by solar-powered traffic signalling systems, which use LEDs and work without interruption during power failures. Switching to solar-powered systems would help conserve large amounts of conventional electrical power. Besides consuming much less power, LED-based lights last much longer than conventional filamentbased lamps. Hence, routine maintenance costs would be reduced.

The design of these systems depends on the number of lights to be operated at a junction. A PV array of about 1 kWp capacity would be required for a four-road junction, along with an appropriately sized battery bank based on the site conditions.

This system does not require an inverter. In case of need, the system can also work with conventional grid supply. The system has programmable logic controllers for setting parameters such as through time, peak time, on/off time, etc. Its features include ‘auto’, ‘on/off ’, and ‘blink’.

The cost of a solar-powered lighting system depends on its components, including PV array, battery bank, and electronic controller. For a four-road junction, the cost would be about Rs 6.40 lakhs. Such systems are presently being used in Bangalore, Delhi, and other major cities in the country.

SPV-BASED INFORMATION DISPLAY SYSTEMS LED-based information display systems, powered by SPV, are now being installed at road junctions, on the roofs of prominent buildings, and other places. These systems vary in size, and display useful information pertaining to population, road safety, AIDS, ambient conditions, etc. Such systems are slowly replacing traditional neon tube-based systems; the latter are not only expensive, but also consume much more energy. Such SPV-powered display systems can be installed in urban areas and along highways. Depending on their levels of power consumption, SPV information display systems are provided electricity by stand-alone SPV power plants.

For a typical LED information system of size about 1 × 2 m and consuming about 300 watts of energy, an SPV module of about 2 kWp capacity is required to enable it to operate all through the night.

The battery bank size would depend on the desired autonomy, and on the number of hours of operation required. The cost of such a system depends on the sizes of the SPV array and battery bank. These, in turn, depend on the power requirement of the display board. For a 300-watt system requiring 15 hours of operation, the approximate cost can be about Rs 7 lakhs.

SPV POWER PLANTS In an SPV power plant, electricity is centrally generated. This electricity is either made available to users through a local grid in a ‘stand-alone’ mode, or connected to the conventional power grid in a ‘gridinteractive’ mode. Stand-alone power plants provide grid-quality power locally to people to meet their requirements for lighting and other needs. Power plants are preferred over individual SPV systems if a number of users are in close proximity. The cost of power may be of the order of Rs 15 per kWh for a grid-interactive power plant and higher for standalone power plant.

STAND-ALONE SPV POWER PLANT A stand-alone SPV power plant is typically designed for specific requirements. The capacity of a standalone power plant varies from 1 kWp to 25 kWp, and in some cases even higher. These systems are used where conventional grid supply is not available, or is erratic or irregular. A stand-alone power plant functions like an uninterrupted power supply system (UPS) and provides a constant, stable, and reliable supply to the loads. These power plants can also be used in areas where grid supply is available; in such places the power plants operate like a hybrid power plant, working with grid, as well as with SPV. The capacity of its battery bank depends on user requirements. The most common use for such plants is the electrification of remote villages. Other uses include power for hospitals, hotels, communications equipment, railway stations, border outposts, etc., Stand-alone SPV power plants comprise PV array, battery bank, inverter, and charge controller.

Depending on the system voltage, SPV modules are arranged in series and parallel combinations. The standard combinations are 2, 4, 6, 10, 20 or more modules. The corresponding system voltages are in the range of 24 to 240 V. The size of the battery bank is determined by the system voltage and ampere-

hour requirements of the load.The inverter is selected based on the system voltage and peak-load capacities. Other components such as junction boxes, distribution boxes, and cables are selected according to the maximum amount of current to be handled by them.

The cost of a stand-alone power plant depends on the PV array size, battery bank capacity, inverter, etc.

The approximate cost of a standalone power plant is between Rs 3.00 lakhs and Rs 3.50 lakhs per kW of PV capacity. Distribution costs (such as in a village) may be extra.

in India, where a large number of buildings are constructed every year for different purposes, and where energy consumption in buildings is growing at a rapid rate. Although the initial costs of a BIPV system are high, long-term savings result from a reduction in electricity consumption.

India needs more experience in the field of BIPV technology. In order to encourage this application and to prepare manufacturers and users, the Ministry supports BIPV projects by meeting 80% of the cost of PV modules installed in the systems on government and semi government buildings.

SOLAR GENERATORS A solar generator is a small capacity, stand-alone SPV power system based on a PV array, connected to a battery bank and an inverter of appropriate size. This system is designed to supply power to limited loads (such as lights and fans) for a period of two to three hours daily in situations such as conventional power failure or load-shedding. The MNES currently promotes four models of solar generators, with capacities of 150, 350, 450, and 600 Wp. These solar generators are mainly meant to replace the conventional small-capacity petrolbased generators that are used during routine loadshedding periods in urban areas by shops, clinics, and other small establishments.

The components of a typical solar generator are a small SPV array connected to a battery bank of appropriate size and an inverter based on 12, 24, or 48 V. The system is designed to supply power to loads such as lights, fans, credit-card operating machines, and personal computers for a period of two to three hours. The cost of the four solar generator models promoted by the MNES varies from Rs 35 000 to Rs 145 000.

SPV PUMPING SYSTEM Water pumping is one of the most important applications of PV in India. An SPV water pump is a DC or AC, surface-mounted or submersible or floating pump that runs on power from an SPV array.

The array is mounted on a suitable structure and placed in a shadow free open space with its modules facing south and inclined at local latitude.

A typical SPV water-pumping system consists of an SPV array of 200–3000 Wp capacity, mounted on a tracking/non-tracking type of structure. The array is connected to a DC or AC pump of matching capacity that can be of s u r f a c e - m o u n t e d , submersible, or floating type. Interconnecting cables and electronics make up the rest of the system. SPV water pumps are used to draw water for irrigation as well as for drinking. The normal pumping heads are in the range of 10 metres (m) for irrigation, and 30 m for drinking water. It is possible to use pumps with even greater head, especially for drinking water supply.

The SPV array converts sunlight into electricity and delivers it to run the motor and pump up water.

The water can be stored in tanks for use during non-sunny hours, if necessary. For maximum power output from the SPV array, the structure on which it is mounted should track the sun. Electronic devices are used to do this in some models, thereby enabling the systems to operate at maximum power output.

The power from the SPV array is directly delivered to the pump in the case of DC pumps. In the case of AC pumps, however, an inverter is used to convert the DC output of the array into AC. No storage batteries are used in an SPV pump. An SPV pump based on a one-horsepower motor can irrigate about 1–1.5 hectares of land under a variety of crops except paddy and sugar cane (assuming a 10-m water table). Using the same pump along with drip irrigation, it is possible to irrigate up to 6 hectares of land for certain crops. A two-horsepower SPV pump could irrigate about 2–3 hectares of land under many crops except paddy and sugar cane (again assuming a 10-m water table).

The cost of an SPV pump depends on the capacity and type of pump. For example, a DC surface pump with a 900 W array may cost about Rs 150 000; a similar pump of 1800 W may cost about Rs 300 000; and an 1800 W AC submersible pump may cost about Rs 422 000.

All in all, India is doing everything it can to attract foreign investment and players into the market place and help bring power to the people with some excellent policy and tariffs. If companies are looking at China, India should certainly be next on the list due to the excellent policy available. In our next issue we will be looking in more detail at Wind and other favoured sources of renewable energy.

BUILDING-INTEGRATED PV SYSTEMS In a building-integrated photovoltaic (BIPV) system, PV panels are integrated into the roof or façade of a building. BIPV systems are becoming common in Europe, the USA, and Japan. The SPV panels generate electricity during the daytime, which is used to meet a part of the electrical energy needs of the building. BIPV systems have significant potential

POWER INSIDER MAY 2010 19

SHIPPING

DON’T SHORT CHANGE YOUR VALUABLE CARGO Why do some companies invest millions of dollars buying the best plant and materials from around the world but then comprise their standards when it comes to transporting their value cargo, asks Robert Hill, Director of South Sea Shipping (NZ) Ltd. How do you choose which logistics service provider to entrust your value cargo with?

QUALITY NOT QUANTITY There are thousands of people out there willing to accept your money and try to move your valuable cargo around the world. Have you ever asked your logistics service provider what qualifications and experience they have? If not, why not?

Qualifications are an easy way to start to weed out some of the cowboys in the industry. The Institute of Chartered Shipbrokers and The Chartered Institute of Logistics and Transport are both internationally recognised professional bodies where members must

By Sean Stinchcombe 20 MAY 2010 POWER INSIDER

show, usually by written examination, that they have an excellent understanding of their respective sectors of the industry. Both organisations encourage continued professional development and demand high standards from their members. The Institute of Chartered Shipbrokers and the Baltic Exchange share the motto “Our Word, Our Bond” which clearly signals the manner in which they expect their members to act and conduct business. Many other universities and learning institutions around the world are now conducting various transport

and logistics courses, ranging from introductory certificates to Masters degrees.

However that is not to say that there aren’t some very good people out there without formal qualifications. The “University of Life” is also a very important institution and should by no means be overlooked. Ask your logistics service provider about their past projects and if they have ever moved cargo similar to yours.

Thankfully the issue of quality is finally starting to be brought to the fore with The Federation of National

Associations of Shipbrokers and Agents (FONASBA) recently introducing a Quality Standard. Members will be audited to ensure they have a specific level of knowledge and experience as well as financial standing. This has been generally welcomed by the shipping industry with BIMCO publicly endorsing it. This is a great start but it is not compulsory and only available to FONASBA members.

There have been cases of ships being selected solely on price and then breaking down on the way to the load port and the charterer then having the

delay and cost of having to find a replacement ship at short notice. Worse can happen if the ship breaks down after the cargo is loaded on board or a crane fails while loading or discharging and damages your valuable cargo. No-one can afford to ignore the bottom line these days but please ensure that you are getting good value for your money.

WHY USE A SHIPBROKER OR OTHER INTERMEDIARY? One way to assist you to find the most cost efficient

and effective solution to meet your shipping requirements is to use a qualified and experienced shipbroker or other intermediary. Many people perceive the use of a shipbroker or other intermediary as a waste of time and money and instead prefer to contract a shipping company directly. Indeed most project ship owners and operators can offer impressive project management services that can rival those offered by shipbrokers and logistics service providers.

However the key point to remember is that the POWER INSIDER MAY 2010 21

shipping company you select will only ever sell you their services regardless if they are the best fit for your cargo needs or not. Each shipment is unique and the shipping company that is right for one shipment may or may not be the most suitable for your next shipment. To ensure each of your valuable shipments is handled by the most appropriate shipping companies you would have to spend a lot of time to develop relationships and understand the service offerings from many, many different shipping companies to ensure that you select the most suitable one for each of your shipments.

A well qualified and experienced shipbroker will already know all the key players in the market and have existing relationships with them. A good shipbroker will at first take the time to understand your shipping requirements and the characteristics of your cargo and then contact the appropriate shipping companies to find the right one for you and your cargo.

Many projects these days source plant and materials from different parts of the world. A good shipbroker will be aware of which shipping companies specialise in which trade routes. For example the shipping company chosen to move cargo from Europe to Asia may not necessarily be the most appropriate one to use from Europe to North America.

Even if several shipments are moving between exactly the same ports it still may not be the best option to use the same shipping company for all shipments. Shipping companies will happily reposition their ships to anywhere in the world for you but any empty repositioning legs will be built into the price. A good shipbroker may suggest to use a couple of different shipping companies who have suitable ships in the right location at the right time

22 MAY 2010 POWER INSIDER

select the most appropriate shipping company for each of your shipments.

thus making it more economical for the shipping company which then in turn should be reflected in your price.

Relationships are important and people often say I always use the same shipping company because I have built up a relationship with them and they now know and understand my cargo. There is, of course, some merit to this argument. However you can build up that same relationship and understanding with a shipbroker. It is the shipbroker’s job then to convey your requirements to the shipping company chosen for each shipment. A good shipbroker will recognise that every shipment is different; some are time sensitive, exceptionally heavy or exceptionally large, others require special handling or perhaps discharging directly to an offshore installation or another challenging location.

Using a shipbroker allows you to deal with the same person for every shipment but still gives you the benefit and flexibility of being able to

UNDERSTAND THE PLAN Ensure that you understand the proposed plan and how your valuable cargo will be transported.

The proposal must provide a solution to all your requirements and must be at an acceptable budget to you. The old clichĂŠ says “you get what you pay forâ€? just make sure that you understand what you are getting.

Shipping is full of jargon and abbreviations so unless you have a shipping background most of the correspondence will seem like another language.

Ask your shipbroker or logistics service provider to explain what is happening and your obligations in simple plain English or any other language that may be appropriate. If they can’t explain it easily to you, then do they actually understand it themselves?

Remember it is your valuable cargo and your money so make sure that you are comfortable with the arrangements being proposed.

It is hoped that this article will encourage you to think about the process you go through to select your logistics service provider. You probably spend hours, days, weeks or even months considering the right plant and materials to purchase so take some time to make sure your valuable cargo is well cared for as it travels around the world.

R5 ) ,.5 #&&65 65 5B ,#.#' 5 ( ! ' (.C65 " -5 hl5 3 ,-5 2* ,# ( 5 #(5 ." 5 #(. ,( .#)( &5 -"#**#(!5 #( /-.,35 ( 5#-5 /,, (.&35 5 #, .),5 .5 )/."5 5 "#**#(!5 B C5 . 65 -* # &#-#(!5 #(5 -"#*5 ,)%#(!5 ( 5 &)!#-.# -5 ' ( ! ' (.5) 5*,)$ .5 ( 5" 035&# .5 ,!)85 ) ,.5#-5 &-)5 ." 5 /,, (.5 , . ,35) 5." 5 /-., &# 5 ( 5 15 & ( 5 , ( "5) 5." 5 (-.#./. 5) 5 " ,. , 5 "#* ,)% ,-8

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NUCLEAR POWER

WATER CONSERVATION COOLING FOR NUCLEAR POWER:

LET IT BE COOL!

by Zoltán Szabó, Attila Grégász, Zoltán Mezey , GEA EGI Contracting/Engineering Co. Ltd.

NUCLEAR REVIVAL During the 60s and early 70s nuclear power used to be regarded as the route to the land of promise. Then, poor safety culture, visible technical shortcomings leading to occasional accidents (including some serous ones) as well as worries about nuclear proliferation and security changed the public opinion and political climate and pushed the one-time hope to the status of people’s enemy no.1.

Now, there is every chance that nuclear power will contribute more to future energy production than during the previous three decades.

By Sean Stinchcombe 24 MAY 2010 POWER INSIDER

Technological development promising safer and cleaner nuclear energy and growing carbon emission fear combined with notoriously unpredictable price of fossil fuels have been rising nuclear power from its ashes.

TIME TO CHANGE PARADIGM IN NUCLEAR COOLING To stabilize and even improve public and political acceptability of nuclear energy needs pragmatic approach: correct and critical analysis of its potential impacts on safety, security, economic and

environmental aspects.

One of the environmental issues is related to cooling of nuclear power plants. In its essence nuclear power cooling is basically similar to those of other thermal power plants, though with some specific differences, too. The light water reactor (LWR – e.g.

PWR or BWR) based power plants are built with large unit capacities (1000-1800 MWe) to improve their economics; additionally the heat-to-bedissipated (due to the low live steam parameters) is larger abt. 20-25% than that of a state-of-the-art coal fired power plant for the same rating. That is, extreme

high cooling capacity is required by a unit. The old paradigm considers first of all once-through cooling perhaps wet cooling as the only solutions for nuclear power plants - thus, expecting to site nuclear power plants exclusively to a large natural body of water such as ocean, sea, large river or major lake. This is not only imposing a constraint on the future of nuclear power, but also shadowing its environmental profile. Once-through cooling inevitably harms aquatic life and restricts the use of that part of seashore or river bank. Evaporative cooling may take away water from other competing applicants of the

region: inhabitants, industries and agriculture and may negatively influence micro climate.

Nowadays more than 5% of the conventional fossil fuel power plants are equipped with water conservation type cooling systems (dry or dry/wet), the application of these for nuclear power plants is practically nil. To be more exact, there is only one nuclear power plant in the world what is dry cooled.

It is the Bilibino Nuclear Plant with 4x12 MWe electric output (Fig 1), equipped with mechanical draft dry cooling system supplied by EGI, the company of the authors of this article. It was built in

Fig.1 The only dry cooled nuclear power plant: Bilibino NPP 4x12 MWe (Russia)

POWER INSIDER MAY 2010 25

NUCLEAR POWER Finally both opportunities can be combined, i.e. integrating through the condenser as well as through water-to-water heat exchangers in the same time.

Some of the dry/wet systems offer great operational flexibility, high availability, much better environmental compatibility than the wet cooling tower and improved summertime heat rejection than the all-dry cooling plants. They can be operated in a significant period of the year in all-dry mode. When operated in dry/wet mode the division between heat rejection by the dry and wet sections can be changed seasonally, daily or even hourly, depending on water availability, power demand and ambient conditions.

Fig. 2: Dry cooling towers of the 2 x 600 MWe coal fired Yangcheng TPP, China

the second half of the 1970s over the Arctic Belt in the Siberian part of Russia. This dry cooled nuclear power plant has been operating successfully since then – however, no continuation in applying water conservation type cooling systems worldwide.

The next test of the renewed nuclear power industry will be whether it is able to adapt water conserving cooling systems.

