Pima 11 by Pimagazine 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 VOLUME 2, ISSUE 4

MALAYSIA: REACHING ITS ENERGY GOALS? PLUS

• Waste Not Want Not • Harnessing Solar Potential • Doing Business in Malaysia

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welcome welcome once again to another bumper edition of pimagazine Asia. 27 as we go to print, India experienced the worlds worst power outage, leaving over 600 million people without access to electricity, causing huge traffic problems and massive loss of productivity, it was truly shocking. the utilities worked hard to restore power and essential services were kept going with stand by power sources.

ContACt us: Editor: Charles Fox Contributing Editor: Rachael Gardner-Stephens Journalist: Robin Samuels Creative Director: Colin Halliday Sales Director: Jacob Gold International Sales Manager: Sam Thomas Account Manager: Daniel Rogers Accounts & Customer Service Manager: Katherine Stinchcombe 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 bi-monthly 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.

outages like this just shows how reliant we are on electrical power, but what of those countries throughout asia and Pacific who still have no access to electrical power. government agencies all over the region are doing as much as they can to ensure that the almost 1 billion people who have no access to even a light bulb, get what most of take for granted every day, the ability to flick a switch and have light! at this stage and in light of what happened in India, what choice do they make? mass integration into the grid, or smaller self-sufficient renewable energy systems? only they can decide. this edition we take a detailed overview of malaysia, its power sector and of course how to be successful in business in the country. malaysia presents a minefield of cultural differences, but our guide will certainly help overcome some of these challenges. we have some excellent features in this edition, but one of particular 78 will be our report on â&#x20AC;&#x2DC;cyber securityâ&#x20AC;&#x2122; in interest to our utility executives the Power sector. Its an excellent overview of the daily threat being faced by utilities all over the world and lists some of the lesser known viruses infecting systems and servers. I hope you enjoy this edition, feel free to pass this onto a colleague, 56 we still have free subscriptions for a limited period so ensure you sign up as soon as possible. If you have any ideas for our editorial team, please send them on to us. all the best

ChArles Fox editor

power insider july/august 2012 3

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CONTENTS 6

News Malaysia 27 Overview

W. L. Gore & Associates Case Study

Malaysian Biomass

VAG Case Study

Solar Power in Malaysia

Counterfeit Connectors - The Dangers

Doing Business in Malaysia

Exciting Times For Thailand

Enerproject Case Study

Landfill Gas: Municipal Gold

Mobil Case Study

Shell Case Study

Mae Moh: A Room With a View

Durag Case Study

Problems for Mae Mohâ&#x20AC;&#x2122;s Unit 4 Generator 70

MaserQuartzelec: Mission Critical

Cyber 78 Crime

Smart Grid in South East Asia

Hydro Power in Bhutan

Rotamac Case Study

Pan Global: Bob Clarke Interview

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NEWS DESK SHALE GAS MINING CAUSES ‘LESS DAMAGE’ THAN CSG AN international geology expert claims the mining of shale gas causes less damage to the environment than extracting coal-seam gas, which is dividing communities in Australia. Scott Tinker, of the University of Texas, said yesterday in Brisbane the US had “gone down the CSG route” in the late 1990s before moving to shale gas in the past few years. “The big challenge with unconventional gas such as these two is how it affects water, but shale gas is extracted from considerably deeper than coal-seam gas,” he told the 34th International Geological Conference. “The water you’re extracting with coalseam gas is often part of the aquifer system, and that can affect water systems.” Shale gas makes far more use of hydraulic fracturing -- the technique of blasting underground known as “fracking” -- than CSG, but Professor Tinker said the technology was improving all the time, so the risks were becoming more manageable. “It’s one of a lot of things which actually doesn’t affect the environment all that much, but I understand that people are worried about it.” Former British chief scientist Ron Oxburgh told the conference there was no “silver bullet” for reducing greenhouse emissions while demand for energy was still increasing rapidly. But Lord Oxburgh said replacing coal with gas was one of the quickest and least painful ways to cut emissions. He said advances in technology had made the mining of gas -especially shale oil and CSG -- more efficient and safer. The first advance was the rise of vertical drilling, which enabled a drill to bore down far into the earth and then proceed horizontally. This made it possible to drill at far greater depths than previously. The second was better imaging and the

third was better fracking practices. Lord Oxburgh has also chaired the British arm of Shell, and while he has previously warned about the dangers of global warming, he said fossil fuels would be around “for decades yet”. “In some ways, it doesn’t matter too much what we do in Europe and even Australia -the most important thing is in Asia, with the countries that are big consumers, China and India.” He strongly advocated more research into carbon capture and storage, known as “clean coal” technology.

COMPANY NEWS FROM AROUND THE WORLD

AMSC sees Q1 revenues recover on Asian wind sales

US power technology and component supplier AMSC saw its revenues increase to $28.7m in the fiscal first quarter of its 2011 fiscal year, compared to $9.1m during the same period a year earlier. The company said that increased revenues were

driven by sales of wind turbine components to China, Korea and India, as well as grid technology to Romania. The company reported a net loss of $10.3m, mainly because of the settlement of “adverse purchase commitments” with certain vendors worth $7.3m, as well as a $2.4m

“mark to market” charge reflective the re-valuation of derivative liabilities and warrants. This compares with a net loss of $37.7m during the first quarter of fiscal 2011. AMSC says that as of 30 June it had cash and equivalents of $87.1m, compared to $66.2m on 31 March. It has an order back

log of $269m, compared to $225m as of 30 June 2011. “AMSC continues to meet its financial objectives, delivering a strong yearover-year revenue increase and net loss reduction in the first fiscal quarter,” says AMSC president and chief executive Daniel McGahn. “With key contributions coming from

China, Korea and India in our Wind segment and Australia and Romania in our Grid segment, our revenue streams remained diverse and well balanced.” McGahn said he expects’ AMSC’s second quarter revenues to be “relatively flat” year on year before growth resumes in the second half of the fiscal year.

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ADB WARNS UNPRECEDENTED URBAN GROWTH IN ASIA COULD BE CATASTROPHIC

VC FUNDING FOR SMART GRIDS IS WEAK! Venture capital (VC) funding for smart grids has remained “extremely weak” for the past three quarters, according to new data from Mercom Capital, a marketresearch company. In its latest quarterly update, Mercom reveals that VC funding was only $66 million in the second quarter of this year, covering just nine deals. In the same period of 2011, VCs invested as much as $112 million in 16 deals, but funding dropped to $97 million the following quarter and to just $66 million in the final quarter of the year. The first quarter of 2012 marked a low point of $62 million, but VC funding has now remained below $70 million for three consecutive quarters. Mercom says the slowdown has happened because the industry is struggling to understand customers’ needs and address their misconceptions. It also blames the rising concern over the security of smart-grid infrastructure. Although strategic investors, and not VCs, are responsible for much of the activity in the smart-grid sector, Mercom’s research comes just weeks after Pike Research, another analyst company, predicted that shipments of smart meters in North America would decline by 42% between 2011 and 2013, falling from 12.4 million to 7.2 million units. In its latest “Smart Meters” report, Pike says the first wave of smart meter deployments in North America has met with a largely negative response from consumers. Many are concerned about meter accuracy, data security and privacy, while the health effects of RF-based systems also remain an issue. In many cases, policy makers, regulators and utilities are being forced to reconsider their plans in response. No doubt, the economic gloom partly explains the slump, with investors also worried about the interoperability and standardisation of the technologies. In addition, US policymakers announced a significant stimulus package of $7.1 billion for smart grids in the wake of the global financial crisis, providing a shortterm boost to the sector. Some of the initial deployments have recently been finished. The situation contrasts sharply with that in the Asia Pacific, and particularly China, where smart-grid penetration is set to close some of the gap with that in North America over the next two years, according to Pike. Although just 23%

“For fiscal year 2012 as a whole, we continue to focus on maintaining our strong track record of execution and are committed to driving year-over-year growth while prudently managing our expenses and our cash as we work toward sustainable profits and positive cash flows.” AMSC continues to be embroiled in a series of legal cases involving Chinese

wind turbine manufacturer Sinovel - formerly AMSC’s biggest customer, which it alleges stole its intellectual property rights. On 1st August, AMSC reported that it and Brazilian wind developer Desenvix had filed separate law suits in Brazilian courts in order to win the right to inspect 23 Sinovel turbines imported for Desenvix’ 34.5MW wind project in Barra de

The Asian Development Bank (ADB) has warned that without proper management, the environmental and social consequences of Asia’s unprecedented urban growth could be catastrophic. It said Asia has been urbanizing at a faster rate than anywhere else, with the region already home to almost half of all the world’s city dwellers as in just over a decade it will have 21 of 37 mega cities worldwide and over the next 30 years another 1.1 billion Asians are expected to be living in cities. For this purpose a live online discussion on the challenges and opportunities presented by the region’s rapid urban growth would be held on August 23rd in Manila. How can Asia act decisively to pave the way for green, resourcefriendly cities, what is needed to turn cities into environmentally sustainable, inclusive growth centers and will the region’s mega cities be centers of crime, poverty and squalor by mid-Century if urbanization continues unchecked are the questions which would be raised during online discussions.

of meters in the Asia Pacific are currently classified as smart meters, compared with around 34% in North America, penetration is forecast to hit 37% by 2014, next to 42% in North America. The State Grid Corporation of China (SGCC) is racing ahead with the rollout of meters, aided by a government stimulus package even bigger than America’s, at $7.3 billion. Nevertheless, there is some debate over whether these meters meet the definition of “smart”, says Pike, with two-way communications and the ability to read and store data on an hourly basis. Despite the short-term setback, Pike expects the North American market to pick up again beyond 2014, lifting penetration to 67% by 2020. Mercom says the top VC deal in the second quarter of this year was the $15 million raised by Power Plus Communications, a broadband powerline communications systems company. The next-biggest deal was the $11.3 million raised by energy-management company Tendril.

Coqueiros, Sergipe, for allegedly pirated control system software and proprietary source code On a conference call with analysts, McGahn says AMSC’s legal conflict with Sinovel was “intensifying” and in his view, the “merits of our case can’t be stronger.” AMSC has filed three civil suits in China against the vendor and is seeking a combined $456m

in compensation, and cease-and-desist orders on allegedly infringing intellectual property. AMSC has also turned to the Beijing Arbitration Commission, where it is seeking $70m for past product shipments and is seeking enforcement of its contracts with Sinovel, which McGahn says are valued at $700m. The body will hold a third session

on the case next week when AMSC will complete presentation of supporting evidence and make any rebuttals to Sinovel’s counterarguments. “We hope the panel will begin deliberations in the not too distant future,” McGahn says. Senior US officials including Vice President Joe Biden and Secretary of State Hillary Clinton are

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NEWS DESK CHINA INCHES CLOSER TO NATIONAL CARBON MARKET The Chinese city of Tianjin has enlisted global carbon consultancy Ecofys to set up one of seven regional pilot carbon markets in preparation for a national carbon trading system planned for 2015, according to a statement the firm released on Monday. The Asian Development Bank (ADB) funded the US$750,000 project to assist the Tianjin Climate Exchange with the design and implementation of its cap-and-trade emissions trading system (ETS), which is slated to start in 2013. “This pilot project will offer valuable lessons for the design of a nationwide system to reduce the carbon intensity of the Chinese economy,” said ADB energy specialist Pradeep Perera. China has a 2020 target of reducing the amount of carbon emitted for every unit of gross domestic product, known as carbon intensity, by 40 to 45 per cent below 2005 levels. The Republic, whose growing use of coal led to a 9.3 per cent rise in carbon emissions in 2011, is now the world’s biggest emitter of carbon dioxide, according to the International Energy Agency. Beijing, Shanghai, Shenzhen, Chongqing and the

provinces of Guangdong and Hubei will also pilot ETS schemes. Other Asia Pacific countries with national schemes either planned or in place include New Zealand, Australia and South Korea. The United States, which is the world’s second biggest emitter, has been unable to implement a national carbon policy due to political disagreements. On Friday, a Reuters’ news report said a congressman had introduced a bill for a flexible carbon price, but then quoted sources saying such a bill was an “unlikely prospect” in an election year. Both the US and China have resisted binding international commitments to emissions reductions. To develop Tianjin’s ETS, Dutch head-quartered Ecofys said it has put together a ten-person team of local and international experts. “For us, this represents a significant and important project that will help China lead the way in building successful domestic ETS schemes,” said Ecofys manager of market based mechanisms Alyssa Gilbert.

ADVANCED BATTERIES FOR ENERGY STORAGE WILL REPRESENT A MARKET OF NEARLY $30 BILLION BY 2022 The market for advanced batteries for utilityscale energy storage faces an array of challenges. Costs are high compared to traditional power generation resources; the regulatory environment remains ambiguous; no single optimal technology has emerged; and advances in grid infrastructure equipment, such as smart inverters, could accomplish many of the same objectives as advanced batteries. Amid rising demand for electricity and increasing penetration of renewable energy resources, however, advanced batteries represent a unique asset, offering the promise of grid flexibility and generation asset enhancement at rapid speeds and varying levels of scalability. According to a new report from Pike Research, a part of Navigant’s Energy Practice, the market for advanced batteries will roughly double each year over the next 5 years, reaching $7.6 billion in 2017. Over the ensuing half-decade, growth will level off to a still-robust compound annual growth rate (CAGR) of 31 percent, and revenues in the sector will reach $29.8 billion in 2022. “While interest in advanced batteries for grid-scale energy storage remains high, battery manufacturers have not yet put forth a leading technology or business model that has achieved strong traction in the utility industry,” says research analyst Brittany Gibson. “Regulatory and market structures are rapidly evolving, however, and adapting in ways that signal the potential for advanced batteries to provide a unique value to grid infrastructure. The next several years will be

COMPANY NEWS FROM AROUND THE WORLD personally pressing AMSC’s case with the Chinese government, according to McGahn. A court last year in Austria jailed a former AMSC employee for stealing the codes from the company. The court heard claims that man colluded with people acting for

Sinovel over the theft. McGahn believes the Brazil case has upside potential for AMSC as it may open commercial opportunities in a country where it does not have a meaningful wind industry presence. He did not provide details. Turning to Asia,

AMSC’s most important turbine electrical control systems market, McGahn recognizes that the wind market in China has slowed. Still, several key AMSC local partners including Shenyang Blower Works and XJ Group are expressing confidence that they will continue winning

share. “We anticipate seeing execution by our partners and their plans in the next quarters,” he says. Both those vendors with help from AMSC have gained certification for low voltage ride-through technology from regulators for their 2MW wind turbines that is now mandatory

in China. Jingcheng New Energy Co., another AMSC partner, is in the process of doing so, he says. This vendor recently connected its first 2MW wind turbine to the grid near Beijing and has 3MW and 5MW designs using AMSC technology. A small uptick in sales is expected from partners

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WORLD TAKES HARD LOOK AT INDIA GRID, PROMISES OF SOLAR

crucial for the sector’s development.” As a globally advanced battery manufacturing epicenter, Asia Pacific may benefit before other regions from cost decreases in advanced battery technologies, according to the new report. Though Western Europe lags behind Asia Pacific and North America, the European Union’s aggressive carbon reduction goals and public funding for grid modernization hold abundant future promise. North America, with its highly decentralized electricity industry, has a broad spectrum of opportunity and technology development, but some common drivers in the North American utility industry could make it a fertile environment for advanced batteries. The report, “Advanced Batteries for UtilityScale Energy Storage Applications”, explores the market opportunity and business models for advanced batteries for utility-scale energy storage applications including grid asset optimization, transmission and distribution deferral, renewables integration, ancillary services, and arbitrage. The study includes an assessment of the technical characteristics of advanced battery technologies such as lithium ion, sodium sulfur, advanced leadacid, sodium metal halide, and advanced flow batteries. Key industry players are profiled and global market forecasts for installed capacity and revenue are provided through 2022, segmented by application, technology, and region.

such as Soosan and Hyundai in South Korea. McGahn was upbeat about India for future growth. Local partner Inox has been gaining share and India’s recent massive electrical blackout underscores the need for more generating and transmission capacity,

Suddenly, the world is intrigued by India’s unstable grid and the role solar can play in providing solutions for a country desperately in need of a new energy strategy. India has in recent months been laying the groundwork to eventually become a major solar market, but the process has gone slower than expected. Sometimes markets develop methodically over many years, and other times they are jolted into urgency. Japan needed a major nuclear crisis to realign its priorities. And now it looks like India received its wake-up call in the form of a massive power outage that affected more than 600 million of its residents. That in turn has drawn intense media coverage as major new organizations bring focus to India’s structural problems. Many of the stories have focused on the roots and challenges of India’s piecemeal energy system. Others point to the need for a massive overhaul of a grid that has become increasingly incapable of serving the 24/7 need of its growing urban population. Regardless of where you look in India, solar power has taken a prominent seat at the table

he adds. AMSC also supplies power converters, superconductor cables and other grid products. India’s northern grid back up, then back down Indian states could have faced another massive power failure August 1 as the Northern grid was

on the verge of tripping, according to the Uttar Pradesh Power Corp. According to reports, the 400 kV double-circuit transmission line between Gwalior and Agra had overloading and could have resulted in a grid collapse on the evening of August 1. Linemen, however,

for a country eager to continue its economic momentum. And while it’s true that most of the conversation has been about how solar and better infrastructure could provide more stability, much of the new reporting is taking readers to those remote villages where offgrid solar is quietly increasingly quality of life and productivity. This past week, Mahesh Bhave of the Indian Institute of Management wrote about the need to refocus some of the attention on the role distributed generation plays in creating economic stability. There are several solar energy solutions. The Ministry of New and Renewable Energy is mostly focused on using solar energy, like any other fuel source, to feed the grid. Typically, this is through concentrated solar solutions, and recently through photovoltaic panels due to price drops. Solutions that feed power to the grid are important, but they only augment an over-stressed grid — they do not help the millions without any grid power. The Ministry mostly ignores distributed generation, the solar self-sufficiency solutions like rooftop panels or community grids.

intervened at the correct time to prevent it by reducing the load on the line to 600 MW. The linemen r e p o r t e d l y reduced the load by cutting the electricity in several parts that are POWER INSIDER JULY/AUGUST 2012 9

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NEWS DESK ASIA’S TANGLED POWER LINES With the economies in the European Union and United States flagging, emerging nations are now the primary drivers of incremental global economic growth. As they have started to boom, world energy demand has increased. In 2011, the International Energy Agency (IEA) estimated that demand would climb by an astounding one-third by 2035, with China, India, and other Asian countries accounting for two-thirds of the rise. Asian demand (even if it starts to slow) is turning the world’s old energy paradigm on its head. The IEA model, which was established as a reaction to the 1973-74 energy crisis, focused on getting sufficient petroleum supplies to developed economies. But that approach is no longer adequate. Whereas developed countries are seeking to reduce petroleum imports through increased domestic energy production and improved efficiency, Asian economies are importing more. In fact, by 2020, China will become the world’s largest petroleum importer. In the meantime, rising political instability in the Middle East and North Africa -- home to an estimated 60 percent of global extractable oil deposits -- is hampering exploration and production. Production could be further endangered if tensions with Iran lead to shipping disruptions in the Strait of Hormuz, through which nearly 20 percent of the world’s oil travels. Discrete, random events could quickly shift the global balance of oil from surplus (with weak prices that discourage the development of additional capacity) to scarcity (with unanticipated price increases that constrain growth and upset global economic activity). The era of inexpensive, stable oil and petroleum supplies, fueling ever-increasing global prosperity, is at an end. As the world’s energy paradigm shifts, nations are increasingly looking toward electrification as a means to minimize oil dependency. Countries

can generate electricity from natural gas, nuclear, coal, and renewable sources as well as from petroleum. Analysts believe that natural gas in particular will be a game-changer in the shift toward electrification. Increasingly sophisticated drilling technologies are providing access to natural gas reserves that were previously economically infeasible to tap. On average, natural gas is also 40 percent less carbon-dioxide intensive than coal and 25 percent less than oil. This makes it the “cleanest” fossil fuel. Investors with extensive natural gas reserves, especially those in the United States and Russia, seek to expand its use. Although environmental concerns about drilling must still be addressed, natural gas could serve as a bridge for countries seeking to reduce their dependence on oil before cleaner renewable energy becomes more viable. The abundance and relative affordability of natural gas has made it an appealing option for Asian economies. In 2010, Asia accounted for 61 percent of the world’s liquid natural gas (LNG) imports, with Japan and South Korea contributing the largest share. China, meanwhile, intends to increase domestic natural gas production while securing access to reserves in neighbouring countries such as Myanmar (also called Burma). Although natural gas holds substantial promise, it should not be viewed as a panacea. A diversified energy portfolio is still necessary for energy security. To realize the full potential of electrification, Northeast Asian economies must develop a comprehensive integrated energy infrastructure, which would help mitigate supply chain disruptions, improve the reliability of energy supply, and lower production costs. Meanwhile, the complementary development of a transnational energy policy will enhance regional economic cooperation and strengthen energy security.

COMPANY NEWS FROM AROUND THE WORLD supplied by the line after they saw the load on the line had reached 800 MW. The three major electricity grids that failed July 31 plunging half the nation into complete darkness, were restored on the morning of August 2. “System restored to

normal state,” according to a release from the Power Grid Corp. of India. “Delhi — 3,802 MW (100 percent), Northern region (Delhi Inclusive) — 31,883 MW (100 percent), Eastern region — 13,499 MW (100 percent), North Eastern region — 1,560

MW (100 percent), Western Region — 30,687 MW (100 percent), Southern Region — 28,323 MW (100 percent), All India – 105,952 MW,” according to the statement Northern state of Uttar Pradesh, which has been accused of overdrawing

power causing the crisis, denied it was not responsible for the grid failure. Besides, Uttar Pradesh, the three other northern states of Rajasthan, Haryana, Punjab also allegedly drew power much above their quota.

India, Asia’s third largest economy, grappled with the suffering of an unprecedented power grid failure for the second successive day July 31 plunging half the nation in complete darkness, halting hundreds of trains, stranding miners, blacking

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For its part, the European Union enhanced its own collective energy security through policy reforms in 2007. The changes helped to liberalize EU members’ electricity market, coordinate regulation, and improve system operation. One program, the Trans-European Networks, aims to ensure greater energy security by improving the transportation of electricity and gas across the continent. Another, the European “20-20-20” goals, seeks to increase energy efficiency by 20 percent, reduce CO2 emissions by 20 percent, and achieve 20 percent use of renewables by 2020. To meet these targets, European nations are moving to reconfigure their electricity grid to allow the advanced metering necessary to realize greater efficiencies and the use of emerging renewable technologies. Before the 2011 earthquake, tsunami, and nuclear accident, Japan had a diversified energy policy: It stockpiled petroleum and encouraged the use of nuclear power, renewables, coal, and natural gas. It also passed policies to increase energy efficiency. The Fukushima incident, however, highlighted the need for reforms. For example, power shortages emphasized the weaknesses of Japan’s power grid, which is not only unconnected with neighbouring countries but is not even integrated within the country itself. Eastern and western Japan use different frequencies, so utility companies were unable to alleviate electrical shortages and system failures in one region by transmitting power from others. Philippines approved feed-in tariff rates for renewable energy The long-awaited feed-in tariff rates for renewable energy sources in the Philippines are approved by its Energy Regulatory Commission, a move that is expected to move the country towards a “green” direction. The price for solar power was set at P9.68 per kilowatt hour, wind power at P8.53/kWh, biomass at P6.63/kWh and hydro at P5.90/kWh. There is no rate set for power from ocean thermal energy conversion resources as it is still subject for further study.

out traffic signals and affecting supply to hospitals. About half of the 1.2 billion people in India were affected July 31 as the three grids of western, eastern and northern regions tripped after alleged overdrawing of power from grids by some states. The affected states on

Greenpeace Southeast Asia welcomes the approval, saying that “this is a crucial step towards the full-scale implementation of our vision of a renewable energy revolution in the country.” “There are no reasons to proceed with more coal power projects,” the group said. “Now that the F.I.T. rates are passed, the country can now increase its renewable targets and become 50 percent clean energy dependent by 2020,” said Anna Abad, Climate and Energy Campaigner at Greenpeace Southeast Asia in a statement. Under the provisions of the Renewable Energy Act of 2008, tariffs for wind, solar, run-of hydro, biomass and ocean resources must be implemented in able to promote the country’s development, utilization and commercialization of renewable energy resources. The mandated F.I.T. rates are notably lower than those proposed by the National Renewable Energy Board last year – P17.95/kWh for solar, .37/ kWh for wind, P7/kWh for biomass and P6.15/kWh for hydro – but the E.R.C. remains optimistic that the rates will encourage the development of renewable energy projects in the country. “The E.R.C.s lowered F.I.T.s will definitely cushion the impact of implementing the F.I.T. incentive mechanism under the R.E. Act on the electricity rates, while still being sufficient enough to attract new investments in renewable energy. This is win-win for all,” said E.R.C. executive director Francis Saturnino Juan. The approved subsidy will be reviewed and readjusted, if necessary, after its three-year initial implementation or when the target installed capacity for each renewable resource set by the Department of Energy has been met. According to a 2008 study by the Renewable Energy Coalition, the Philippines has a renewable energy potential of 204,288 megawatts from its solar, geothermal, hydroelectric, wind, ocean and biomass resources.

Tuesday were 19, including Punjab, Haryana, Delhi, Uttarakhand, Himachal Pradesh, Odisha, Jharkhand, Bihar besides West Bengal and Sikkim. India has 28 states.