THE OPPORTUNITY FOR WATER CONSERVATION IN NUCLEAR POWER COOLING: HELLER SYSTEM AND ITS DRY/ WET DERIVATIVES HELLER System is an indirect dry cooling plant.

The power plant waste heat is initially exchanged in a condenser (either a surface or direct contact one) to a closed cooling water circuit. The heat absorbed by the water is rejected to ambient air in finned tube type heat exchangers. Air moving can be either by natural or mechanical draft. To establish a surplus closed circuit between the primary reactor core and the nature, it is assumed here that only the indirect HELLER System with surface condenser shall be considered for nuclear power plants as dry cooling (thus further improving safety).

Fig. 3: Steel structured alu-clad dry cooling tower for Nasserieh CCPP (Syria)

GEA EGI has developed a number of cost effective dry/wet combinations derived from the alldry HELLER System, but only a few of them will be introduced here. HELLER System is well suited to dry/wet combinations since at lower ambient temperatures it is capable of establishing even in dry operation the same vacuum as a wet cooling plant.

Among the dry/wet options HELLER System equipped with supplemental spraying is in fact a dry cooling plant where spraying is used only for peak shaving in the hottest summer days – i.e. for a limited period (max. 800 hours per year).

Perhaps the most obvious solution is the single circuit serial dry/wet cooling, in which the warmedup water from the condenser first cooled by the dry tower, then – only in summer – further cooled by wet cells. Due to the common water circuit the tubing of the air cooler shall be made of stainless steel and the dry section also needs surplus maintenance care.

A new brand of efficient dry/wet systems has been developed by integrating the dry HELLER System with evaporative cooling cells in a way to maintain separate circuits for the main dry and the assisting wet cooling parts. The integration can be in parallel through a surface condenser having separate condenser sections assigned for the closed dry cooled circuit and the wet cooled one. Also they can be integrated either in parallel or in series via waterto-water heat exchangers for transforming the heat dissipation of the wet tower to the closed dry circuit.

IMPACT OF WATER CONSERVING COOLING ON NUCLEAR POWER PLANTS PERFORMANCE, WATER CONSUMPTION AND ECONOMICS GEA EGI has made several concept and case studies for potential nuclear plant owners and suppliers, aiming at investigating the impact of water conserving cooling systems on nuclear power plants.

Some results from one of these case studies are shown herein, which is related to a site where the maximum ambient dry bulb temperature remains a bit under 40 °C and the yearly average is 14 °C. Fig. 7 shows the cold-end characteristics of some of the investigated cooling system options.

It is remarkable that the electricity generation by the best scoring dry and dry/wet cooled variants remained only by about 1% under that of the natural draft wet cooled one (Fig. 8). However, in the warm summer period (i.e. when ambient temperature ≥ 25°C) the difference increases to nearly 3.5%, even in case of the best dry/wet system (separate circuit dry/wet). With some extra water use this difference can be reduced. Another option to decrease the difference is to reduce the superheating of low pressure steam at that highest backpressure range and increase the live steam flow accordingly.

Another chart (Fig. 9) shows the make-up water consumption of some of the investigated cooling options referred again to that of the natural draft wet cooling system. The dry HELLER System with supplemental spraying consumes annually only 1.2% water, and even the separate circuit dry/wet system (natural draft dry tower with natural draft wet cells located inside the dry tower) remains within 11% annual water consumption. Even during the warmest day of the year the make-up water consumption of the sprayed dry cooling is Fig. 4: 800 MWe Modugno CCPP (Italy), equipped with mechanical draft HELLER System

26 MAY 2010 POWER INSIDER

Fig. 5: Separate circuit dry/wet system (assisting wet cells on the left) in parallel connection via the condenser with the natural draft dry HELLER System to dissipate the increased heat load following a major retrofitting at the coal fired Matra PS, Hungary

Fig. 6: Delugable coolers within one of the dry towers of the 1400 MWe Bursa CCPP, Turkey

abt. 9% and that of the separate circuit dry/wet is less than 30% referred to the water consumption of the all-wet cooling system.

While, as annual average, a wet cooling system uses approx. 2.6 m3 make-up water for generating 1 MWh electric energy, this specific water consumption is less than 0.04 (m3/MWh) for the sprayed dry cooled variant and 0.28 (m3/MWh) for the separate circuit dry/wet cooling system.

The economics of applying different cooling systems strongly depends not only on the site and climatic conditions but also on the assumed economic factors. Even at a medium specific make-up water cost (0.5 €/m3 - comprising all cost items from sourcing till blow-down treatment/disposal) on present value basis the water conservation type variants may score better than a wet cooled variant (Fig. 10).

More comprehensive information is shown by the so-called economic viability envelope (Fig. 11).

Boundary lines of economic equivalence between each variant and the natural draft wet cooling are plotted against coordinates of water and electricity prices. These provide information about the economic viability of different cooling systems in view of changes in the mentioned two vital factors. Above each line the specific variant is more economic than the natural draft all-wet system, whereas under it the wet system prevails.On the basis of the referred case study the following conclusions can be made: At the given site and nuclear power plant, it is possible to apply either dry (with supplemental spray) or dry/wet cooling solutions, even if the LP turbine is basically designed for wet or once-through cooled applications.

Among the large number of dry and dry/wet cooling options (most of them not introduced herein) natural draft versions perform definitely better than the mechanical draft ones, sometimes not only on present value basis but even if comparing them by their capital costs.

Though, the capital cost of both wet cooled variants (either natural or mechanical draft) is significantly lower than those of dry or dry/wet solutions when comparing them on present value basis, at high and

Fig. 7

even at a part of medium specific water costs, the water conservation type cooling systems (with natural draft dry part) fare better. Whereas at lower values of the specific total make-up water cost wet cooling with natural draft takes over the economic lead.

Summarizing the results it can be claimed that, depending on the economic and site conditions, HELLER-type dry cooling and its dry/wet derivatives – alike once-through or wet cooling ones – can economically be applied for nuclear power plants. Thus water conservation type cooling systems can further extend the territories applicable for economical installation of nuclear power plants.

LITERATURE [1] Balogh, A., Szabó, Z., The Heller System: The Economical Substitute for Wet Cooling, Journal of Power Plant Chemistry, Vol. 11, No. 11 (Nov. 2009), p 642-656 [2] Balogh, A., Szabó, Z., Heller System: The Economical Substitute for Wet Cooling – to avoid casting a shadow upon the sky, EPRI Workshop on Advanced Thermal Electric Power Cooling Technologies, July 2008, Charlotte (NC) [3] Balogh, A., Szabó, Z., The Advanced HELLER System – Technical Features & Characteristics, EPRI Conference on Advanced Cooling Strategies/ Technologies, June 2005, Sacramento (CA) [4] Balogh, A., Szabó, Z., Advanced Heller System to Improve Economics of Power Generation, EPRI Conference on Advanced Cooling Strategies/ Technologies, June 2005, Sacramento (CA) [5] Szabó, Z., Cool for Coal, Journal of Power & Energy 1st quarter, 2004 - Asia Pacific Development

Fig. 8

Fig. 9

Fig. 10

Fig. 11

‘TECHNOLOGICAL DEVELOPMENT PROMISING SAFER AND CLEANER NUCLEAR ENERGY AND GROWING CARBON EMISSION FEAR COMBINED WITH NOTORIOUSLY UNPREDICTABLE PRICE OF FOSSIL FUELS HAVE BEEN RISING NUCLEAR POWER FROM ITS ASHES.’ POWER INSIDER MAY 2010 27

DISTRICT HEATING

TAKING DISTRICT HEATING SKILLS TO CHINA

DALKIA UPGRADES AND MANAGES AN URBAN HEATING SCHEME IN JIAMUSI

Dalkia is used to developing and managing district heating schemes in Europe, but has now begun to take its skills to a rather different business environment – China. Here Timothée Prenez writes on the company’s award-winning work in one Chinese city – Jiamusi.

Work in managing, upgrading and expanding the urban heating network of Jiamusi, a city located in the North East of China, has won an award at the District Energy Climate Summit held in Copenhagen in November 2009 for Dalkia, the district energy operator of Veolia Environnement and Electricité de France, – respectively world leaders in environmental services and in power generation. This first international district energy summit, organized by the IEA in conjunction with the International District Energy Association, Euroheat & Power and the Danish District Heating Association included participants from North American, European and North Asian countries.

28 MAY 2010 POWER INSIDER

The new award brings an international recognition to the pioneering involvement of Dalkia in China in the district energy industry.

The 25-year concession in Jiamusi signed in 2007 was the first district heating contract awarded in China under the new concession framework issued by the authorities in Beijing.

Dalkia’s aim is to replicate in mainland China its successful development in improving district energy efficiency in Eastern Europe. In the last 15 years, Dalkia has become a major district heating provider in Poland, Czech Republic, Slovakia, Hungary, Romania, Estonia and Lithuania. China is Dalkia’s next focus, with its existing operations now in

Jiamusi, Harbin and Chongqing.

Independent, small coal-fired boilers represent the main heating source in many cities in China. Their low efficiency and lack of effective air-pollution control system caused significant air pollution problems which led to regulations encouraging local authorities to close down small coal-fired boilers in favor of large district heating systems (DHS).

This presents substantial growth opportunities for operators such as Dalkia, but it also means significant investment over the initial years of operation.

The difficulty in securing financing for district energy in China was overcome by Dalkia through collaboration with the Asian Development Bank

MUNICIPALITY OF JIAMUSI Jiamusi, the third-largest town in the Heilongjiang Province in the People’s Republic of China, is located in the north-east of the country, 100 km from the Russian border, 400 km from the province’s capital, Harbin, and 1800 km from the country’s capital, Beijing.

The larger municipality of Jiamusi has a population of 2.45 million people. The city of Jiamusi covers 56 km2 and has a population of 820,000 people.

Climatic conditions in Jiamusi are favourable for the development of a heating network. With 5073 degree days annually (on a 10-year average, base 18°C) and a temperature that can reach -26°C during winter, the heating season lasts 6 months, from 15 October to 15 April. The average temperature from December to February is -18°C.

POWER INSIDER MAY 2010 29

DISTRICT HEATING (ADB), in similar fashion to its earlier cooperation in Eastern Europe with the European Bank for Reconstruction and Development (EBRD). The collaboration was in line with ADB’s objective of supporting energy efficiency and environmental protection in China, and will be gradually phased out when commercial lending becomes more readily available for the district energy industries.

DALKIA IN JIAMUSI In 2005, Dalkia started exploring the opportunity of entering the heating market in Jiamusi. The city’s total area for heating was assessed at 18.9 million m2.

The urban heating network of Jiamusi Heating Company ( JHC), a company owned by the municipality, was already supplying 29% of the total heating surface (5.5 million m2). JHC’s demand peaked at 410 MWth, 70% of which was supplied by 2 local CHP plants and the rest by JHC’s own heat-only boilers.

JHC has been in chronic deficit for over a decade, and therefore lacked the financial strength to raise the funds to meet the city development objectives. JHC’s assets also suffered from reduced maintenance which resulted in large energy and water losses. This in turn led to increased dissatisfaction from the users, as interruptions of service and low indoor temperature were the norms.

In May 2007, Dalkia signed a 25-year concession to manage the former JHC’s network. A new joint venture, Dalkia ( Jiamusi) Urban Heating Co (Dalkia Jiamusi), was set up with minority participation from a municipal utility company, Jiamusi New Times Urban Infrastructure Construction and Investment (Group).

The project took two years to materialize as it was the first concession agreement in the heating sector in China.

After two years of operation, Dalkia Jiamusi increased the network coverage by 56% to 8.6 million m2. Dalkia’s aim is to supply 14.5 million m2 by 2020 (75% of the current heating area).

INNOVATIVE TECHNOLOGICAL SOLUTIONS Modifications of JHC’s network R5 &%# 5 # '/-#5 ),'/& . 5 5 0 &)*' (.5-., . !35 for the Central Zone and the two largest development zones in the West and in the East of Jiamusi.

This strategy translated into 3 main investment

30 MAY 2010 POWER INSIDER

programmes: R5') #ŀ .#)(5) 5." 5 -.5( .1),%5 ,)'5nk‡ 5" .5 -/**&35.)5ok‡ 5" .5-/**&3 R5 )(-.,/ .#)(5 ) 5 5 ( 15 ),."5 ,5 1#."5 ghf‡ 5 heat supply R5 )(-.,/ .#)(5) 5 5( 15 )/."5 ,51#."5ghf‡ 5" .5 supply.

The capacity for growth of the urban heating at Jiamusi was limited by its network configuration, even though two existing CHP plants were capable of delivering more heat from their existing capacities.

The major part of the existing network had been designed to supply hot water from the CHP directly to numerous radiators in the end-users’ premises. This &#'#. 5." 5" .5-/**&35. '* , ./, 5.)5nk‡ 5 ( 5." 5 pressure to a maximum of 6 bars, and subjected the network to large heat losses – it was losing water at a rate of 1200 m3/h.

To overcome these technical constraints, Dalkia Jiamusi built about 90 new substations on the Eastern network upon taking over the management of the network in the summer of 2007. This enabled the primary water supply temperature to be raised .)5 ok‡ 5 ( 5 ( & 5 ." 5 2#-.#(!5 ( .1),%5 .)5 5 connected to additional areas which were previously supplied by independent boiler houses.

With the construction of the North feeder in hffo65 ( 5 ." 5 )/."5 ,5 *,)$ . 5 ),5 hfgh65 Dalkia Jiamusi will be able to increase the supply . '* , ./, 5 .)5 ghf‡ 65 /35 '), 5 ( ,!35 ,)'5 ." 5 larger East Cogeneration plant, and increase the supplied area to 14.5 million m2.

Views of new heating pipelines being installed Automation of management tools 5-/* ,0#-),35 )(.,)&5 ( 5 . 5 +/#-#.#)(5B C5 system was installed, enabling real-time management of the substations and the network, and resulting in improved optimization of energy efficiency and users’ comfort.

Dalkia also implemented its proprietary Enterprise Resource Planning (ERP) system, with specialized modules on maintenance management, energy management, fuel supply and customer service.

Renewable energy Dalkia is studying the possibility to develop heating

by using geothermal resources in the municipality of

# '/-#85 )' 5-./ # -5" 0 5#( # . 5." 5*, - ( 5) 5 geothermal resources in the north of the city.

Assuming Dalkia’s technical and financial study results confirm project feasibility, it intends to develop a 10–15 MW capacity installation for the initial phase. Ideally, a two-wells- geothermal-installation will be used, which re-injects the water to the ground and therefore preserves water resources.

Biomass is also an obvious source of fuel as Jiamusi is located in the middle of large cornfields.

Biomass is a renewable source that is supported by public authorities as part of “green growth� and renewable energy development policies. It is a major development axis for Dalkia, which has 190 biomass plants in operation worldwide.

Enhancement of employees’ competencies Dalkia recognizes that the experience and knowledge of the existing management and staff is a very significant part of the asset being acquired. Moreover, mutual cooperation between the management and the labour force is crucial to the successful operation of the project.

Dalkia Group has a strong history of successful integration of human resources in its acquisition of companies and of contracts where transfers of employees are considered. Jiamusi is able to benefit from the experience and knowledge from 100,000 sites managed by Dalkia worldwide, as Dalkia pursues an active policy of upgrading employees’ skills and experience through training courses organized by related companies or by third parties.

For key employees, this policy extends to exposures to overseas operations for a period of time.

IMPACT ON THE ENVIRONMENT Dalkia Jiamusi monitors key energy and environmental parameters, and the current results show: R5 5, / .#)(5) 5'), 5." (5lk6fff5.)(( -5) 5 , )(5 dioxide R5 5, / .#)(5) 5l8lz5)(5, .#)5) 5 ( ,!35 )(-/'*.#)(5 per m2 R5- 0#(!-5) 5hl6fff5.)(( -5) 5-. ( , 5 ) & R5 5, / .#)(5) 51 . ,5&)--5 35hiz R5 5 , - 5 #(5 " .5 -/**&# 5 35 ) &7Ĺ€, 5 )#& ,5 houses from 30% in 2005 to 10% presently.

Dalkia is the ideal partner to local authorities and businesses

Leading European Operator of District Energy Dalkia operates: ·800 urban and local heating and cooling networks ·4,923 MW electricity capacity from cogeneration

www.dalkia.com

Published 2009

With nearly 52,800 employees in 41 countries, Dalkia manages €8.6 billion in revenue

DISTRICT HEATING

These improvements were mainly due to: Development of the network to buy cleaner energy from the 2 CHPs; and removal of 64 independent coal-fired boiler houses and 9 JHC coal-fired boiler houses in 2008.

Modernization and modification of JHC’s former network design to significantly improve energy efficiency and reduce water loss. This included 179 substations being renovated and/or installed between 2007 and 2008, 21 new substations planned to be built in 2009/2010, the average age of network is decreased with the refurbishment and renewal, and more than 5,500 valves on the primary and secondary networks were replaced.

Future reduction of carbon dioxide emissions is estimated as follows: R5mf6fff5.)(( -I3 ,5) 5 , )(5 #)2# 5 35, / #(!5 network loss (around 1.7 million tonnes of carbon #)2# 5)0 ,5hk53 ,-C R5hff6fff5.)(( -I3 ,5) 5 , )(5 #)2# 5 35 )(( .#(!5 buildings that will switch from low-efficiency heatonly-boilers to Dalkia Jiamusi’s network (around 5.2 '#&&#)(5.)(( -5) 5 , )(5 #)2# 5)0 ,5hk53 ,-C R5hf6fff5.)(( -I3 ,5) 5 , )(5 #)2# 5# 5 -# #&#.35 studies show viability to develop the first phase of a geothermal project.