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malaysia overview

the malaysian o P

time for fuel diversification

ower consumption in Malaysia is expected to grow at an average of 4% per year over the next five to 10 years, and this growth will go hand in hand with a multitude of changes for the Malaysian energy sector. 2012 will be an interesting year for the country’s power producers and energy players. Economically, Malaysia has been fortunately cushioned from the brunt of the global shake-ups. What’s more, the local economy was positively boosted when the Government launched its Economic Transformation Programme (ETP) in October 2010, alongside attractive incentives for the private sector to invest in designated National Key Economic Areas (NKEA). One of these recent changes was set in motion in December 2011 when the government announced

plans to build power plants with a total generating capacity of 4500 MW by 2016. The new power generators will replace the capacity lost from retiring plants and add supply to meet increasing demand. This will go hand–in-hand with the replacement of first-generation power purchase agreements (PPAs) with new contracts. This is expected to be positive in the longer term for both the independent power producers (IPPs) and Tenaga Nasional Berhad (TNB). As the first-generation PPAs expire from 2015 to 2017, it is crucial to start the competitive bidding process now to ensure that the new plants are ready by 2016. Without these new plants, Malaysia’s reserve margin is likely to drop to 10% by August

2017. The country’s reserve margin officially stands at above 35%, but many believe the actual number is significantly lower. The new power plants will come under the Environmental Commission’s (EC) purview. The government have also recently swapped jurisdiction over the regulation of piped gas from the Economic Planning Unit to the EC. If the new plants do end up being gas-powered, the EC’s authority will be increased, as it will have the power to set gas tariffs for the new plants. This overview will look at the new projects in development in Malaysia. It will focus on the coal, gas and hydro-power industries, with a brief introduction to the policies and possibilities being discussed in relation

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n overview to nuclear power. The overview will look at some of the major players in the energy sector, and how new and existing projects will be affected by the changes described above and changes in the private sector also.

Coal Tenaga nasional Bhd. (TnB) TNB is the largest electricity utility company in Malaysia, with estimated RM71.4 billion worth in assets. TNB employs approximately 28,000 staff to serve a customer base of over seven million in Peninsular Malaysia & Sabah. TNBâ&#x20AC;&#x2122;s core business comprises of generation, transmission & distribution of electricity, with a total installed generation capacity of about 12,000 MW. In Peninsular Malaysia, TNB contributes to 55 per cent of the total industry capacity through six thermal stations & three major hydroelectric schemes. In addition, TNB manages & operates the National Grid. TNBâ&#x20AC;&#x2122;s six thermal power stations comprise of conventional gas and oil-fired plants as well as open and combined cycle gas turbine plants. The division further supports the operations and maintenance of three IPPs, namely the wholly TNB-owned Sultan Azlan Shah Power Station and TNB Liberty Power Limited of Pakistan, and the majority-owned Sultan Salahuddin Abdul Aziz Shah Power Station.

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malaysia overview Plant

State

Type

Connaught Bridge

Selangor

832

Gas / Combined Cycle

Putrajaya

Selangor

625

Open Cycle

Sultan Iskandar

Johor

729

Combined Cycle

Sultan Ismail

Terengganu

1,136

Combined Cycle

Tuanku Jaafar

Negeri Sembilan

1,500

Combined Cycle

other TnB news Despite facing financial constraints, TNB has forged ahead with numerous projects that promise to boost generation capacity, and will contribute to a greener energy landscape in the country. TNB have been given the green light to go ahead with two new hydroelectric plants in the country – a 250MW Hulu Terengganu Hydroelectric Project in Terengganu and a 372MW Ulu Jelai Hydroelectric Project in Pahang. TNB are also proceeding with a proposed 300MW power plant in POIC Lahad Datu Phase 3, after obtaining approval to power it by a gas-fired combined cycle as opposed to coal. All of these are to be completed by 2015, except for the Ulu Jelai Hydroelectric Project which will be ready in 2016. Manjung power plant Plans for a new project to build South East Asia’s first 1000 MW supercritical coal-fired power plant at the Manjung power station are taking shape. In a project worth about €1 billion in total, TNB Janamanjung Sdn Bhd. a subsidiary of TNB, has awarded the turnkey Engineering Procurement Construction (EPC) contract to Alstom and its consortium partner, China Machinery Import and Export Corporation. The contract follows TNB’s 1999 contract with Alstom to build the currently operating power plant. This will be the fourth unit at the Manjung power plant, using state of the art technology to help improve efficiency and rude the environmental impact. The existing Manjung coal-fired power

plant is located on a man-made island off the coast of Perak in Malaysia. It generates 2,100MW from three 700MW units. The plant was built to combat Malaysia’s reliance on natural gas. The Manjung plant is already fairly environmentally efficient. The three units, use clean coal combustion technology and environmental control systems to cut down emission levels. The plant uses low sulphur and low bitumen coal to minimise pollution. The resulting ash is valuable for the cement industry, with most of the ash caught by electrostatic precipitators. Dust control is also an important feature; the conveyor belt is covered and sprinkler systems remove up to 99.9%.The plant has a wastewater treatment facility to treat its eﬄuent before it is released into the sea. The plant exceeds the emission standards set by the World Bank in Malaysia. It operates to particulate levels of 50mg/Nm³ while the expected ASEAN level is 400mg/Nm³. It uses low NOx burners and a flue gas desulphurization facility, to keep NOx and SOx emissions low. Manjung 4 will utilise supercritical technology to make the unit even more efficient. Supercritical power plants operate at a higher temperature than regular coal-fired power plants. The high temperature increases the pressure at which they operate, which in turn improves their efficiency, increasing the amount of power output and decreasing emissions per unit of fuel burned. The unit will be the single largest one in South East Asia and will produce enough electricity to power nearly 2 million households in Malaysia. Alstom will engineer, procure, construct and commission a 1000 MW steam turbine, a generator,

a supercritical boiler and auxiliaries. Alstom will also supply and install its latest ALSPA® Series 6 Distributed Control System, and environmental control systems to cut emissions. TNB Janamanjung Sdn Bhd expects revenue to hit RM4bil once the 1,000MW Manjung 4 coal-fired power plant is ready for commercialization in the first quarter of 2015. “The first three Manjung power plants which are collectively running at full capacity at 2,100MW currently generate about RM3bil,” said Chief Operating Officer Shamsul Ahmad. According to Manjung 4 project director Ahmad Faraid Yahaya, the “supercritical” coal-fired power plant was on track for completion in time: “as of Feb 29, 25.78% of the project has been completed. The overall EPC contract is progressing as planned.” The prai project Last year the Malaysian government and the EC announced plans to develop a combined-cycle gas turbine (CCGT) power project at Prai. The project will be for a 1,000 to 1,400MW plant at a site located next to Malakoff Corp Bhd’s (MMC) existing 350MW CCGT power plant. The cost of the gas plant will be approximately US$1 million per MW. The Malaysian government completed the Environmental Impact Assessment and acquired the land for the project. They then invited private companies to competitively bid for the right to build, own, and operate the plant. The winners of the tender will most likely be the company or consortium that is able to offer the best tariff to the Malaysian consumer. The EC explained that tender process had been limited to one bid submission by any one group or corporation. Nine consortia and sole bidders have now been shortlisted for the project. Some came as a surprise to analysts:“among the surprises is that nine bidders were shortlisted instead of the expected five or six. Also, some of the names are non-traditional power players such as CI Holdings Bhd and Petronas Power Sdn Bhd,” claim OSK Research. OSK opined that MMC had a good chance of securing the Prai power plant given its proximity to MMC’s existing plant. The shortlisted companies are:

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Shaping the future of energy

ansaldoenergia.it

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Bidder/Consortium

Major Shareholder

Bid (RM/kwh)

Capacity (MW)

Pendekar Power

1 Malaysia Development Bhd.

0.346

1,282

Tenaga Nasional Bhd

Khazanah

0.347

1,071

TTPC/CI Holdings / Daelim

Jati Cakerawala

0.359

Mastika Lagenda

Genting Group

0.366

1,071

Malakoff/Petronas/Mitsubishi

MMC Group

0.374

YTL Power/Marubeni Corp

YTL & Family

0.394

1Malaysia Development Bhd./Hyundai

Ministry of Finance/Hyundai Group

Mitsui & Co. Ltd./Amcorp Power Sdn. Bhd.

Public Company/Azman Hashim

Sime Darby Power Sdn. Bhd.

AmanahRaya Trustees Bhd.

The winner is likely to be announced at the beginning of October. However, it has been recently reported that Pendekar, backed by 1Malaysia Development Bhd. (1MDB), are the current lead bidders and are the only consortium to have appointed an EPC contractor: Daewoo. They submitted the lowest bid of RM0.346/kwh with a generation capacity of 1,282MW whilst TNB have submitted the second lowest at RM0.347/kwh with a generation capacity of 1,071MW. Whilst it is not guaranteed, industry insiders feel it is likely that Pendekar and 1DMB will win.

Gas petronas Malaysia is currently the world’s third largest exporter of liquefied natural gas (LNG). Petronas was incorporated in 1974 as the national oil company of Malaysia, vested with ownership and control of the petroleum resources in the country. Petronas’ Gas & Power Business is engaged in the processing, liquefaction, transmission, marketing and trading of LNG and gas. It also participates in power generation and utilities business. Petronas owns majority interests in three LNG

plants in Sarawak with a combined capacity of 24 million tonnes per annum. Natural gas is supplied to the plants from the gas fields in the Central Luconia area located between 125km and 275 km offshore Bintulu. Covering an area of about 223 hectares, the LNG complex is located north of Tanjung Kidurong. Malaysia LNG Sdn. Bhd. (MLNG) was incorporated in 1978 to construct and operate the first LNG plant. While power generation as an independent producer is essentially an extension of its existing businesses, Petronas opted to be involved specifically in commercial power generation using natural gas. Petronas’ initial plan is to build up a 1500MW capacity in five years. Petronas has a number of projects in the pipeline: lahad datu - sabah Petronas Gas Bhd (PTB), with contributions from TNB, will invest in a RM2 billion gas plant and LNG terminal in Sabah. TNB Chief Executive Che Khalib Mohammad Noh said that the 300MW and LNG terminal will be operational by 2015. The Malaysian states in Borneo often suffer frequent electricity disruptions as there is not enough power supply generation. Che Khalib said the new projects will now replace a planned coal plant that was scrapped due to public opposition. Chairman Datuk Anuar Ahmad said that Petronas will tender out the first package for the 10 facilities very soon and expects to award the contracts in September. Kimanis - sabah This 300 MW project is being jointly developed by PTB (40%) and Yayasan Sabah through NRG Consortium Sdn Bhd (60%). The construction of Kimanis Power Sdn Bhd’s combined-cycle gas turbine power plant is on schedule with physical progress at 66.06% in May. The estimated project costs are RM1.47bil. Anuar said the first 100MW of electricity is expected to supply to the state’s main power grid by December next year with the remaining 200MW to be delivered by April 2014. sungai Udang Malaysia’s first LNG regasification terminal off the Sungai Udang port in Melaka is expected to commence operations this year. The terminal is managed by Regas Terminal Sdn Bhd, incorporated in December 2011 as a wholly owned subsidiary of PTB. The facilities at Sungai Udang have a maximum capacity of 3.8 million tonnes per annum. There will be two floating storage units (FSUs) to receive and store LNG. Also included is an island jetty and

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09/09/2011 16:34 13/08/2012 21/12/2011 08:29 07:39

malaysia overview

regasification units. There will be subsea and offshore pipelines to transport the regasified LNG to the Peninsular Gas Utilisation (PGU) pipeline network, about 30 kilometres away from Sungai Udang. Since it is an offshore plant, PTB is able to save about two years on construction. Kencana Kencana Petroleum Bhd’s joint venture has secured a contract from PTB for two cogeneration plants valued at RM35mil. Kencana have inked a deal with PTB for the engineering, procurement, construction and commissioning of two cogeneration plants.It said the plants would have a combined capacity of 50MW of electrical power and steam capacity of 120 tons per hour. The contract was part of PTB Kertih gas processing plant. The rapid project Petronas recently inaugurated the Refinery and Petrochemical Integrated Development (RAPID) project, which has the potential of turning Southern Johor into a new petroleum and petrochemical hub. The launch marked the development of the RM60billion project which will pave the way for Petronas to add value to Malaysia’s oil, gas and petrochemical industry. To support the development of RAPID, Petronas is also assessing the feasibility of developing a new liquefied natural gas (LNG) receiving and re-gasification terminal and a co-generation power plant. Chairman Anuar states that the plant is in the final stage of design. Malakoff Corporation Berhad

Malakoff Corporation Berhad (Malakoff ) is a leading independent water and power producer based in Malaysia. They are involved in a number of businesses including project development, construction, electricity distribution and engineering support. Malakoff operate the Tanjung Bin Power Plant, which has a 2100 MW capacity. Malakoff are currently developing a new unit at Tanjung Bin, and Alstom has again won the EPC contract. Alstom signed a contract worth over €1 billion with Tanjung Bin Energy Issuer Bhd , the wholly owned subsidiary of Malakoff, to provide a supercritical coalfired unit. Alstom’s share in this contract amounts to €830 million. Alstom will execute the EPC contract with its consortium partners Mudajaya and Shin Eversendai. Alstom will engineer, supply, construct and commission the 1000 MW supercritical steam turbine and generator, the supercritical boiler, power plant auxiliaries and air-preheaters.T he emissions at the plant will be significantly reduced through the use of low NOx burners, a highly efficient seawater flue gas desulphurization facility and Fabric Filters to lower nitrous oxide, sulphur oxide and dust emissions. The Tanjung Bin power plant is to be commissioned in 2016. Tanjong energy Holdings Tanjong Energy Holdings Sdn Bhd (Tanjong Energy) became a subsidiary of 1MDB on 22 May 2012 following the successful acquisition from Tanjong Public Limited Company. 1MDB in turn is wholly owned by 1Malaysia Development Berhad, a government-owned strategic development company. Malaysian business magnate, T. Ananda Krishnan,

name

state

no. of Units

Type

Lumut Power Plant

Perak

1,303

CCGT

Kapar Energy Ventures

Selangor

2,420

Thermal

GB3 Power Project

Perak

640

CCGT

Prai Power Project

Prai

350

CCGT Single Shaft

Tanjung Bin Power Project

Johor

2,100

Thermal

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announced he was selling his entire power portfolio in Malaysia, South Asia and the Middle East, including Tanjong Energy, and the deal is reported to be worth between $3.2bn and $3.6bn. The principal activity of Tanjong Energy and its subsidiaries is power generation. Tanjong Energy’s entry into the power generation business came in 1998 when it acquired a significant stake in Powertek Berhad (Powertek), owner and operator of a power plant since 1995. Powertek and its subsidiaries have three power plants in Melaka, with a total generating capacity of 1,490 MW. Tanjong Energy Group owns and operates nine power plants and has investments in four power plants across six countries, namely Malaysia, Egypt, Bangladesh, Pakistan, Sri Lanka and the United Arab Emirates with a total net generating capacity of 3,981 MW.

ranhill Ranhill is a world leading provider of construction, engineering and infrastructure management services. Ranhill were involved in the development of the original Manjung power plant. Ranhill currently runs two small projects named PowerTron1 & PowerTron2, selling electricity to Sabah Electricty Sdn. Bhd. (SESB). Powertron ITeluk Salut Power Station in Sabah is a combined cycle conversion project. Ranhill’s work on the 190 MW Combined Cycle Conversion Project included engineering, procurement, construction, and commissioning. Before conversion, the existing power plant consisted of four frame-6 GE Gas Turbines, which were running on open cycle. After the conversion the plant was able to

name

state

Capacity

Type

Telok Gong Power Station 1

Melaka

440

Gas Fired Open Cycle

Telok Gong Power Station 2

Melaka

720

Gas Fired Combined Cycle

Tanjong Kling Power Station

Melaka

330

Gas Fired Combined Cycle

produce 190MW - up from its 120 MW capacity. The plant supports 85% of Sabah›s power demand. The Powertron II 190MW Power Plant is a CCGT power plant. This plant has helped increase the electricity generation capacity in Sabah in order to meet the growth of demand. Ranhill constructed and commissioned the two gas turbine generators and two heat recovery steam generators. This is in addition to the steam turbine generator and all ancillaries and equipment. Ranhill were also involved with the Kulim HiTech Park project. Ranhill carried out design and engineering for a gas-based combined cycle power plant with a 228 MW capacity comprising of four gas turbines, four heat recovery steam generators and two steam turbines with cooling water system, ancillary plant and electrical equipment. wHy noT nUClear? Nuclear plants are a possibility for electricity generation in Malaysia as it will add diversification to the generation mix. At present, Malaysia relies heavily on gas, but the local gas fields are depleting. This indicates that Malaysia can no longer rely heavily on gas, or will have to import. This is the case for coal, which is fully imported from Indonesia, Australia and South Africa, and presents Malaysia with a number of supply risks. Coal exporting countries could change their policy in the future if they see a need to utilise more for their own local consumption. There is also stiff competition from China and India for coal as these countries are undergoing rapid development. This situation definitely exerts tremendous pressure on the price. Logistic and politics are other issues arising from electricity generation from coal. Going forward, most of Malaysia’s fuel sources will be imported. This would not be the case with nuclear power generation, in which fuel is loaded once in a 18-24 months cycle. The long fuel cycle allows for better planning and less exposure on supply security risks. However, nuclear power is a high capital technology. Techno-economics studies carried out for TNB by Korea Electric Power Corporation (KEPCO) Nuclear Power Pre-Feasibility Study has concluded that there is a large range of costs associated with nuclear plants. Typically, 1 unit of 1000MW nuclear plant’s overnight cost ranges between USD2,000/kW to USD4,500/kW. The capital cost of a coal plant ranges between USD1,000/kW to USD1,500/kW, whilst a gas plant mostly ranges between USD400 to USD800/ kW. Nuclear plant construction costs are generally higher compared to coal or gas-fired plants because of higher level of technology. On the other hand, nuclear plants have lower operating costs. Despite the highest capital cost, overall production cost for a nuclear plant is still the lowest. In fact, nuclear power plants have achieved the lower production costs than coal, natural gas and oil since 2001. Fuel costs make up 26% of the overall production costs of nuclear power plants. Fuel costs for coal, natural gas and oil, however, make up more than 80% of the production costs. Because of this, the Malaysian government are considering adding nuclear power to their power generation mix. Even after Fukushima, power insider may/June 2012 19

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malaysia overview Malaysia’s current government are more receptive to nuclear energy than their predecessors. In December 2010 Peter Chin, the country’s energy minister, announced plans to build two 1,000MW nuclear power plants by 2022. Later that year, Prime Minister Najib Razak announced the establishment of the Malaysian Nuclear Power Corporation, which will lead the planning process. Peter Chin claimed that by”2013 or 2014, we will able to finish evaluating (the requirements for the nuclear power plants)”. TNB has also said it could construct the first nuclear power plant at a cost of 3.1 billion dollars. Hydropower Hydropower is energy that comes from the force of moving water, and is one of the most ancient ways of creating energy. The force of moving water can be extremely powerful. Modern approaches to hydropower involve the damming of a river to increase water pressure. A dam is an essential part of hydropower, and serves two purposes. Firstly, a dam increases the head, or height, of the water. Secondly, it controls the flow of water. Hydroelectric plants use modern turbine generators to produce electricity, just as thermal power plants do, except they do not produce heat to spin the turbines. To generate electricity, a dam opens its gates to allow water from the reservoir above to flow down through large tubes called penstocks. At the bottom of the penstocks, the fast-moving water spins the blades of turbines. The turbines are connected to generators to produce electricity. Hydro potential in Malaysia is significant. MiniHydro projects are suitable for the governments FiT policy, and major hydro projects are both up and running and in development. Three examples of major hydropower plants in Malaysia belong to

TNB, namely the Kenyir Sultan Mahmud Power Station with 400MW installed capacity, the Pergau Hydroelectric Power Station with 600MW installed capacity and the Temenggor Hydroelectric Power Plant with 348MW installed capacity. There are two major dams currently under construction with more planned to help contribute to Malaysia’s energy diversification project. The main hub of hydroelectric development is Sarawak. Here, the main driving force is the Sarawak Corridor of Renewable Energy, or SCORE.

to the terms and conditions for environmental protection and enhancement imposed by the Natural Resources Environmental Board (NREB) of Sarawak to mitigate any possible environmental impact of the project. Once completed, the project will generate a huge amount of green energy as well as significantly lessen flooding downstream that may unleash devastation during the monsoon season. The formation of a massive lake would hail Bakun as one of the most scenic eco-tourism spots of Malaysia.

sarawak Hidro Sarawak Hidro Sdn Bhd (SHSB), a wholly-owned subsidiary of the Minister of Finance Incorporated Malaysia, runs the Bakun Hydroelectric Project. The Bakun Hydroelectric Projectiss the largest hydropower project in Malaysia with an installed capacity of 2,400 MW. It is located on the Balui River in the upper Rejang River basin, 37km upstream from Belaga. The main dam comprises a 205m high concrete face rock fill Dam (CFRD) with a fill volume of 16.75 million m3. It is currently the 2nd highest CFRD in the world. The surface powerhouse has eight 330 MW vertical axis Francis hydroelectric turbine-generator units. Eight power tunnels are installed which connects directly to a turbine without any intermediate main inlet valve. The reservoir of the Bakun Hydroelectric dam by virtue of the topography is elongated and dendritic in shape. Once impounded, the reservoir will have a surface area of 695km2, which is approximately the size of Singapore. The Bakun catchment area situated in the Upper Rajang River Basin, covers an area of about 14,750km2, representing 11% of the state of Sarawak. SHSB strives to adhere closely

Murum dam Sarawak Energy Bhd. (SEB) are approximately 60% through the building of the Murum Dam. It is located on the Murum River, which is in the uppermost part of the Rajang River basin, 200 km far away from Bintulu. SEB aim to have the dam operational by 2014 with a firm output of 635MW, and a capacity of 944MW. The RM3.5bil contract to build the dam was awarded to China’s Three Gorges Project Corp (CTPGPC) and sub-contracted to Sinohydro Corp Ltd. CTGPC has vast experience in hydro dam construction as it had built China’s largest hydro dam – the 22,500MW Three Gorges dam. The Murum Dam will have 4 X 236 MW Francis – Type turbines. sCore The Sarawak Corridor of Renewable Energy (SCORE) is one of the five regional development corridors in Malaysia. SCORE to transform Sarawak into a developed State by 2020. SCORE is part of an economic development plan that is focused on driving growth and expanding opportunities for Sarawak. The economic plan includes improving roads, airports, ports and other infrastructure, upgrading

20 July/august 2012 power insider

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malaysia overview workforce skills, increasing Small, Medium Sized Enterprise (SME) and entrepreneurial activities. SCORE plans to lure energy-hungry industries into Sarawak by providing an abundant supply of cheap electricity within the 320-km long Corridor. The corridor’s energy resources, particularly hydropower (28,000 MW), coal (1.46 billion tonnes), and natural gas (40.9 trillion square cubic feet) are found abundantly within the Central Region. This allows Sarawak to price its energy competitively and encourage investments in power generation and energy-intensive industries. Focus for development has been put on priority industries that will have the highest economic impact on Sarawak. These 10 priority industries are the Aluminum, Glass,Steel, Oil-based Industry, Palm Oil, Fishing & Aquaculture, Livestock,Timber-based Industry, Marine Engineering and Tourism Industry. invesTors in sCore SCORE is projected to bring in investments of about RM300bil until 2030. To date, some RM24bil have been poured into this initiative. SEB itself has projected that industries in Score would consume about 500MW in 2012 and close to 2,000MW by 2014. By 2015, according to industry sources, the state expects a commitment of 2,590MW, which is more than the 2,420MW of firm power from Bakun and Murum once they are ready. SEB says it has already secured sales for most of the electricity output from the Bakun hydro dam from companies in SCORE.SEB officials said about 1,800 MW had been sold to customers, representing 75% of firm supply capacity from the Bakun and Murum dams. Tokuyama Malaysia Sdn Bhd, a pioneer SCORE investor, signed a power-purchase agreement with SEB’s unit, Syarikat Sesco Bhd, for a 10-year supply of 140 MW to its phase I poly-crystalline silicon plant in Samalaju Industrial Park. The phase II project currently under way will require another 220 MW. Other pioneer SCORE investors have sealed PPAs with SEB were OM Materials (Sarawak) Sdn Bhd (500 MW), Press Metal Bhd (480 MW) and Asia Minerals Ltd (270 MW). OM Sarawak, which is a 80:20 joint venture between OM Holdings group and Cahya Mata Sarawak Bhd, is investing US$500mil in a manganese and ferrosilicon alloy smelting plant which is expected to commence production testing from the second half of 2013. Their Balingian smelter also draws its power supply from the Bakun dam. Asia Minerals targets its RM790mil manganese ferro-alloy smelting plant to begin commercial production in June or July next year. Other SCORE investors are in the pipeline, with SEB hoping to ink them before year-end.

advantages – The logic Behind Hydropower

disadvantages – reasons for such intense opposition.

The development of dams will create jobs and contribute to the GDP. The production the electricity from the Dams will also help to create jobs by bringing industries to SCORE.

Dams are expensive. Funding for the dams required to supply cheap electricity will have to be raised by the state or borrowed from public pension funds (as in the case of Bakun).

The vast amount of clean energy generated will contribute significantly to the social and industrial development of the nation. Electricity can be provided to more rural areas and newly developed centre’s while also serving the needs of industrial areas and industries.

Despite being labeled ‘clean’ energy, the development of dams cause the emission of large quantities of greenhouse gases, particularly methane, which fuel climate change.

Whilst environmental costs exist, they are managed carefully. In the case of Bakun, the international environmental management standards and procedures enshrined in ISO 14001 Environmental Management System was adopted and implemented. Environmental monitoring was carried out monthly and independent environmental audits were carried out quarterly to ensure good environmental compliance. A comprehensive wildlife monitoring plan was also prepared which entails plant and animal rescue and relocation.

The building of dams has dire environmental costs. Huge amounts of land is used for flooding to create reservoirs, with rivers, forests and wildlife paying the price. The Bruno Manser Fund (BMF) says: “The ecological consequences of the new dams would be disastrous. River and forest landscapes would be destroyed for ever, and the animal and plant world would be threatened.” Dams effect fish population in particular, changing migration routes, oxygen and nutrient levels in the water, and water temperature.

As hydroelectric projects will be running on a renewable source, the operational and maintenance cost will be kept at a minimum. And hydropower plants have some of the longest lives among power plants, with some expected to last half a century with minimal maintenance.

The social and cultural consequences of SCORE are disastrous. The Baram dam alone would drown approximately 412 km2 of rainforest and 26 indigenous villages. That will result in the displacement of up to 20,000 people. This means the lossof the indigenous peoples of the Baram region’s history.

The project will ensure continuous and reliable supply of electricity at a competitive rate. The fuel is completely renewable and completely free. Therefore, it will not be affected by any changes in fuel cost. Also, compared to other fuel sources like fossil fuels and nuclear energy, hydroelectricity is much safer. Hydropower facilities are dispatchable, which means power production can increase or decrease to reflect changes in demand.

SCORE has been described as a failing project. Kota Sentosa assemblyman Chong Chieng Jen has said that the reason why industries are coming to Sarawak is because of the supply of cheap electricity which is subsidized by the people, who do receive the same deal as the industries. The Bakun dam is selling electricity to companies at 0.625 sen per KW per hour, while it is selling to Sarawakians at 0.30 sen per KW per hour.

Impoundment facilities typically offer a variety of recreational opportunities, notably fishing, swimming, and boating.

Malaysia currently has a gap between electricity demand and electricity supply, which will swell if electricity generation does not increase alongside economic and social growth. What is clear is that the Malaysian government and private industries have no intention of letting that happen. Projects in the coal, gas and hydropower sectors are developing at a pace, ensuring that Malaysian industries have adequate supply. What is significant, however, is that these projects are not without their limits. Any investors in coal fired plants will have to negotiate supply risks and escalating fuel costs. Those involved with gas fired plants will soon have to face the fact

that Malaysia’s abundant gas fields are depleting. Hydropower produces a spectacular amount of energy, but the long development period combined with mass public opposition makes large scale hydro projects difficult to negotiate. Opportunities do exist in other renewable energy sectors, such as biomass and solar, with the Malaysian government keen to promote a program of energy diversification. These two sectors are covered later in this issue of PIMagazine. Nevertheless, in the coal, gas and hydro industries, and perhaps later in the nuclear industry, there is money to be made and opportunities to grasp.

ConTroversy Whilst Hydropower in Sarawak makes economic sense, there has been an enormous amount of controversy surrounding the development of the so-called ‘clean’ technology. Issues surrounding population displacement, environmental impact, and funding for projects have created opposition from the Malaysian public. The table below details some of the major arguments for and against hydro-power.

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W.L GorE & AssoCiAtEs CAsE study

HydropHobic HEpA FiltErs EliminAtE comprEssor Fouling T

he air taken in by gas turbines contains large quantities of very small particles, which conventional filter media can only capture a certain amount. This results in contamination of the compressor, also known as fouling, which leads to a reduction in turbine efficiency. Their excellent filtration properties mean that high-quality HEPA filters are able to significantly reduce compressor fouling. However, conventional HEPA filters that are based on fibreglass media have disadvantages. They exhibit a relatively high differential pressure, and can frequently only be used by converting the filter house. This is where the tremendous advantage of membrane-based HEPA filters comes in. The technology behind the air intake filters is the result of several years of development and testing in commercial sites across Europe, North America, Asia and the Middle East. It is based on a proprietary expanded polytetrafluoroethylene (ePTFE) membrane. This microporous membrane allows a high level of filtration efficiency (class E12) at a very low differential pressure, comparable with a class F9 filter. The technology, developed by Gore, is available in both cartridge and panel forms, allowing for simple one-to-one replacement of existing filters without the need for filter house modifications. The use of these filters means that massive savings can be made in the operation of gas turbines: on the one hand, a higher degree of efficiency can be achieved, which leads to lower fuel consumption and better turbine performance, and on the other, maintenance costs can be reduced thanks to the

Figure 2: Power output with conventional F9 filters (red) and Gore E12 filters (blue) avoidance of erosion and corrosion. A further key advantage of these hydrophobic filters is that they are water-tight and therefore can also filter out salts dissolved in water. The risk of compressor or hot gas corrosion, a known problem especially in areas near the coast, is therefore significantly reduced. The performance of these filters has been tested in many installations around the world. One example is a power plant near Lisbon, located close to the sea in an environment with very high salt concentration. The operator experienced significant power loss due to compressor fouling and severe corrosion problems on their Siemens SGT 800 turbine. After countless unsuccessful attempts to solve the issue they finally installed Gore filters in 2010. Since then no decline in power output has been observed. â&#x20AC;&#x153;We are very happy with the performance of Gore filters. The compressor is perfectly clean and so we stopped offline washings completely. Also we found hardly any salt inside the turbine which is a huge improvement to our previous filtersâ&#x20AC;? says Plant Manager Francisco Batista.

In January 2011 Goreâ&#x20AC;&#x2DC;s high efficiency filters were also installed at a natural gas plant as a direct replacement of existing F9 conical/cylindrical filters without any filter house modifications. The plant located near Port Said, Egypt is designed to treat feed gases from the North East Mediterranean fields. The two Siemens gas turbines are critical for the process, thus every shutdown for offline compressor washings leads to production losses. Using standard F9 filters, offline compressor crank washings had to be performed when reaching 1.5% efficiency loss, typically every 8 to 10 weeks. When using the membrane based HEPA filters the maximum efficiency decrease was only 0.5%. Thus the plant was able to eliminate shutdowns for offline compressor washings, resulting in significant savings due to avoided production losses. These two examples show how the installation of this exciting technology has resulted in a positive impact on the turbine lifecycle costs.

Figure 3: Clean compressor after thousands of operating hours running with Gore filters with no offline washings For more information please visit the Gore Creative Technologies Worldwide website at www.gore.com/turbinefilters Figure 1: The 3-Layer construction provides E12 efficiency at low pressure drop

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Vorschla Vorschla

Eliminate Eliminate Power Losses Eliminate EliminatePower Power PowerLosses Losses Losses From From Compressor Compressor Fouling Fouling From FromCompressor CompressorFouling Fouling

More More Power, Less Wear More MorePower, Power, Power,Less Less LessWear Wear Wear ® ® GORE GORE Filters Filters optimize optimize power power output output byby eliminating eliminating ® Turbine ® Turbine GORE GORE Turbine Turbine Filters Filters optimize optimize power power output output byby eliminating eliminating deposits deposits in in your your compressor. compressor. deposits deposits in in your your compressor. compressor.

Their Their E12 E12 filtration filtration effi effi ciency ciency removes removes at at least least 99.5% 99.5% of of Their Their E12 E12 filtration filtration effi effi ciency ciency removes removes at at least least 99.5% 99.5% of of contaminants contaminants at at thethe most most penetrating penetrating sizes sizes (~0.1 (~0.1 micron). micron). contaminants contaminants at at thethe most most penetrating penetrating sizes sizes (~0.1 (~0.1 micron). micron). This This reduces reduces wear wear and and stops stops power power losses. losses. This This reduces reduces wear wear and and stops stops power power losses. losses. Machine Machine availability availability and and reliability reliability areare also also signifi signifi cantly cantly Machine Machine availability availability and and reliability reliability areare also also signifi signifi cantly cantly increased increased because because there there is no is no need need toto stop stop thethe turbine turbine forfor increased increased because because there there is no is no need need toto stop stop thethe turbine turbine forfor off-line off-line compressor compressor washing. washing. off-line off-line compressor compressor washing. washing.

Off-Line Off-Line wash wash cleaning cleaning Off-Line Off-Line wash wash cleaning cleaning fluid fluid after after 1450 1450 hrs. hrs. with with fluid fl uid after after 1450 1450 hrs. hrs. with with conventional conventional F9 fi F9lters. filters. conventional conventional F9 fi F9lters. filters.

Cleaning Cleaning fluid fluid after after 2500 2500 hrs.hrs. Cleaning Cleaning fluid fluid after 2500 2500 hrs.hrs. with with GORE GORE E12 E12 fiafter lters. filters.   with with GORE GORE E12E12 filters. filters.

The The Difference Difference is The The Difference Difference is is is

Black Black White! Black Black& && &White! White! White!

www.gore.com/turbinefi www.gore.com/turbinefi lters lters www.gore.com/turbinefi www.gore.com/turbinefi lters lters turbinefi turbinefi lters@wlgore.com lters@wlgore.com turbinefi turbinefi lters@wlgore.com lters@wlgore.com

reduced reduced turbine turbine wear reduced reduced turbine turbinewear wear wear Vorschlag Vorschlag Anzeige Anzeige Hochformat_PI Hochformat_PI Asia.indd Asia.indd PI_JulyAug_Gore_Case_Study.indd 25 1 1 Vorschlag Vorschlag Anzeige Anzeige Hochformat_PI Hochformat_PI Asia.indd Asia.indd 1 1

increased increased turbine turbine availability availability increased increased turbine turbine availability availability

reduced reduced salt salt corrosion corrosion reduced reduced salt salt corrosion corrosion 23.07.2012 23.07.2012 16:31:49 16:31:49 13/08/2012 08:32 23.07.2012 23.07.2012 16:31:49 16:31:49

malaysia biomass

WASTE NOT, WANT NOT: THE FUTURE OF BIO-FUELS IN MALAYSIA

BY RACHAEL GARDNER-STEPHENS

26 july/august 2012 power insider

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f energy is to become truly renewable, the key lies in not wasting a single resource. Bio-fuel is CO2neutral, which makes it a practical and ecologically sound alternative energy source. By utilizing waste, Malaysia has the opportunity to capitalize on homegrown materials to produce cheap and renewable energy. Biomass and Biogas come from a number of sources. Biomassis made up of waste from nonfossilised plants, animals,and microorganisms. This includes biodegradable organic by-products and waste from the agriculture and industrial sector and municipal wastes.Biomass can be converted to electricity using processes similar to those employed with fossil fuels. The biomass is burned which produces a high-pressure steam that rotates a steam turbine connected to an electric generator. The electric generator rotates, producing electricity. Thermal Conversion

Biological Conversion

Chemical Conversion

Biomass is broken down into syngas using heat and low oxygen concentrations.

Biomass is treated by chemicals and enzymes to produce sugars.

Biomass and sugars are treated using a variety of chemicals.

A range of thermochemical processes can be applied.

The sugars are then fermented into the desired fuels or chemicals.

This produces the fuels or chemicals.

Biogas is made up of similar materials as biomass, and is produced by the digestion or fermentation of this organic matter under anaerobic (oxygen free) conditions. The gas produced from this matter is a mixture of methane, carbon dioxide and smaller quantities of nitrogen and hydrogen. These gases are highly combustible, and the energy released can be converted into electricity and heat. This is a far more positive use for these gases, as methane alone is 21 times more damaging than carbon dioxide, but has an energy content of 35.8 Mj or 9.94 kWh per standard cubic metre. Biogas also produces a residue, or digestate, that can be processed into valuable organic fertilizer. Malaysian industry produces large quantities of the organic and agro-wastes that are perfect for the production of bio-fuels because it generates 11% of the GNI from the agriculture sector. Within agriculture, the largest contributor is the palm oil sector, adding approximately RM 53 billion to the GNI. As a result, the palm oil sector generates the largest amount of biomass, estimated at 80 million dry tonnes in 2010, and expected to increase to 100 million dry tonnes by 2020. Despite selling it as cheap fertilizer, the transportation and disposal of palm biomass waste was an expensive problem for plantations. Using the waste as bio-fuel has created a lucrative solution, with aims to reach 1,340 MW of biomass capacity by 2030. Bio-fuel plants utilize waste from the processing of oil palm empty fruit bunches (EFB), using the energy created to reduce the plantations running costs and reliance on fossil fuels by 25%. With limited land available to expand palm oil plantations, the government is keen to promote

efficiency through the production of bio-fuels. The Renewable Energy Policy and Action Plan sets a target of 410 MW installed capacity by 2030 for biogas alone. As suggested by EPP 5 of the Palm Oil National Key Economic Area of the Economic Transformation Programme, this would involve the addition of 500 biogas plants by 2020. These plants are expected to add RM2.9 billion to Malaysia’s GNI and employ an additional 2,000 people. The target for biomass under the same initiative is to reach 1,340 MW by 2030. This can be achieved by a combination of installing small power plants in the vicinity of grid connected mills, or larger, more efficient power plants closer to industrial clusters. The interim target of 800 MW in 2020 will require 6–9 million tonnes of biomass for this purpose, depending on the efficiency of the plants constructed. Government body KETTHA has received a grant facility from Global Environment Agency to develop a detailed project brief for a National Programme on Grid Connected Palm Oil Biomass Power Generation. The aim of the project is to identify and remove barriers to commercial utilization of biomass. The government has also allocated RM1.5 billion under the Green Technology Fund for mills to produce bio-energy. This fund provides loans with a 2% subsidy from the government for producers and users of green technology. In addition, the government provides a 60% guarantee on the loan. The government has also created the National Biomass Strategy 2020, which is a concerted effort to encourage investment in biomass. The strategy focuses on oil palm biomass as a starting point because of the abundance of materials and the maturity of the technology. It may later be extended to include other sources such as rice or rubber. The scheme aims to add RM 30 billion to the GNI by 2020 and create about 66,000 incremental jobs. The remainder of this overview of the Malaysian bio-fuels sector will focus on a number of key projects both up and running and developing in Malaysia. upCoMinG MalaYsia proJeCTs The Malaysia Biogas Projects is a small-scale Clean Development Mechanism(CDM) Programme of Activities (PoA) developed by GenPower Carbon Solutions Services Sdn. Bhd. (GPCS). GPCS are working with individual plantations to develop biogas plants. The project will provide complete

CDM service and technical support, managing and monitoring the participating palm oil mills. This technical capacity provided by GPCS will ensure long-term sustainability of the project activity. GPCS has targeted approximately 20% of the total palm oil mills in Malaysia to be included in the PoA. united plantations Bhd (up) UP plan to add more biogas plants within the next two years to their palm oil mills to save on energy costs. Vice-chairman and Executive Director Datuk Carl Bek-Nielsen said the company reduced their yearly fuel usage by 25% at its Perak plantation by relying on electricity generated from its biogas plant in TelukIntan. Bek-Nielsen stated that although “it is costly to set up a biogas plant, the impact that we receive is really worth it”.He added that the cost of building a biogas plant was about RM7mil and the group had invested RM20mil for its existing three plants. sawitKinabalu Group (sKG) SKG’s biogas plant at the Apas Balung estate refinery has proven very effective in reducing the estate’s electricity cost.The Group’s Managing Director, Othman Walat, said at the biogas plant’s launch that the project has helped to increase SKG’s efficiency and profit to RM3.28 million per annum. The Apas Balung estate refinery has reduced its diesel utilisation cost by 85%, Othman claimed, which is equivalent to increasing the refinery’s production income by RM1.14 million a year. Among SKG’s plans for the future is to build a livestock feed production mill, based on palm waste at the estate as well as seven more biogas plants for its other refineries within the next five years. The padawan Municipal Council (Mpp) MPP is planning to establish its first biogas composting plant at the Kota Sentosa wet market. MPP’s chairman, Lo Khere Chiang,claimed that“all the waste from the market can be recycled and processed using the composting machine to produce biogas, fertilisers and effective microorganism”. Lo disclosed that hawkers could use the biogas for cooking while the council could use the fertilizerfor its landscaping activities.The composting plant in Kota Sentosa market is considered a pioneer project and if found effective it may be expanded to other markets under MPP.

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malaysia biomass heveaﬁl sdn. Bhd. After pressure from the Department of Environment of Malaysia, HeveafilSdn. Bhd. has purchased a biogas plant.Located in Batang Kali, the plant combines aerobic and anaerobic digestion as well as biogas combustion. The 8000 cubic meters of biogas produced by fermentation will be used as a fuel in the rubber thread production process. Excluding piling works, the total equipment cost amounts to 1,628,988USD, but the project is expected to generate savings in electricity and operation costs of 335,000USD per year. Moreover, by utilising the biogas as a fuel, the company will save around 250,000USD per year in fuel costs. The expected payback period is around 3 years after commissioning. The plant will consist of a physico-chemical pre-treatment; an anaerobic digestion system; two gas burners with capacities of 2 million kcal and 1 million kcal; and an aerobic polishing treatment. This system is being supplied by the EC-ASEAN COGEN Programme, and is currently being constructed and installed. Jana landﬁll sdn. Bhd. Located 40 kilometers outside of Kuala Lumpur, the Jana Landfill (below) is one of the city’s main municipal storage waste sites. The Jana Landfill takes the bulk of the waste from Kuala Lumpur, receiving around 4000 t/day.The decision was taken to develop the landfill into a biogas plant, due to the high quality of the gas emitted; the methane content is 50-55 per cent and it has a low hydrogen sulphide content.The plant’s developer was the Jana Landfill Sdn.Bhd., a joint venture between TNB subsidiary TSPL and Worldwide Landfills Sdn.Bhd., which is the company

plant/owner/operator Bumibio Power Sdn Bhd Jana Landfill SdnBhd

that operates the landfill. The Jana Landfill power plant is connected to the grid through an 11 kV stepup transformer.The power plant began commercial operation in February 2004 and has a capacity of 2MW, with a plant expansion already being planned. Tsh Bio energy sdn. Bhd. TSH Bio Energy Sdn. Bhd. is a subsidiary of TSH Resources Bhd. TSH Bio Energy Sdn. Bhd. are the project owners of a biomass plant at the TSH Kunak Palm Oil Mill. The energy plant is fuelled by the biomass waste produced by the mill, and produces electricity that powers the mill and sells electricity back to the grid. TSH has an agreement with Sabah Electricity Sdn. Bhd. under a 21 year renewable energy purchase agreement. Here is some key data for the plant: power Generation Capacity

14 Mw

In House Power Demand

4 MW

Scheduled Export Capacity

10 MW

Annual Minimum Export to the Grid System

64,000 MW

Annual Consumption of Biomass

122,000 Tonnes of EFB, Fibers and Shells

felda Global Group Felda Global group is the world’s largest palm oil plantation group. Of the Group’s 15.3 million tonnes of FFB that go into its mills annually, 3.36 million tonnes of empty fruit bunches (EFB), 1.83 million tonnes of mesocarp and 760,000 tonnes of palm shells are accumulated. Felda could generate an

additional income of RM500,000 per mill by selling biomass waste like this. Felda are already involved with sustainable energy ventures.To date, the group has 56 biogas plants, two power plants, six compost plants, two mini gasifier plants and one fuel pellet plant all utilising biomass waste as the feedstocks. Sahabat biomass power plant in Lahad Datu, set up in 2001, is Felda’s first EFB-based clean development mechanism (CDM) project in Malaysia and the world. CDM is a United Nations sponsored agreement under the Kyoto Protocol whereby industrialised countries finance the reduction of GHG emissions in developing nations and can also purchase certified emission reduction (CER) or carbon credit. Sahabat biomass power plant produces 25,000 tonnes of CER per year. Another exciting development is the Felda Global Group and TNB’s joint-venture company. FTJ Bio Power Sdn. Bhd. set up a RM120mil bio oil plant in Pahang to generate 12.5 million watts of electricity using purely EFB. The EFB feedstock is accumulated from seven out of the eight palm oil mills owned by Felda Global Group in Jengka. The plant is scheduled to be operational by December 2012. Kina Biopowersdn. Bhd. (KBsB) KBSB is a company comprised of Riang Jernth Sdn. Bhd., GOBIO Sdn. Bhd., Agritech Marketing Company Limited and Agritech Marketing Company Private Limited. KBSB will construct a 100% biomass based power plant with gross generation capacity of 11.5MW at Sandakan, Sabah. The project will utilize EFB as the primary biomass fuel for power generation. 87% of the electricity generated will be sold to the Sabah Electricity Sdn. Bhd. distribution grid by interconnecting to the 33/11kV substation at Sandakan. The remaining 13% will be provided for the project plant’s in-house consumption.The expected amount of GHG emissions reduction is approximately 230,019 tonnes of CO2 equivalent per annum. The four palm oil mills Nilai Tani Resources Sdn. Bhd., Monsok Palm Oil Mill Sdn. Bhd., Prolific Yield Sdn. Bhd. and Tanjung Panjang Sdn. Bhd. will be the EFB suppliers. With the EFB production capacity of 654,000tonnes/yr generated by these mills, it is sufficient to fuel the power plant alone. Other wastes like palm kernel shells and mesocarpfibres are also available abundantly and could be considered as alternative fuels if necessary. See the table below for more Bio-fuel projects.

state

Type

fuel

Perak at PantaiRemis

Steam Turbines

EFF

Selangor at Seri Kembangan

Gas Turbines

Biogas

TSH Bio Energy Sdn Bhd

Sabah at Tawau

Steam Turbines

EFF

Potensi Gaya Sdn Bhd

Sabah at Tawau

Steam Turbines

EFF

Alaf Ekspresi Sdn Bhd

Sabah at Tawau

Steam Turbines

EFF

Johor at PasirGudang

Steam Turbines

EFF

Sabeh at Sandakan

11.5

Steam Turbines

EFF

Kina Biopower Sdn Bhd

Sabah at Sedakan

11.5

Steam Turbines

EFF

Recycle Energy SdnBhd

Selangor at Semenyih

8.9

Steam Turbines

Refuse-derived fuel

Naluri Ventures Sdn Bhd Seguntor Bioenergy SdnBhd

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MWM12

A system solution for cost-saving energy? Ask the inventors. The efficiency of your supply is the benchmark of our success. This is why analysis of your plant takes first priority. Only afterwards do we begin planning a customized system solution that works highly efficient and integrates seamlessly thanks to individually configured MWM components. www.mwm.net

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malaysia biomass

The pro’s and Cons of Bio-fuels Biomass

Biogas

Bio-fuel

pros

Pelletisation technology is reasonably mature, the cost of developing infrastructure relatively low and the payback of 3–5 years relatively quick. Biomass pellets also have a higher energy density and are easy to handle, transport and store. There are many Government policies in place to reduce the risk to the private sector associated with accelerating this opportunity.

The reduction of GHG emissions by CH4 destruction will improve the quality of the air resulting in the preservation of the climate. As solid parts are removed from wastewater, the risk of water contamination is reduced. Removal of the foul odor from existing treatment systems. Biogas is a competitive energy source and offers ideal conditions for strong market growth.

As the world’s second largest producer and largest exporter of palm oil, this is a natural opportunity for Malaysia to exploit. Provide job opportunities for the community near the palm oil mill and the industrial sector involved both directly and indirectly. Training will be provided to the local staff to execute and manage the projects, thus increasing the country’s qualified manpower and knowledge. The projects will lead to an increase of the Malaysian GDP.

Cons

Capital outlay can be a concern for investors. High transportation cost for bulky materials with high moisture content.

The highest-value opportunities carry also the highest technology uncertainty and competitive risk.

The locations of palm oil mills are far from Tenaga Nasional (TNB) and Sabah Electricity Sdn Bhd (SESB)’s transmission line grids.

ConClusion: The potential for bio-fuels in Malaysia is enormous. The simple fact that their largest single contributor to the GNI, the Palm Oil industry, has the ability to turn their waste to energy and become almost totally energy self-sufficient is extremely positive. Few other country’s industry sectors have the opportunity to that. To realise this opportunity, Malaysia must move decisively and ensure that the right structures, regulatory framework and incentive packages are put in place. This will be achieved through

firstly supporting the formation of cooperatives of plantation owners and providing transparency of the potential opportunities. Secondly, the establishment of new EPPs and the expansion of the scope of a few existing EPPs under the umbrella of the Palm Oil NKEA can catalyse private sector investments. Lastly, the Government can adopt new policies to reduce private sector risk, such as the elimination of subsidies for non-renewable energy sources, the FiT tariff and many other government schemes designed to encourage investment.

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VAG cAse study

The GianT from Germany

will be used in The hydropower planT on The island of sumaTra, indonesia

n the north of the island of Sumatra lies the metropolitan region of Medan. With some 3 million inhabitants, it is the third largest city in Indonesia. It is here, on the banks of the Asahan River, that the China Huadian Engineering Corporation, one of Chinaâ&#x20AC;&#x2122;s largest plant manufacturers, built the Asahan Hydropower Plant within the framework of a joint venture.

China Huadian Engineering Corporation and the plant manufacturer Beijing Guodian Hydro & Water Conservancy Design Institute built the power station together, free of cost for the Indonesian government, and will be running it for 10 years. At the end of the 10 years, the plant will become the property of the Indonesian government, who will run it independently. The parties quickly realized during the planning

and tender phase for this huge power project that many manufacturers could not meet the valveâ&#x20AC;&#x2122;s specifications. All of the manufacturers offered a dual-valve solution that the parties rejected because of the additional costs for an additional valve chamber, and because controlling and operating the valves would be too complex. VAG-Armaturen GmbH was the only company that knew it could meet the operational

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Hydropower stands or falls with the valve

VAG valves stand for reliability Where valves come first in the generation of hydropower they provide direct protection to the turbine inlet. As automatic self-closing valves they can prevent incalculable loss to human life, the environment and also to plant and machinery.

Planning, designing, building and operating a hydropower plant means taking on a huge responsibility. Deciding on VAG valves is a decision that ensures all round maximum safety and reliability, because VAG valves stand reliably. www.vag-group.com 路 we move water

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VAG cAse study

requirements with only one valve: Standard Pressure

170 mWs

Maximum Pressure

240 mws

Open and Close

within 120 seconds

Automatic, dual control

The desired flow rate of 68/m3 would make this valve unique because it would be the biggest flow rate of a single valve ever made in the world. In addition, VAG’s international service network enables the company to be present at many sites so the company can assemble the valves, install the controls, optimize the control process and carry out the required inspections themselves. An excellent reputation and a number of important references swayed the Chinese companies’ decision in favour of collaborating with VAG. In August 2009, the ‘giant baby’ arrived at the port of Belawa. Because there is neither a railway nor a motorway between Belawa and Asahan, the huge crate, which was the size of a ready-made garage, had to be transported over rural roads. It took over 50 hours for the cargo to reach its goal. Three VAG service engineers from China and Germany were already waiting to connect the giant to the complex control technology. The extremely

heavy valve was installed quickly. The special WATTS Hydro Drive was also added without any problems. Unfortunately, the shipment of connection cables was not complete. Waiting for a new shipment would set the project back by a least one month, and the cables were not available locally. The three VAG engineers and the project manager studied the circuit diagram, the connections - and found a solution: they could accommodate for the missing cable by adding a relay and making a few changes to the circuit diagram. This solution was successful: the thorough function test showed that all of the changes had been made effectively. Each and every communication and control requirement had been met.