CUSTOMER RELATIONS SATISFACTION Dalkia Jiamusi has successfully improved the quality of services and earns trust from the customers. As an indicator, bad debts decreased from 7% to 2% after Dalkia Jiamusi’s takeover of the urban heating facilities.

Customer communications R5 1-* * ,-5 @5 , 5 5 )'')(5 ' #/'5 ),5 &%# 5 Jiamusi to share public information with the customers.

R5 ) &5, #)5@5 &%# 5, !/& ,&35* ,.# #* . -5#(5&) &5 radio programmes to respond to specific queries from the public.

R5 / &# 5 -. ( 5 )(5 ." 5 ' #(5 -+/ , 5 @5 ), 5 "5 heating season, a stand is operated by Dalkia Jiamusi on the city main square to provide information to the public on the new heating season.

R5 (. ,( .5 @5 &%# 5 "#( 5 0 &)* 5 5 ),*), . 5 internet website (www.dalkia.cnC65 0 #& & 5 #(5 Chinese and English.

Dalkia also designed a website specifically for Dalkia Jiamusi (http://jms.dalkia.cnC85 .5 #Äż ,-5 ,)'5 the Chinese corporate website in the inclusion of 32 MAY 2010 POWER INSIDER

Date

Award

Level

01/12/2007

Exalted Company which Influences Sanjiang People’s Life Most (2007)

Local

01/12/2007

2007 Model Company

06/12/2007

2007 Dalkia Special Award

15/04/2008

Award of the Most Influencing Event / Person in Jiamusi

30/12/2008

Customer Service Award of Heilongjiang Province

26/2/2009

2008 Most Important Company in Jiamusi

Local

08/3/2009

Female Dalkia Staff Awarded as Model for Jiamusi

Local

13/3/2009

Provincial Superior Company

20/8/2009

Respectful and Straight Company

some features specific to the local environment.

Customer services improvement Dalkia Jiamusi set up a 24-hour one-stop-shop help desk to ensure quick response to any incident or customer inquiry.

Centralized collecting office Before the acquisition, JHC heavily relied on fee collectors to recover heating fees. As this method is not efficient, Dalkia Jiamusi centralized the fees collection from the inhabitants into three strategically located collection offices. Customers’ information is managed by an ERP system which facilitates and accelerates the fee collection process.

All customers receive a personal intelligent card to pay the fees at a counter or to an automatic machine which avoids long paperwork process. Cars are available from the Collection Office to pick up old and handicapped people.

Customer satisfaction survey Dalkia has a standard policy of continual service improvement, acting upon results of annual survey campaign to assess the quality of its service delivery.

COMMUNITY AND AWARDS Community welfare Dalkia’s contribution to the local environment also includes participation in the local community activity. The company has taken part in a wide range of community events, from making a donation to

Provincial Internal Local Provincial

Provincial Local

the Sichuan earthquake-hit area by Dalkia Jiamusi ( 5#.-5-. Äż65.)5#( &/ #(!5 # '/-#5#(5 5!&) &5* #(.#(!5 competition organized by the Group in 2008.

Awards (5 #.#)(5 .)5 ." 5 #-.,# .5 ( ,!35 &#' . 5 1 , 65 &%# 5" -51)(5- 0 , &5'), 5*,#4 -5 ),5#.-5 Äż),.-5#(5 0 &)*#(!5." 5 , (5 .#(!5#( /-.,35#(5 # '/-#5@5 see table 1.

TimothĂŠe Prenez is a Project Officer with Dalkia -# 5 B #$#(!C65 "#( 85 #-5 ) /-5 #-5 # (.# 3#(!5 ( 5 developing investment opportunities for the company in China.

Email: timothee.prenez@dalkia.cn Dalkia* is the leading European provider of energy services to local authorities and businesses. Since its creation, it has focused on energy and environmental optimization.

It meets customer expectations by delivering customized, end-to-end solutions to ensure comfortable living and efficient energy supply, including management of district heating & cooling systems, industrial utilities and building energy systems.

With nearly 52,800 employees in 41 countries, Dalkia reported `8.6 billion in managed revenue in 2008. www.dalkia.com * Energy Services in the USA are operated under the name of Veolia Energy

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CHINA PROFILE

CHINA: ASIA’S ENERGY DRAGON David Wong Reports

China is presently engaged in a massive effort to control its rising energy use while promoting the rapid growth of its economy. The numbers involved evidence the magnitude of the challenge: in real terms, China’s 2007 GDP was more than double that of 2000; the electric power sector added more than 90 GW of capacity in just one year; and 100 million tonnes of coal-equivalent energy savings are to be achieved by engaging nearly 1,000 of the economy’s largest energy-using enterprises. Though the Chinese leadership has demonstrated its eagerness to learn from international experience, there is simply no precedent for the proposed development path. The policies and programs that China has introduced are necessarily unique given the challenge that is confronted, and original approaches are being developed to implement these policies and programs in the country’s economy.

34 MAY 2010 POWER INSIDER

POWER INSIDER MAY 2010 35

CHINA PROFILE It is not just the scope of China’s energy efficiency endeavours that sets them apart. China’s administrative structure both enables and requires new approaches with a “Chinese character”.

Within the structure of a mixed economy, referred to as “socialism with Chinese Characteristics”, the government retains considerable authority to shift the economies allocation of resources toward energy efficient industries and products. The vertical Integration of government agencies means that those in the central government that are responsible for defining energy efficiency policies are also present at the local level to monitor implementation. Preexisting lines of communication, responsibility, and accountability can be turned toward the objectives of energy efficiency. The initial impression is that it is an ideal environment in which to make rapid progress in improving energy efficiency.

But the actual situation is much more complicated and often defies understanding by the international community. China is an economy in transition, both planned and market driven, and it is experiencing rapid development. Majority stateowned companies that respond well to government reward systems operate alongside private enterprises that respond more readily to price signals. The economies of some coastal provinces host advanced manufacturing facilities and a vibrant service sector, while the economies of interior provinces remain predominantly agrarian. Evaluations of China’s energy efficiency polices at the national level do not capture the variation found across these geographies of energy efficiency in China.

“Wealth is unevenly distributed across China’s provinces; per-capita income ranges from just CNY10,000 in Gansu to nearly CNY66,000 in Shanghai.

China is the world’s largest energy producer and second-largest energy consumer (IEA 2008).”

China is home to some of the most advanced green companies - such as solar cell and wind turbine manufacturers - but on the other hand, as of 2000, coal use per unit of electricity in the power sector was more than 20 percent higher than the level in advanced economies.

36 MAY 2010 POWER INSIDER

The most advanced provinces of China have an average per-capita gross regional product of CNY66,000, while the figure for interior provinces is about one fifth that. In some special economic zones, industries pay market prices for energy, but in most of China retail energy prices remain subsidized. According to a recent study, one province has published building specific energy use data for 526 public buildings, but obtaining reliable energy use data for many other provinces remains difficult.

To achieve the energy efficiency targets of the central government, the implementation of energy efficiency policies in China must succeed in all of these settings.

China’s growing experience in implementing energy efficiency policies holds lessons for many observers. Other economies in transition can learn from the mix of approaches that China is developing; even within China itself, one province can learn from the experiences of another. Energy businesses must understand the depth and breadth of energy efficiency programs both to gauge the impact of China’s development on international energy markets and to understand this enormous potential

market for energy efficient products and services.

And certainly, those who wish to understand China’s commitment to mitigating the environmental impacts of development should understand the many, varied geographies of energy efficiency in China.

China has a long history of pursuing energy efficiency and conservation. Now, having recognized the threat to energy security, sustainable economic growth, and the environment that is posed by rapid energy demand growth, China has placed energy efficiency and conservation as its highest priority energy strategy. Since issuing the Medium- and Long-term Plan for Energy Conservation in 2004, several important high-level actions has been taken to put China on a path toward less energy-intensive development. These have been greeted by observers with praise but also some scepticism.

The 11th Five-Year Plan has been the proving ground for China’s resource-conserving, environmentally friendly development strategy.

China’s leadership and observers around the world are watching to see if the national energy efficiency and conservation policies can reduce the rate of energy growth of this rapidly growing industrial economy.

Previous studies, have pointed to the challenges of implementing energy policy in this economy, in which the forces of development, market reform, industrialization, urbanization and globalization have been unleashed. That is why this report has focused on implementation - to understand how the energy efficiency policies of the central government are being implemented by the provinces, local governments, sectors, and enterprises of China.

Evidence of success in implementation provides an indication of the feasibility of the strategy, which dramatically impacts the world energy outlook.

Moreover, successful implementation strategies might inform further efforts toward energy efficiency, both in and out of China.

To provide a better standard of living, the government aims to achieve a 2020 per-capita GDP four times that of 2000. China’s leadership has recognized two looming obstacles to achieving this goal by energy intensive development. On the one hand, an insecure supply of energy may impede growth. On the other, rapid and unregulated growth in the energy sector might provide the necessary

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CHINA PROFILE ‘CHINA IS HOME TO SOME OF THE MOST ADVANCED GREEN COMPANIES - SUCH AS SOLAR CELL AND WIND TURBINE MANUFACTURERS - BUT ON THE OTHER HAND, AS OF 2000, COAL USE PER UNIT OF ELECTRICITY IN THE POWER SECTOR WAS MORE THAN 20 PERCENT HIGHER THAN THE LEVEL IN ADVANCED ECONOMIES.’

38 MAY 2010 POWER INSIDER

energy supply, but at an environmental cost that would threaten the improved standards of living that are the ultimate objective. Thus, reducing the economy’s energy intensity by 20 percent was set as an obligatory target in the 11th Five-Year Plan (2006–2010).

“In 2007, China’s population was 1.32 billion, up from 1.27 billion in 2000.”

This important change in China’s national energy policy is implemented first by the universal adoption of supporting, binding provincial energy intensity targets. The provinces have then responded by further decomposing those targets within their jurisdiction and by the adoption of policies and measures, which respond to centrally-issued requirements or convey national regulations to their jurisdiction. Evidence gathered to date shows that all provinces have taken action toward achieving their targets and that many provinces are well on their way toward delivering on this contribution to the national objective. However, a minority of provinces are not progressing at the planned pace, and many central measures have yet to achieve universal adoption.

The simple fact that data with regard to achievement of energy efficiency and conservation objectives is available represents a level of success. It shows that progress toward achieving change is being measured, which is a key step in accountability. In fact, a clear method has been established to evaluate the performance of provinces and key energy using enterprises. Various regulations and laws, issued both by central and provincial governments, suggest that the scores from these evaluations will effectively motivate action by turning the pre-existing methods of administrative performance review, reward, and

public praise to the task of spurring energy efficiency and conservation.

Recent years have featured several attempts to reorganize the national energy agencies in order to clarify and consolidate responsibility for energy policy.

The National Development and Reform Commission remains the key oversight body for implementation of energy efficiency and conservation in the 11th Five-Year Plan. But aggressive energy saving goals require that implementation activities push farther and deeper into the various sectors, which requires greater collaboration among the various Ministries and departments that are responsible for those sectors. Administration in China is vertically integrated, thus achieving the participation of various ministries enables the local offices of those ministries to deliver on the EE&C measures. Facilitating this collaboration is the objective of the recently established National Energy Commission.

China is large and diverse in many measures and especially so in terms of energy efficiency. From one province to the next there are large differences in energy intensity, and within a given industry there are vast differences in efficiency between top performers and laggards. To some extent this variation has been recognized in the pursuit of the EE&C agenda. Different provinces have been assigned different targets according to their situation.

Industries are being pushed to benchmark against the top-performers in order to guide their improvements.

And local governments have flexibility to experiment with different approaches to meeting their assigned targets. A one-size fits all approach does not suite China’s distinct geographies of energy efficiency, and the growing diversity of approaches is promising.

Within the power sector, the heat rate of thermal power plants and transmission and distribution line losses, are focused on as key indicators of energy efficiency. China has over 6,000 thermal power units, more than three-quarters of which have a capacity of less than 100 MW. The efficiency of the small thermal units is well below that of the large, over 600 MW, high-efficiency units that China has recently been deploying. Current policy aims to improve the overall efficiency of the power sector by shutting down small and aging plants. This policy is often unpopular with the small plants’ local stakeholders, but it has nonetheless succeeded in eliminating 23.4 GW of small power plants in 2007, and the average heat rate of thermal power stations improved from 356 to 345 grams coal-equivalent per kWh. Continued culling of the small thermal power plants is likely to produce further efficiency gains. Recent increases to investments in transmission and distribution support this consolidation of capacity and are also expected to improve grid stability and reduce line losses. While working with the national generation and grid companies to improve supply-side efficiency, the government has also encouraged local governments to develop combined heat and power, which a large project in Beijing has shown to offer very high system efficiency.

“Secondary industry (mining and quarrying, manufacturing, production and supply of electricity, water and gas, and construction) provides nearly half of China’s GDP (NBS 2008b)”.

China’s iron and steel industry is by far the largest in the world and it is responsible for 18 percent of China’s final energy demand. It is also remarkably

POWER INSIDER MAY 2010 39

CHINA PROFILE geographically dispersed and fragmented. The industry includes small producers using outdated technologies but also massive production groups with more than 30 million tonnes of relatively modern production capacity. As part of China’s broad economic reform process, the government reduced its direct operating control in the industry. As steel producers became independent, their inefficiencies were revealed. Correcting these inefficiencies led to a period of energy intensity improvements that continued until 2003. Now, the government is utilizing its close ties with the industry to promote further efficiency improvements through more aggressive industry restructuring.

Through agreements with provinces and individual companies, China has succeeded in eliminating over 46 million tonnes of inefficient steelmaking capacity.

New capacity is required to meet the government’s requirements as to efficiency of scale, processes, and equipment.

Furthermore, more than 250 iron and steel enterprises are engaged in the Top-1000 Energy Consuming Enterprise program, which requires them to achieve specific energy intensity reductions, under the scrutiny of the provincial governments.

Technology specifications and energy saving targets are thus amply provided, but finance is a potential weak link. Industry consolidation and foreign investment may provide some of the financing for energy efficiency improvements, but additional government financial support could hasten the deployment of efficient technologies. Groups such as the Asian Energy Investment Council are playing a key role in funding for these issues.

China’s manufacturing industries play a dual role in the drive to improve energy intensity. First, they are improving the energy efficiency of the products that they supply to the Chinese market. And second, they are reducing their own energy intensity by increasing the value added of their products while improving the energy efficiency of their facilities. China’s coastal manufacturing hubs, and especially the special economic zones within those areas, are the incubators for this process. Despite the increasing privatization of businesses in these areas, the government maintains close cooperation with industry. Local officials are responding to EE&C objectives by favouring low energy intensity businesses in their jurisdiction.

At the same time, manufacturers are motivated to bring efficient products to the marketplace by the central government’s promotion of those products.

Continued efforts to deregulate energy prices will push manufacturers to further improve the efficiency of their operations. Success in the coastal development areas may subsequently be transferable to less-developed regions of China.

Though today the residential and commercial sectors are considerably less important than industry in China’s total energy consumption, they are areas of rapid demand growth. There is a large potential for energy efficiency in these sectors and the government has sought to improve their efficiency for many years. Recent policies have introduced higher energy reduction targets, particularly in the building sector, and expanded coverage by including more products under performance standards and labelling programs.

Supervision and enforcement of these policies and programs is essential to slow the pace of energy 40 MAY 2010 POWER INSIDER

growth in these sectors.

“China’s primary energy mix includes: coal (73 percent), oil (21 percent), gas (4 percent), hydro (3 percent), and nuclear (less than 1 percent). Large domestic coal resources and the economy’s heavy reliance on that fuel have been a source of energy security. However, since becoming a net oil importer in 1996, China’s energy imports have steadily grown”.

Recent programs have provided enterprises with both incentives for producing efficient products for the residential and commercial sectors, as well as penalties for failure to comply with minimum energy performance standards. Importantly, these provisions are backed by recent amendments to China’s Energy Conservation Law. Early evidence indicates that provincial and local governments are strengthening supervision and enforcement activities during the 11th Five-Year Plan period. The rapid expansion of building floor space and appliance usage creates a challenging environment in which to develop such supervision, but also shows its necessity. The vast infrastructure that is now being deployed will shape future energy consumption in these sectors for decades to come.

One area where China has a uniquely large potential for reducing energy demand is among the state-funded institutions. These institutions are responsible for a massive building stock; over 100 million square meters, which includes both office buildings and residential housing.

The energy consumption per unit area of these buildings is much higher than similarly purposed buildings in Europe and Japan. A process was initiated in 2001, under the leadership of the Government Offices Administration of the State Council (GOASC), to understand energy usage of statefunding institutions, and then design and implement an EE&C program to reduce that usage. The program that has emerged from this process includes building energy monitoring, building retrofits, improved vehicle management, and government procurement of energy efficient products. GOASC reports that electricity consumption per square meter of building area fell from 81.3 kWh in 2005 to 73.1 kWh in 2008 as a result of these programs.