Other project hiccups included the jamming of a butterfly valve. The valve, provided by a local manufacturer, jammed during the wet test and simply would not budge. This was a dangerous situation, but the engineers got the VAG Hollow-jet Discharge Valve working. And thanks to its faster closing time, the drain was immediately sealed off. At the end of the gruelling wet test, Mr. Zhang Ji Xiong, project leader at China Huadian Engineering Corporation said: ‘I am incredibly impressed by the design and the quality of VAG’s products. Their valve is the most reliable I have ever seen. If the budget of our next project permits, we’d like to buy as many valves as possible from VAG.’

‘In August 2009, the ‘gIAnt bAby’ ArrIved At the port of belAwA. becAuse there Is neIther A rAIlwAy nor A motorwAy between belAwA And AsAhAn, the huge crAte, whIch wAs the sIze of A reAdy-mAde gArAge, hAd to be trAnsported over rurAl roAds. It took over 50 hours for the cArgo to reAch Its goAl.three vAg servIce engIneers from chInA And germAny were AlreAdy wAItIng to connect the gIAnt to the complex control technology. the extremely heAvy vAlve wAs InstAlled quIckly. the specIAl wAtts hydro drIve wAs Also Added wIthout Any problems.’ 34 july/august 2012 power insider

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AZISINDIA2012_Master 1.1._end:v1 12.03.12 11:58 Seite 1

November 6â&#x20AC;&#x201C;8, 2012 India's Largest Exhibition and Conference for the Solar Industry Bombay Exhibition Centre, Mumbai

350 Exhibitors 20,000 sqm Exhibition Space 10,000+ Visitors

www.intersolar.in

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malaysia solar

Harnessing potential: solar power in Malaysia By Rachael Gardner-Stephens

By Rachael GaRdneR-StephenS

alaysia is situated in the equatorial region with an average radiation of 4,500 KWh per square meter, and receives on an average 4.5 hours to 8 hours of sunshine everyday. However, the real harnessing of this renewable energy source is way below its potential. At present, Solar Photovoltaic (PV) applications in Malaysia are largely

restricted to rural electrification, street and garden lighting, and telecommunications. A third of the Governmentâ&#x20AC;&#x2122;s total allocation of RM469 million for electrification programs under the Seventh Malaysia Plan has been allocated to solar powered installations for rural and remote communities. Solar power features prominently in the

Governmentâ&#x20AC;&#x2122;s Economic Transformation Program. Under the energy Entry Point Program, the target is for Malaysia to build solar power capacity up to 1.25GW by 2020.This will be achieved in two ways; firstly, through the widespread installation of PV panels on buildings and the development of large-scale solar power plants connected to the

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Table 1: location

Client

system type

pV Capacity

inverter Capacity

installation Complete

Kampung Pergalungan, Nabawan, Sabah

Kementerian Luar Bandar & Wilayah (KKLW) C/O TNB-ES

Hybrid

20.16kW

45kVA

July 2008

Pulau Lubukan, Sandakan, Sabah

Kementerian Luar Bandar & Wilayah

Hybrid

15.12kW

30kVA

December 2009

Kampung Kuamut Seberang, Kalabakan, Sabah

Kementerian Luar Bandar & Wilayah

Hybrid

201.6kW

200kVA

March 2009

Kampung Pergalungan, Nabawan, Sabah

Kementerian Luar Bandar & Wilayah

Hybrid

20.16kW

45kVA

July 2008

Signage Board Lighting Project For The International School Brunei

TOTAL Oil & Gas Brunei

Stand Alone System

36W x 5 Lighting System

December 2008

Victoria Island Club, Labuan, Sabah

Stand Alone System

36W Lighting System

December 2008

Wind Turbine Solar Hybrid Station Pulau Perhentian Kecil

Unit Perancang Ekonomi Negeri Terengganu C/O TNB-ES

Wind/Solar/ Diesel Generator Hybrid

100kW

125kW

September 2007

Kementerian Luar Bandar & Wilayah

Hybrid

30.24kW

60kVA

June 2008

Kuala Terengganu, Terengganu Solar Hybrid Station Kampung Sungai Tengah, Gerik, Perak

grid, and through the installation of PV panel manufacturing plants. Malaysia aims to become the second largest producer in solar manufacturing by 2020 and is emerging as the favored country for new PV manufacturing units. Investments in solar PV power projects for 2012 is estimated at US$72 million, a 194% growth over 2011. 12 MW of solar PV power will also be added in 2012, a massive year-on-year increase of 242.9%. At 201 applications for the FiT system in 2010, photovoltaics and solar made up the biggest piece of the renewable energy pie. The demand shows that Malaysia is finally ready for solar power. solar power plants wazlina sdn Bhd Wazlina Sdn Bhd is a good example of Malaysia’s rural monopoly, providing a huge number of smallscale solar plants in rural areas. Aligned with the Government of Malaysia, they have established themselves as the strongest local turnkey developer in Malaysia for the off-grid electrification and grid-commented sector. A number of their plants are solar hybrid power systems, which combines photovoltaic and diesel generators. Table 1 details a number of their projects. See www.wazlina.comfor broader overviews of their projects.

Berjaya solar The Berjaya Corporation Berhad (BCorp) is a diversified entity engaged in a multitude of businesses including clean technology investment, headed up by Bcorp’s subsidiary company, Berjaya Solar. Berjaya Solar have started building a solar PV plant on a one-hectare site on their landfill in Bukit Tagar, which will produce 125 kW, with an investment of RM1.5 million. This small project is a pilot scheme to test out the efficiencies and yield of four different types of solar cells – monocrystalline, polycrystalline, thin-film and flexible solar cell, supplied by Q-Cell and EQ Solar. This is in order to prepare for a huge investment in an extension of the site into a 50 MW solar plant. Berjaya Solar submitted a proposal to the Energy, Green Technology and Water Ministry in 2010 in order to gain an exemption from the 30MW maximum capacity of the FiT policy so as to enjoy the high rates. The proposed grid connected plant will be developed over a 50-ha site, and will be capable of generating power to supply electricity to 3,000 homes. The potential involvement of local and regional manufacturers will provide significant benefits to the country’s existing and new industry throughout the course of the project. The project is expected to draw global green-technology expertise to Malaysia, creating a new industry and a positive impact on the local job market. tenaga nasional Berhad Powering Malaysia for over a decade, Tenaga Nasional Berhad (TNB) is the largest electricity utility company in Malaysia with a total installed generation capacity of about 12,000 MW and an estimated RM71.4 billion worth in assets. Recognized for its outstanding performance, regionally & globally, TNB’s core businesses comprises of generation, transmission & distribution of electricity. In Peninsular Malaysia,

TNB contributes 55 per cent of the total industry capacity through six thermal stations & three major hydroelectric schemes. In addition, TNB manages & operates the National Grid, a comprehensive transmission network interconnected to Thailand & Singapore. TNB have begun to diversify into renewable energy, with two flagship solar projects: Putrajaya Solar Power Plant: Malaysia’s first solar power plant will be located in Putrajaya. The solar power plant will take 12 months to complete and is located in the buffer zone of an existing power station in Putrajaya, which reduces costs. TNB will implement the project based on three types of solar technology: silicon, thin film and polycrystalline. The utility will soon announce the winner of the call for tenders for the project that is estimated to cost RM60mil. Some 20 companies participated in the tender. The winner will do the earthworks for the 12 ha site, and will prepare the platform for the first 2MW system. The 5MW power generated by this plant will be too small to make a profit, but it will be a major step forward in the country’s drive to harness renewable energy sources. Kampung Denai Solar Power Plant: Kampung Denai is an isolated rural village in Pahang consisting of 28 households. Due to the cost of connecting the village to the grid 8 miles away, the decision was taken to install a modern solar power plant. The first phase supplied 15 households, with others brought on stream once upgraded to meet safety standards. TNB hopes Kampung Denai will be a model for rural Malaysia. The generator capacity is 18.6 kW, with the maximum demand measured at 4195.35 kW. The pilot centralized solar power station consists of 10 kW photovoltaic panels, a 10 kW inverter, and a 150 kWh battery. The power stored there can last five days without any sun. A diesel generator with a capacity of 12.5 kVA is installed for back up and during monsoon season. power insider july/august 2012 37

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malaysia solar TNB will charge the villagers exactly the same as it charges customers on the national grid at about 24 Malaysian cents (four pence) per kilowatt-hour. Traditionally subsistence forest people, the villagers have little access to cash. TNB’s answer is to give each household six acres of land to grow oil palms, one of the staples of the Malaysian economy. Cypark resources Berhad Cypark Resources Berhad specialise in the application of environmental science and technology. Cypark is the leading integrated renewable energy power producer in Malaysia, and have established the first Renewable Energy Park in Pajam. From a zero-economy wasteland, Cypark have restored a 26-ha former landfill in Pajam by investing over RM100 million to install 32,000 solar photovoltaic (PV) panels. After utilising more than 600 tonnes of steel structure, 12,000 pieces of solar structure footing, 3000 sets of solar panel array, 32,000 pieces of solar panels and 20km electrical cabling and 612 units inverters, this huge tract of land was finally brought to a stage where it is able to supply more than 11,000 MW of green energy annually. With this first Phase complete, work has already started on a second phase that will see the installation of another 20,000 solar panels to reach the company’s target of 13 MW. Currently, the panels are mostly monocrystalline and polycrystalline, while the thin-film technology is installed on a trial basis to produce 100 kW of electricity, supplied byLG, Q-Cells, Hyundai and SMA. Meanwhile, biogas produced by the landfill will be used to fire two 1MW gas engines, with the energy generated sold to the grid. Once completed, the park is expected to be capable of producing 19 GWh of electricity from solar with another 17 GWh from biogas. It has been acknowledged by the Malaysia Book of Records as the largest gridconnected solar farm in the country. The site’s proximity to the national grid means the company only has to install the connection for a distance of less than 5 km. As a result, company insiders expect that the payback period for the

park could be less than ten years, compared to the industry average of 12 years. The Renewable Energy Park is the first solar project to benefit from the FiT scheme. Cypark signed a renewable energy power purchase agreement with TNB for a FiT concession period of 21 years. Cypark started selling its solar energy to TNB grid from March this year at a tariff of 95 sen per kWh, and the total green energy sales from the plant are about RM11 million annually. Cypark is now focusing its effort in building other new solar projects in Johor, Perlis, Melaka and Negeri Sembilan. The company is planning to implement another 30 MW within the next year on 6 other landfills, with another 12 in the pipeline, subject to FiT quota availability. All 161 ha of landfills have been restored by Cypark. With the targeted completion of 33 MW total solar capacity, Cypark expects to generate annual turnover of about RM45 million from 2013 onwards. solar panel production Malaysia is set to become one of the largest solar panel producing nations. China and Taiwan are the market leaders in solar cell production in Asia due to their low costs, good infrastructure and massive government support. However Malaysian policy makers have been focusing on attracting and encouraging investment in this sector. Factors such as government support in the forms of tax breaks, loans, simple regulation, low labor costs, reliable power supply and the FiT policy have contributed to attracting foreign investment in the Malaysian Solar PV manufacturing market. Photovoltaic manufacturers such as Q-Cells, First Solar and Solarworld have been moving production to Asia for cost efficiency and to tap into the region’s growing market, which is expected to expand by 30 per cent annually. Bosch As well as the multitude of technologies produced by this major conglomerate, Bosch develops, manufactures and sells photovoltaic products. The company has been present in Malaysia since

1923with offices in Selangor, Perak and Penang. In addition to crystalline technology, Bosch Solar Energy also produces thin-film solar modules based on micromorphic silicon and CIS technologies. Bosch has invested in a solar PV producing plant in Bat Kawan, Pahang. With a reported cost of RM2.2 billion, the plant will have a capacity for 640MW a year. Lauded as the country’s first fully integrated crystalline photovoltaics facility, the new manufacturing site will mainly serve Asia’s solar energy market. The annual cell production of the site is expected to cover the energy needs of up to 300,000 households in Malaysia - twice the amount of central Europe. When the plant is running on full production capacity, it is anticipated to further facilitate Malaysia’s aspiration of becoming the second largest producer of solar cells in the world by 2020, increasing its market share to 17 percent after China. Construction is set to start by the end of 2013. twin Creeks technologies Twin Creeks Technologies Incorporated (TCTI) is an American company that is investing in the construction of a high power solar cell plant in the Kanthan Industrial Area. TCTI develops “Hyperion” technology, which produces wafers that are less than one-tenth as thick as conventional wafers, meaning manufacturers can produce more of their products with less raw material and less capital equipment. That means crystalline solar panels that sell for nearly 50 percent less than conventional panels. The new plant will cost about RM1 billion and will be built by Twin Creeks Malaysia Sdn Bhd (TCMSB).TCMSB’s main goal is to become one of the leaders in the solar cells and panel production. A joint venture between TCTI and the Perak State Development Corporation (PSDC) through its associate company Red Solar (M) Sdn Bhd, the new TCMSB 250,000 square-foot production facility represents a substantial investment. Once in full production in 2012, TCTI’s solar modules will enable immediate grid parity with the conventional means of producing electricity at an average delivered cost that is competitive with fossil fuels. TCMSB will expand the solar cell plant on a 15-hectare area stretching to the Perak Hi-Tech Park (PHTP) by the end of 2015.In the first part of 2012, the TCMSB plant will generate around 100 MW of electricity. Afterwards, the power production will be increased to 500 MW in 2014. Q-Cells Q-Cells SE is among the leading companies in the photovoltaics industry worldwide. Its extensive product portfolio ranges from solar cells and modules to complete photovoltaic systems. Q-Cells develops and manufactures its products at its headquarters in Germany and markets them through a global distribution network. The company has a second production facility in Malaysia. Q-Cells Malaysia Sdn Bhd is located at Selangor Science Park II, Cyber jaya. With groundbreaking in June 2008, the 30,000-sqmproduction facility was built, installed and equipped in just 10 months, and production

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PI-Maga

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malaysia solar of solar cells commenced in May 2009. The plant core manufactures and distributes high performance crystalline solar cells. All 4 production lines in operation bring together a production capacity of 670 MW. Q-Cells Malaysia currently ships its solar cells to many countries across the globe. panasonic Panasonic is to build a solar panel plant in Malaysia, its first such facility overseas. Panasonic has begun construction on the facility at the Kulim Hi-Tech Park, and plans to start manufacturing the Panasonic HIT (Hetero junction with Intrinsic Thin layer) photovoltaic modules by December 2012. A total of 1.84 billion ringgit has been invested into the facility that is capable of generating 300 MW of power. The facility represents Panasonic’s first integrated production of wafers, cells, and modules. Panasonic say it will sell its solar modules both individually and also in a system with storage batteries and other devices, as well as assembling solar panels at the plant. At present, Panasonic’s total global production capacity is 600MW of HIT products. This new factory will increase their production capacity by 50%, bringing the total to 900MW. This will allow Panasonic to price the products 10% lower than its lowest priced HIT. eQ solar EQ Solar Technology International Sdn Bhd is a China-based subsidiary of Hangzhou Energy Solar Co Ltd. EQ Solar is preparing to set up its latest solar panel manufacturing plant in Johor Baru, producing mono- and polycrystalline PV modules. They plan to invest RM1.71billion over three years to produce module, cell and wafer technology. The company will become the first China-based solar module manufacturing company to invest in Malaysia. The new plant is located on a 10-hectare site leased from Senai Hi-Tech Park. Production is expected to commence production by early next year, producing some 50MW of high-technology crystalline modules a year. The annual production capacity would later be increased to 200MW.The output would be exported to the United States, Europe, Asia-Pacific and the Middle East.

‘the cuRRent StatuS of SolaR eneRGy in MalaySia iS a healthy one. the aBundance of SunShine coMBined with GoveRnMent encouRaGeMent and leGiSlation, Such aS the eliMination of SuBSidieS foR non-RenewaBle eneRGy SouRceS and the fit taRiff Mean that inveStMent in SolaR iS BeinG actively encouRaGed, paRticulaRly foR the pRoduction of pv unitS. howeveR, the MalaySian GoveRnMent iS now callinG foR MoRe inveStMent and developMent to aid the actual inStallation and Maintenance of SolaR facilitieS.’ ConClusion: The current status of solar energy in Malaysia is a healthy one. The abundance of sunshine combined with government encouragement and legislation, such as the elimination of subsidies for non-renewable energy sources and the FiT tariff mean that investment in solar is being actively

Considerations for inVestment in the solar market in malaysia Pros

Cons

Malaysia has a rich supply of sunlight and should be aggressively tapping solar power.

Clouds/bad weather is a possible disadvantage, particularly during monsoon season.

Opening plants, both power production and PV manufacturing, creates thousands of green jobs for skilled and semi-skilled workers in the local population.

Malaysia doesn’t have unproductive land. Countries like the US have desert they can utilise for solar panels. In Malaysia, finding space for solar panels means using fertile land or rainforest, creating an economic trade-off.

Much of the technology used in the solar cell production doesn’t involve toxic metals, so it’s environmental impact is limited.

Demand for solar panels is expected to slump in Europe due to cuts in government funding.

As stated above, because of the huge amount of government support and excellent infrastructure, Malaysia is an excellent place to begin or expand businesses involved with green technologies.

The cost of a solar power plant is roughly six times more costly than putting up an open cycle gas-fired plant, four times more expensive than a combinedcycle gas plant and just under three times higher than a coal-fired plant.

encouraged, particularly for the production of PV units. However, the Malaysian government is now calling for more investment and development to aid the actual installation and maintenance of solar facilities. Energy Minister Datuk Seri Peter Chin claims that Malaysia needs more technological know-how, noting that the number of component suppliers in the country is small and there aren’t enough knowledgeable personnel on equipment handling. “This drives the maintenance and operations costs up and further complicates matters,” said Chin. The Minister suggests that the next step for the industry in Malaysia will be to synergize with other sectors. “The country is strong in the electronics sector,” he said, “which is a big advantage because this potential can be used to enhance its impact in the renewable energy market too. Many international names invest and our strong electronics industry is one of the major reasons.” This call from the government shows that despite having disadvantages like a very small market, little local technology and much larger rivals, Malaysia has become a Green Success by being focused and persistent in its approach. There is little doubt that solar power will continue to be a rapid growth market in Malaysia.

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multi-contact case study

Counterfeit ConneCtors: the Dangers P

hotovoltaic (PV ) Connectors are critical in regards to safety, and yet they are frequently overlooked, compromising performance and putting home owners at risk. The wrong connector or the mismatching of different brands can cause high resistance connections or allow water ingress, which can result in premature failure of the array and possibly fire. Unfortunately some unscrupulous companies are selling such counterfeit connectors. It is often hard to tell the difference between copies and the genuine product. Despite legitimate connector companies using their own branding on their connectors, some â&#x20AC;&#x153;unknownâ&#x20AC;? manufacturers are hiding behind these brands. The biggest loser in this is the home owner, who has paid thousands of dollars for a solar installation and ended up with an inferior, and potentially dangerous, product on their roof. Matching connectors are essential: Only connectors which are the same model and from the same manufacturer are allowed to be married at a connection point. UL, a global safety science company, have stated in their Conditions of Acceptability section that these devices have only been assessed for UL Recognition with specific types of mated connectors within their product family. They have not been assessed to operate with any other similar devices from any other manufacturer.

This means that compatibility of PV-Connectors can only currently be confirmed for products of the same series from the same manufacturer. With mismatched and counterfeit connectors, concerns have been highlighted about safety characteristics such as UV-resistance, contact resistance, and

Perspective of:

Pros

Cons

Importer of Counterfeits

Usually looking for short term gains and not considering the implications on installer, home owner, or solar industry.

Breaches CEC Code of Conduct4. Risks court action for breaches of Trade Practices Act.

Wholesaler

May save a very small amount of money, and may or may not pass on the savings to the installer.

Risks court action for breach of copyright and misleading behaviour. May have to compensate installer for rework, if system fails.

Installer

May save $2 on an installation that the client has paid many thousands of dollars for.

Risks livelihood and peoples lives if connector fails. May have to spend time reworking job if it doesnâ&#x20AC;&#x2122;t work first time.

Home owner

None

Shorter system life. Possible fire and loss of property or life.

material quality, that may be dangerous when installed in a PV system. The most serious problems which result from inadequate compatibility or the use of inferior copies frequently occur only after a considerable period of time. The use of poorly matched connectors can cause contact problems that can lead to a marked rise in the temperature of the plug connector due to a higher contact resistance. This can subsequently result in arcing and fire, resulting in substantial damage to professional reputations, loss of

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multi-contact case study

revenue from the PV system, material damage, and quite possibly personal injury. don’t risk it. If this advice is ignored, then the installation will not meet CEC/ORER requirements, and it will not follow manufacturers guidelines. This leaves full responsibility for any failure of the connectors to the installer, unless the installer can prove that they have been mislead by the supplier of the counterfeit product. As an installer or OEM, you guarantee your system for 20 years or more. Don’t risk it for the sake of saving a few cents in the overall cost of an installation and always demand genuine and matching PV Connectors. trouble for Multi-ContaCt Counterfeit PV connectors has proved to be a particular problem for Multi-Contact (MC) as a growing number of suspect copies of their MC Solar components have recently appeared on the market. Multi-Contact is tackling the issue by taking court action against the imitators and also by increasing awareness to protect manufacturers, installers and homeowners from the financial and reputational damage that can result from the use of inferior products. Visually, the copies are virtually indistinguishable from the genuine MC products, but comparative measurements and material tests on the counterfeits have revealed substantial deficiencies in quality, and compromised safety and system performance.

Using copies mated with the genuine Multi- Contact connectors can result in a poor fit between insulator parts, resulting in system failure due to compromised sealing against the elements such as rain or dust. Subsequently, the insulating properties are no longer assured and a person touching the connector may be electrocuted. For your safety, Multi-Contact does not recommend using inferior copies, as the mating forces, plating materials and insulation properties cannot be guaranteed. Effects such as fretting corrosion may be caused by incompatible plating materials, contact forces and other influences. In order to avoid such adverse effects, the contacts and insulating parts of the connectors must have compatible properties. Tests of such properties are time-consuming and are not covered by certification tests. Division Manager of Photovoltaics for MultiContact, Dr. Joachim Hirmke, has highlighted the

‘Multi-ContaCt has been involved in the solar industry with their high quality plug ConneCtor systeMs for photovoltaiC installations for More than 10 years, and has gained Considerable experienCe on the long-terM behavior of Millions of plug ConneCtors.’

importance of not marrying genuine MC technology to counterfeit connectors, even if the manufacturers claim compatibility: “In connection with developments in the PV sector, a growing number of competitors have brought PV plug connectors claimed to be “compatible for mating with MC” onto the market. Some of these competitors use “TÜV certificates” of mating compatibility with MC connectors as a sales argument. In this regard, the following should be noted: To our knowledge, these in no way constitute a TÜV certification of the mating of non- MC products with MC products. They relate only to a selection of tests from those prescribed by the standard which have been carried out by TÜV at the request of our competitors. The results of such neutral test reports certify only that only various tests selected from the standard showed no deviations from the norm. Test reports of this kind confer no right to bear a GS symbol or other mark of compliance. In detail, such TÜV documents as are known to us include only the results of a number of short-time tests from the test standards. All long-time tests such as Accelerated Ageing are systematically omitted. Water-tightness tests have been only partially carried out, and we are not aware of any complete IP65 test having been performed. Nor is there any long-term field experience with such combinations of MC and non-MC products. To sum up, it can be categorically stated that such documents do not constitute “TÜV certification” of the mating of other makers’ products with MC products. For safety and liability reasons, MC does not itself recognize the compatibility of products advertised by competitors as MC-compatible.” If you have any concerns about the authenticity of the product you are currently using or being supplied, please contact Multi-Contact. Details can be found on their website at www.multi-contact.com

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HRSGs for the 21st Century

Generate Success! Connect to CMI. www.cmigroupe.com

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business in malaysia

DOING BUSINESS

IN MALAYSIA by rachael gardner-stephens

alaysia’s population of over 19 million inhabitants presents the external business traveler with a minefield of cultural dilemmas. The country is strongly divided along ethnic lines with the three largest ethnic groups being (in order of size) Malays, Chinese and Indians. In addition, there are a number of smaller indigenous peoples in the territories of Sarawak and Sabah. Contemporary Malaysia is a pluralistic and multicultural nation that has its character strongly rooted in social harmony, religion and pride in its ancestral background. With such a rich cultural heritage, acquiring the relevant skills and cultural knowledge in order to conduct business in Malaysia is crucial to your success. Over the last few decades the country has evolved from a successful producer of raw materials to a multi- sector economy. Today, Malaysia offers a unique blend of old traditional culture and new technological innovations. As the Malaysian market continues to develop and prosper, it is becoming increasingly valuable for those entering into business in Malaysia to be aware of the cultural dimensions that shape the fabric of this country

LangUage The official language in Malaysia is Bahasa Malaysia, or Malayu. Bahasa Malayu is used as a ‘bridge’ language across the various ethnic divides. The Malay language is an Austronesian language spoken not only by all Malay people who reside in the Malay Peninsula, Southern Thailand, the Philippines, Singapore, Central Eastern Sumatra, the Riau Islands, parts of the Borneo coast, Cocos and Christmas Islands in Australia. It is also very similar to Indonesian, known locally as Bahasa Indonesia. Other languages sometimes spoken in Malaysia are Mandarin, Hokkien, Cantonese and Tamil. Despite, or perhaps because of this variety of languages, English is widely spoken and many people have a near-fluent command of the language, making communication easier than in some other countries in the region. Most Malaysians working in any kind of international role speak fluent English and indeed fluency in English is seen as a mark of prestige. Be aware, however, that the English spoken often has unique pronunciations, syntax, and grammar, which can easily lead to misunderstandings. Although

most government officials speak some English, they may prefer to hold meetings in their own language. An English-speaking translator, however, is usually provided for these occasions. MULti-cULtUre A number of considerations have to be made to circumnavigate any issues thrown up but the differing cultural approaches to business. Firstly, be aware of the practical requirements of the Muslim population with regard to such issues as prayer, diet and fasting. Ramadan, the month of fasting, is widely observed. Although Malaysia is an Islamic country, fundamentalist principles have not affected the conduct of business. Women will encounter fewer difficulties when working in Malaysia than in countries such as Japan or Korea, with many women working and reaching senior positions. Only five Malaysian states follow the Islamic workweek of Saturday through Wednesday. These include Perlis, Kedah, Kelantan, Terengganu, and Johore. Offices in these states are sometimes open for half a day on Thursday, usually in the morning. In the Malaysian

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capital city, Kuala Lumpur, the working week is Monday through Friday. Secondly, all of the major cultures you may encounter when doing business in Malaysia are basically group-oriented. It is important to take into account the needs of the whole group rather than any one individual. Singling out an individual for praise or specific reward could cause that individual embarrassment within the group. Thirdly, Malaysian culture relies heavily on the concept of fatalism. Fatalism is the belief that success, failures, opportunities and misfortunes result from fate or the will of God. In a business context, when formulating ideas and making decisions Malays will tend not to rely on empirical evidence or hard facts, but prefer to be guided by subjective feelings combined with the Islamic faith. Your Chinese and Indian colleagues will also take a similar approach since feelings and emotions play a significant part in their business culture. Consequently, negotiations may take longer than expected and your Malaysian counterparts will view decision making in a more personal light. Lastly and most importantly, Malays, Chinese and Indians all strive to “maintain face” and avoid shame both in public and private. Face is a personal concept that embraces qualities such as a good name, good character, and being held in esteem by one’s peers. Face is considered a commodity that can be given, lost, taken away, or earned. On top of this face also extends to the family, school, company, and even the nation itself. Causing your Malaysian counterpart to lose face may influence the outcome of your future business dealings. The desire to maintain face makes Malaysians strive for harmonious relationships. Face can be lost by openly criticizing, insulting, or putting someone on the spot; doing something that brings shame to the group; challenging someone in authority, especially if this is done in public; showing anger at another person; refusing a request; not keeping a promise; or disagreeing with someone publicly. Face can be saved by remaining calm and courteous; discussing errors or transgressions in private and speaking about problems without blaming anyone.

Meeting and greeting Initial greetings should be formal and denote proper respect, but differ in style depending upon the ethnicity or sex of the person you are meeting.In general, a handshake is the norm, but they may differ from the typical Western style. For example, women will not always shake hands with men, and foreign men should always wait for a Malaysian woman to extend her hand. Foreign women should also wait for a Malaysian man to extend his hand. The Chinese handshake is light and may be rather prolonged: do not be excessively firm in your handshake. Many older Chinese lower their eyes during the greeting as a sign of respect. Indians shake hands with members of the same sex. When being introduced to someone of the opposite sex, nodding the head and smiling is usually sufficient. Some Malaysians, especially Muslims, will prefer to touch palms lightly and bring the hand up to the heart afterwards to signify a greeting accepted with sincerity. This may also be accompanied with the traditional Malaysian greeting of “Namaste”. Sometimes the “Namaste” will occur after an initial handshake. Some Muslim men will prefer not to shake hands or touch palms with Western women and, in most cases, will indicate so early on in the first meeting. If in a team, introduce the most important person first. When introducing a man and a woman, the female›s name should be said first. Business cards are exchanged after the initial introductions. Business cards are offered with the right hand or with both hands; both is more polite. You should accept the card in the same manner and briefly study it before putting it away. The respect you show someone›s business card is indicative of the respect you will show the individual in business; never write on someone›s card in their presence. It is acceptable to keep the card in view if it is offered to you at a business or dinner table. Ensure that your business card outlines your education, professional

qualifications, and business title. You›ll find that Malaysians include many of these details on their card. If you are meeting with the Chinese, have one side of your card translated into Chinese, with the Chinese characters printed in gold. If you are meeting government officials, have one side of your card translated into Bahasa Malaysia. coMMUnication The failure to communicate adequately can break a business deal, and difficulties to communicate with your Malaysian counterpart lie in cultural differences. Most importantly, it is essential not to make a Malaysian ‘lose face’, and there are a number of ways that this can occur. Politeness and diplomacy are prerequisites when doing business in Malaysia. Directness can be misconstrued as rudeness and is seen as the behaviour of people who lack respect. Additionally, being critical of your competitors will undermine your credibility and display a lack of respect. Gaining negative or positive responses can also cause issues in communication. Insistence on receiving an “adequate” response to an unanswered question, no matter how important, will embarrass a Malaysian, especially if other Malaysians are present. Malaysians will rarely say no, but instead say, “I will try”, or “I’ll see what I can do”. This allows the person making the request and the person turning it down to save face and maintains harmony in their relationship. Sucking in air through your teeth is one way to signal a definite answer of “no”. Also, don’t always take the word ‘yes’ to mean ‘I agree’. It could be merely an affirmation of understanding. Exercise caution when asking Malaysian Chinese certain questions. For example, English speakers give a negative answer to the question “Isn’t the document available?” by responding “no.” The intended meaning is: “No, the document is not available.” The Chinese interpretation is different. The answer would be

naMe and personaL address Again, the challenge for the foreign business person in name and personal address lies in the different ethnicities of the Malaysian people. The Chinese traditionally have 3 names. The surname is first and is followed by two personal names, and is frequently written as one word. Many Malays do not have surnames. Instead, men add their father’s name to their own name with the term “bin”, meaning ‘son of ’. Women use the term “binti”, meaning ‘daughter of ’ and their fathers name. Indian names are similar, placing the initial of their father’s name in front of their own name. The man’s formal name is their name “s/o” (son of ) and the father’s name. Women use “d/o” to refer to themselves as the daughter of their father. It is important for all ethnicities that professional titles and honorific titles are used in business. Malays and Indians use titles with their first name while Chinese use titles with their surname. Many Chinese and Malays adopt more Western names and may ask you to use that instead. power insider july/august 2012 45

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business in malaysia “yes”, meaning “Yes, the document is not available.” Silence is an important element of Malaysian communication. Pausing before responding to a question indicates that they have given the question appropriate thought and considered their response carefully. Do not show anger in public as it makes Malaysians uncomfortable and creates a feeling of powerlessness. There is a greater chance of achieving a good outcome id you are calm, whereas little is resolved by shouting. Certain gestures and body language may also cause offence or confusion. When you must indicate something or someone, use the entire right hand [palm out]. You can also point with your right thumb, as long as all four fingers are curled down. Older Malays would interpret a fist with the thumb and a little finger uncurled as an insult. To beckon someone, hold your hand out, palm downward, and make a scooping motion with the fingers. It is considered rude to point at anyone with the forefinger, as Malays use the forefinger only to point at animals. Pounding one fist into the palm of the other hand is another gesture that Malays frequently consider obscene and should be avoided. Feet are considered to be unclean: never point your feet at another person or show the soles of your feet or shoes. You will be expected to apologize whenever your shoes or feet touch another person.The head is believed to be the “seat of the soul” by many Indians. Consequently, never touch someone else’s head, not even to pat the hair of a child. The “arms akimbo” position, that is, standing tall with your hands on your hips, is always perceived as an angry, aggressive posture. In public never be seen with your hands in your pockets. To reach into your pocket is fine but to stand around or chat with hands in pockets is very distasteful to people of Malaysia. HierarcHy Most Malaysian businesses are extremely hierarchical. The three main religions of Islam, Confucianism and Hinduism all stress the over-riding importance of respect and duty. Respect is based on personal attributes rather than more task-oriented matters. People are worthy of respect if they are older and have the wisdom that age brings. Business structures are hierarchical with information flowing to the top and most decisions being made by key senior management figures. The manager is expected to manage and to make decisions. Subordinates may feel uncomfortable when given vague, non-specific instructions. Tasks may remain undone, unless specific instructions are issued from the boss - even if it is apparent that the task needs urgent attention. The boss/subordinate

role can be likened to the father/son relationship. The boss is expected to take an interest in the overall well-being of subordinates. In return for this concern, subordinates will offer diligence and loyalty. When meeting Malaysian business people seek out and address the most senior person in the group first and focus on that person during meetings and presentations rather than addressing the room or the whole group. In negotiation, it is important to ensure that you are dealing with the key senior figures as a great deal of time can be spent debating issues with people who may play little part in the decisionmaking process. dress When attending normal business meetings, the standard western business attire of suits and ties for men and suits or dresses and light-coloured, longsleeved blouses and skirtsfor women are appropriate. Evening functions can be more informal with short sleeves being worn by men and trousers by women. Because Malaysia is very hot all year long, cotton and linen clothes are the most sensible choices. Avoid wearing yellow because it is the colour reserved for Malaysian royalty, and shorts should be avoided. Avoid wearing the color yellow since it’s reserved for Malaysian royalty.Women must be sensitive to Muslim and Hindu beliefs, andwear blouses that cover at least their upper arms. Skirts should be kneelength or longer.

‘Most Malaysian businesses are extreMely hierarchical. the three Main religions of islaM, confucianisM and hinduisM all stress the over-riding iMportance of respect and duty. respect is based on personal attributes rather than More task-oriented Matters. people are worthy of respect if they are older and have the wisdoM that age brings.’

Meetings Doing business in Malaysia requires a long-term commitment. Business is often conducted on the basis of personal relationships and you will need to invest time and money to visit regularly and develop a good rapport with clients, agents and other business and government contacts. It is appropriate to discuss family, career, hobbies and personal views on issues of general interest to start to build this rapport and trust with your contacts. Do not underestimate the need to allocate time and resource to the relationship-building aspect of a project. Be aware that in Malaysia, it’s perfectly acceptable to ask people questions about their weight, income, marital status, and related subjects. If you don’t wish to answer personal inquiries, side-step these questions as graciously as possible. It is important thing to remember in any meeting is that the relationship is of much greater importance than the issue being discussed. Initial meetings between business associates begin with a great deal of relationship building small talk. It is not unusual for these meetings to focus solely on non-business related issues.Do not destroy the harmony through being overly pushy when trying to reach a decision. It is rarely worthwhile to try to push for a decision within the meeting as the decision will be taken only after all the facts have been analysed in very great detail and after all the relevant members of the group and the hierarchy have been consulted. Patience may be needed. The majority of Malaysian businesspeople are Chinese; you can expect them to be punctual. Most government officials, however, are ethnic Malays who have more of a relaxed attitude toward time. Although business travellers are expected to be on time, Malays may not necessarily do the same. The Indian minority’s perspective on time is similar to that of the Malays. Nevertheless, the Indian professionals will expect punctuality. Additionally, do not be surprised if meetings start late or last longer than had originally been scheduled. Build delays into your timetables. It is a good idea for the most senior person on

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business in malaysia your team to enter first so that he or she is the first to greet the most senior Malaysian. This gives face to both parties as it demonstrates respect towards the Malaysian. It is customary for leaders to sit opposite each other around the table. Many companies will have their team seated in descending rank, although this is not always the case. Expect the most senior Malaysian to give a brief welcoming speech. You need not reciprocate. Since most of the country is Muslim, it would be sensible to schedule meetings around prayer times. Moreover, many companies close their offices on Friday afternoons. Since Malaysians--particularly the Chinese--often consult astrologers, signing a contract may be delayed until a “lucky” day arrives. When doing business in Malaysia, you should never assume that a signed contract is a final agreement. Understand that in Malaysian business culture, it is commonplace for negotiations to continue after a contract has been signed. gifts The gift giving culture in Malaysian business is on the decline, but gifts are still appreciated and seen as a relationship-building tool. Should gift giving occur between business associates in Malaysia there are a number of rules that guide the procedure, both general and culturally specific. When presented with a gift, it is customary to accept it with both hands, palms facing upwards. Be sure to reciprocate with a gift of equal ( and not greater) value in order to avoid loss of face. Recommended business gifts include quality pens, desk accessories, and items representative of your country or city. Good choices include alcoholfree perfumes or colognes for a hostess, and collared, fine cotton shirts for men. It’s a good idea to select a

modest, inexpensive gift so that the recipient won’t feel obligated to you. Gifts are not opened in front of the giver, as there is a cultural belief that the giver and recipient may be embarrassed if the gift turns out to be a poor choice. When giving gifts, be sensitive to the cultural background of the recipient. For example, never give alcohol to a Malay Muslim, and avoid all gifts associated with pigs. If you give food, it must be “halal”. Avoid white wrapping paper as it symbolizes death and mourning, and yellow as it is the color of royalty. If you are a man giving a gift to a female colleague, be aware that personal gifts from a man to a woman can be misinterpreted as having a romantic intent. Malaysian business protocol requires that a man should explain that his wife sent the perfume, scarf, or similar gift item. It is Chinese custom to decline a gift three times before accepting. In the face of these protestations, continue to insist. When you receive a gift, you will be expected to go through the same routine. Do not wrap gifts in mourning colours - white, blue, or black, though elaborate gift - wrapping is imperative. It is best to give gifts in even numbers since odd numbers are unlucky. Avoid items associated with funerals such as clocks, towels, handkerchiefs, straw sandals and flowers. For Indian business people, flowers are appropriate, but frangipani as they are used in funeral wreaths. Most gifts, especially money, should be given in odd numbers. However, avoid giving gifts in multiples of three, because this number is considered bad luck. Wrap gifts in red, yellow or green paper or other bright colors as these bring good fortune. Do not give leather products to a Hindu, and avoid giving alcohol unless you are certain the recipient drinks.

eating It is very common to be invited out for lunch or dinner in Malaysia as business entertainment performs an important function in the all-important relationship building process, and protocols exist which need to be adhered to. Always wait to be seated; the highest Malaysian officer in attendance or the host is usually in charge of the seating arrangements. If you are hosting an event, keep in mind that seating is in hierarchical order in accordance with Malaysian business protocol. The host should be seated to the immediate left of the most senior guest. This guest is traditionally given the “best seat” at the table-- which usually means the one located farthest from the door. The host is expected to pick up the tab. Muslims and Hindus believe that the left hand is unclean. Consequently, eat only with your right hand when dining with these groups. These rules apply even if you are left-handed. Before serving yourself, wait for your host to initiate these proceedings. Indian utensil etiquette requires that the serving spoon should not touch the plate when either you or another person is putting food on a plate. Chopsticks should be placed on the chopstick rest after every few bites. They also belong on the chopstick rest when you are drinking or talking. Malaysian food can be very spicy but less spicy alternatives are available. It is polite to leave some food on your plate as a sign that you have been well satisfied with the amount of food provided. Muslims will definitely not eat pork, and Hindus will not eat beef. For the sake of politeness, sample everything that is offered - even if you find it unappealing. Buffets are extremely popular here. Generally speaking, your Malay counterparts will not drink, so no real drinking culture exists in Malaysia.

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THAILAND

GULF JP:

EXCITING TIMES FOR THE PRIVATE SECTOR IN THAILAND

MAKING STEPS + FORMATION Gulf JP is a major independent power producer in Thailand. Founded in 2007 with headquarters in Bangkok, Gulf JP is the largest provider of electricity, serving both public and private clients in the main industrial zones of Thailand. Gulf JP’s total capacity is made up of IPP’s and of SPP’s which contribute approximately 800MW to Thailand’s electricity needs. Gulf JP’s shareholders are J-Power Holdings Company Limited ( JHPT) and GJP Holding Company Limited (GHC). Established in September 2007, JPHT is an indirect wholly owned subsidiary of J-Power and own 90% of Gulf JP. Launched in 1952, J-Power is a Japanese company specializing in the development and supply of electric power. GHC is a Thai company and own 10% of Gulf GP. Established in May 2007, GHC was supposed to initially partner J-Power in preparing a response to an IPP Solicitation Request for Proposal (RFP) and subsequently became a shareholder of Gulf JP. Gulf JP’s key business focus is the development of domestic power projects, but they see international

ventures playing a significant role in the long-term growth of the company. J-Power currently has investments in overseas IPP projects in seven countries, 24 of which are currently in operation and four of which are under construction. A further nine are in the planning stage. Gulf JP are also committed to using state-of-art-technology to ensure maximum capacity whilst maintaining world environmental standards. DEVELOPING PROJECTS The developing power projects of Gulf JP consist of two Independent Power Producers (IPPs) and seven Small Power Producers (SPPs): Independent Power Producers: • Siam Energy Company Limited (SEC) was established in 2007. They own and will operate the Siam Energy power project. This project is a 1,600 MW gas-fired, combined cycle power plant located in the Samet Neur sub-district in Chachoengsao. SEC entered into a Power Purchase Agreement (PPA) with the Electricity Authority of Thailand

(EGAT) in October 2008 for the sale of electrical power for a 25 year period. SEC Power Plant’s facility will consist of four Combustion Turbine Generators (CTGs), four Heat Recovery Steam Generators (HRSGs), and two Steam Turbine Generators (STG) operating in combined cycle mode. The plant will operate using natural gas as the primary fuel while a light distillate fuel oil will be used as back-up fuel during natural gas supply interruption. SEC is scheduled to commence construction in March 2010. SEC will enter commercial operation with EGAT in March 2013 and September 2013 for Unit 1 and Unit 2, respectively. • Power Generation Supply Company Limited (PGS) was established in 2007 to develop, construct, own, and operate the Nong Saeng Power Pant (NS). Significantly, this is the first large IPP project to reach financial close since the global economic crisis of 2008, and required financing of 1.185 billion USD. The combined cycle plant located in the Saraburi province will have a 1,600 MW capacity. NS entered into a

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PPA with EGAT in October 2008 for the sale of electrical power for a period of 25 years. NS Power Plant’s facility will consist of four CTGs, four HRSGs, and two STGs. The plant will use natural gas as the primary fuel with a light distillate fuel oil as back-up fuel. The project commenced construction in May 2010. PGS will enter commercial operation with EGAT in March 2014 and September 2014 for Unit 1 and Unit 2, respectively. Small Power Producers: The SPP program is a long-term electric power purchase scheme established in 1992 to promote cocombustion thermal power systems and renewable energy in Thailand. It aims to reduce the importation and consumption of oil. Under this government program EGAT guarantees to purchase up to 90,000kW of electric power. The program requires the plants to export at least five percent of their thermal energy in the form of steam or hot water to industrial users in the neighboring area to improve the plants’ overall efficiency. Gulf JP have entered into a number of PPA’s between seven SPP projects owned by Gulf JP and EGAT for a period of 25 years. The project began after each of the seven SPP companies successfully tendered its application for Requests for Proposals issued by EGAT under SPP program in 2007. The seven SPP companies will construct gas combined-cycle power plants in and near industrial zones in Saraburi, Chachoengsao, Rayong, and Pathum provinces on the outskirts of Bangkok. Construction began for some in the second quarter of 2010 and operation of the plants will commence successively from September 2012 through September 2013. Each power plant will sell 90MW of electric power to EGAT and the remaining electric power, steam and/or chilled water to direct customers in their respective vicinities. Each of the seven SPP companies will sign Gas Sale Agreement with PTT Plc2 and will purchase natural gas from PTT Plc. Below is a summary of the SPP projects:

Chosen Equipment and Contractors Toyo Engineering Corporation (Toyo Engineering) is a Japan-based construction company. Toyo Engineering provides engineering, procurement and construction solutions to industrial facilities. Toyo Engineering, along with its subsidiaries, operates in several countries including Japan, Korea, China, Malaysia, India, Indonesia, Singapore, Qatar, Iran, Russia, Canada, the US, Venezuela, Brazil and Thailand. Toyo Engineering were chosen to aid the construction of Gulf JP’s seven SPP’s, and entered into power plant construction contracts with Gulf JP. Toyo will supply equipment and materials to the projects. Toyo will continue to focus its efforts on electric power, water, and traffic-related projects in Thailand. Mit-Power (Thailand) Ltd. is a wholly owned subsidiary of Mitsui & Co. Ltd. In 2004, Mitsui won a construction contract for the Kaeng Khoi combined

Project

Location

Capacity

Fuel Type

Expected Operation Date

Saraburi A Company Limited

Taling in the Saraburi Province

106.2 MW

Natural Gas

01/09/12

Saraburi B Company Limited

Nong Khae Industrial Estate (NKIE), in the Saraburi Province

106.2 MW

Natural Gas

01/03/12

Industrial Cogeneration Company Limited

Koke Yae sub-district Saraburi Province

114 MW

Natural Gas

01/07/12

Combined Heat & Power Company Limited

Nong Pling subdistrict, Saraburi Province

109.3 MW

Natural Gas

01/08/13

Pathum Cogeneration Company Limited

Klong 1 sub-district in the Pathumthani Province

119 MW

Natural Gas

01/05/13

RIL Cogeneration Company Limited

Rayong Industrial Land, Rayong Province

124 MW

Natural Gas

01/11/13

Technopolis Industrial Estate (Alpha Tech), Chachoengsao Province

108 MW

Natural Gas

01/02/13

35 tons steam per hour

Chachoengsao Cogeneration Company Limited

35 tons steam per hour

45 tons steam per hour

cycle power station, supplying the company with the know-how and experience in this sector. As a result, Mitsui have won the contract to build the Gulf JP SPP’s and will be responsible for the construction work. Construction of the plants will begin in October 2010. Mitsui intends to actively participate in power generation projects in Thailand,focusing on infrastructure projects including electric power. Siemens has maintained technical and economic links with Thailand for more than 100 years. In October 1995, Siemens Ltd. Thailand was established to offer an entire range of products, systems, solutions and services,and has a current workforce of 1,200 employees. In the fiscal year 2011, Siemens’ sales in Thailand totaled EUR 319.65 million and new orders amounted to EUR 847.7 million. Siemens involvement with the Gulf JP SPP projects has provided Siemens with one of its largest ever orders. Through Toyo Engineering, Siemens will supply Gulf JP with 14 SGT-800 industrial gas turbines for the combined-cycle cogeneration plants. The seven twounit gas turbines will be deployed across all seven sites. The SGT-800 is designed for maximum reliability, best-in-class efficiency, high availability and low lifecycle costs. Thanks to its dry low emissions (DLE) combustion system, NOx emissions are minimized. The customer’s decision in favor of the Siemens SGT800 gas turbine was mainly due to its simple, robust industrial design with high full- and part-load efficiency.

30 tons steam per hour

9,000 RT chilled water

5,400 RT chilled water

20 tons steam per hour 3,200 RT chilled water

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ENERPROJECT CASE STUDY

TURNING UP THE PRESSURE IN THE GAS MARKET FOR SOUTH EAST ASIA E

nerproject SA is a leading gas compressor packager for gas turbine fuel pressure boosting, gas processing and gas recovery systems. After interviewing with us last year, General Manager Sales, Vito Notari returns to PI Magazine with an update of Enerproject’s business activities. Enerproject’s targets are based around deliveries for the oil and gas sector to the onshore market. Enerproject’s experience and growth across key markets such as, Indonesia and Thailand has been important in this last year. Growth in the oil and gas market as well as power generation has been recorded, with Notari stating “last year, we supplied almost 30 units Worldwide on Power Generation, 7 of which were for Thailand and 10 for the onshore Oil &Gas”. Vito Notari sees South East Asia in particular as a huge market. Because of this, during the last year Enerproject have collaborated with their representative in Thailand, Panjawit Controls Co.,

VITO NOTARI, GM SALES, ENERPROJECT SA to increase their local Service Team to “give better still support to our customers.”Enerproject and Panjawit Controls Co. have also set up a warehouse to “improve our capability to supply consumables and spares in a short time” in order to provide a “just around the corner” style service.On a worldwide

basis, Notari was “proud to announce a new fully owned subsidiary in Darmstadt, Germany that started operation in August last year.” Enerproject has been involved in several important projects in Thailand. Through Thai Shinryo, Enerproject has delivered three units to DCAP for the Suvarnabhumi Airport in Bangkok. DCAP is an exciting joint venture between PTT Plc, EGAT Plc and Metropolitan Electricity Authority (MEA), which was specifically created to manage the new airports needs across power, steam and air conditioning. The compressors from Enerproject deliver high-pressure gas to a configuration of 2 x GE LM6000 gas turbines. Enerproject have now also committed to a project with Toyo Engineering in relation to the exciting SPP developments undertaken by Gulf JP. Enerproject has “signed a contract and delivered 6 units with Toyo, who is acting as EPC Contractor to Gulf JP. Each plant configuration (3 in total) has two Siemens SGT

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Ener_pu

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Customized solutions for all compression needs

Products: Gas compressor packages (type: oil injected screw, rotary vane) Gas station Gas dryer

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800 turbines and two Fuel Gas Compressors from Enerproject. We expect commercial operation to start in the fourth quarter of 2012”. Grappling with the stringent requirements to control residual content of oil and liquids in compressed gas has kept Enerproject busy this year, making sure that their packages conform. As Notari explains, “with the right dimensioning and components you can reduce residual oil & liquids to values of less than 0.05 PPM W at any operating stage of the turbine. The stringent requirements for the manufacturers of the new DLE high efficient turbines mean that we have developed a 3-stage separator/filtering system to conform those needs. In some cases, in cold areas with long gas lines between compressor and turbine an additional filter has been installed just in front of the package to avoid condensation in the line.

Saying this, we can state that oil lubricated screw compressors are the right solution because of their higher efficiency and lower cost”. Enerproject have also been involved with the sharp increase worldwide of the utilization of landfill gas. They have “supplied around 120 units mainly in Europe and Russia that are compressing biogas, landfill gas and associated gas (well known as flare gas). For all these types of gases, special attention has to be given to filtration and separation of condensation before and after the compression. Another interesting technical issue to deal with, in these applications, is the very low pressure at the inlet of the compressor!”