China has deployed a wide variety of implementation strategies to its diverse geographies

of energy efficiency. Just as importantly, it is gathering continuous feedback on the performance of these strategies and using it to make adjustments and improve performance. This process, which in China is sometimes referred to as ‘feeling the way across the river’, will provide experience that will guide the expansion of China’s energy efficiency and conservation programs in the remainder of the 11th Five-Year Plan and beyond, as China strives to create a resource conserving and environmentally friendly development path.

CONCLUSIONS A challenge that China faces with regard to energy efficiency in the residential and commercial sectors is the need to improve energy intensity without impending economic development. As analysis has illustrated, increasing income increases energy consumption in the residential sector. Energy efficiency, especially as implemented through building and product standards, offers a promising approach to improving energy intensity while increasing the competitiveness of domestic manufacturers.

The role of enterprises is crucial in improving energy efficiency. Some assignment of responsibility, including the penalties for non-compliance and awards for exceptional performance that are specified in the national policies, spur action at the local level.

The bottom-up approach of the manufacturers will improve the effectiveness of policies implemented at the national level.

As for the government, a nationwide monitoring system for civil buildings will be needed to strengthen implementation of energy efficient policies. To this end, further action such as establishing a comprehensive data gathering system and increasing the capacity to monitor appropriately will be necessary.

Finally, public consciousness and awareness of energy saving is still a difficult barrier in the residential and commercial sectors. It takes time to change not only public consciousness but also attitudes and behaviour. Therefore, it is essential to continuously inform the public about how much energy can be saved through the use of energy efficient appliances and equipment.

THERMAL COGENERATION

CASE STUDY: CHP UNITS OF BEIJING HUANENG THERMAL COGENERATION PLANT

The first phase project of the CHP plant of the Huaneng Power International Development Company and Beijing Municipality was a key state construction project. This project included four units with a total electricity supply capacity of 650-770 MW, heat supply of 3182 GJ/h, and steam supply for industry of 500 t/h. Construction of the project started in April 1995 and was completed in June 1999. Four generation units have been put into operation to date.

B

ecause the plant is located in central Beijing, environmental protection and clean production were given top priority in its development. The boilers of the plant use ultra-high pressure technologies, and the plant also features low-NOx burners, liquid ash removal, and other state-of-the-art technologies.

Combined heat and power production is a means of reducing energy consumption that has great potential in China. The Huaneng plant’s total installed capacity of 845 MW supplies 10 percent of Beijing’s power requirements, 70 percent of the city’s steam needs, and covers 30 percent of its central heating load. This facility has the largest heating capacity of any CHP in the country. The annual average thermal efficiency of the generation unit is more than 60 percent, which is 20 percent higher than that of a conventional power plant.

During the heating period, the unit thermal efficiency is as high as 84 percent. Since 1999, the plant has achieved an estimated savings of more than 400 million tce of fuel. In the summer of 2008, the use of waste heat for cooling was being studied in a pilot project; this may ultimately raise the average thermal efficiency by another 10 percent or more.

42 MAY 2010 POWER INSIDER

The emission level of pollutants from the boilers is in full compliance with both the national standard and the Beijing municipal standard (the latter is stricter than the national standard). The exhaust gas is monitored by the Beijing Municipal Environmental Protection Bureau 24 hours a day, and the discharged ash is 100 percent recycled. The factory also has installed three sewage treatment systems with combined annual processing of more than 10 million tonnes. The company is proposing a second-phase project to construct two 300 MW coal-fired generation units.

CHP plants can realize a very efficient energy supply system when the customers have sufficient heat requirements. The high potential efficiency and the industrial sector’s large appetite for heat and high-quality steam suggest a promising area for CHP deployments. Large building complexes that require heat and steam are other, relatively easy applications, though seasonality of demand and geographic concentration are important constraints.

Careful consideration of CHP in the design of city and district development plans will facilitate the most effective use of this highly efficient technology. t $BTF 4UVEZ 4PVSDF $IJOB )VBOFOH (SPVQ

GAS TURBINE REFURBISHMENT

COMPLETE RELOCATION, REFURBISHMENT, INSTALLATION AND COMMISSIONING OF FRAME 5 GAS TURBINE UNIT Having a consecutive success of erection / installation of 17 & 18 MW used Japanese steam turbine generator sets and major overhaul of 3 x 37MW Japanese steam turbine generator units, a pulp & paper company based in Sumatra, Indonesia, rewarded another challenging job to PT. Sulzer Turbo Services Indonesia in supplying a second hand Gas Turbine Generator unit.

This project was initiated to accomplish the company plan to optimize the pulp production capacity of 2600 air-dry tons per day and slightly increase of tissue production capacity. This plan was supported by the initiative plan of having the gas supply to that area in the near future.

Gas turbine is selected in some considerations of its advantage in addition that the available multi-fuel boilers and recovery boilers are insufficient to supply steam for another steam turbine set. The heat recovery of the gas turbine exhaust system can be utilized further in the future for steam boiler increasing the steam capacity both for power generation (combined cycle) and processes requirement. A European Gas Turbine Frame 5001P model was offered to meet the customer demand on power.

For Sulzer TSID, this is the first turn key project for a complete relocation, refurbishment, installation and commissioning of a gas turbine Frame 5. Due to limited data, drawings & manual available for

this unit, a good effort to develop all the required drawings and manual was done by a small team from engineering department for the success of this project.

RELOCATION Three units of gas turbine generator were located in ShenZhen, China, a site survey conducted and followed with a full payment to confirm the ownership of the units to PT. Sulzer Turbo Services Indonesia. The next step was to build up a team for dismantling and relocating the units to Purwakarta, Indonesia. Instead of having full team crew travelling from Indonesia, two well-experienced Field Service Engineers were assigned working together with local labors in China to dismantle, preserve and package the units for shipment. It was identified that only main equipment was packaged and shipped to Indonesia while some other parts, i.e. exhaust system and inlet air system was fully corroded and

considered costly to ship for repair in Indonesia; thus it will be redesigned and fabricated in local Indonesia. It took about 1 month for shipment to Jakarta before the all equipments arrived and fully occupied at Sulzer TSID premises –with good preparation and layout arrangement, there was enough space near the office building to locate the 2 extra gas turbine units while 1 unit was loaded directly in the workshop big bay for refurbishment.

1. STRIPPING DOWN THE INCOMING FULL CORRODED GAS TURBINE UNIT FOR REFURBISHMENT. Repair at Workshop The unit was stripped down for inspection and further repair recommendation (fig. 1). The gas turbine rotor was fully corroded and removed for complete disassembly. The compressor and turbine section were un-stacked for thoroughly inspection of individual parts. Several compressor blades were found with some dents due to FOD and minor repaired by dressing/blending. A blue appearance Aluminum coating (HI-Coat A08) was applied on individual turbine wheel as corrosion protection (fig. 2). Both rotor bearing journals were undersized due to medium radial rubbing and minor pitting corrosion. In general no w indication found on the rotor thus the rotor was restacked with replacing all through bolts and new turbine buckets were installed.

2. ALUMINUM COATING APPLIED ON INDIVIDUAL TURBINE WHEEL FOR CORROSION PROTECTION. All casings of turbine and compressor were cleaned, inspected and reconditioned as necessary. All

44 MAY 2010 POWER INSIDER

Company Key Data

‘GAS TURBINE IS SELECTED IN SOME CONSIDERATIONS OF ITS ADVANTAGE IN ADDITION THAT THE AVAILABLE MULTIFUEL BOILERS AND RECOVERY BOILERS ARE INSUFFICIENT TO SUPPLY STEAM FOR ANOTHER STEAM TURBINE SET.’ POWER INSIDER MAY 2010 45

GAS TURBINE REFURBISHMENT combustion parts were found full of corrosion and some cracks found on transition pieces and combustion liners. Welding repair was performed and Thermal Barriers Coating (TBC) was applied on the end the same as stage nozzles with major repair commenced.

Generator rotor was dismantled and found crack indication on retaining rings – to be replaced with new supply retaining rings. Generator stator was recommended for re-wedging based on stator wedge tightness result. The 84 slots wedges with 8 wedges per slot were replaced with new G10 packers of dielectric material and ensured a tight radial fit. All electrical tests of generator rotor and stator were found acceptable and the rotor was put back with new bearings installed.

Load Gear was dismantled and journal shafts of bull gear and pinion gear were found with medium pitting corrosion, radial rubbing and some dents to be repaired with HVOF coating. Quill shaft of bull gear was excessively bent to be straightened for repair and five bearings required Rebabbiting because of medium pitting corrosion and radial rubbing on inside diameter. Accessory Gear shafts were found with minor rubbing on bearing journals to be polished for reassembly with all new bearings set. All parts were reassembly back to the unit and final set before ready for transporting to site (fig. 3).

3. INSTALLATION OF GAS TURBINE ROTOR INTO THE UNIT FOR FINAL REASSEMBLY. Parts Fabrication Gas Turbine Exhaust System and Inlet Air System were fabricated at local vendors with technical specification design coming from Sulzer TSID. The gas turbine exhaust system is comprised of three major sub assemblies and structural steel, i.e. 90Âş elbow and two silencer pack modules. The exhaust stack is a normal configuration for a simple cycle type of Frame 5001P model which is installed on top of the exhaust plenum. The exhaust silencer modules are all welded carbon steel construction with external seal welds including internal thermal inner which is allowable for thermal expansion (fig.

4). All fabrication description and prefabrication instruction was included in the technical specification.

4. FABRICATION WORK OF THE EXHAUST SILENCER MODULES. The inlet air system consists of inlet silencer, inlet duct and inlet elbow. The inlet silencer consists of

the painted carbon steel duct shell and 304 stainless On-Site Work steel perforated liner and baffles which acoustically Preparation work was carried out on-site starting treated walls with vertical parallel baffles. It from the foundation. Pre-engineering Work includes the air filter system which is a singleincluded a check of the civil work on the foundation stage filter usingTurbo unique conical and E cylindrical PT Sulzer Services Indonesia %=8;*0. <85>=287<and a measurement check was carried out to routinely undertakes for steam %85>=287< /8; .;8<287 filter cartridges impairsprojects of two stackedE elements verify,8;;8<287 the anchor bolt locations according to the reblading, shaft rehabilitation contamination for lowestturbine operating pressure loss. It composed of original foundation drawings. Upon completion E #.;/8;6*7,. ;. ;*=.< *7- ?2+;*=287 including engineered weld repairs, three filter modules that are bolted together and/or of the foundation work, the unit was delivered analysis replacement manufacturing of disks, assembledshafts, around a collecting plenum. While the to site for directly loading on the foundation and integral rotors, diaphragm nozzle of repair and replacement.

Sulzer Turbo Services Indonesia with pre-alignment check (fig. 5). inlet ductand consists painted carbon steelPT.duct shell continued Our engineering team can evaluate is the source for steam turbine soluand inletyour elbow consists of painted carbon steel steam turbines quickly and effi- tions. duct shellciently complete with carbon steel cladding.

5. DIRECTLY LOADING THE GAS TURBINE and propose technically sound, cost effective, real world solutions to UNIT ON THE FOUNDATION CONTINUED help alleviate your problems with Upgrading WITH PRE-ALIGNMENT CHECK. erosion, corrosion, and mechanical The unit damage. is supposed to operate using gas fuel thus All fabricated parts of exhaust and inlet air system upgrading is required on the fuel nozzle system; a new was packed and delivered to site; the exhaust system provide steam turbine services set of dualWefuel nozzle was purchased to install on the was ready for direct installation on the unit while for: unit. A gasE ring manifold was fabricated and installed the inlet air system required reassembly work on site %1*/=< +.7= -*6*0.- *7- +;84.7 on the unit with fabrication of the required before installation to the unit (fig. 6). A lot of welding E together 5*-.< ;.9*2; *7- ;.95*,.6.7= E and $.95*,.6.7= 8/ ;8=8;< *7- ;8=*=270 gas fuel line its accessories. Since Halon is no more and grinding work including heavy lifting work and components allowed, upgrading to CO2 is also required on the fire working at height which was considered hazards thus E 2*91;*06 *7- 78CC5.< ;.9*2;< protection system.

It required replacement of all fire safety concern was always kept reminding on toolbox and replacements $.6*27270 52/. *<<.<<6.7=< detectors, E nozzles and gas bottles for the system. meeting in the morning before starting the work.

Steam Turbine Repair

E 2/. .A=.7<287 E .,1*72,*5 *7- 6*=.;2*5 >90;*-.<

New Control System E $.;*=.< E &;8>+5. <188=270 *7- /2.5- <.;?2,.< A new control system was supplied and installed.

The Control system purchased was a Triconex TS3000 Control system supplied by Invensys, which has the benefit of Triple Modular Redundancy. All existing instruments on the skid were listed, identified, tagged and then tested to establish which could be utilized in the new control system. When it was required, new instrumentation was purchased. The control system commissioning included recalibration of all the instrumentation, loop checking and function testing.

6. THE INLET AIR SYSTEM WAS REASSEMBLED ON-SITE AND CONTINUED 5 WITH INSTALLATION ON THE UNIT. 7. FINAL PHASE OF ERECTION/ INSTALLATION WORK. Lube oil pipeline was ready before oil flushing started.

The final alignment was conducted on the end phase of reassembly work. Due to gas supply was not yet ready, the unit was put on operation using heavy oil fuel(fig. 7).

The unit has been put into commercial operation as of 14 December 2009 and a performance test of 72 hours has been conducted at 17.37MW without any major problems.

CONTACT PT. Sulzer Turbo Services Indonesia Iman Sigit Kawasan Industri Kota Bukit Indah Purwakarta, West Java, 41181 Indonesia Phone +62 264 351 920 ext. 210 Fax +62 264 351143 iman.sigit@sulzer.com

46 MAY 2010 POWER INSIDER

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PAN EUROPEAN ENERGY

A PAN ASIAN ENERGY INFRASTRUCTURE Imagine a Pan Asian Energy Infrastructure stretching from Mongolia to the Great Southern Ocean, distributing wind, solar, geothermal and hydropower on a hemispheric basis.

Given Asia’s huge population and expanding economic might, the global climate change battle may well be won or lost coming years depending upon what the region does. Winning the battle will require big ideas.

But if Asia applies creative thinking to its future energy needs and climate change responsibilities, it could lay the foundation for long-term prosperity, economic growth and greater energy security. The region could also take a big step toward solving global climate change. The costs would be big. But so would the benefits.

A PAN-ASIAN ENERGY SUPERHIGHWAY COULD STRETCH FROM MONGOLIA TO THE GREAT SOUTHERN OCEAN Fundamentally, the idea of a Pan-Asian Energy Infrastructure is really quite orthodox. It results from combining 17th Century UK economist Adam Smith’s theorised ‘Invisible hand of the market place’ with David Ricardo’s ‘theory of comparative advantage’ and then applying them to the problem of climate change.

If each country specialises in the low emission energy source it’s best at producing and then engages in trade

48 MAY 2010 POWER INSIDER

with neighbors to its best advantage, the market will deliver the greenhouse gas emissions cuts and targeted investment to power a retooled, reenenergised 21st Century economy.

Both the Asian Development Bank to the Asia-Pacific Energy Research Centre argue that poor infrastructure hinders Asia’s economic development. Both advocate expanding the region’s cross-border energy, gas and transport networks.

The concept of a Pan Asian Energy Infrastructure merely expands these recommendations into an bigger, pan-regional whole.

In coming years, huge investments are needed globallly to replace aging coal-fired power plants and to build new capacity to meet rising energy demand. This is occurring as creaking transmission infrastructure is straining to keep up, which itself needs new investment. Estimates of building out all this infrastructure range in the tens of trillions of dollars.

If these investments are undertaken in a coordinated, visionary way, huge benefits could accrue - particularly in Asia.

“THE PROBLEMS OF THE WORLD CANNOT POSSIBLY BE SOLVED

BY SKEPTICS OR CYNICS WHOSE HORIZONS ARE LIMITED BY THE OBVIOUS REALITIES. WE NEED MEN WHO CAN DREAM OF THINGS THAT NEVER WERE AND ASK ‘WHY NOT?’ “ JOHN F. KENNEDY, US PRESIDENT 1960-1963

POWER INSIDER MAY 2010 49

PAN EUROPEAN ENERGY THE TEMPLATE The notion of a Pan Asian Energy Infrastructure is rooted in the European DESERTEC Industrial Initiative (DII). In this article, this European model will be examined and applied to Asia -- defined as China, Japan, South Korea, the ASEAN nations and Australia. Readers then can assess how applicable the model might be.

THE ORIGINS OF DESERTEC In 2003, a German Aerospace Center study concluded that a series of concentrating solar power plants in North Africa could satisfy 15% of Europe’s electricity demand in 2050 through importing solar electricity over High Voltage Direct Current Power lines laid across the Mediterranean.

In July 2009, global reinsurance giant Munich Re announced it would study the idea in greater detail.

If Munich Re satisfies itself the concept is viable, Munich Re says it will seek to raise the US$560 billion needed to make it happen. Munich Re’s effort is called the DESERTEC Industrial Initiative (DII) The DII is usually described in the press as a

technology project. It is that, but it’s also a lot more.

Most of the electricity generated would be consumed in North Africa. This should reduce poverty in North Africa and, among other things, reduce the flow of economic migrants to Europe. This would be a social gain from the project.

For its part, Europe would gain by diversifying its electricity supply, now heavily tilted toward natural gas imports from politically-fickle Russia. Shifting to imported solar energy from North Africa would also help Europe find cleaner energy to replace aging coal-fired power plants and dangerous nuclear plants. These would represent geopolitical and environmental gains from the project.

Finally, the DESERTEC Industrial Initiative could be expected to create a virtuous circle of expanded solar industry experience, lower overall costs and broader technological adoption. This would represent an economic gain.

Munich Re, which specialises in handicapping risks and rewards, clearly appreciated this bundle of benefits in taking the step to study the idea further.

ASIA, THE REAL DEAL Is Europe’s DESERTEC Industrial Initiative relevant to Asia?

Looking at NASA direct normal radiation (DNR), it’s easy to see that China and Australia are the two areas of Asia with DNR of seven kilowatthours per meter per day and above (the darker reds and pinks).

CHINA China’s direct normal radiation resources are found in its north and west. This graphic will show China’s DNR resources with an overlay of infrastructure Note: I have better graphics than this As China aggressively builds a nationwide electricity and natural gas pipeline system, China’s north and west are becoming increasingly connected to her coastal cities. This is good for developing the country’s solar resources. However, China’s real comparative advantage may lie in wind. Harvard University researchers estimate China could meet all its energy needs through its terrestrial wind resources alone.

China also has signicant offshore wind resources.

These could fit well into a Pan Asian Energy Infrastructure.

AUSTRALIA Australia’s interior is a huge desert known as the ‘Outback.’ Strong solar resources exist over nearly all of it.This is a DNR map of Australia with legend Size of mirrors needed to power various needs.

Indeed, Australia’s Outback solar resources are so great that the government science body, the CSIRO, estimates a concentrating solar power mirror field 32 kilometers on a side could satisfy ALL of Australia’s electricity needs in 2020, when they are higher than they area now.

By extrapolation, larger hypothetical mirror fields in the Outback of Australia (outlined above) could power China, the United States, world electricity demand or -- hypothetically, of course -- world primary energy demand. One practical obstacle to doing so, however, is that Australia’s electricity grid doesn’t go to the outback.

Australia’s existing grid was built to service coastally-located coal-fired power plants. Many of these are now reaching retirement age. This is occurring at a time when Australia’s electricity grid capacity must be upgraded to meet rising electricity demands and the entry into the market of large-scale renewable energy sources.

WIth smart investment, Australia can can reorient its future grid toward the high-potential energy sources of tomorrow: solar, geothermal, wind, wave and others. Australia has large renewable energy resources spread around the continent The costs would be huge: around US$30 billion, or about three percent of Australian GDP. However, the figure matches rather closely the $27 billion Australian’s Energy Supply Association says is needed in new grid infrastructure. It also compares favorably with current Australian federal government plans to build a US$38 billion dollar national broadband telecommunications system.

“TWO SAHARAS” In northern China and interior Australia the Asian region has two ‘mini-Saharas.’ Of these,

50 MAY 2010 POWER INSIDER

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PAN EUROPEAN ENERGY

Australia’s solar resource is, by far, the larger. In terms of population and energy consumption, though, China is Asia’s heavyweight.

If one looks at China as Asia’s equivalent of the populous, energy-hungry European Union and Australia as Asia’s equivalent of sunny, relatively empty North Africa, the European DESERTEC Industrial Initiative can be mentally superimposed on Asia for a first-order analysis.

The most obvious differences that emerge are that Asia is much more populous than Europe/ North Africa and the distances between China and Australia are much greater than between Europe and North Africa.

Satisfying 15% of Asia’s (predominantly China’s) electricity needs in 2050 would mean scaling up the European DESERTEC initiative more than four times over -- from 700 Twhs to roughly, 2,900 Twhs.

With 7,000 kilometers separating Australia from China, a DESERTEC style initiative in Asia would require an energy transmission network more than three times longer than in Europe and North Africa.

However, Asia’s rapidly-growing economies will collectively dwarf those of Europe in coming years.

Given this, Asia will have a growing capacity in coming years to fund large multilateral infrastructures.

Depending on how such an infrastructure is built, costs can vary widely. For instance, building a Pan Asian Energy Infrastructure across Asia primarily by sea could cost as much as 10 times what it does on land . On land, buried transmission cables could cost as much as three times what above ground transmission towers cost. Therefore, trying to cost a system like this is little more than guesswork, but it 52 MAY 2010 POWER INSIDER

would clearly cost trillions.

However, the long construction period of such infrastructure would spread the costs over decades.

Meanwhile technological advances, economies of scale, positive gains from trade, increased energy security and a host of other positive externalities generated by such a system would almost certainly offset a large proportion of the costs over time.

This is particularly so when one considers that dealing with uncontrolled climate change is also almost certain to cost trillions.

A Pan Asian energy system could generate large technology and efficiency gains throughout Asia.

mulitpath network managed by common carrier economics and uniform technical standards.

COUPLING HVDC WITH NATURAL GAS Throughout Asia, huge new conventional and unconventional natural gas resources are slated for developmen. A large number of these are in Australia and the Timor Sea. There, up to a dozen greenhousegas intensive, energy-hungry liquid natural gas compression plants are planned. The LNG will then be shipped in special, pressured tankers to dedicated ports in China, Japan and South Korea that would then uncompress the gas for delivery to customers over traditional pipeline networks.

But if a large capacity DESERTEC Industrial Initiative-style High-Voltage Direct Power line infrastructure is laid connecting Australia to China, a natural gas pipeline system to the same locations could be built alongside.

Given that labor account for half or more of the costs of large energy infrastructure projects, building both simultaneously side-by-side would reduce the costs of both. It would also create a more flexible, reconfigurable,

THE ROUTE A Pan Asian Energy Infrastructure would connect Australia to China with a bundled high voltage direct current power line and natural gas pipeline. At its southern end, solar and geothermal energy harvested from Australia’s Outback could be coupled with natural gas supplies from Queensland and Australia’s offshore Northwest Shelf. These would be transmitted through two separate pipeline/HVDC systems that then merged in the Timor Sea. From there, the HVDC/natural gas system would travel north through the Indonesian archipelago and on into the South China Sea. Current plans are for a series of pipelines, land-based LNG facilities and tankers to take Australian natural gas to Asian markets.

This could be simplified through bundling a commoncarrier natural gas pipeline with an HVDC electricity cable between Australia and

TEMPLATE PROJECTS Template projects exist upon which a deeper analysis of the technical challenges and cost estimates of a Pan Asian Energy System can be based. These include the 580-kilometer Norned HVDC cable connecting Norway to the Netherlands, and the 1,200-kilometer Langeled natural gas pipeline between Norway and the UK. Existing projects like these give an idea of the technological challenges and costs of a PanAsian Infrastructure.

North Asia South China Sea In Indonesia, the the system could either be built under water in the South China Sea or be built on land across Indonesia, Malaysia and Thailand en route to southern China. This part of the project could be coordinated with existing plans to deepen electricity and natural interconnections among ASEAN states envisaged in the Trans-ASEAN Gas Project and the ASEAN Power Grid project.

An infrastructure of this sort would enable Indonesia to develop its abundant geothermal energy reserves. It would also allow Malaysia’s massive hydropower Bakun Dam to provide rapid-response load balancing to a progressivelyinterconnected Southeast Asia dominated by renewables. In Southeast Asia, a Pan Asian Infrastructure could by land or sea.

MEKONG STATES In the Mekong States, the system similarly could go by land or by sea. If by sea, it could traverse the shallow South China sea to the Chinese island of Hainan (right). There, the system could utilise the right of way of an existing subsea natural gas field connected to Hong Kong over an 800 kilometer subsea gas pipeline. If over land, the transmission system could pass through Malaysia and Thailand and into China. Once this occurs, southern Chinese hydro power could provide load balancing to a regional grid infrastructure.

In the Mekong States, the system could go by land or by sea China, Japan, South Korea Once in China, the system could by either by land or by sea.

Either way, it could provide a transmission route to market for China’s vast wind power potential, either in Mongolia or the East China Sea. If built on land, it could provide a conduit for China’s northern solar assets to be exploited. Lastly, the Chinese system could be connected to Russian Far East hydro power assets.

This offers a glimpse of the potential for even larger energy systems based upon ‘networks of networks.’

In North Asia, the system could go by land or by sea... and to connect to Russian Far Eastern energy resources such as natural gas and hydro Source: I’ll get this In a Pan Asian Energy Infrastructure China could be -- at different times -- an exporter, importer and ‘common carrier’ transporter of energy neighboring countries such as Japan, South Korea and Russia. For their part, Japan and South Korea to develop their tidal and wave power resources, while Russia could develop its abundant Far Eastern resources of hydropower.

ENERGY SECURITY A single Asian energy infrastructure would concentrate transmission risk. To counter this, a system of strategic reserves could be built to offset short-term supply shortages. China is already doing this domestically. The idea could be adopted elsewhere. It’s also worth nothing that a large percentage of Asia’s LNG imports pass through the narrow Straits of Malacca. This already poses a significant risk to crucial reginonal energy supply if the waterway is closed due to shipping accident or terrorist attack.

The congested straits of Malacca already pose a threat to Asian energy security

TEMPLATES IN ASIA China is engaged in a massive buildout of its domestic electricity grid. As part of this, it is developing Ultra-High Voltage Direct Current power technology. As China acquires expertise in this area, it could provide the transmission cables for a Pan Asian Energy Infrastructure. China would gain through economies of scale in developing this high-technology manufacturing industry, while Asia would gain from regional sourcing that would almost certainly result in elevated economic activity between the increasingly interconnected Asian economies.

Once in place, the overall infrastructure would be managed on a multilateral basis.

THE PATHWAY TO POSITIVE CHANGE A Pan Asian Energy Infrastructure would create some striking similarities between Asia’s and Europe’s energy markets by the year 2050.

In both regions, the long-term role for coal would decline, the role of wind and solar would increase and solar photovoltaics, geothermal and biomass would play a supporting role. In both regions, natural gas and hydro would offer crucial ‘load balancing’ services to grids dominated by renewables.

The biggest difference would lie in nuclear. Under the DESERTEC Industrial Initiative, Europe would phase out its aging existing fleet of nuclear plants to make way for renewables. In Asia, China’s buildout of nuclear would mean that fission energy would continue to comprise a share of energy consumption.

In both cases, however, coal and nuclear together in 2050 would satisfy only about 20% of European and Asian electricity needs. At present, the figure is 60-70%. In Europe, coal and nuclear would be largely replaced by wind and solar thermal In Asia, wind and solar would similarly expand and nuclear would occupy a significant role.

CONCLUSION At its simplest, the world’s energy industry is really

just a packetised network business. It produces and moves highly standardised units: megawatt hours of electricity and cubic meters of natural gas. A largely hidebound industry, energy lags other network businesses that have achieved huge efficiencies through more competitive, open markets and expanded cross border trade.The telecommunications, airline and container shipping industries all offer roadmaps for reform.

Apart from small cross-border transactions among the Mekong States and China, international trade in electricity in Asia is negligible. This is highly inefficient since it requires each country to maintain underutilised excess capacity. It also distorts aggregate investment signals and results in higher prices due to diseconomies of scale and the inability to properly harness ‘comparative advantage.’

Increased cross border trade enabled by a ‘common carrier’ regional energy infrastructure holds the potential to solve several problems at once in the Asian region. These range from increasing multilateral energy security to to deepening electrification of rural areas.

It would also hold one big solution to climate change.

SOURCES (AMONG OTHERS) Source: “Trans-ASEAN Energy Network – Challenges in Developing a Borderless Electricity Industry,” ASEAN Center for Energy, 2002 Source: “Electric Power Grid Interconnections in the APEC Region,” Asia-Pacific Energy Research Center, 2004 “Asia Pacific Oil & Gas,” Business Monitor International, October 2009 Source: “Infrastructure For a Seamless Asia,” Asian Development Bank, 2009 Source: “Petroleum and Minerals Industries in the Northwest Marine Region,” Global Risk Management, 2007 Source: “East Coast Transmission Network Technical Feasibility Study,” The Crown Estate

POWER INSIDER MAY 2010 53

HYDRO IN ASIA

HYDRO IN ASIA

Asia and the Pacific have a wealth of untapped Hydro power resources that would play a huge role in developing socio-economic development. Investment in water infrastructure in the Asia and the Pacific region, is facing major challenges emerging from the complex socio-economic conditions of the region, issues such as the requirements for higher annual investments, the issues of protecting the environment, and the emerging challenges of climate change.

By Sean Stinchcombe 54 MAY 2010 POWER INSIDER

China’s Three Gorges Dam

H

OWEVER, THERE IS A CLEAR AND DEFINED NEED for action in relation to water infrastructure. Most countries are only just touching on the potential of their individual needs for hydro power, but all countries are fully aware that hydro has a substantial role to play in the next few years in the region.

There are many challenging conditions for project development in the region. Issues like flood mitigation and management; seismic design of water infrastructure; challenging site conditions (including climatic conditions and complex geology); sedimentation management; rural electrification, and simple affordable solutions for the less developed countries. There are numerous studies and research surrounding hydro power and climate change and the impact hydro power has, and there are some uncertainties, however, uncertainties do not outweigh the benefits of appropriate water infrastructure. As with all hydro power projects, efficient use and prior planning helps to overcome challenges that may occur and the potential effects these projects can have on man and machine. In the Asian region, companies are now playing a much more knowledgeable role in prior planning ensuring that time is maximised and projects are delivered on time and ‘geological’ surprises are minimised.

Rural electrification is playing a huge role in developing small hydro projects throughout the region.

Policy makers are keen to include small hydro in their plans for developing rural electrification projects in the region due to the low cost and maximum returns the projects bring. Poverty alleviation always takes priority when looking at cost of these projects. Many companies are also maximising their use of local resources in the building and operation of plant. High levels of training and development have been given too many local peoples in rural villages to ensure that they are proficient in all levels of technical and management spheres.

The most complicated of all issues surrounding new power sources, even renewable ones, is how best to weigh up the environmental benefits.

For example, China has given the world the mighty three gorges dam China’s three gorges dam has been massively criticised for huge environmental, social and economic reasons! There are still cases in China where local villages are still homeless and are yet to be reimbursed by the government for their loss of home, land and livestock. Yet the three gorges dam is still a bench

mark of which all countries can indeed learn from.

In all of Asia, it is China that has the largest available resources for hydro power and is playing a key role in expanding its Hydro power usage. They have set many ambitious targets and claim to be able to exploit around 70% of their hydro by 2020.

China is doing everything it can to reduce its dependence on coal as its estimated that 40% of Chinese regions suffer from acid rain and air pollution costs around $25 Billion a year in health expenditure and lost labour productivity.

It has been estimated that China has exploitable hydroelectric resources of nearly 400 million kilowatts. This is equivalent to an annual supply of almost 2 trillion kilowatt hours, almost one sixth of the world’s total! This is the equivalent of 50 billion tons of coal!

Hydro power is generally thought to be one of the most effective and lowest cost renewable resources.

Water is free, fairly dense and left to its own devises, flows down hill. The energy in water is proportional to the flow rate and the ‘head’ of falling water.

Hydroelectric stations are mostly run of river or are dam and reservoir.

THREE GORGES DAM Run of river are the easiest to build and are often used for many rural electrification projects. Often built using small diversion weirs, but they depend on constant fast flowing water. Large projects like the three gorges dam use a dam and reservoir to smooth out the fluctuations throughout the year. Water flows through a channel called a penstock to the turbine (often a Francis turbine), which spins to drive the generator. Water can be pumped up to the reservoir again during periods of low demand and be reused when it’s needed.

The benefits of small projects are simple. They have low costs, fast construction and little need to relocate people and villages. The major problems the government of China have faced with their Hydro projects have revolved around poor planning, the drying up of water ways which has the knock on effect of vegetation damage, soil erosion and of course flooding. Environmental impact assessments are often neglected, however the State environmental protection administration (SEPA) have begun suspending projects that do not meet EIA requirements which is only good news for the region.

Large hydro projects are certainly the most visible and have the biggest effects on the surrounding

countryside and local population. China is planning around 15 new large stations over the next 10-15 years that will have a massive capacity of some 100GW. The projects have been planned in the upper reaches of the Yangtze River and two upstream tributaries.

The three gorges dam is already provoking some ecological and environmental problems for the Chinese government and people. Already the dam is causing conflicts over land shortages, massive ecological deterioration from the irresponsible development, erosion and landslides on the steep hills surrounding the dam. Many hundreds of thousands of people live behind the dam may have to move again joining the other 1.4 million people who have already been relocated or face other potential geological disasters along the shore. The shore itself has already collapsed in over 100 places, and 36km of shoreline have actually caved in! The landslides have produced waves of over 50m tall, which slam into the shoreline causing huge damage and further loss of life.

China is a lesson to the world when looking at building large scale hydro power projects. We all want a renewable future, a sustainable habitat for our children to grow into. But at what cost? In the lessons we can learn from China and the Three Gorges dam, we need to look at the real impact of these massive projects. The destruction of animal habitats, forced social displacement, the effect of large dams on the surrounding flora and fauna.

These effects have to be balanced with the amount of electricity it can bring to a country. Hydro is potentially the cheapest form of power available, and with global water levels rising, seems a very obvious choice. However we must look at China and learn from the mistakes that they have made.

We need to ensure proper planning and design.

Environmental impact assessments must be taken into consideration and of course the biodiversity of a local area must also be taken into consideration.

Site approval cannot be left to local politicians, as they are too often swayed by short term gain and often corruption in many regions of Asia. People who have been displaced have to be compensated, in a way that gives them a way of actually living as opposed to living on state handouts.