Mixingusing basinlandfill prior to Other challengesOxidation faced by&anyone outfall at Reliance Energy, nature, gas are posed by its corrosive and reactive 2 x 250MW Dahanu Thermal but Enerproject have the technology to minimize Power Station, Maharashtra, India. the risk. Notari explains how “usually, the wet gas contains water vapor, Carbon dioxide (CO2) and may contain trace of hydrogen sulfide. The combination of H2S or CO2 with H2O is critical not only for the compressor, but for the entire process, because it create a high corrosive solution.Therefore, removal of water is necessary.With a coalescent filter at the compressor inlet,we have a preliminary separation of water vapor.By means of a heat exchange process we can still reduce further the water vapor content after the compression, in order to supply “dry” gas. In some cases, when the content of water vapor is very high, it could compromise the functionality of the compressor. Therefore, we have to install a more sophisticated separation/drying system in front of the compressor.” Notari added, “Each project has to be engineered on a case-by-case basis depending on the gas quality and quantity.In some cases, when the content of heavier hydrocarbons is very high the gas has to be treated before compression.” The compressor packages delivered by Enerproject are finely tuned pieces of technology that require stringent aftercare. Notari notes that whilst “compressors as any other machine need maintenance”, through using “oil-lubricated screws, the requested maintenance is reduced to a minimum”. The aftercare package provided by Enerproject is robust, with their “CSD (Customer Service Department) is taking care world wide of these services.” In agreement with their customers, “interventions are performed once or twice per year with a planned outage of 2-4 days per year” adds Notari. All in all, the last year for Enerproject has been one of expansion and development, both in Asia and worldwide.

‘ENERPROJECT’S TARGETS ARE BASED AROUND DELIVERIES FOR THE POWER GENERATION MARKET, FOCUSED ON SPP PLANTS AND ALSO THE OIL & GAS SECTOR FOR ONSHORE APPLICATIONS. ENERPROJECT’S EXPERIENCE ACROSS KEY MARKETS SUCH AS INDONESIA AND THAILAND HAS BEEN IMPORTANT IN THIS LAST YEAR. 54 july/august 2012 power insider

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LaNDfiLL gaS

LandfiLL Gas:

By Rachael GaRdneRStephenS & choenpoRn SawaSdivoRn

MunicipaL GoLd I

f anything demonstrates the dichotomy of human achievement it is that the only two manmade structures that can be seen from space are the Great Wall of China and the Fresh Kills Landfill in America. One is a feat of engineering and a testament to human achievement. The other is a monument to the excesses of modern living. The consumption habits of modern consumer lifestyles are causing a huge worldwide waste problem. Every year we fill enough garbage trucks to form a line that would stretch from the earth, halfway to the moon. The average human tosses out 1500 pounds of rubbish each year. Nearly all of this waste goes to landfills to degrade, but the majority of what we throw away takes a significant amount of time to break down. For example, an aluminum can takes 500 years to disintegrate, paper takes 80 years, 100 years for tin cans, diapers take 200 to 500 years to decompose and plastic and glass take 1 million years to break down naturally. With many Western countries overfilling and shutting down landfills, many nations are now exporting their refuse to developing countries. This is having a devastating impact on ecosystems and cultures. Landfillshave an extremely negative impact with problems such as over flow and smell.

Toxic substances from landfill waste often reach underground water supplies and surrounding land areas, causing water and land pollution. In Asia in particular, the monsoon season causes many landfill sites to flood, overflow and carry waste into nearby communities. These landfills also have a negative impact on the planet. Biodegradable waste produces methane, which is around 21 times more potent than carbon dioxide.One tonne of biodegradable waste produces between 200 and 400 cubic meters of landfill gas. Allowing methane to escape into the atmosphere has significant climate change implications. However, industries are beginning to recognize that there is potential for profit at these landfill sites. Materials that until recently were regarded as waste are now increasingly being sought out. The public, policy makers and regulators are encouraging the recovery of sustainable resources from waste. Over the last decade, waste managers have reacted to a combination of the need to reduce greenhouse gas (GHG) emissions, whilst recovering higher value products from the waste stream. Approximately 50 – 60% of Land Fill Gas (LFG) is methane, which is highly combustible and can be utilised in spark ignition engines to

produce electricity. MSW landfills have been installing gas collection and destruction systems (e.g., flares, internal combustion engines, turbines, or boilers). These destruction devices can be linked to systems that capture the energy commonly referred to as landfill gas-to-energy (LFGTE) projects. This article will take a look at one of the most successful LFGTE project; the Kamphaeng Saen West and EastMunicipal Waste to Energy project (KAWE MWE) in Bangkok ranby Sindicatum Sustainable Resources.

The Landfill Sites - Kamphaeng Saen District, Nakon Patom Province, Thailand power insider july/august 2012 55

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landfIll gas number of carbon credits. Approximately 150,000 MWh of clean electricity has been generated so far. In terms of future benefits, Sindicatum’s innovation provides a widely applicable landfill gas technology for Asia. This has all been achieved while generating a healthy return on investment. Through the KAWE MWE project, Sindicatum has shown that with the right approach, many of the perceived barriers to green projects can be overcome, and that sustainability is financially viable. The KAwe Mwe projeCT Bangkok produces about 8,700 tonnes of Municipal Solid Waste(MSW) a day, and MSW production continues to steadily increase in line with economic growth. A local Thai company, who have provided a MSW transportation and disposal service to Bangkok for nearly 20 years, owns Kamphaeng Saen West and East landfill. The current landfill commenced tipping in 2005, and about 3,200 tonnes of MSW arrives at the site per day. This comprises of over one-third of the total MSW from the Bangkok Municipality. In order to maximize the profit potential and minimize the negative impact the landfill was making on the environment, the decision was taken to convert the LFG to energy. Sindicatum financed, developed and installed advanced LFG collection systems at the project sites that provide LFG to the power generation and abatement plant through a single purpose Thai company wholly owned by Sindicatum. The subsidiary has the rights to the landfill gas (LFG) for a period of up to 20 years. Sindicatum also operates the KAWE MWE project.

The Benefits of LFGTe Meets the growing demand for energy in a socially, economically and environmentally sound manner. Prevents the emission of large volumes of methane emitted by landfills by destroying 1,700t CO2 every day. Displaces existing fossil fuel consumption with clean energy production. Improves quality of life for neighboring communities by significantly enhancing local air quality. Stimulates the local economy through the creation of jobs. Implements and demonstrates state-of-art methane capture techniques which enhance clean power generation and can be replicated widely. Projects greatly reduce the chance of explosions, fires and overall safety within landfills. Upgraded leachate treatment system mitigates the previous adverse impacts experienced by the local community on water quality.

sindiCATUM sUsTAinABLe resoUrCes Sindicatum Sustainable Resources (Sindicatum) is a sustainable resources company founded in the United Kingdom in 2005. With established businesses in China, India, South East Asia and the United States, Sindicatum are now based inSingapore, as the majority of their assets are in Asia. Sidicatum finance and operate clean energy projects worldwide and produce sustainable resources from the utilization of natural resources and waste.The sustainable resources they aim to create includeclean energy and sustainable commodities such as products manufactured from natural resources and agricultural waste, as well as bio-fuels. Sindicatum have invested in and operate the KAWE MWE project. After navigating a complex political landscape, Sindicatum has invested nearly 40 million USD into the project and installed 16 MW of clean power generation capacity to date. The project has abated more than 1 million tonnes of CO2, enabling Sindicatum to generate an equal

Installation of gas collection pipes The LFG is collected via the ‘Optimum Biogas Collection™ system (OBC)’, the proprietary gas collection system developed by Sindicatum. The technology is based on a number of innovative features, including horizontal suction pipes (as opposed to vertical ones) couched in specially designed support frames wrapped with unique geofabric materials. The OBC provides enhanced gas collection, thus yielding greater clean energy production and emission reductions. Upon successful collection, the extracted biogas is then filtered and treated prior to delivery to 16 sets of 1.0 MW capacity General Electric Jenbacher engines. The two projects are located at different areas of the landfill, with eightsets of engines each. Six 2,000 Nm3/hour enclosed flares destroy any methane which is not used for power generation. Prior to bioconversion, a robust system sorts incoming waste, removing recyclables and inorganic

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project with a team of 30 local staff. Developing LFGE projects in Thailand has proved to be challenging, both technically and financially. Owing to the carbon credit scheme, the project is up and running. Carbon finance allows for the expansion of the Projects as well as to service debts. In other words, the Projects would have not been ‘feasible’ without carbon finance. The below flow diagram demonstrates the process through which the MSW goes to create energy. (Colin if possible these pictures and flow chart above are related, we havnt really got the technology here but just wondering if there is a way that we can marry them together?) Upcoming projects Utilization of biomass represents another significant potential income stream for Sindicatum. Sindicatum recognizes the long-term value potential of biomass, given that European biomass consumption is forecast to increase by almost 50% between 2010 and 2020, with growth predicted for Asia as well. Consequently, the acquisition of a robust, vertically integrated pipeline of biomass is a key strategic objective for Sindicatum. Sindicatum has a medium-term goal to build a flow of biomass of 500,000 tonnes or more per annum. One in the ways in which Sindicatum intend to achieve this goal is by developing biomass plants in India, utilising the bagasse available from the sugar industry. Bagasse is the fibrous matter left once sugarcane has been crushed to extract the juice, which can be recycled as a bio-fuel. Sindicatum believes that the Indian sugar industry is an attractive platform from which to build a significant biomass based power generation business for the several reasons: Firstly,India has a massive power deficit, with a current installed power generation capacity of 174GW serving a population of 1.2 billion people. By comparison, the installed power generation capacity in China is 900GW, serving a population of 1.3 billion people. This deficit ensures a market for the production of cheap and reliable power. Secondly, India is the second largest producer of sugar in the world. There are approximately 650 sugar mills in the country, all of which have associated power stations with huge power potential.The Ministry of New and Renewable Energy estimates that a sugar mill with capacity to crush 2,500 tonnes a day with state-of-the-art-power generation equipment should generate up to 10 to 12 MW of saleable power, far more than the mill requires to run. However, the majority of sugar mills in India don’t export power to the grid or have state of the art technology. Sindicatum believes that by modernizing mills, bagasse can be better utilized to satisfy internal requirements whilst producing excess power for the grid. Thirdly, there are currently specific incentives available for the establishment and expansion of bagasse based power generation assets. For example, the UPERC Regulations 2009 seek to achieve promotion of electricity from non-conventional energy source based generation and co-generation (i.e. biomass) and the Ministry of New and Renewable Energy offers capital subsidies for the development of new bagasse based generation plants or the expansion of existing plants. As a result, Sindicatum has begun forming joint

typical process on a landfill gas application

Typical process on a landfill gas application venture (“JV”) partnerships with the owners of existing sugar mills and has two JVs contracted to date. Once a JV is formed, the sugar mill’s existing power assets will be acquired by a newly formed SPV, to be jointly owned by Sindicatum and the mill owners. The JV will contribute capital and expertise to install modern and efficient equipment. The SPV benefits from a secure fuel supply base comprising 100% of the host’s bagasse supplemented, if necessary, by biomass from within their area of sugar cane supply to allow for extended power generation beyond the sugar cane season. Electricity sales from the modernized plants will then be exported under a balanced portfolio of medium and long-term PPAs. why indUstries shoUld invest in mwe The benefits of converting LFG into energy are numerous. The positive impact the reduction of the release of GHG has on the local and global environment is unparalleled. However, whilst LFGE projects are common in Europe, LFGE is largely undeveloped in Asia. The development of MSW management solutions requires not only substantial capital investment, but also considerable time to plan, permit, design, and construct them. Significant hurdles can often be encountered during public

consultation phases, which can delay the ultimate operation of a new site. To develop a new landfill site, from the date of initial technical enquiries to commencing operation of a sanitary landfill takes roughly five years. The successful financing of the LFGE project has demonstrated the viability and profitability of such projects in Asia. By being the first successful project in this regard, KAWE MWE is recognised as a role model in the sector. Sindicatum has demonstrated the important role the private sector has to play in delivering social benefits through financing GHG abatement projects. The international investment community has seen that Thailand’s renewable policies can translate into tangible opportunities. Sindicatum has received a positive response from the Thai government and local communities and plays an active role in educating and sharing its experiences to maximize the impact for all stakeholders. Sindicatum’s Bangkok LFGE project demonstrates that environmental considerations are not at odds with economic ones, but can go hand-in-hand, adding significant value to all stakeholders. What is now required is more governments to show increased level of support with encouraging measures and attractive feed in tariffs. power insider july/august 2012 57

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MOBIL SHC PEGASUS

MOBIL SHC PEGASUS ONE OF THE WORLD’S FIRST ENERGY-EFFICIENT GAS ENGINE OILS

s demand for energy continues to grow around the world, the power generation sector faces several key challenges. Trends, including a rise in the number of installed gas engines and the installation of new gas transmission pipelines have arisen, as the industry strives to meet the growing demand for reliable energy supplies. The Mobil Pegasus product line is comprehensive and designed to handle the range of gas engine and feed gas types found in today’s energy operations. Mobil SHC Pegasus natural gas engine oils offer fuel efficiency benefits and excellent protection, leveraging leading lubrication technology IMPROVING FUEL EFFICIENCY Customers worldwide have benefited from the introduction of Mobil SHC Pegasus, in a range of engines developed by leading Original Equipment Manufacturers (OEMs) such as Jenbacher, Caterpillar and Waukesha. In France, Dalkia, Europe’s leading provider of energy services to local

authorities and businesses, monitored the energy efficiency performance of Mobil SHC Pegasus in a Caterpillar G3516 engine used for power generation. Energy efficiency was measured by dividing the power generation output in kW by the fuel flow rate multiplied by fuel heating value. The efficiency gain with Mobil SHC Pegasus over a two month period was reported by Dalkia as in excess of 1.5 percent, compared to a conventional mineral natural gas engine oil. Using breakthrough technologies, this new product optimizes equipment productivity and protection and is the first gas engine oil formulation on the market to deliver real energy saving potential. Extensive independent university laboratory and field tests have demonstrated that the product helps reduce fuel consumption by up to 1.5%. The unique 1.5% fuel saving offered by Mobil SHC Pegasus delivers the potential for reduced fuel consumption without compromising on performance, providing operators with the opportunity to be even more competitive in the market place, as well as improve their environmental footprint. In recognition of this fuel savings potential, Mobil SHC Pegasus has been awarded with Mobil Industrial Lubricants’ energy efficiency logo. A Win/Win Proposition for your Bottom Line “Building on our experience in supplying

the highest levels of lubrication protection and reliability in gas engines, Mobil SHC Pegasus provides an energy saving performance which is unattainable with conventional lubricants,” said Yan Côté, Global Business Development Advisor for ExxonMobil’s Lubricants & Petroleum Specialties Company. “In an industry where operating costs are high, emissions regulations are becoming more stringent, and engine reliability is so critical, this new product is yet further proof of ExxonMobil’s understanding of its customers’ needs and commitment to helping them achieve increased efficiencies without sacrificing the technology-leading performance of our lubricants.” The new Mobil SHC Pegasus formulation tackles maintenance concerns head on. Its excellent bearing protection capabilities and extended oil life are designed to provide optimum component protection. This, along with exceptional keep-clean performance, can increase engine and component reliability – resulting in reduced downtime and lower maintenance costs. Controlled field-testing in demanding gas compression applications has also shown that the new Mobil SHC Pegasus formulation delivers the potential for increased oil drain intervals of over 16,000 hours - three to four times that of conventional mineral natural gas engine oils. This can help reduce downtime as well as reduce the amount of waste oil generated. As the power generation industry continues to develop in Asia-Pacific and around the world, Mobil Industrial Lubricants will continue to support its customers in achieving their productivity and cost savings objectives For more information on ExxonMobil’s range of lubricants for the power-generation industries, or other Mobil-branded industrial lubricants, visit www.mobilindustrial.com

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shell biogas case study

Biogas and LuBricants sheLLâ&#x20AC;&#x2122;s PersPective praveen nagpal -global producT applicaTion specialisT (sTaTionary power engine lubricanTs) shell projecT and Technology The use of gas engines are seeing a sharp rise in asia, wiTh unconvenTional resources becoming a greaT opTion for decenTralized generaTion, can you Tell our readers abouT your experience of This secTor? Gas engines are becoming a popular choice especially for captive power generators as they provide greater flexibility for the user to manage

the critical load and subcritical loads of their plants. In addition, gas can often be a cleaner fuel compared to heavy fuels such as marine diesel. As a result, this can help operators reduce emissions, making it easier for them to conform to local environmental regulations. However the growth of gas engines has been restricted to those few countries where gas infrastructure and gas availability is good. For example, Pakistan, Bangladesh and Australia

where installations have grown up very fast in the last decade. This is in contrast to the two major global power consumers, China and India, where growth has been less significant, although this may change with increased investment in gas infrastructure in China. Whilst still relatively undeveloped, new sources of gas, such as coal bed gas, landfill and bio gas as well as imported LNG, may well play a significant role in the future in power generation. which applicaTion for gas engines do you anTicipaTe The mosT growTh in? The growth would most likely come from gas engines for IPPs and captive power generation as well as from gas pipelines which use engine coupled with gas compressors for gas transportation and distribution. Some countries,such as Indonesia, India and some in the Middle East, where gas infrastructure is not yet ready,areinvesting in dual fuel engines which provide them flexibility to operate in multiple fuels. In addition to this, many engine manufacturers are actively promoting engines for use in the landfill gas / bio gas area. increased efficiency and operaTional hours are very imporTanT facTors when selecTing lubricaTion, whaT would you say To end users ThaT are considering alTernaTive opTions following The oemâ&#x20AC;&#x2122;s firsT fill? Shell has developed the Shell Mysella range of gas engine oilswith three key concepts in mind: Better Oil life, Extra Protection and System Efficiency. For many years Shell has worked in close cooperation with leading engine manufacturers as well as end users to understand their needs and the problems that they face. In identifying options for the end user our, technical advisors will select a product based both upon the OEM recommendation as well as our knowledge about specific plant operating conditions. To support our recommendation Shell works with customers to developdemonstrated value records. These are real life examples of the value that Shell has created to both manufacturers and customers resulting from the use of our products and any associated services such as Lube Analyst for oil condition monitoring. The use of biogas from landfills is sTill a developing secTor, damage from siloxane has been well documenTed, how do you assisT in combaTing These negaTive effecTs on The gas engine? Biogas and landfill gas pose a different set of

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Oxidation & Mixing basin prior to outfall at Reliance Energy, 2 x 250MW Dahanu Thermal Power Station, Maharashtra, India.

challenges which includes deposit build up in the combustion chamber due to siloxane, acidic corrosion due to presence of halogenic compounds in the gas as well as acidic elements arising due to oxidation and nitration of oil. Understanding these challenges, Shell has two different products to offer: Shell Mysella S5 S, a low ash oil, which is suitable for less acidic biogases providing very long oil drain intervals because of its excellent oxidation resistance and sufficient amount of durable BN. The other product is Shell Mysella S3 Sfor installations running on highly acidic fuel gas. Mysella S3 S provides high acid neutralization capacity in the form of durable BN. Can you tell us about some reCent benChmarks that you have reaChed in the asian market plaCe and suCCessful projeCts where the mysella range is being utilized? The Shell Mysella range has a strong presence in all key gas engine markets in Asia including Bangladesh, Pakistan, and India. For example, the majority of medium speed gas engines installations run byWartsila and Rolls Royce use Shell gas engine oils. Shell is the biggest supplier of gas engine oils to one of the leading CNG suppliers in Delhi, India, which has more than 120 Caterpillar and Waukesha gas engines to drive their compressors at CNG outlets. After switching over to Mysella, the CNG suppliers saved more than $84000 thanks toincreased oillife and reduced filter consumption. MASCO Energy in Pakistan and AEICORP in India - two of the largest distributors of Waukesha engines - also havegreat experience with Shell Mysella Range Masco Energy: “Only Shell Mysella XL 40 has consistently delivered excellent performance over the past 4 years in all of our Waukesha engines. We have tested this oil rigorously in harsh environments and at thehighest cylinder pressures, as well as the highest exhaust temperate engines including. As a result we highly recommend using Shell Mysella XL in exclusively in all Waukesha engines.” AeiCorp: “As an authorized distributor in India for Waukesha engines, USA, we have seen the performance of this brand and trust that Shell Mysella will help in better maintaining the Waukesha Gas engine installed in various locations in India. Also our knowledge of this brand is used worldwide in various Waukesha gas engine applications.” what exCiting developments Can we expeCt to see from shell in

the future for high effiCienCy gas engines in asia? As mentioned earlier, the Shell approach is quite simple: Longer Oil Life, Extra Protection for equipment and consistent system efficiency is at the heart of the offer. In addition to developments to support bio & landfill gas applications, Shell is now examining the challenges created by next

generation, high output engines – the increased temperatures and pressures within these engines leads to greater deposit creation and reduced oil life. In 2011, Shell proactively tooksteps to future proof these products by introducing Shell Mysella S5 S for sour gas applications. Further advanced gas initiatives are under consideration by the business.

‘the shell approaCh is quite simple: longer oil life, extra proteCtion for equipment and Consistent system effiCienCy is at the heart of the offer. in addition to developments to support bio & landfill gas appliCations, shell is now examining the Challenges Created by next generation, high output engines – the inCreased temperatures and pressures within these engines leads to greater deposit Creation and reduCed oil life.’ power insider july/august 2012 61

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mae moh power plant

mAe moh power plAnt:

A room with A view

by Robin SamuelS, JouRnaliSt, pi maGazine aSia & VichaRn tanetSakunVatana, pRoduction depaRtment manaGeR. mae moh poweR plant pRoduction diViSion, eGat

his special issue continues our collaboration with EGAT, and also sees a new plant review feature as we take a tour in one of the largest lignite fired power generating facilities in South East Asia. Located in the Lampang province, in the northern reaches of Thailand, the Mae Moh plant is one of the more notable power generators in Asia, with a great story of tribulation, continuous expansion and consolidated effort by the state owned giant to effectively reduce emissions in consideration of neighbouring settlements. The plant was constructed in four phases from 1977 to 1996, as part of Thailandâ&#x20AC;&#x2122;s national energy development strategy to reduce the countries high dependence on imported fuel, by developing indigenous energy resources. Almost 30 years on and the impressive facility stands tall with a total installed capacity of 2,625 MW over 13 units. Each of the first three units has installed generating capacity of 75 MW with stack height of 80 meters. Units 4 to 7 and 8 to 13 each

have installed generating capacity of 150 MW and 300 MW, respectively, with stack height of 150 meters. The last two units 12-13 were brought into operation in 1995. Lignite used by the power plant to generate the electricity is excavated from the Mae Moh mine located adjacent to the power plant. Fifty thousand tons of lignite per day is used by the power plant. The average sulfur content in lignite from Mae Moh mine is 3% by weight on a dry basis. Sprawling across a total area of 135 square kilometres, mitigating emissions was always going to be a challenge with technology of the past. The incidenT and impacT on The mae moh valley Despite the huge role that the plant obviously plays in electrifying Thailand and ensuring a stable and steady supply, it has faced continuous opposition from neighbouring settlements and environmental corners

in relation to inevitable emissions from firing lignite. During 1992, in early October, the weather was changing from rainy season to winter season in Thailand; the first sulfur dioxide incident caused by the Mae Moh power plant was officially reported. The seasonal transition ensured that high pressure atmosphere moved from China toward Thailand causing the air around the plant to engross in the phenomenon known as the Inversion Layer. The maximum hourly ground level ambient SO2 concentration was observed at 3,418 mg/m3 (hourly average standard of SO2 is 780 mg/m3). Back then, there were only 11 units in operation with a total installed generating capacity of 2,025 MW. The episode occurred soon after Unit 10 and Unit 11 (600mw combined) were brought into operation, resulting in additional SO2 emission of approximately 160,000 ton/year. During the incident, large numbers of people living in several villages located downwind from the power plant sought medical attention for symptoms which included stinging nose and throat, cough, chest tightness, asthmatic attack, nausea, vomiting, dizziness, malaise and occasionally wheezing and shortness of breath. However, no death was reported. In addition to the reported health impact, damages to plantation and animals were also reported. The leaves of many trees, vegetable, and plants were reported to wither and fall to the ground overnight. There were also reports of livestock sickening and dying. The unfortunate events led to swift actions by EGAT to pioneer Thailandâ&#x20AC;&#x2122;s first multi-unit FGD configuration.

by Rachael GaRdneR-StephenS

Fig 1. The Mae Moh power plant

long Term measures In order to solve the problem completely, the cabinet approved the additional installation of FGD system for units 4-7 of Mae Moh. Environmental responsibility had led EGAT to investigate retrofitting FGD systems at units 8-11, a complex feat for any global engineering contractor, this process was already under development at the time of incident. Unit 12-13 fortunately had an FGD system installed during the construction of the power plants. Mae Mohâ&#x20AC;&#x2122;s beginnings as a power plant at

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‘eGat’S mae moh poweR plant, haS undeRtaken a continuouS Study of the enViRonmental impact Since inception in 1977, to neutRalize the neGatiVe impactS of buRninG liGnite and to keep them within the StandaRd Value of the official of natuRal enViRonment’boaRd.’ Fig.2 Lignite Consumption at Mae Moh during 2011 unit 1 – 3, was coming to the end of its lifecycle and retrofitting to accommodate and operate FGD would simply not be cost effective. So in compromise and consideration of the environment the power plant unit 1-3, now only operates under clear and favourable weather conditions. shorT Term measures To keep The doors open The long term measures were clear in strategy and expected results, but since the installations of the FGD units 8-11 were under construction and would not be complete until 1998, EGAT had given a strict set of rules for the plants to operate during winter periods of 1993-1997 to alleviate the problems that will affect the health of locals. The plant’s capacity should be reduced under the unfavourable weather condition. (Between 1AM12AM in 1993-1994 and 6AM-1PM in 1994-1997, the capacity was reduced to 700-1000 MW range) The plant’s reparation (minor inspection/major overhaul) should be scheduled on winter period. Mae Moh mine should stock up low-sulphur lignite (less than 2% sulphur) for using under the unfavourable weather condition during the winter of 1993-1997, and stock up on lignite that contains sulphur percentage of less than 1% from the external sources such as Lanna Lignite Co., Ltd., Banpu Public Co., Ltd., Chiang Muan Mine Co., Ltd. and Chaitharin Ltd, all for using during the winter of 1994-1997. Operator should switch from general diesel to low percentage-sulphur diesel (0.5-0.6 percent sulphur) in an emergency situation whereas at least one of the pollution monitoring station shown that the concentration of sulphur dioxide (SO2) is rising. Air quality monitoring system should be improved into Real-time Air Quality Monitoring and link its result to power plant’s control room (8 stations in total before November, 1994, and up to 12 stations after November, 1994). Equipments for monitoring air quality and meteorological instruments should be purchased and installed properly. Currently, there is 12 continuous emission monitoring stations in total.

cooperaTion from overseas & heavy invesTmenT EGAT’s Mae Moh power plant, has undertaken a continuous study of the environmental impact since inception in 1977, to neutralize the negative impacts of burning lignite and to keep them within the standard value of The Official of Natural Environment Board. In 1990, EGAT had already planned to install wet type FGD systems for units 12-13, which have the efficiency of eliminating approximately 92% of harmful sulphur dioxide. The installation of FGD units 12-13, went successfully along with the construction of the plants, which were commissioned later in 1995. The technology installed to effectively monitor emissions has been world class with respect to air pollution control and combustion optimization, all thirteen units have electrostatic precipitators for particulate removal with control efficiency of 99.9%, and low NOx burners are used to control emission of nitrogen oxides. As for responsibility surrounding sulphur dioxide, EGAT instantaneously decrease power generation when sulphur dioxide concentration

is higher than standard value in the Mae Moh valley. In addition, EGAT also hired KBN Engineering and Applied Sciences, Inc. from America to monitor and analyze the data of the environment surrounding Mae Moh power plant. At the same time, Pollution Control Department also co-worked with EGAT, while having budget supported from United States Agency for International Development (USAID), and Sargent & Lundy Engineers Corporation were hired to undertake the “Development of System Wide Emission Control Strategies Application to Mae Moh Power Plant” project. This study concluded that the optimized standard value of sulphur dioxide concentration for Mae Moh power plant should be 1,300 microgram per cubic meter per hour, and installation of wet type FGD system for units 4-7 should be undertaken. During November 1999, units 1-3 were shut down, and configured to operate on a cold stand by basis; this was mainly because of the oncoming expiry date and the unit’s small size, which wasn’t worth the installation and operational investment of FGD. The units are now demolished.