There are many negatives and positives of all forms of renewable energy projects in developing nations.

But the important thing to take from this piece is that with the correct planning and proper processes in place, hydro could be one of the smartest choices for the Asian region.

POWER INSIDER MAY 2010 55

CLIMATE CHANGE

David Wong Reports

56 MAY 2010 POWER INSIDER

BEYOND COPENHAGEN:

POWERING ASIA RESPONSIBLY The world faces a dilemma – how to avoid the threat of catastrophic climate change by making massive and sustained reductions in the emission of greenhouse gases, principally carbon dioxide (CO2), and yet do so in a manner which does not require substantial falls in living standards in the developed world or prevent the people of the developing world from achieving their own legitimate aspirations for a better life.

CO2 emissions from the electricity sector have increased by almost 50% in the past ten years. They presently constitute around 40% of global energy-related CO2 emissions. Emissions from the sector are forecast to double by 2030 and, of this increase, about half has been forecast to come from power generation in Asia. There can be no solution to the problem of climate change which does not involve large-scale reductions in emissions from electricity generation in Asia, compared to the emissions which will be produced if we stay on a “business as usual” path to meet the needs of Asia’s people for electricity.

At the 15th United Nations Framework Convention on Climate Change Conference of the Parties (COP15) to be held in Copenhagen in December 2009, the world’s leaders must address the problem of climate change, whilst preserving the social and economic prosperity of those who presently enjoy it and promoting such prosperity for those who do not. As a leading investor-operator in the Asian power sector, CLP has a keen interest in the outcome of COP15. In the following pages, we set out our views on the key issues which the world’s leaders must face and the ways in which, beyond Copenhagen, sound policies must be turned into real solutions.

ANDREW BRANDLER

Chief Executive Officer October, 2009

POWER INSIDER MAY 2010 57

CLIMATE CHANGE CLP’S CLIMATE VISION 2050 CLP recognises its responsibility to play its part in the collective response needed to address the threat of serious and irreversible climate change. In December 2007, we published our “Climate Vision 2050 – Our Manifesto on Climate Change”. In our Manifesto, we undertook to make deep reductions in the carbon emissions intensity of our power generation capacity and to embark upon a wide range of other actions and initiatives to reduce the carbon footprint of our business and to help our stakeholders reduce their own footprint. Our ultimate goal is to conduct our business in such a way that our carbon emissions are brought down to a level compatible with the global objective of stabilising the concentration of greenhouse gases in the upper atmosphere below 550 ppm between now and 2050 – a level at which the global temperature rise can be limited and the most catastrophic effects of global warming may be avoided. At the centre of the Manifesto lies our commitment to reduce the CO2 intensity of our generating portfolio from 0.84 kg CO2/kWh in 2007 to 0.2 kg CO2/kWh by 2050. To reinforce the

credibility of our Climate Vision 2050, to establish goals which are relevant to us and our stakeholders today and to allow ourselves As well as reducing the carbon intensity of our generating portfolio, CLP also committed in our Manifesto to other initiatives in the fields of renewable energy, nuclear energy, natural gas, clean coal technology, energy efficiency and conservation. Tackling climate change involves us accepting changes in our way of life and doing business – CLP’s Climate Vision 2050 is our promise to play our part. CLP’s commitment to contribute to the global response to the threat of climate change will not be judged on the words of our Climate Vision 2050, but on our own success in turning that vision into reality. Since 2007, we have made substantial progress in changing the way that we do business and in setting ourselves off on a trajectory to a low-carbon future. We are heading towards our first intermediate milestone of 0.8 kg CO2/kWh by the end of next year. At first glance, this might seem a modest reduction. But slowing and reversing the increase in the carbon intensity of our generating portfolio is, in itself, a challenging

step in circumstances where conventional coalfired generation remains the dominant means of providing new generating capacity to meet the growing demand for electricity in our region.

CLP’s current policy is not to invest in any coalfired generating plant whose carbon intensity is in excess of 0.95 kg CO2/kWh and we will only invest in plant whose carbon intensity is in excess of 0.85 kg CO2/kWh in exceptional circumstances – such as where such plant forms part of a portfolio whose overall carbon profile is in line with our standards. In line with these disciplines, we have already stepped back from potential investments in coal-fired plant in the region solely on grounds of its high carbon emissions intensity, and irrespective of the short to medium term economic value that might have been gained. Of course, this policy will be reviewed and strengthened as new technologies, such as carbon capture and storage, become commercially viable.

REALISING OUR VISION CLP’s business spans a range of countries which differ greatly in their socio-economic development, the availability and cost of fuel resources, the quality of their infrastructure and their regulation of the electricity sector. The path we take and the progress we make in reducing the carbon intensity of our operations vary according to local market conditions.

In our Climate Vision 2050, we identified five areas within which specific local or national initiatives can help us to meet our climate commitment at the Group level. Renewable Energy (RE) In 2004, CLP set itself a voluntary RE target of 5% of its generating capacity by 2010. To date, CLP owns over 1,300 equity MW of total renewable energy, representing about 10% of our generating portfolio.

This compares with only about 1% in 2004, when we made our commitment. Our progress in delivering our RE target has involved a range of technologies throughout the Asia Pacific region.

We are now the largest external investor in renewable energy both in the Chinese mainland and in India. Our portfolio includes a range of renewable energy sources, namely wind, hydro and biomass. We are exploring solar energy projects in Thailand and India as well as testing the potential for geothermal energy in Australia. In Hong Kong, we have secured the Environmental Permit to develop a 200MW offshore windfarm in the southeastern waters. In 2008, we set up a new Group level function, Carbon Ventures, to support the Group’s understanding of new clean energy technologies, such as solar power.

NUCLEAR POWER Nuclear power, which plays an integral part in CLP’s fuel mix in Hong Kong, has the dual operating benefits of zero CO2 and zero air pollutant emissions. In our Climate Vision 2050, we undertook to continue and, if possible, increase our investment in nuclear generation, including in the Chinese mainland and particularly South China. While we appreciate that nuclear power may not be accepted by all countries, we recognise the role it plays in mitigating climate change risks.

In October 2009, with the support of the Central People’s Government and the Government of the Hong Kong Special Administrative Region (HKSAR), CLP announced the extension through

58 MAY 2010 POWER INSIDER

2-4 NOVEMBER 2010 MARINA BAY SANDS RESORT, SINGAPORE WWW.RENEWABLEENERGYWORLD-ASIA.COM

Singapore is one of the pioneers of deregulation of the electricity market, revolutionary in the region of South East Asia, and as a result, the region’s eyes have closely followed the outcome.

The energy industry is a major contributor to the Singapore economy and their goal is to increase the value-added of Singapore’s energy industry from $20 billion to around $34 billion by 2015.

Clean energy is a key growth area for Singapore with the target of generating $1.7 billion value-added and 7,000 jobs by 2015.

Asia’s economic recovery is outpacing Europe and America’s and is also forecast to sustain an increase in demand for power to meet the requirements of its growing economies and population.

Singapore is the ideal business hub, situated at the heart of South East Asia. With its open and transparent economy and attractive new Marina Bay Sands Resort, it makes the perfect business destination for the region’s renewables industry to meet, share ideas and experiences.

For further information on exhibiting contact:

For information on participating at the conference contact:

Amanda Kevan Exhibit Sales Manager T: +44 (0) 1992 656 645 C: +44 (0) 7866 382 462 F: +44 (0) 1992 656 700 E: exhibitrewa@pennwell.com

Amy Nash Conference Manager T: +44 (0) 1992 656 621 F: +44 (0) 1992 656 735 E: papersrewa@pennwell.com

OWNED AND PRODUCED BY:

THE BUSINESS HUB FOR THE REGION’S RENEWABLES INDUSTRY

FLAGSHIP MEDIA SPONSORS:

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CLIMATE CHANGE to 2034 of the existing arrangements in respect of the Daya Bay Nuclear Power Station, in which CLP will continue to hold a 25% stake and to take up to 70% of the power from Daya Bay. We are also looking to extend our involvement in nuclear energy in China through our existing relationship with the China Guangdong Nuclear Power Corporation (CGNPC).

NATURAL GAS Natural gas is the cleanest fossil fuel for power generation. We are increasing our investment in gasfired generation, including supporting infrastructure.

In 2009, we commissioned a new 420MW combined cycle gas-fired power station at Tallawarra in New South Wales. This is amongst the most efficient fossil-fuelled power stations in Australia. CLP is participating in measures to bring additional, longterm supplies of natural gas to Hong Kong. The completion of the second West to East Natural Gas Pipeline from Turkmenistan to Guangdong, new gas wells in the South China Sea and the construction of the new Liquefied Natural Gas (LNG) receiving terminal at Dachan Island in the Pearl River Delta will provide three complementary sources of gas to support our Hong Kong operations. Once these gas supplies are available, we plan to increase the use of natural gas to up to half of our fuel mix in Hong Kong, thereby reducing our reliance on coal. In India, Gujarat Paguthan Energy Corporation Pvt. Ltd. (GPEC), our gas-fired power station of 655MW is operating well. We are ready to expand this station once more gas sources are available.

CLEAN COAL TECHNOLOGY We undertook in our Climate Vision 2050 not to build additional conventional coal-fired generating capacity in Hong Kong or in developed countries.

We have respected this engagement. We have also undertaken to move along the path towards clean

60 MAY 2010 POWER INSIDER

coal technology. For any new coal-fired plant that we build, we are using progressively newer generation technology that is more efficient than conventional technology. For example, the greenfield coal-fired power station at Jhajjar in India we started in 2009 will use supercritical generating technology which, by increasing combustion temperature and pressure, increases plant efficiency and lowers carbon intensity levels. The same technology has been applied to our Fangchenggang power plant in Guangxi, China, which has been in operation since 2008. We are looking at ways to reduce emissions at Yallourn in Victoria, Australia, CLP’s only brown coal-fired power station. In July 2009, we started a pilot project with Ignite Energy Resources to develop a direct coal-to-oil and upgraded dry coal process from the brown coal (lignite) at TRUenergy’s Yallourn mine.

It is predicted that the process will reduce carbon emissions intensity by 40% when using the coal for power generation.

ENERGY EFFICIENCY AND CONSERVATION Energy savings constitute the largest and most cost-effective opportunity for emissions reduction.

In addition to a wide range of initiatives within our own facilities to promote energy efficiency and conservation, we have reinforced our efforts and capability to help others do the same.

Since 1999, CLP has carried out over 800 energy audits for large commercial and industrial customers in Hong Kong, including 90 in 2008 alone, helping these companies to improve energy efficiency by 20%. We have also extended our energy efficiency services to Hong Kong-owned manufacturers in Guangdong through a dedicated subsidiary established in Shenzhen, China, in 2008. In late 2008, we established Eco Home, CLP’s first energy efficiency specialty store, to introduce the concept

of green living with more than 100 energy-efficient appliances on display. In Australia, our TRUenergy business offers energy efficiency to customers via a free programme to install low flow shower heads and energy efficient light globes as well as advising low income households and customers experiencing financial hardship on energy efficiency through our Customer Welfare Programme.

CARBON CAPTURE AND STORAGE (CCS) Clean coal or CCS could potentially make significant reductions in carbon emissions from existing fossilfired power stations and could be a way for fossil fuel use to continue in the medium-term. The technology of CCS is known and understood, and proven at small scale. There are still issues to be resolved on its longterm performance and on the security of CO2 storage, but use on a commercial scale could be feasible from 2020 onwards. It would be possible to retrofit carbon capture to many existing power plants, thereby reducing carbon emissions more quickly than could be achieved by other means.

At present, however, in the absence of the right government policies and funding mechanisms, the energy market is falling short of an environment to encourage investment in new technology. Installing carbon capture currently represents a cost with no return and therefore has no basis for investment. If, however, there was a value of, say, US$50 per ton of CO2 that was sustainable and widely applicable, the position would change dramatically. In that scenario the technology would reach its tipping point and progress rapidly. Costs would come down; and by 2020s, there could start to be significant reductions in carbon emissions.

MOVING TO A LOW-CARBON WORLD – LEARNING FROM OUR EXPERIENCE Over the years, CLP has gained considerable experience in managing the dilemma of meeting people’s need for reliable, adequate and affordable energy in a way which is environmentally sustainable.

We aim to capture the lessons we have learned, so as to further improve our performance going forward, and to contribute that experience to the debate on the energy sector’s role in addressing climate change.

Low-Carbon Emitting Generation is Capital Intensive Amongst those lessons learned, is that the move towards low-carbon emitting generation is highly capital intensive. For example, the capital cost of a 50MW wind farm today is in the region of US$75 to US$100 million. At the other end of the scale, the cost of, say a 2,000MW nuclear power

station may be several billion dollars. At the end of 2009, CLP’s own capital expenditure in renewable energy will be considerably in excess of US$500 million.

Investments in cleaner energy are made over a long time horizon – the typical life span of a wind farm may be 20 to 30 years, while a combined cycle gas-fired power station may have a working life of between 30 and 40 years. At the same time, the returns from investment in renewable energy are moderate. This is especially so in light of the risks associated with generating electricity in ways which, because electricity prices do not properly reflect the cost of carbon emissions (or the benefits of reducing those emissions), may well be uneconomic when compared with conventional coal-fired generation.

THE EFFECTS OF NATIONAL POLICIES AND THE CLEAN DEVELOPMENT MECHANISM (CDM) Lowering the emissions from power generation in Asia can only be achieved with massive investment.

This investment (whether it is funded by shareholders or external lenders) can only be made if the necessary policy support for clean energy is in place. This support comes from two levels. The first is the multilateral framework offered by the CDM of the Kyoto Protocol. The second is the national policy measures offered by central or local governments to promote the growth of clean energy. We were first involved in the CDM in 2006. As of July 2009, we have nine registered CDM projects in China. CLP’s experience to date is that the CDM has played a relatively small part in the promotion of clean energy investment.

Until now, CLP’s

earnings under the CDM from our minority-owned projects have been minimal; from our majorityowned projects, they have been zero.

The reasons are threefold: There are practical difficulties in the CDM process; The price of carbon credits is volatile. For example, the European CO2 allowances prices fell from about €30 to just €8 between July 2008 and February 2009 and now stand around €13; As a consequence of the price volatility, the CDM has not been a reliable source of revenue. On the other hand, national policy measures such as mandatory RE targets, preferential electricity tariffs, tax breaks or subsidies and relief from customs duties have played a direct, meaningful and supportive role in every renewable energy project in which CLP has invested – and, in almost every case, the existence of these policy measures has made the difference between a decision to invest or not.

DIFFERENT ENERGIES, DIFFERENT MARKETS, DIFFERENT CHALLENGES We have learned the importance of distinguishing between the various types of clean energy and the differing characteristics of each of the markets within which we might be contemplating such investments.

For example, our experience in biomass has made clear the vulnerability of this renewable energy source to local issues of fuel supply availability and price – to the point where, at present, we are no longer contemplating further investment in this type of renewable energy. In contrast, wind energy, provided that policy support is available in the form of a stable long-term preferential tariff, is becoming a proven means of adding renewable energy capacity in a manner which is reasonably predictable in terms of technical reliability, performance and output. We have seen that the “newer” renewable energy sources,

POWER INSIDER MAY 2010 61

CLIMATE CHANGE such as solar, geothermal or tidal power still face major hurdles in terms of operating performance, reliability and, above all, cost relative to conventional forms of power generation. Our participation in Australia in Solar Systems, a developer of concentrated solar photovoltaic technology and equipment, where in 2009 we wrote off an investment of around US$40 million, was a sharp and unwelcome lesson on the risks associated with the deployment of early stage clean energy technologies. The economic downturn and credit crunch of recent times has heightened the difficulties in bringing such technologies to commercial realisation. Over the short to medium term, we see wind and hydro power as making the major contribution to the growth of renewable energy capacity in Asia, with solar energy, probably in the form of large-scale solar photovoltaic installations, gradually moving into commercial scale deployment.

CLP has its part to play in the deployment of solar energy and other emerging, but reasonably proven clean energy in Asia. However, we see no reason to change our earlier view that, absent significant policy and technological development, the large-scale commercial deployment of clean coal technology, in the form of CCS is unlikely before the later part of the 2020s. Our experience has also taught us that different markets offer quite different opportunities for clean energy. Sometimes this is for climatic or geographical reasons, but more often because of wide variances in national or local policy support. For example, within the markets in which CLP operates, Thailand and Rajasthan in India presently offer the most supportive tariff regimes for solar power.

Australia, China and India all provide good policy support for wind energy. The Chinese government is subsidising wind farms through a tariff of well over 50% above that of coal-fired power generation, and is offering numerous tax benefits (such as VAT rebate and tax holidays) targeted at renewable energy enterprises.

Finally, the most important lesson we have learned, and one which may be applicable to many other companies, is that we can change the way we carry on our business. We can start to make significant reductions in carbon emissions compared to those which would result from â&#x20AC;&#x153;business as usualâ&#x20AC;?. The commitment we made in 2004 to achieve 5% of our generating capacity from renewable energy sources by 2010 was the subject of a great deal of internal debate. We were not sure that we could achieve this and we were concerned about the consequences of setting a target and missing it. Nonetheless, we took a conscious decision to set ourselves a challenging target, one which would demand a change in our behaviour, rather than a modest target which we could achieve with ease. Our success in meeting and exceeding our RE target has taught us that setting challenging goals, and making these public, promotes fundamental changes in the way we do business and gathers the necessary stakeholder support, including from our shareholders, for these changes. This is the philosophy we adopted in our Climate Vision 2050, where we set demanding targets for reductions in the carbon emissions intensity of our generating portfolio.