Fig.3 Ambient Sulfur Dioxide levels in the Mae Moh valley over a 20 year period power insider july/august 2012 63

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mae moh power plant limestone silo through limestone unloading conveyer and bucket elevator in the respective order. The limestone enters the ball mill through the weigh feeder, which can vary its speed according to the amount of limestone need to be crushed. The ball mill contains a large number of iron spheres in different sizes, which consists of 63.5 mm, 50.8 mm, 38 mm. and 25.4 mm. spheres. The ball mill rotates through a 6.6 kV electrical motor source and limestone is crushed whilst being mixed with the grinding water. The crushed limestone has a smaller size and flows out from the mill along with grinding water through trommel screen, a cylinder used to separate material by size, into mill recycle tank. This limestone solution is referred as Reagent which is diluted by adding dilution water in order to maintain the concentration of reagent in the mill recycle tank between 50-55% solid by weight. Fig. 4 Mae Moh Generation Statistics 2011

Began construction

finished construction

started up

unit month

year

month

year

month

year

May

2000

December

1999

November

1997

656.00

September

1997

656.00

April

1998

656.00

February

1998

656.00

May

1995

1,081.00

September

1995

1,081.00

1,160.506

5 6

October

1997

November

1999

7 8 9 10

November

1994

April

11 12 13

investment cost (million

October

1993

1998

1,160.506

Figure. 5 Detailed Data of Flue Gas Desulfurization Installation Time/Cost at Mae Moh mae moh weT fgd sysTem Wet flue gas desulfurization is installed on Mae Moh for units 4 to 13, this FGD process can be divided into 3 major subsections as described below; 1. Reagent Preparation System 2. Absorber System 3. Gypsum Dewatering System

Fig. 6 Iron Spheres used in crushing process

reagenT preparaTion sysTem Wet FGD unit 4-13 are use limestone (calcium carbonate; CaCO3) from a limestone mine, which is located in the adjacent area behind Mae Moh power plant. Generally the purity of the limestone used varies within the range of 90-99%. Limestone is transported by truck for weighing at the load cell station. It is then dispatched for storage in the

Fig. 7 Hydrocyclone & Reagent Tank

aBsorpTion sysTem Absorption system is the most crucial part of the FGD system for removing sulphur dioxide. This system consists of an absorber tower for absorbing SO2, a tower with 15 meter diameter and 27.7 meter height. Reagent is filled into the absorber sump along with process water and gypsum, becoming seed slurry while carefully controlling its pH between 5.0-5.5. Slurry dwell within absorber sump is circulated by the absorber recirculation pump; there are 5 pumps in total in which the slurry is sprayed through spray headers on the 5 respective levels of the tower. Each header composes of nozzle spray headers so that the sprayed slurry covers the entire layer. With the flow rate of nozzles and the gravitation force, sprayed slurry falls to the sump while absorbing sulphur dioxide gas flows in the opposite direction. Slurry is then pumped and sprayed over and over again, known as recirculation. When high temperature flue gas, (approximately 169oC), flows from the boiler through heating elements of the gas-gas heater the temperature is reduced to approximately 130oC. Then, upon entering absorber tower, flue gas will exchange its heat again with slurry sprays from spray nozzles until its temperature reduces to saturated point about 61oC. From this point, sulphur dioxide mixes within flue gas and is dissolved by slurry mixture becoming sulphurous acid, reacting with limestone result in gypsum crystalline. At the same time, flue gas flows through sprayed slurry from nozzles while SO2 is being absorbed. As it reaches the highest part of the absorber tower, water droplets which flow along with the clean flue gas are trapped by 2 layers of mist eliminators. This way only dry-clean flue gas is be able to reach the outlet side of the GGH and have its temperature heated up (from 61oC) to approximately 90oC. There’re 2 advantages of heating the clean gas; one is to reduce dew point rate and another is to help flue gas flow easier. Before flue gas reaches the stack, it needs to pass a long route of ducts, GGH and the absorber system, which all contribute to dropping pressure. To compensate all the draft loss incurred, booster fans are needed to be installed at the outlet side of FGD, between the reheating side of GGH and the stack, to increase the pressure of flue gas

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S a

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●E ●G ●F ●G

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●D ●W M ●O ●A ●V ●F ●T

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Solutions for Optimal Combustion and Emission Monitoring Igniters/Pilots/ Burners

Boiler Instrumentation

Video-based Thermography

● Electrical Ignition Devices ● Gas and Oil Igniters ● Flare Igniters ● Gas Burners

● Flame Sensors ● Control Units ● Flame Monitors ● Burner Controls

● On-line/real-time video imaging of the combustion process (Furnace Camera) ● On-line/real-time analysis and display of the temperature distribution in the combustion area (Thermography)

Flow (dry) D-FL 100 Flow (wet) D-FL 200

Video based Thermography

Dust (dry)

D-R 800

D-RX 250

Dust (wet) D-R 820 F

Coal Turbines

Generator

DeNOX

Boiler

Mercury

Desulfurization

D-VTA 200 Mill

D-R 290

D-R 300-40 F-904

HM-1400 TRX

Cooling Tower

Precipitator

Stack

Air

Igniters D-HG 400 Retraction Units D-VE 500 Ignition Burners, Warm-up Guns HEGWEIN

Flame Monitoring D-UG 660 D-LE 603 D-LX 200

Internet D-EFUE.www

Authority

D-EMS 2000 Environmental Data Management

Emission Monitoring

Environmental Data Management

● Dust Concentration Meters ● Wet Stack Dust Concentration Meters ● Opacity Meters ● Ambient Particulate Monitors ● Volume Flow Meters ● Filter Monitors ● Total Mercury Analyzers

● Capturing, storing and evaluating of environmental data ● Emission data, immission data, waste water data, meteorological data, process conditions, time diagrams, correlation diagrams

www.durag.de Kollaustrasse 105, 22453 Hamburg, Germany · Tel. +49 40 55 42 18-0 · email: info@durag.de Companies and Branch Offices in Brazil, China, France, India, Italy, Japan, Korea, Netherlands, United Kingdom and USA

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mae moh power plant

Fig. 8 Recirculation Pumps for spray nozzles before it is released to the atmosphere. After the sulphur dioxide mixture within flue gas passes through the absorber tower, limestone concentration of the slurry is reduced to its forward chemical reaction, which is gradually consume limestone reagent. This can be observed from the pH value of the slurry; once the reaction moves forward, slurry’s pH value is reduced relevant to the amount of limestone consumed. There is a control valve, which receives the feedback from absorber sump, and adjusts itself to an appropriate degree, for precisely controlling the amount of limestone fed to balance the pH within its appropriate range. However, as the reaction progresses, the amount of gypsum crystalline within absorber sump is increased along with the slurry’s density. The gypsum bleed pump is activated to bleed out the gypsum for maintaining the density of the slurry. dewaTering sysTem The final products from the FGD process are gypsum and carbon dioxide while having limestone, sulphur dioxide, oxygen and water as reagents for the reaction. As mentioned at the end of absorption system, gypsum mixed with the slurry is bled out via a gypsum bleed pump, to a Hydrocyclone, the device which separates gypsum from limestone reagent. Limestone, the lighter substance, overflows from the Hydrocyclone by centrifugal force then return to absorber sump for reusing again in the absorption process, while gypsum, which is heavier, falls down from the Hydrocyclone (underflow) to a local

Fig. 9 Absorber Towers gypsum slurry tank. This process between gypsum bleed pump and local gypsum tank can be referred as the primary dewatering system. Upon entering local gypsum slurry tank, gypsum crystalline mixing with the water has density controlled between 50-60% solid by weight, for example. As for the last process, secondary dewatering system, water is drained out from gypsum and drawn downward through the filter. The main components of this process are: a dewatering belt filter, a belt which stretched up by head and tail pulley which driven by motor drive through speed reducer. Along the belt’s length, there is a horizontal groove which houses a large number of 1 cm.-hole in the centre. These holes are connected to vacuum trenches which are lined up under the belt, from the head to the tail of belt filter. The water separated through vacuum belt is stored at filtrate receiver tank. After gypsum slurry arrives at the dewatering belt, water is drained out of the slurry along with the air through the porous surface of filter cloth into filtrate receiver tank. Then, only dry gypsum remains at the end of the belt. The water which is separated from gypsum slurry in this process is referred as reclaim water, for recycling and then is reused again in the system. Reclaim water is stored within the reclaim tank which is later used in absorber tank or the ball mill process. The installation of these advanced air pollution control technologies have been a significant investment, but many are unanimous in their benefit. They have allowed Mae Moh to continue operation at full capacity which has subsequently

been a significant factor for stabilizing the grid in Thailand. Official monitoring and reports from the Pollution Control Department indicate that S02 levels surrounding the plant on a yearly average are significantly lower than those of Bangkok, which is an indication of how far EGAT’s major lignite fired facility has come. As population grows and the summer demand increases through Thailand’s notoriety as a popular tourist destination, Mae Moh’s importance is ever present. replacing aging uniTs and keeping up capaciTy Units 4-7 are rapidly approaching expiry which means a significant loss of 600 MW for the Thai grid. The decommissioning period has been noted by EGAT for some time, and subsequently they have had a contingency plan in place, announced officially with the Thailand Power Development Plan 2010. To replace the aging units, a brand new plant will be installed at the site, utilizing the most advanced and high efficiency technology. Feasibility is underway, as the proposed plans are currently in the midst of rigorous environmental health impact assessments. The plant will consist of a Lignite-fired Supercritical Pressure Boiler, Steam Turbine Generator, Electrostatic Precipitator, Flue Gas Desulfurization and Selective Catalytic Reactor for De-NOx. EGAT are aiming for a commercial operation date in January 2017, and the lead contractor is expected to be announced in the following months so please keep tuned to PI Magazine Asia for details of the selected vendor.

Pr Fig. 10 Vacuum belt filter for gypsum separation

D 1 F T E

Fig. 11 Average yearly S02 concentration - Bangkok vs Mae Moh

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durag case study

Lignite Fired BoiLers FLame scanners and thermaL anaLysis By Roland Zepeck, dURaG GmBH

introduction: Lignite creates special challenges in and for firing systems for boilers. The quality and efficiency of firing systems and the associated operational availability of boiler plants and steam generators is essentially depending on the optimal mixture and dosing of fuel and combustion air in the entire combustion zone. Disturbances of the local fuel/air ratio can result in localised combustion areas with too low combustion temperatures and high formation of soot and clinker. Especially with high content of Calcium clinkering is becoming a major problem, more so, if it is combined with high flame unbalances creating overheating (and possibly liquefaction of the clinker). Other problems include the creation of localised combustion areas with incomplete combustion, associated with the production of high levels of CO. High flue gas losses can also result, along with high amounts of unburned carbon (UBC) or loss of ignition (LoI).Furthermore, variations in the fuel/ air ratio can cause local displacement of the main combustion zone compared to the design position, local under- and overheating of boiler construction material and finally, high temperature corrosion and thermal stress combined with boiler tube ruptures, as well as loss in temperature gradient due to clinkering and sooting.

overheating), it must be possible to adjust two firing parameters individually. These are the uniform distribution of fuel according to the design data and secondly, control of the combustion air distribution over the entire combustion zone. Receiving reliable information about the actual thermal situation inside the firing zone is essential in order to be able to achieve these targets. In only a few power stations the operator can have a look inside the firing room, but often limited to a video image with almost no information about the thermal distribution. To receive extended information about the combustionâ&#x20AC;&#x2122;s quality an online/real-time analysis of the actual firing situation is mandatory and has to deliver information regarding the local position of the main combustion zone, flame temperature distribution, local flame propagation, the ignition point of the flame, and the presence of any local fouling.

challenges: To achieve the highest safety level for the combustion the installed flame scanners have to be capable of detecting the flames selective with high accuracy and reliability. In addition the scanners have to have a wide range of sensitivity to scope with different load situations in the boiler, as well as to be capable to adjust to higher levels of fly ash, which might cover-up the clear view of the flames. For an optimal control of the combustion process (and therefore reducing the clinkering and 68 july/august 2012 power insider

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solution: DURAG’s Flame Detection Systems (SIL 3 Certified) are safety devices to ensure the safe operation of the boiler. They are not only capable of detecting flames either in the UV, VIS, or IR range (selected depending on the fuel burned), but also can withstand high ambient temperatures and dirty atmospheres. They can be mounted in any position with or without optical fibre connection to the flame to ensure high selectivity of the detection. Information on the individual flame scanners and burners detected are available as bar graph diagrams in the control room. The furnace CCD-camera sensor of the DURAG Video & Thermography System on the other hand is a device giving detailed insight into the combustion area and therefore providing valuable and essential information about the thermal situation inside the boiler and at the boiler walls. The online information assists the operator in adjusting the complete combustion process optimally. The system provides a real-time colour video image as well as a real-time online thermographic analysis of the temperature distribution inside the combustion chamber. In addition to the video image the system provides

methods for the thermal analysis of the spatial temperature distribution inside the combustion chamber. It can determine the temperature within freely definable areas and lines (Region Of Interest ROI, and Line Of Interest - LOI).The system is also capable of continuous parallel temperature analysis in all ROI’s with continuous display of the absolute temperatures on screen. Other capabilities include the ability to perform continuous temperature analysis along all LOI’s with continuous display of the absolute temperature profile through the combustion chamber and the detection of the actual thermal position of the combustion zone. For automatic closed loop control measures, all the data generated by the thermographic systems can be transferred to the main process control system (DCS)at the customer site through a standardised data interface. To guarantee the largest and unobstructed observation range the sensors along with their optical systems are continuously moved into the combustion chamber, withstanding temperatures up to 2000°C. The number and location of the places where they are installed depends on the specific nature of the monitoring task (e.g. of single burner, elevations, combustion

chambers), the measurements of the combustion chamber, the firing belt and plant specific options. Because of the large viewing angle typically one or two furnace sensors are fully capable of visualising and analysing the entire combustion chamber. ApplicAtions And results Online monitoring of the flames with flame scanners is indispensable for a safe operation of boilers. DURAG flame scannallers, are performing this task in any application, successfully also demonstrated at Mae Moh Power plant in Thailand. DURAG’s Video &Themography System has been installed in more than 250 applications worldwide; among the most successful installations are multiple ones in lignite-fired power plants of EPS Obrenovac in Serbia. Amongst the successful highlights of these installations is a significant increase in expected overall lifetime as well as travelling time of the boilers due to better thermal control of the boilers resulting in reduced sooting and clinkering, much faster start-up after shutdowns, and a return-on-investment period of less than six months.

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mae moh generator at unit 4

EGAT: ProblEms + soluTions for mAE mohâ&#x20AC;&#x2122;s GEnErATor AT uniT 4

ur study into the behemoth power plant with EGAT continues, taking a close look at the service history and physical characteristics of the Generator at Unit 4 following deterioration of the insulation system. Mae Moh has a number of units that are due for decommissioning, fast approaching the end of their life expectancy and the plant has been no exception undertaking a considerable amount of work throughout its lifetime. With a new 600 MW plant currently going through EHIA assessment, maintaining optimal output and availability in the operational units is vitally important for the Thai grid. Mae Moh Thermal power plant unit 4 has a hydrogen cooled generator from Fuji Electric Co. Ltd. Starting commercial operation in 1984, some of the key statistics + operational parameters are below:

Data Description

Unit

Value

Output Power Rating

MVA

167

Voltage (U)

13,800

Current (I)

6,987

Power Factor

0.9

Frequency

Hydrogen Pressure

Bar

Data Description

Unit

Value

Speed (n)

3,000

RPM

No. of poles

pole

Excite Amp

2,480

Manufactured

Year

1982

arrangement are in relatively good condition for a generator which operated for over 27 years, and generally has been without the contamination of dirt and oil. A recent discoveries for the Stator bar after the demolition of the Stator wedge, was Slot Partial discharge for the ground wall insulation, but surprisingly the semi conducting paint condition turned out to be good. The abrasion and greasing compound for several positions at end winding level is not severe enough to cause damage to the Generator and the problem has been reported that investigators first found in 1986 for the joint crack at weld cotter has been modified. The results of this test, the Top ripple spring remained firmly in the Re-wedge 100%. As for removing the rotor, the condition Crack the Wedge Ripple spring is 7.5%, indicating that the deterioration Ripple spring and about 40% found

the Abrasive powder, which is assumed to friction with the Filler. The physical characteristics of the various defections mentioned do not appear to present any obvious deterioration to indicate that the Generator is unable to continue operation. The degradation is normal and could be found for a typical generator. During operation period, it should be continually scheduled for inspection and maintenance by specialist entities and key areas to consider include monitoring abrasion and the end winding, to check the crack of the welding on the cotter and check & clean the oil residue. During major overhauls and minor inspections, the leakage of oil needs to be limited and can be retained within the End winding, walking should be avoided on the cyclic operation to reduce the deterioration of the steel structures and components.

Excite volt V 215

Serial no.

KV69044L1

At Unit 4 of Mae Moh Power Plant, the insulation life expectancy of the stator winding has been estimated several times since 2004, as a result of the condition of the insulation, the life expectancy has reduced significantly. There has been continuous electrical testing at the time of each use, but presently the electrical re-testing and physical examination had no sign of severe deterioration. The main components of the Stator and Rotor 70 july/august 2012 power insider

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mae moh generator at unit 4 Maintenance History of Mae Moh Generator Unit 4 Month/Year

Service Type

Work Undertaken

SEPTEMBER 1985

Warranty Inspection

Hair line crack on seal ring inner surface => replace with new seal ring - Locking screw at rotor wedge are loose => re-tightening and punches lock

SEPTEMBER 1986

Yearly Inspection

-Abrasion of the end winding scattered between Bottom coil and coil support and the spacer between the coil (the TE is greater than the EE).

DECEMEBER 1990

Major Overhaul

- Abrasion of the End winding positions (in the TE and the EE)

TE (the EE and Cotter no.1, 2, 4, 11, 13, 15, 21 and the TE and Cotter no.4. , 11, 13). Joint verification experiment of position by Cotter crack weld (for the real estate division - F) showed crack marks on the EE and TE = 8 points, 3 points (including the EE Cotter no. 1, 2,. 4, 11, 12, 13, 15, 21 and the TE and Cotter no. 4, 11, 13).

Fig. 4 Crack at Stator Cotter test with PT FEBRUARY 1998

Major Overhaul

- Abrasion were found at End winding * Coil end of the EE with the Involutes spacer, 3 points; ** The coil end (TE) and Involutes spacer 47 points, the Coil end and strain block 40 points. - Sleeve of through bolt no.6 were cracked ( 2 cm length)

5) Stator slot wedge/ Ripple spring/ Stator bar Inspection: Visual inspection after Stator slot wedge dismantling, discovered that the conductive paint is normal, but the stator bar found slight partial discharge.

- Insulation resistance of through bolt no.6 &12 are 0 MΩ => solution is cleaning/dry out and paint with Epoxy resin - The crack along the TE Cotter no.1, 2 and the point B and the Cotter no.2 A => fixed by wire trace and a new crack. Re-wedge to make a ripple spring clean> by the pitch of top ripple spring deflection between 0.15 - 0.35 mm - Locking screw at rotor - circumference of coupling hole between Rotor and Exciter were found arcing => solution ; replace Insulation at bearing pedestal no.7 with new material (Bakelite -> Glass epoxy laminate ) DECEMBER 2003

Minor Inspection

- The Abrasion Phase ring support at the 1-3 o’clock and 9-11 o’clock positions EE => cleaned and repainted with Epoxy resin.

JANUARY 2005

Minor Inspection

- A crack was found at the welding joint of Cotter no.4

Fig. 5 Stator bars in slot portion are normal 6) Ripple springs out of wedge numbers. 2-13 have a large amount of pieces with cracks (7.5%) and approximately 40% (320 pieces of 792 pieces) with abrasive powder to the ripple spring.

- Replace The Bushing phase U1 with new bushing S / N. AD18852-01. Abrasion of the EE and Phase ring support with 4 Coil end of the TE and the Support bracket with the number 3 spot => fixed by cleaning and recoating with Epoxy resin. FEBRUARY 2008

Minor Inspection

Abrasion of the Phase ring support its EE 6 points => edited, cleaned and repainted with Epoxy resin

The most recent major overhaul took place between the 11th of June and 10th of July in 2012. Maintenance Major Overhaul Generator MM-T4 included a rotor seizure. The performance statistics, work undertaken and results are summarized in the paragraphs below. Inspection undertaken during Major Overhaul The following comments and images show the results of deterioration and status of physical features of the generator properties through key areas such as the insulation system on main components of the Stator and Rotor. 1. Stator end winding bracing system inspection. Abrasion was found between the parallel ring support and parallel ring (exciter end) 9 of 12 points.

2)Abrasion & Grease were found between Coil support and Support bracket at exciter end and turbine end.

Fig.2 Abrasion and greasing compound at Coil support and Support bracket

7) Although the test by the collapse of ripple spring is in the way 100% of the demolition wedge find conditions crack the ripple spring is 7.5%, the ripple spring deteriorated and powder was found in 40%. It is expected that due to friction with the material glass fiber reinforce Filler, which is lighter than the ripple spring and slot wedge into the powder glass epoxy material with a specific aspect to the filler ripple spring only. The friction traces of the wedge and filler as a result of Electromagnetic force the stator bar bouncing.

3) Abrasion and greasing compound by electrical cleaning solvent. Paint epoxy resin was applied in order to reduce the abrasion. Fig.7 Assembly of Stator slot wedge, Taper filler, Ripple spring and Filler strip

Fig.3 Greasing compound at Coil end spacer Fig. 1 Abrasion on exciter end of Parallel ring Support

Fig. 6 Crack of ripple spring (left) The crack of Ripple spring with abrasive powder. (right)

4) Visual inspection outside the boundaries of the Cotter Crack the EE by 7 points, 3 points of the

8) Stator core back inspection: Following discovery of a significant amount of dust, the inner casing and core back were cleaned with an air blasting and vacuum for dust collection

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Fig. 8 The difference of Glass fiber reinforce (Left), Glass epoxy laminate (Right) 9) Rotor Inspection found that the general condition of the rotor is good, with a slight layer of dust on the Rotor body, Retaining ring and Rotor end winding.

Fig. 9 Stator core back to normal after cleaning

Fig. 10 Retaining ring, Blower blade, Blocking spacer and Rotor end winding had no major discrepancies

Fig. 11 Rotor body, Ventilation holes, Rotor wedge, balancing wedges and Punch lock are in good condition

electrical test results: • Stator electrical test: • Insulation resistance test @ 5,000 Vdc. • DC. Resistance test, Impedance test, Capacitance test • Insulation power factor measurement • Rotor electrical test: • Insulation resistance test @ 500 Vdc. • DC. Resistance test, Impedance test, Capacitance test • (both Stator and Rotor are normal) • El-CID test: Stator Core were not found to have any short turn of core laminations. analysis and summary of the overhaul Abrasion and the greasing compound found in various parts of the end winding are characterized by the deterioration of an existing problem. The history of maintenance since 1986 onwards shows the reoccurring effect of the abrasion. The banding tape at the end winding and support need cleaning and painting with epoxy resin. This can potentially slow the vibration effects over a given period, but will not eradicate it. The problem will not reoccur, if it is alleviated by strengthening the banding tape. It takes longer to repair and to study the natural frequency. However, the abrasion is also classified as a level of deterioration that is not severe in relation to operation of the generator, the epoxy resin will be applied for reinforcing every time. The cracking issue at the cotter weld joint is a recurring problem. PT Tests are capable of detecting crack traces better than the visual inspection. So an effective check with the PT test, should be considered with priority in terms

of maintenance. 100% Re-wedge will make this more stable and will improve the strength of the structure. EGAT Recommendation for future work on Generator MM-T4 Abrasion and Corona at Stator end winding zone are not terminal, but it should be followed and fixed every shutdown. Cotter cracking problem is a recurring problem. Be sure to find crack in every overhaul and dye penetrates test for all Minor inspection should be monitored. Ensure walking on the cyclic axial expansion, to escape changing the structure of the Stator core. The greasing compound stains caused by dirt and oil at the end winding, should be protected by limiting the leakage of lube oil into the end winding and have to be inspected and cleaned at all times during the End winding minor inspection and major overhaul.