62 MAY 2010 POWER INSIDER

We do not know whether we can achieve these targets, especially when they are heavily dependent upon external support, such as from governments, lenders and technology providers. We do know that we shall do our best to turn that vision into reality.

BEYOND COPENHAGEN CLP is one of the nine member companies of the Electricity Utilities Sector Project initiated by the World Business Council for Sustainable Development (WBCSD) in 2000. This aims to promote a better understanding of the sustainability challenges facing the electricity sector, examine potential business contributions and explore policy needs (see www.wbcsd.org for details). In â&#x20AC;&#x153;Power to Change: A business contribution to a lowcarbon electricity futureâ&#x20AC;?, which was issued as part of this Project, the member companies identified six urgent needs which required the efforts of all stakeholders in the industry. Securing investment in electricity infrastructure Bringing more power to more people Promoting end-use energy efficiency Diversifying and de-carbonising the generation fuel mix Accelerating research and development Reinforcing and smartening electricity grids From an electric utility perspective, CLP believes that the success of COP15 in Copenhagen should be judged by the contribution that it makes to achieving these six objectives. To do so, COP15 will need to deliver a multilateral policy framework which: improves and extends the existing CDM; t QSPNPUFT FODPVSBHFT BOE FOBCMFT B CSPBEFOJOH SBOHF PG OBUJPOBM NFBTVSFT XIJDI XJMM TFDVSF DBSCPO FNJTTJPO SFEVDUJPOT XJUIJO JOEJWJEVBM DPVOUSJFT BOE NBSLFUT t QSPWJEFT UIF NBTTJWF BNPVOUT PG TUBCMF BOE EJSFDU GVOEJOH SFRVJSFE GPS UIF EFWFMPQNFOU BOE EFNPOTUSBUJPO PG UFDIOPMPHJFT UIBU IBWF ZFU UP CFDPNF UFDIOPMPHJDBMMZ QSPWFO TVDI BT $$4

CLPâ&#x20AC;&#x2122;s own experience has been that, in its current form, the CDM has not played a major role in the

development of clean energy in Asia Pacific. However, the CDM forms part of the existing international architecture to tackle climate change and can facilitate the deployment of viable clean technologies.

The mechanism should not be scrapped, but it should be improved and refined, such as by: streamlining the project registration process for small projects or for classes of projects; extending the CDM to all technologies which result in measurable, reportable and verifiable emissions reductions such as large hydro, nuclear power and clean coal technologies; relaxing requirements for â&#x20AC;&#x153;additionalityâ&#x20AC;? for CDM registration (the need to demonstrate that a given project has only proceeded because of the availability of CDMs). The CDM should not disadvantage or penalise countries which have supportive local clean energy policies by undermining the extent to which it can be argued that the application of the CDM was a prerequisite to project development; removing the scope for national applications or interpretations of the CDM which inhibit its fair and efficient operation â&#x20AC;&#x201C; such as the imposition of national levies on CDM revenues or allowing only local businesses to qualify for CDMs; promoting a more stable and predictable value of carbon credits, including through establishing a longer-term regime than the first commitment period of the Kyoto Protocol from 2008 â&#x20AC;&#x201C; 2012, as well as mechanisms to safeguard credit price volatility from derivative speculation.

There are massive differences between the developed world and the developing world and, within these, great variations in the energy capabilities, needs and characteristics of individual countries. In the spirit of common but differentiated responsibilities, COP15 should not strive for a â&#x20AC;&#x153;one size fits allâ&#x20AC;? solution â&#x20AC;&#x201C; it must leave the scope, and provide encouragement, for national, bilateral, regional or other multilateral policies and initiatives. All of these could be formally recognised under the United Nations Framework Convention on Climate Change (UNFCCC), approved as a contribution to the global effort to tackling climate change and be measured, reported and verified through the UNFCCC. These policies and initiatives from developing countries, which would come principally in the form of Nationally Appropriate Mitigation Actions (NAMAs), should support the accelerated deployment of clean energy infrastructure and technology by promoting: Governance and regulatory stability. Because of the long-term nature and substantial capital costs involved in the provision of clean energy infrastructure, governments must put in place credible institutional frameworks for the energy sector. These frameworks must operate within the context of stable, fair, objective and predictable political and legal systems.

There must be respect for the legitimate rights of owners of existing electricity infrastructure assets, as well as respect for contracts and intellectual property rights. Recognising the demarcation between the responsibilities of governments and those of the private sector.

In the case of the drive to cleaner energy, whilst business can play its part, the primary responsibility must be on government to lead, educate and inform the people whom they serve about the costs, benefits

THE WORLD FACES A DILEMMA – HOW TO AVOID THE THREAT OF CATASTROPHIC CLIMATE CHANGE BY MAKING MASSIVE AND SUSTAINED REDUCTIONS IN THE EMISSION OF GREENHOUSE GASES, PRINCIPALLY CARBON DIOXIDE (CO2), AND YET DO SO IN A MANNER WHICH DOES NOT REQUIRE SUBSTANTIAL FALLS IN LIVING STANDARDS IN THE DEVELOPED WORLD OR PREVENT THE PEOPLE OF THE DEVELOPING WORLD FROM ACHIEVING THEIR OWN LEGITIMATE ASPIRATIONS FOR A BETTER LIFE. POWER INSIDER MAY 2010 63

CLIMATE CHANGE

and consequences of a low-carbon power sector. In the absence of community support, government and businesses operating within those communities will be consistently handicapped in their efforts to deploy cleaner energy solutions on a durable basis.

The development of these national policies will be the key item on the post-Copenhagen agenda for all of us in the Asian power sector – governments and business alike.

Policies which are not based on an objective assessment of their technological, markets and economic consequences can destroy the capital value of existing infrastructure – threatening the smooth low-carbon transformation of our industry, creating an adverse investment climate and undermining the stability of the existing industry players. On the other hand, appropriately timed and carefully constructed policies, developed in the context of clear, longterm national energy strategies will promote the transition to cleaner energy. Economic viability and sustainability. This would include removal of any barriers (financial, structural and institutional) to the introduction of low-emissions technology, streamlined planning and approval processes, and most importantly, rewarding investment through economic support in the form of preferential tariffs, fiscal assistance and the like. The availability of capital. This will itself be encouraged by the economic viability of the clean energy project.

Even so, public funding, supplemented by international financial institutions such as the International Finance Corporation and Asian Development Bank, may be required to leverage or encourage private sector lending or to promote projects and technologies where the early stage 64 MAY 2010 POWER INSIDER

analysis of risks and rewards may not be sufficiently favourable to attract large scale private sector finance.

Supporting infrastructure. Clean energy, for example, the large-scale installation of wind farms, depends on supporting infrastructure such as a robust and flexible transmission system. Government or other public sector investment will be necessary to put in place such infrastructure.

CARBON POLLUTION REDUCTION SCHEME (CPRS) – AUSTRALIA The Australian Government released a Green Paper in July 2008, followed by a White Paper the following December, outlining the scope and focus of the CPRS. The CPRS is an emissions trading scheme that proposes a cap and trade mechanism to achieve its long-term target of a 60% reduction in greenhouse gas emissions from 2000 levels by 2050. The Scheme has sparked ongoing debate on a number of issues including the level of transitional assistance that should be given to coalfired generators, in particular those in Victoria. The transition measures the government has proposed will not be sufficient to keep the industry healthy enough for new investment in the much needed and cleaner energy infrastructure of the future to meet rising demand. The Government needs to understand the far-reaching damage it will deliver by not getting the policy right. When we talk about appropriately timed and carefully constructed policies, we should link them with efficient investment decisions and the preservation of energy security, and avoid capital stock destruction. If the CPRS was implemented in its current form, the energy market as a whole would face supply reliability and price volatility issues. The

proposed CPRS will also damage Australia’s ability to attract new investment, particularly in a sector in which energy demand is forecast to significantly increase over the next decade.

Irrespective of the steps that the world takes beyond Copenhagen to reduce greenhouse gas emissions, some climate change is inevitable (and may already have occurred). Adaptation to the consequences of climate change is necessary, yet the burden will fall most heavily on the developing world, including in Asia – countries which have contributed least to the existing concentrations of greenhouse gases in the upper atmosphere and which are least able to bear the consequences and burden of adaptation. COP15 should encourage economic, regulatory and institutional measures, at multilateral, regional and national levels to allow developing countries to adapt to climate change. COP15 should also promote financial and technical support to help them do so, such as by the effective implementation and extension of the UN Adaptation Fund.

CLP looks to the years beyond Copenhagen to be characterised by a new and enduring multilateral framework within which the world can address the unprecedented threat to our way of life posed by climate change. We need this framework to encourage, reward and oversee a broad range of national policies and measures, each tailored to the specific needs of individual countries, but all aimed at contributing to meeting the ambitious goals which Copenhagen must set for large scale and long-term reductions in greenhouse gas emissions from the energy sector.

CLP will play its part on the debate of these issues, at Copenhagen and beyond, and more importantly, in the achievement of the goals that are set.

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Configuration

Feedstock throughput

Electrical output*

Application examples

ce25

25 tons per day

0.5-1.0 MW

mobile, biomass, haz mat

ce100

100-800 tons per day

2 - 32 MW

biomass + landfill

ce250

250-2000 tons per day

12 - 96 MW

medium biomass + landfill

ce 1000

1000-8000 tons per day

34 - 512 MW

large biomass + landfill

*Electrical output varies based on feedstock and an example of yield with 4,500 BTU / lb biomass or waste (40% moisture) is 0.7 MWh / metric ton. Higher energy feedstock will produce higher energy yields and can exceed the output range quoted above. Syngas to biofuel and fuel cell applications are also fully supported. Please contact us to discuss syngas yields per feedstock.

Cool plasma gasification adaptiveARC offers breakthrough innovation that leaps over significant barriers to create clean syngas and high-energy output in an economically efficient manner. Unlike every other form of gasification, we use pulsed plasma energy and UV light to clean our syngas. Our unique process utilizes properties of plasma physics to break down the harmful by-products associated with thermal-only gasification. We call the process “cool plasma gasification.”

We operate in the lowest temperature spectrum of plasma gasification, 1,300° C, while retaining all of the detoxification benefits and syngas yields of higher temperature plasma processes. Our lower temperatures and regenerative cleaning process avoids formation of unwanted emissions and harmful salts and corrosive acids. As a result, our plants have a longer operating life operating below the melting points of reactor components.

Cool plasma gasification

Resulting benefits

t Operates at the lower end of the gasification spectrum: 1,300°C

t Avoids costly scrubbing equipment

t Combines aspects of plasma field dynamics

t Smallest system footprint

t Uses pulsed plasma to enhance molecular disassociation

t Mobile, modular and scalable

t Lowest cost in the marketplace

t Uses UV light to enhance detoxification

Cool plasma gasification Plasma arc gasification Gasification / Pyrolysis

1960

Dirty / proven 1990

Our process has several other benefits and key advantages, including a solid by-product that is an inert ash. This ash can be used as a soil conditioner and in construction.

Gasification is a proven and central technology in renewable energy. What sets us apart is our ability to manufacture our own torches that take advantage of the dynamic properties of plasma physics. Our Chief Scientist, Christian Juvan, holds the early patents in this field. He is a rare scientist to have an energy creation technique based on plasma physics, placing him in company with Edison, Tesla and Siemens for a US-approved patent in energy creation.

© 2009 adaptiveARC, Inc. All rights reserved. plasmaFILL and infiniteFILL are trademarks of adaptiveARC, Inc.

Clean / expensive Dirty / limited

Mass burn incineration pre 1960

Clean / profitable

2009 and beyond

We achieve these significant advantages in a streamlined design that relies on proven and low-tech solutions in many steps of the process. This technology enables our larger plants to be less expensive to operate, and makes our smaller plants ideal for mobile and field operations.

The technology also enables deployment in developing countries where waste management practices are more damaging to the environment and energy is a more critical issue.

CAVITATION DIAGNOSTICS & MONITORING

MULTIDIMENSIONAL AND SIMPLE TECHNIQUES FOR CAVITATION DIAGNOSTICS AND MONITORING 1. INTRODUCTION Due to strong dependence of cavitation on fine details of turbine geometry, nominally identical turbines operated in identical conditions may have substantially different cavitation characteristics. The fact that model tests cannot predict these differences makes the prototype-scale inspection of turbine cavitation necessary. While the final consequence of cavitation in form of the accumulated erosion can be assessed by direct inspection in an overhaul, on-line tests on prototype turbines are necessary in order to discover the origin of the deterioration effects – which operation points contribute most? which turbine parts cause the effects? – and such tests in form of permanent monitoring are necessary in order to follow aging effects and detect changes due to incidents.

Cavitation in a prototype turbine can hardly be seen. Thus, the only practical manner to perform prototype-scale cavitation tests and monitoring is to use suitable vibro-acoustic sensors installed on suitable locations on a turbine and listen to cavitation noise or assess its consequences such as vibrations of turbine parts. Depending on the number of sensors and the methods used to analyze the signals they 68 MAY 2010 POWER INSIDER

deliver, two classes of vibro-acoustic techniques for turbine cavitation diagnostics and monitoring can be distinguished: multidimensional and simple.

In this paper Korto’s multidimensional technique1 is presented, and it is compared to two simple techniques implemented in the cavitation monitoring systems manufactured by two US companies. The comparison is based on the tests2 performed on the large Francis turbines at the Third Powerplant of the Grand Coulee Dam owned by the US Bureau of Reclamation (Fig. 1, main picture above).

Fig. 2 – Polar representation of the typical dependence of the short-time mean cavitation intensity (radial coordinate) on the runner’s instantaneous angular position (angular coordinate)

2. MULTIDIMENSIONAL TECHNIQUE In order to avoid the worst consequences of cavitation, heavily loaded screw propellers behind bulky ship hulls are sometimes designed to operate in a fully developed cavitation flow. Nothing like this is practiced in hydro turbines. Here, cavitation is avoided or, in order to make the excavation works less expensive, it is accepted but is made rather weak.

Thus, a typical turbine is usually operated close to the cavitation threshold. As a consequence, variations in the flow behind the stay vanes and guide vanes may be turning on and off cavitation on the runner blades as these pass through their wake. This results in a

situation illustrated in Fig. 2.

As far as cavitation is concerned, no two truly equal guide vanes and no two truly equal runner blades can be found in a turbine. This means that, instead of thinking about cavitation in the turbine as a whole, V×B independent cavitation processes may be expected to function in it, where V and B are the number of guide vanes and the number of runner blades, respectively. The data on these cavitation processes is to be looked for in the curves like that in Fig. 2. In it, different peaks describe the interaction of different guide vanes and different runner blades.

Fig. 1 – Grand Coulee Dam on the Columbia River in Washington state, USA: 6809 MW of installed generating capacity, 3x605 MW and 3x805 MW in the Third Powerplant

Consequences of cavitation erosion are best assessed directly, during an overhaul. However, in order to find out from which operating points they stem and clarify the role various turbine parts play in cavitation, one must apply vibro-acoustic measurements or monitoring. Based on the example of large Francis turbines at Grand Coulee Dam in USA, the multidimensional vibro-acoustic technique for cavitation diagnostics and monitoring is presented and is compared to simple techniques. The role of model and prototype cavitation tests is discussed.

Fig. 4 – An example of the sensory system in a multidimensional diagnostic cavitation test

Fig. 3 – Curves such as in Fig. 2 found in a Kaplan turbine in 12 different circumferentially distributed locations. Both the mean cavitation intensity and the forms of the curves differ substantially.

Checking the dependences like that in different locations in a turbine, one finds strong differences (Fig. 3). They are consequences of variations of guide vanes’ shape and setting and consequences of irregularities in the spiral casing shape; even if these irregularities do not influence efficiency they may have strong impact on cavitation. Obviously, by means of a vibro-acoustical sensor in one location only an arbitrary result is obtained both concerning the estimation of the mean cavitation intensity and

the information on the cavitation processes. In the multidimensional technique a rather high number of sensors are used. A typical configuration for a diagnostic test is illustrated in Fig. 4; for permanent monitoring, the number of sensors is reduced.

In most cases, several types of cavitation appear in a turbine in the same or different operation conditions; an example is shown in Fig. 5. Also, the same cavitation type can appear in different locations within the turbine. Being generated in different

Fig. 5 – Three cavitation mechanisms found in a turbine differ in cavitation threshold POWER INSIDER MAY 2010 69

CAVITATION DIAGNOSTICS & MONITORING

Fig. 6 – Different patches are the traces of the interaction of different guide-vane/runner-blade pairs

Fig. 8 – Comparison of 6 nominally identical Francis turbines in Landsvirkjun’s Burfell HPP, Iceland, reveals differences in the cavitation-threshold height and in the intensity of the developed cavitation

In the multidimensional technique for turbine cavitation diagnostics and monitoring, a huge quantity of high-frequency data (up to 1 or 2 MHz from each sensor, acquired over at least 100 runner revolutions) acquired by means of a sufficiently high number of sensors distributed over a turbine is subjected to a rather complex signal and data processing, which resolves all M×V×B processes, and combines this set of data into more compact final information.

In case of the permanent monitoring, the resulting data is reduced to the scalar and vector format comparable to the one used in vibration monitoring; this cavitation data is sent to the central unit of a plant monitoring system for logging, trending, and further analysis. An important specific issue here is logging the accumulated cavitation intensity. This may be used to assess the running state of cavitationerosion development and organize the conditionbased maintenance. The number and the location of the sensors and details of the monitoring algorithm are usually determined in an introductory diagnostic on-site cavitation test. Due to the fact that cavitation in every turbine has its particularities, the use of an off-shelf monitoring system is not recommended.

3. RESULTS The second phase of the multidimensional data processing – a step-by-step synthesis – results in various descriptions of the cavitation dependence on turbine operation parameters (two water levels, distributor and, for Kaplan turbines, runner opening, discharge, power):

t M×V×B characteristics of the guide-vane/runnerblade pairs specifying, for each of M cavitation mechanisms, the components of the cavitation

flow segments, such different cavitation mechanisms generally are independent and should be dealt with as such. Furthermore, each of these mechanisms differs in details on each guide-vane/runner-blade pair.

Denoting the number of the cavitation mechanisms found in a turbine under consideration by M, one thus has M×V×B different processes to assess; for a typical Francis turbine this may amount at 1000.

In the multidimensional technique, identification of different cavitation mechanisms is done by means of various signal and data analysis tools; one of them is illustrated in Fig. 6. Here, cavitation intensity is presented by the colour, and the three black lines point to the three cavitation mechanisms found in this particular turbine.

intensity on each of B runner blades as influenced by each of V guide vanes and by the position behind the spiral casing t M×B characteristics of the runner blades specifying the cavitation intensity on each blade averaged circumferentially, thus being a mean over all the guide vanes and all the positions behind the spiral casing t M×V cavitation characteristics of the guide vanes; these, in a general case, do not describe any cavitation on the vanes but specify the mean influence each vane has on the runner blade cavitation t M and, finally, one global cavitation characteristic specifying the mean cavitation intensity in the turbine.

Fig. 7 – Erosion-rate estimate derived for Grand Coulee Dam Francis turbine G-20 by means of the multidimensional technique, compared to the efficiency curve 70 MAY 2010 POWER INSIDER

The global characteristics are illustrated in Figs. 7 and 8, and the guide-vane characteristics in Fig. 9.This data can be used for turbine operation optimization (Fig. 7 – avoiding load ranges with high cavitation intensity) and plant operation optimization (Figs. 8 and 9 – loading less the units which cavitate stronger while keeping a needed total power production).

Various specialized forms of the turbine cavitation characteristics are useful, e.g. those which check other turbine characteristics such as the cam in a Kaplan unit (Fig. 10) or explicitly describe the spiral-casing influence (Fig. 11). The latter shows that, in the turbine tested, most cavitation appears in a rather narrow angular segment of the spiral. It also shows that between the two highest power values a steep rise of intensity starts; this points to a new cavitation mechanism. The cavitation characteristics like those in Figs. 10 and 11 reveal possibilities of turbine improvement.

Fig. 9 – Guide-vane cavitation characteristics of the six Burfell turbines

A comparison of the two classes of cavitation monitors is recapitulated in the following table.

Fig. 10 – Cavitation in Kaplan unit 1 at Electricité de France’s Kembs HPP, France, with two versions of cam installed: the original cam designed in a model test and the optimized cam determined in an index test on the prototype; it is recommended to include cavitation in the index test.

Fig. 11 – Spatial distribution of cavitation intensity behind the spiral casing in Kembs unit 1; the intensity is normalized to the value in the direction denoted by the black dot.

4. COMPARISON WITH SIMPLE TECHNIQUES The simple techniques for cavitation monitoring follow a straight-forward logic applied in most other hydropower measurements: use a sensor suitable for the quantity to be assessed, and estimate the mean value or other suitable value of the sensed quantity.

For cavitation, this is not optimal for two reasons:

t The results delivered by such cavitation monitors

Number of sensors in a good diagnostic test Number of sensors in permanent monitoring Signal and data processing algorithm Delivers mean erosion rate estimate Delivers accumulated erosion estimate Represents all locations in a turbine Recognizes different cavitation types Delivers diagnostic details (runner blade quality, etc.)

Relative sensitivity in detecting deterioration effects Overall accuracy and reliability of results at Grand Coulee Dam2, the monitor with one sensor on one guide-vane link and the modulation amplitude as the output (Fig. 12), and the monitor using one sensor on the draft tube wall and the RMS signal value as the output (Fig. 13). Fig. 12 shows how poor and unpredictable can be the results based on one sensor only. Depending on sensor location, the power setting on which the assessment of cavitation intensity reaches its maximum varies by 50 MW or 100 MW. This illustrates the situation with both onesensor monitors. The second simple monitor has one problem more: by relying on a sensor in a location in which non-erosive free-vortex cavitation prevails, and interpreting the two-year readings3 in a wrong way, it yielded a paradoxical result (Fig. 13).

The high ratio of the monitoring sensitivities is the consequence of the fact that a vibro-acoustical signature of the initial deteriorating effect is compared to the total cavitation signature in the simple monitor and to the signature stemming from a spatial resolution cell in the multidimensional monitor.

5. MODEL TESTS VS. PROTOTYPE TESTS less useful data for practical operation of the prototype is obtained than by means of an in-plant

differences in amplitudes of different

multidimensional vibro-acoustic monitor or in such

curves in Fig. 3). Even if differences in the obtained

a test (Fig. 14).

mean values were compensated by calibration,

In some cases, not all cavitation mechanisms can

differences in the forms of the peaky curves,

be seen in a model test, but all of them can be

which describe interactions of different turbine

heard and assessed in a multidimensional in-plant

parts, show that, for a selected sensor location,

vibro-acoustic test.

and some others may be overestimated. Thus, readings of the one-sensor monitor may turn not to be representative and may thus incorporate a high unknown bias error. t Simple signal processing algorithms used in the simple monitors ignore information such as is contained in the patterns in Fig. 3. Thus, such monitors cannot deliver data on cavitation details.

t There are strong scale effects in incipient cavitation modelling. Thus, cavitation should be checked on the prototype. t Due to not full preservation of the runner blade profile in erosion repairs, and due to various deterioration effects coming in exploitation, turbine cavitation performance varies in time t This makes continuous control of the prototype necessary.

If they would be used to do so on the only available pattern, the obtained information may be wrong.

In contrary to this, the multidimensional technique uses signals from sensors in many locations and processes them in an appropriate complex way.

This makes resulting data representative, the mean values of cavitation intensity estimates close to the true mean total intensity values, and the conclusions on details of the cavitation processes available and correct.

In Figs. 12 and 13, the multidimensional technique is compared with the two simple monitors installed

Fig. 12 – Readings of the blade-passage-modulationlevel obtained on 32 guide vanes (different colours – different vanes). The simple monitor yields as the result the bold black-line curve with dots.

t In a typical model cavitation test, much

heavily depend on the sensor location (cf.

some cavitation components may be hidden

Simple Multidimensional 1 1 on each guide-vane link 1 typically 6 simple complex yes yes yes yes no yes negligible yes no yes ~1 ~80 low high

6. CONCLUSIONS The multidimensional technique for cavitation diagnostic tests and monitoring uses sensors distributed over a turbine and a complex signal and data processing. It yields reliable estimates of cavitation intensity and delivers diagnostic details on cavitation. This can be used to optimize turbine or plant operation for minimum erosion, organize the operation-based maintenance related to cavitation, and identify turbine parts which could be improved.

Simple cavitation monitoring techniques, based on one sensor and simple signal processing, may

Fig. 14 – Typical cavitation-related results of a model test – black dots, and a prototype test – red dots; operating range – green. Out of 17 model data points, only two describe the real situation in the exploitation, while the prototype test yields its detailed description.

deliver intensity estimates with a high bias error. They ignore most of information on cavitation contained in vibro-acoustic signals and do not yield details of cavitation.

Model tests cannot substitute prototype cavitation tests.

CONTACT INFORMATION Dr. Branko Bajic, Managing Director Korto Cavitation Services, Rue Ste Zithe 12 L-2763 Luxembourg www.korto.com korto@korto.com +55 21 3796 4676 (phone) +38 59 1580 6433 (mobile) +55 21 2137 4937 (fax) korto.cavitation (skype) Footnotes: 1 Brief description: International Water Power & Dam Construction Journal, May 2001, Feb. 2003, Nov. 2004 Introductory theory: Journal of Fluids Engineering of the American Society of Mechanical Engineers, Dec. 2002 Physical background: Journal of Hydraulic Research of the International Association of Hydraulic Engineering and Research, Jan. 2003 See also: www.korto.com/Letter.pdf and www.korto.com/downloads/white_papers/Korto_Cavitation_diagnostics_and_ monitoring.pdf 2 Grand Coulee G-20, Multidimensional Cavitation Test, Comparison of Three Cavitation Monitoring Techniques, Korto Cavitation Services, Report GC082103, Vol. 1 and 2, May 2008 3 Wolff, P.J., Jones, R.K., and March, P., “Evaluation of Results from Acoustic Emissions-Based Cavitation Monitor, Grand Coulee Unit G-24, Cavitation Monitoring System Comparison Tests, Grand Coulee Project, Final Report”, October 2005, www. wolffwareltd.com/downloads/Grand%20Coulee%20Cavitation%20Report.pdf

EVENTS LISTING May 2010 26 MAY - 27 MAY

AIMS 2010 - THIRD INTERNATIONAL SYMPOSIUM “MINERAL RESOURCES AND MINE DEVELOPMENT” Kármán Auditorium of the RWTH Aachen University, Aachen, North Rhine-Westphalia, Germany.

Organisers: Institute of Mining Engineering I, RWTH Aachen Uni Email: aims@bbk1.rwth-aachen.de URL: www.aims.rwth-aachen.de 26 MAY - 27 MAY

THE CANADIAN INSTITUTE’S MANAGING MAJOR NORTHERN RESOURCE & INFRASTRUCTURE PROJECTS High Country Inn, Whitehorse, Yukon Territory, Canada.

Organisers: The Canadian Institute Email: marketing_info@CanadianInstitute.com URL: www.canadianinstitute.com/northernprojects

June 2010 3 JUN - 5 JUN

SAVE ENERGY, SAVE WATER, SAVE THE PLANET, INTERNATIONAL CONFERENCE AND EXHIBITION TBC, Sofia, Sofia, Bulgaria.

Organisers: Via Expo Ltd. Email: office@viaexpo.com URL: www.viaexpo.com 3 JUN - 4 JUN

KAZSTIMOIL 2010 - SYMPOSIUM AND EXHIBITION ON OIL AND GAS PRODUCTION STIMULATION The Rixos Almaty Hotel, Almaty, Kazakhstan.

Organisers: Caspian Business Events Email: enquiry@caspian-events.com URL: www.caspian-events.com/KazStimOil

3 JUN - 4 JUN

WIND TRANSMISSION AND DISTRIBUTION CONFERENCE Venue tbc, Manchester, Lancashire, United Kingdom.

Organisers: Arena International Events Email: events@vibevents.com URL: www.windpowertd-events.com 7 JUN - 10 JUN

RENEWABLE ENERGY RODEO AND SYMPOSIUM Fort Bliss, El Paso, TX, USA. Organisers: U.S. Army Tank Automotive Research Development and Email: energyrodeo@brtrc.com URL: www.renewable-energy-rodeo.com 8 JUN - 10 JUN

POWERGRID EUROPE RAI, Amsterdam, Netherlands.

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POWER-GEN EUROPE Amsterdam RAI, Amsterdam, Netherlands.

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NUCLEAR POWER EUROPE Amsterdam RAI, Amsterdam, Netherlands.

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URL: www.renewableenergyworld-europe.com 14 JUN - 15 JUN

GCC - HEAVY LIFT AND TRANSPORT FOR OIL AND GAS TBC, Abu Dhabi, United Arab Emirates.

Organisers: Arena International Events Group Email: AndrewCleary@arena-international.com URL: www.arena-international.com 21 JUN - 24 JUN

VIETNAM POWER CONFERENCE Sheraton Saigon Hotel & Towers, Ho Chi Minh City, HCMC, Vietnam.

Organisers: Asia Business Forum Email: mktg@abf.com.sg URL: www.abf-asia.com 21 JUN - 22 JUN

8 JUN - 10 JUN

RENEWABLE ENERGY WORLD EUROPE RAI, Amsterdam, Netherlands.

Organisers: Pennwell Email: attendingree@pennwell.com

WIND POWER ASSET OPTIMIZATION CONFERENCE TBD, Dallas, TX, USA. Organisers: Arena International Email: book@events.com URL: www.arena-international.com 23 JUN - 25 JUN

HIDA 5 CONFERENCE Institute of Materials, London, United Kingdom.

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THE UK ENERGY SUMMIT Millennium Mayfair, London, United Kingdom.

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POWER PLANT AND HEAVY LIFTING USA Chicago, Illinois , USA. Organisers: Arena International Events Group Email: emanel-labban@arena-international.com URL: www.arena-international.com 72 MAY 2010 POWER INSIDER

28 JUN - 29 JUN

POWER PLANT HEAVY LIFTING NORTH AMERICA TBC, Chicago, Illinois, United Kingdom.

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Emperors Palace , Johannesburg, Gauteng, South Africa.

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Organisers: Dept. of Railway Vehicles at the Budapest Univerws Email: bogie10@rave.vjt.bme.hu URL: www.railveh.bme.hu

September 2010

SMART GRIDS SUMMIT 2010 Malaga, Spain.

Organisers: World Trade Group Email: laurence.allen@wtgevents.com URL: www.thesmartgridsummit.com

13 SEP - 14 SEP

1 SEP - 3 SEP 29 JUN - 30 JUN

SMART METERING UK & IRELAND 2010 Lancaster London Hotel, London, United Kingdom.

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COLLECTIVE INTELLIGENCE IN ENERGY TBD, London, United Kingdom.

Organisers: Arena International Email: book@events.com URL: www.arena-international.com/power/ ciinenergy/index.html 30 JUN - 1 JUL

NUCLEAR DECOMMISSIONING & LEGACY WASTE Crowne Plaza Manchester City Centre, Manchester, United Kingdom.

Organisers: C5 Email: a.morgan@c5-online.com URL: www.c5nuclear.com July 2010

CHINA (SHANGHAI) INTERNATIONAL PETROLEUM & PETROCHEMICAL TECHNOLOGY AND EQUIPMENT EXHIBITION Shanghai New International Expo Center, Shanghai, China.

Organisers: Beijing Zhenwei Exhibition Email: gdm@zhenweiexpo.com URL: www.cippe.com.cn 6 SEP - 10 SEP

22 SEP - 24 SEP

25TH EUROPEAN PHOTOVOLTAIC SOLAR ENERGY CONFERENCE AND EXHIBITION AND 5TH WORLD CONFERENCE ON PHOTOVOLTAIC ENERGY CONVERSION Feria Valencia, Convention & Exhibition Centre, Va, Valencia, Region Velancia, Spain.

Organisers: WIP – Renewable Energies Email: pv.conference@wip-munich.de URL: www.photovoltaic-conference.com 8 SEP - 10 SEP

PROJECT FLOW CONFERENCE The Palmer House Hotel, Chicago, IL, USA. Organisers: Realization Technologies, Inc Email: pf2010@realization.com URL: www.realization.com/events.html

13 JUL - 15 JUL

2010 DDESB SEMINAR Portland Marriott Downtown Waterfront, Portland, Oregon, USA. Organisers: Presented by DDESB; Conference Management by Impac Email: service@ddesbseminar.org URL: www.ddesbseminar.org

12 SEP - 15 SEP

AUTOVATION® 2010 Austin Convention Center, Austin, Texas, USA. Organisers: Utilimetrics Email: info@utilimetrics.org URL: www.utilimetrics.org 13 SEP - 16 SEP

August 2010 16 AUG - 20 AUG

HYDROPOWER AFRICA 2010

14 SEP - 16 SEP

ENERGETAB 2010 ZIAD, Bielsko - Biala, Silesia, Poland.

Organisers: ZIAD Email: wystawa@ziad.bielsko.pl URL: www.energetab.pl

8TH INTERNATIONAL CONFERENCE ON RAILWAY BOGIES AND RUNNING GEARS Budapest University of Thechnology and Economics, Budapest, Pest, Hungary.

METERING, BILLING/CRM EUROPE 2010 Reed Messe Wien, Vienna, Austria.

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SMART HOMES 2010 Reed Messe Wien, Vienna, Austria.

Organisers: Synergy Email: corien@synergy-events.com URL: www.smarthomes2010.com 27 SEP - 29 SEP

HYDRO 2010 INTERNATIONAL CONFERENCE & EXHIBITION Lisbon Congress Centre, Lisbon, Lisbon, Portugal.

Organisers: Hydropower & Dams Journal Email: sales@hydropower-dams.com URL: www.hydropower-dams.com 27 SEP - 30 SEP

CLEAN TECHNOLOGY INVESTMENT WORLD ASIA 2010 Conrad Hotel, Hong Kong, Hong Kong.

Organisers: Terrapinn Email: christine.foo@terrapinn.com URL: www.terrapinn.com/2010/cleantechasia/

ADVERTISER INDEX Powergen Asia

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Renewable Energy World

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Korto

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AdaptiveARC, inc

Pages 66-67

POWER INSIDER MAY 2010 73

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74 MAY 2010 POWER INSIDER

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