‘AbrAsion And the greAsing compound found in vArious pArts of the end winding Are chArActerized by the deteriorAtion of An existing problem. the history of mAintenAnce since 1986 onwArds shows the reoccurring effect of the AbrAsion. the bAnding tApe At the end winding And support need cleAning And pAinting with epoxy resin.’

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Maser Quartzelec case study

Mission: CritiCal the CorreCt MaintenanCe of high voltage rotating MaChines

here are two key reasons behind the criticality of implementing and adhering to a strong strategy for the correct maintenance of rotating power generation plants. First, such equipment is undoubtedly missioncritical. Whether generating electricity for a national grid or any type of manufacturing or processing; loss of productivity, customer confidence, reputation and revenue is the likely outcome of failure. Second, the very nature of the equipment means that it is naturally prone to wear, degradation, reduced efficiency and ultimately, failure. Any organisation that leaves the wellbeing of its equipment to chance or unqualified personnel is, quite simply, inviting trouble. The only real option is to employ a specialist company who can cover every facet of maintenance and – of equal importance in today’s economic conditions – extending the life of rotating equipment. In South-East Asia, one of the key providers of such services is Maser Quartzelec Services SDN BHD, headquartered in Kuala Lumpur and operating across the region. The ISO9001:2008accredited organisation is a joint venture between

Maser Group – one of the major players in oil and gas, power generation, water and services industries in the region for the last 28 years – and Quartzelec, one of the world’s leading maintainers of rotating capital plant with a comprehensive portfolio of services designed to ensure availability, increase efficiency and reduce operating costs. Their combined expertise, together with a network of regional offices and workshop facilities, gives Maser Quartzelec the capability to provide seamless regional and world-wide support. State-of-the-art facilities and equipment, the latest technology for on-site and workshop testing, balancing and machining, the most advanced materials and components for service and refurbishment and the most skilled manpower give the company the unique capability to repair, reverse-engineer or where required, re-manufacture equipment of any size. An Holistic ApproAcH to MAintenAnce Carried out professionally, a regular, structured maintenance regime offers numerous benefits. It keeps equipment at peak reliability and working at

maximum efficiency in order to provide seamless service, reduces lifetime costs, helps minimise the risk of safety or environmental issues and maintain revenues and reputation. It is normally also required for insurance purposes, as well as simply giving plant owner/operators peace of mind. Maser Quartzelec adopts this holistic approach, encompassing planned maintenance based on operational hours, preventive maintenance which anticipates the occurrence of unplanned outages, immediate breakdown response and work to extend the working life of the equipment. lifetiMe cAre … And beyond Assuming a working life of 25 years for a large 2-pole generator, a viable and economically effective strategy would be based around six year planned maintenance cycles. The number of maintenance periods differs from steam to gas-powered equipment, but the same principles apply. Minor, non-intrusive electrical and mechanical testing should take place annually or every 8,000 hours whilst the gas turbine is stopped for its annual two-day

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Maser Quartzelec case study combustion inspection. The generator is inspected by borescope and HV testing is carried out offline. At three year or 24,000 hour intervals, when the turbine’s hot gas path inspection is being carried out, a more intensive inspection of the generator is conducted, usually including removing the upper endshields. The typical outage period is around 12 to 15 days. During major turbine overhauls at six-yearly or 48,000 hour intervals, the rotor is normally withdrawn from the generator as part of a major, month-long inspection. For steam generators, the cycle comprises of two, rather than three inspections. At the end of the 25 year, 192,000 hour period, suitability for extending the machine’s life can be assessed – a scenario becoming increasingly commonplace as budgets are stretched and expenditure required in alternative areas of the generation and transmission infrastructure. Typical condition assessment testing at this time involves EL CID and full flux tests on the core, partial discharge, tan delta, HV and TVA probe testing on the stator winding and wedge tightness, end-winding vibration, resistance test (IR and direct measurement), and corona protection testing on the stator’s insulation system. The rotor is subject to NDT of retaining rings as well as resistance, RSO, impedance and exciter checks. If considered economically viable, refurbishment may well include fitting a new stator core and rewinding the rotor. The majority of this work could be carried out on site. Hydro-generation plant refurbishment, also, is intended to maximise life by replacing aged components. New generator stators can be built in the loading bay of the power station itself and tested whilst the plant is running. When the new wound stator has been tested, the first machine to be refurbished is stopped and the old stator is lifted from the pit and deposited outside the power station. The new stator is placed into the pit and the rotor then removed to refurbish or fit new field windings. During this period the turbine work is undertaken. After refitting the rotor and once re-commissioned, the old stator is brought back inside the station to have the old winding and laminations stripped and frame checked. Provided the frame is in good condition, it is re-cored and rewound in readiness for the next unit’s refurbishment. At the end of the whole process, the customer has a spare frame that could be used for future refurbishment. why Taking an inside View is ViTal The most effective form of cure is prevention. Regardless of the frequency and duty of a generator or its operating environment, one thing is certain; the routine thermal, electrical and mechanical stresses it is subjected to will cause wear and tear leading to overheating or corrosion. This, in turn, will ultimately result in failure ranging from the inconvenient to the catastrophic. However, between the periodic inspections and overhauls described above, it is very difficult to determine what is happening internally, especially when the equipment appears to be functioning perfectly with no outward signs of wear or degradation in performance. To address this, Maser Quartzelec has introduced its proactive, real time, on-line condition monitoring solution into the maintenance equation, not to be confused with traditional predictive maintenance

measuring changes in condition against a set of baseline parameters, established at the time of the Lifeview® installation. Sensors measure deterioration caused by thermal, mechanical, ambient and electrical stresses, enabling immediate and ongoing analysis and assessment. Identification of a defect indicates that the failure process has already commenced. The system can be configured to monitor partial discharge, rotor, endwinding vibration and temperature, exciter and exciter temperature and mechanical vibration. Uniquely, the generator is monitored during operation rather than using load simulation or modelling techniques – so total accuracy and integrity are assured. Monitoring and analysis is carried out on site via LAN or remotely via webbased interface, or Maser Quartzelec can provide 24/7 remote monitoring as part of a managed service or long term service agreement. The sensors can be easily installed either on new machinery or during one of the maintenance shutdowns.

solutions which do not predict failure. Via a series of sensors installed on key components of the generator, a monitoring hub for data acquisition and our advanced software, the system monitors various condition parameters so that significant changes can be detected and interpreted as indicators of developing failure. Analysis is supported by a vast database of diagnoses carried out by the company over many years of supporting rotating electrical equipment. Because early-stage intervention is always preferable to leaving the machinery to fail, fitting Lifeview® allows maintenance to be scheduled in advance, before the deterioration becomes so serious as to cause equipment failure with its associated high costs of outage, lost production, disruption, repair and reputation. It is a key component in reducing total cost of ownership over the lifetime of the machine. The health of the machine is monitored by

a sTrong Track record Maser Quartzelec has an impressive track record of worldwide achievement, stretching back many years. Major overhauls and inspections, reverse engineered solutions, refurbishment including, stator rewinds, re-cores and upgrades, diagnostic testing and life extension programmes are all routine procedures carried out by its own highly qualified and experienced workforce. The company can demonstrate strong regional credentials too. Recently, for example, it unusually took on the dual roles of contractor and owner’s engineer – looking after a 220MW generator in Thailand which had suffered stator bar failure. The project included inspecting and signing off a stator rewind carried out by another company, accepting the new stator bars on behalf of the owner and then supervising installation by local engineers. Few, if any, HV generating equipment maintenance providers can offer such a complete service as Maser Quartzelec, backed by worldwide experience and technological leadership.

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cyber crime

CYBERGEDDON: THE DAWN OF A NEW AGE OF WEAPONRY BY RACHAEL GARDNER-STEPHENS

he consequences for developing cyber weapons cannot be exaggerated. With some experts likening their development to the arms race of the Cold War, industry insiders should be left in no doubt of the chilling reality of what cyber weapons can do. The Internet and computer software, like dynamite or nuclear power, is a useful technology with enormous potential for good transformed into something exceptionally dangerous. Computer viruses have existed for years, plaguing computer users and providing fodder for IT specialists. The last five years, however, has seen a massive escalation in their use. Hacktivists and cyber terrorists have tapped into a niche in the weapons market and rapidly developed the effect of computer viruses, culminating in the release of dangerous virus software. Cyber terrorist groups, such as Anonymous, have hacked social networking sites, government databases, even the Vatican; and they are now targeting the energy industry. Capable of cyber-espionage and even the physical destruction of equipment, computer viruses have disabled centrifuges for enriching uranium, stolen data from nuclear facilities and erased computers at oil ministries. This article will give an overview of the four most dangerous viruses: Stuxnet, Duqu, Wiper and the newly discovered Flame, detailing how they access computer systems, what they are designed to do, and what the consequences of their installation are. It will also look at the main suspects for their development, the USA and Israel, and how the energy industry is affected by a world populated by cyber weaponry. stuXnet Stuxnet first appeared in the Iranian uranium enrichment plant at Natanz in 2008. Stuxnet is different from other viruses in a number of ways. Firstly, Stuxnet is the first virus designed to actually damage hardware and physical devices, rather than just slow another computer, or hack into it to steal data. Secondly, Stuxnet was targeted. Most viruses infect as much as possible in as short as time as possible but Stuxnet was programmed specifically to damage the computers at the Iranian uranium plants. The first attacks at Natanz were small, but in the following weeks, the plant was hit by newer versions of the computer worm. The bug sent instructions to speed up or slow down the computers so suddenly that the delicate parts of the centrifuges span at supersonic speeds and self-destructed. These attacks temporarily took out nearly 1,000 of the 5,000 centrifuges Iran

had spinning at the time to purify uranium. At first, the Iranians had no idea why their centrifuges were failing, blaming it on poor engineering or incompetence. Moreover, the code would lurk inside the plant for weeks, recording normal operations; when it attacked, it sent signals to the Natanz control room indicating that everything was operating normally. How Stuxnet got into Natanz is still unknown. Natanz has an electronic moat, or air gap, that cuts the plant off from the Internet. It is likely that infected USB drives was used to get the worm into Natanz. This targeted attack, however, soon went beyond the parameters of its remit. In 2010, it became clear that the worm had broken free. An error in the code had led it to spread to an engineer’s computer when it was hooked up to the centrifuges. When the engineer left Natanz and connected the computer to the Internet, the bug failed to recognize that its environment had changed. The self-replicating virus then began infecting computers around the globe. Siemens announced in July that they had “plugged the gap’ in their software, now making it impossible for Stuxnet or worms like Stuxnet to manipulate the same weaknesses in Siemens technology. This has obviously come far too late, however, as the Stuxnet virus had a “kill date” of 24th June. On Sunday 26th June 2012, Iranian sources announced that the Stuxnet virus has ceased to operate. Iran now claim that despite facing up to two million hacking attempts every day, they are fighting them off effectively. The limits of their success in fighting these virus’ was demonstrated in late July however, when an unknown source uploaded a virus once again into Natanz, and into their nuclear facility at Fordo. F-Secure Chief Research Officer Mikko Hypponen has received emails from a scientist at the Atomic Energy Organization of Iran describing a new kind of cyber-attack on its computers, which causes workstations to play music in the middle of the night at maximum volume. The music played was reported to be AC/DC’s “Thunderstruck”. Despite the frivolity of the attack, it illuminates the weaknesses still inherent in Iran’s computerized technology. duQu Duqu worm was detected for the first time in early September 2011. The purpose of the virus, according to Symantec, was to gather intelligence data and assets from computers, such as industrial control system manufacturers. The attackers targeted specific

information such as design documents that would help them mount a future attack on an industrial control facility. The initial attack came in the form of a modified Microsoft Word document that exploited the vulnerability in its software. Symantec was able to confirm that the document in question was designed specifically to target the receiving organization. Once it gets a foothold, Duqu can spread throughout a network. Part of the attack is a ‘bot-like’ component that gets instructions from a remote command-andcontrol (C&C) server. On encountering networked computers, Duqu creates a bridge that lets the C&C server issue orders despite the lack of a direct Internet connection. Researchers have identified six industrial control system manufacturers that may have been targets. Two are in Iran, with attacks in Vietnam, Sudan, and India. The last attack had a presence in several European countries. Similarities have been identified between Duqu and Stuxnet, and it is clear that whoever authored Duqu must have had access to the Stuxnet source code. Several international virus experts, such as Symantec, MacAfee Labs, Kaspersky Labs, and CrySys, have confirmed this. This is troubling, according to F-Secure’s Mikko Hypponen, because the Stuxnet source code is not available. Only the original authors have it, meaning that the creators of Duqu are most likely the creators of Stuxnet. Like Stuxnet, Duqu is designed to attack a specific type of computer system. However,unlike Stuxnet that target has not been identified. The ultimate goal of the Doqu worm is still unknown. wiper Relatively little is known about Wiper. It may not even be a virus in its own right, but part of the Flame virus (more below). Regardless of its provenance, its goal is straightforward: hack into computers holding highly sensitive data, and wipe them clean. This malware has been reportedly attacking and deleting data from machines across Western Asia, but the most recent and significant attacks have again been in Iran. Iranian technicians went into panic mode late last month as the virus surged through computers at the Ministry of Oil, wiping hard drives and crashing several websites. One by one, oil terminals in the Persian Gulf were disconnected from the Internet to prevent further damage. By the time the virus had been contained some 24 hours later, computers and websites from the

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National Iranian Oil Company, the National Gas Company, the Ministry of Oil and several subsidiary companies had been affected, according to reports in the Iranian media. Core data about Iran’s oil industry remained safe because it was on computer systems that remain separate from the net, but just the terminal on Kharg Island handles about 90% of Iran’s oil exports, showing what a potentially rich well of information may have been deleted. fLame Flame, or ‘Flamer’ or ‘SkyWiper’, was discovered only last month. After the attacks on the Oil Ministry, investigations by Iran’s Computer Emergency Response Team Coordination Center (CertCC) led to the discovery that several other companies and government agencies had also been attacked. Analysis revealed the monster that is the Flame virus. Kaspersky Labs told the BBC they believed the malware had been operating since August 2010. However, Flame may have been around for as long as five years without detection. The Flame virus has been described by Kaspersky Labs as “one of the most complex threats ever discovered”.Flame allows its creators to monitor the infected computer, activate microphones and cameras, log keyboard strokes, extract geolocational data from images and send and receive commands via Bluetooth wireless technology. The virus can sniff out information from input boxes - including passwords hidden by asterisks - record audio and take screenshots of applications that the virus deems important, such as IM programs. Symantec researcher VikramThakurstates that they have now identified a component of Flame that allows operators to delete files from computers, warning that Flame has “the capability to delete everything on the computer. This is not something that is theoretical. It is absolutely there.” The purpose of the virus is to collect huge amounts of sensitive information, said Kaspersky’s chief malware expert Vitaly Kamluk. Research into the attack was carried out in conjunction with the UN’s International Telecommunication Union. The researchers said it could take several years to analyse, because of the size of the virus. The coding for the Flame virus is roughly 20 times the size of Stuxnet at 20MB for all modules, astonishing many cyberexperts. Kamluk explained that unlike Stuxnet, which was designed with one specific task in mind, Flame is a much more sophisticated “tool kit” for the hackers. In an ABC News interview, Udi Mokady, CEO of Cyber-Ark, an Israeli developer of information security, claims that the real threat of Flame lies in the way in which it is controlled. Mokady explained that Flame is “a live program that communicates back to its master. It asks, where should I go? What should I do now?” The virus is connected to C&C servers, of which there are about a dozen around the world. Once the Flame malware has infected a machine, additional modules can be added to perform specific tasks - almost in the same manner as adding apps to a smartphone. Research into the Flame virus has centered on its relation to other cyber weapons, and Flame, Duqu, and Stuxnet do have some things in common. To start, all three are modular. Flamer takes this to an extreme, downloading its modules in multiple sessions, and relies on its C&C servers for every task. For example, Stuxnet and Duqu infestations power insider july/august 2012 79

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cyber crime

automatically self-destructed after a set time; Flamer can self-destruct, but only upon receiving the autodestruct code from its masters. Stuxnet and Flame also infect computers in an identical way, through removable USB drives. The code responsible for distribution of flame malware using USB drives is completely identical to the one used in Stuxnet. The Washington Post states that Flame was designed to look like a routine Microsoft update, allowing it to avoid detection. It uses many standard commercial modules may have helped it get past behaviour - and reputation-based detection systems: Flame has the ability to recognize over 100 antivirus installations and modify its behaviour accordingly. The initial entry point for the virus is unknown, but after the infection, the virus can spread through USB sticks or local networks. Specialists have speculated that the creators had access to Windows source code in order to be able to craft their attacks. Flame was able to spread almost undetected as it took advantage of a known weakness in the Windows Update function to download and install itself on target computers without users’ knowledge. Furthermore, the flaw in Windows Update that Flame exploited – a weakness in the MD5 cryptographic algorithm used to sign and authenticate certificates – is widely used across IT to sign servers, code and even for virtual private network access. Indeed, encryption and certificate management software and services supplier Venafi has claimed that MD5 is used in almost all major organisations. Venafi CEO Jeff Hudson has warned that it needs to be completely removed in order to neutralise the threat posed by hackers. As for who has been affected by the virus, Kaspersky Labs’ report lists the top seven countries affected by Flame. In descending order of known infestations they are: Iran, Israel/Palestine, Sudan, Syria, Lebanon, Saudi Arabia, and Egypt. Once again Iran has taken the biggest hit. More than 600 specific targets were hit, Kamluk said, ranging from individuals, businesses, academic institutions and government systems suspects No organization has claimed responsibility for the creation of these viruses. This has led to enthusiastic speculation. All experts involved with the analysis of these viruses have unanimously concluded that only an organization with huge resources could

have been responsible for something as sophisticated as Stuxnet or Flame. The purpose of the viruses is also curious; they are not designed to steal money from bank accounts, and the information collected is highly sensitive. The evidence suggests that a government created these viruses. Because of the focus of the attacks has been on the Middle East in general and Iran in particular, the USA and Israel have been highlighted at the prime suspects. However, whilst the USA and Israel have both acknowledged developing cyberweapons, they deny using them. Both the CIA and the NSA are involved in the development of malware, senior officials say. The CIA’s Information Operations Center specializes in infiltrations of computers that involve spies or unwitting contractors. The NSA is more advanced in its cyber-warfare tactics, and sources claim that they have expertise in developing malware and spyware to hamper Iran’s nuclear enrichment program. Israeli Defence Minister Ehud Barak acknowledged that the Jewish state has an offensive cyber warfare capability, but “Our goal with cyber defence, which is the more important and difficult component, is to prevent damage,” he said. “It is more than we can benefit from an offensive action, even though both aspects exist”, he added. Both Israel and the USA have been in the spotlight recently with the release of a detailed report from the New York Times, adapted from David Sanger’s forthcoming book Confront and Conceal: Obama’s Secret Wars and Surprising Use of American Power. Sanger makes a number of claims based on interviews with current and former American, European and Israeli “officials involved in the program”, as well as a range of “outside experts”. None would allow their names to be used because the effort remains highly classified. Naturally, the information contained in this book is easy to discredit, but its sensationalist claims have reaffirmed pre-existing suspicions that the USA and Israel are behind these attacks. Sanger states that after concluding a military strike would have “uncertain results,” the American administration began exploring the possibility of cyber-attacking Iran’s Natanz nuclear plant. The U.S. - Israeli joint effort came about in part to tap Israeli technical expertise, but also to dissuade Israel from conducting a preemptive strike against Iran, writes Sanger. As a result, Stuxnet was born. Kaspersky Lab’s recent discovery of the link between Stuxnet and Flame opens the way for allegations that once again, the USA and Israel are behind the cyberattack on Iran. Now The Washington Post has claimed, citing “anonymous Western officials”, that the USA and Israel jointly developed Flame. Current and former USA and Western national security officials confirmed to Reuters that the USA played a role in creating the

Flame virus. The CIA, NSA, Pentagon, and Office of the Director of National Intelligence declined to comment. Though the evidence points strongly to these two nation states, the silence of whoever is responsible is certainly ominous. ramifications Viruses such as Stuxnet and Flamer are very effective and dangerous tools. However, because of the nature of cyberweapons, they pose as much a threat to their creators as to their victims. Viruses can be analyzed and repurposed for future attacks. “Unlike a traditional weapon like a bomb, which explodes and disappears, cyber-weapons stay in the system,” says Kamluk. Whatever advanced knowledge allowed engineers to fashion the malicious software will become known to other nations and could well be directed back at the originators. The United Nations’ International Telecommunications Union is now warning other nations to “be on alert” for viruses which could potentially be used to attack critical infrastructure. In a statement to Reuters, the U.S. Department of Homeland Security said it was “notified of the malware and has been working with our federal partners to determine and analyze its potential impact on the U.S.” Endpoint security vendor Bit9 has also warned companies to be on their guard against copycat Flame attacks now that parts of the malware’s code have started to appear online. Governments are responding to these warnings. Last year, the Iranian government announced the creation of a cyber-police division, and in March Supreme Leader Ayatollah Ali Khamenei ordered the creation of the Supreme Council of Cyberspace. This governmental body will include the president, the head of the Revolutionary Guard, the head of the judiciary and the speaker of parliament among other top officials. Still, it’s clear that the Iranian government was unprepared for an attack as sophisticated as the Flame virus. In fact, few other governments could have been. In the USA, a Congressional hearing in late April had a handful of experts testify that Iran is beefing up its cyber-offense capabilities and could be preparing for an attack. The U.S. power grid, in particular, could be a relatively easy target. “What the Iranians lack in capability they make up in intent…If you look at our own infrastructure, we are quite vulnerable and susceptible.” says Frank Cilluffo, director of the Homeland Security Policy Institute at George Washington University. Whilst governments are making not-so-secret plans to wage cyberwar on each other, the private energy industry needs to start preparing to protect themselves. What must be stressed is how important it is to stay protected from cyber attack: few developed countries could function if their national grid was hacked and shut down. It is also important to note that these attacks are becoming more common and more ruthless. In a recent interview with Electric Light & Power, Pablo Vegas at the American Electric Power Co. Inc points out that during a five month period there were 86 attempts to hack their computer systems, compared to 11 in the same period the year before. Private industry needs to start investing in technology to protect their computer systems from the kind of attacks that have plagued Iran.

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asia smartgrid

Smart Grid technoloGieS in SoutheaSt aSia

SoutheaSt aSia iS experiencing Steady economic growth alongSide an ever growing energy conSumption. aS a reSult, Smart grid technologieS iS gaining popularity. thiS iS in part due to the lack of generating capacity, large commercial loSSeS and a high level of deterioration of current grid technology.

he development of smart grid technologies is also fueled by the increased usage of renewable energy sources in Southeast Asia. For example, the production of electricity in solar and wind power stations require accurate technology to measure output for the correct calculation of feed-in-tariffs and “green certificates”, and smart grid technologies have been instrumental to help achieve this. The global smart grid market is estimated at $100 billion. However, according to some estimates it may significantly increase during the next 20 years. This is mainly due to the active introduction of smart grid technologies in Asian countries, in particular the Southeast region. The development of smart grid technologies in Southeast Asia has started later than in the U.S. and the EU. Countries in the Asia-Pacific region, such as Australia, New Zealand, South Korea, and Japan have also been participating in the market. Major investment program have been annoucned which aim to develop smart grid technologies. The development of smart grid technologies in Southeast Asia has been prevented largely by economic factors. However, as local economies have recovered from the effects of the global recession, many local governments have realized the benefits of using new smart grid technologies. One of these governments is Thailand, which is preparing to launch the introduction of smart grid technology as part of the recently announced plans of the local Provincial Electricity Authority (PEA). This government enterprise under the Ministry of Interior plans to invest USD$13 billion in the development of a smart-grid system for a nationwide intelligent power network during the next 15 years. The project aims to modernizing its powertransmission system by deploying information and communications technology to support the distribution of electricity to households. According to PEA President Wichai Srikwan, smart grid technologies are initially expected to be actively implemented in major business and tourist

centers of the country, such as Phuket, Chiang Mai and Pattaya. The project involves changing the existing meter system and installing smart meters, on a voluntary basis, to the residents in these areas. In addition, the Provincial Electricity Authority has also announced plans to launch its Smart Grid Project roadmap to design a smart grid capable of integrating solar and wind power and supporting plug-in EVs. The Thai Government first entertained the notion of smart grid technologies in 2008. The government discovered that the country’s electrical system was no longer able to meet the needs of the ever growing economy, especially the tourism sector The current condition of the Thai electricity complex leaves much to be desired. The majority of the country’s electric equipment is worn out and over 40 years old. In recent years, the number of failures in the power supply system has dramatically increased. This has forced the government to consider the

modernization of the power-transmission system through the adoption of smart grid technologies. In the EU and the U.S., the introduction of smart grid technologies remains an objective necessity. This is due to the ever growing importance of alternative energy sources and plans of their connection to the local grids. In Thailand, however, the focus needs to be different to tailor to the needs of the country. The implementation of smart grid technologies should primarily address the problem of the local power grids inability to cope with loads, which have been increased in recent years. According to local experts, successful implementation of the project is expected to help to reduce losses in the country’s power grids by 25%, and will partially solve the problem of energy failures. Thailand is not the only country in Southeast Asia involved with the implementation of smart grid technologies. Earlier this year, Vietnam’s National Power Transmission Corporation announced an investment of over VND2.8 trillion ($133 million) in a 500 kilovolt electric grid to connect five provinces and Ho Chi Minh City by 2014 or 2015. Afterwards, this project is expected to increase connectivity within the country and throughout Laos and Cambodia. Similar plans are being considered in the Philippines. The Manila Electric Co. (Meralco), the country’s largest power utility, has recently announced that it will be investing in new technology over a tenyear period for finer tracking of power consumption. Meralco aim to have its entire franchise area covered by a “smart grid” by 2021. Such technology will allow Meralco to offer prepaid schemes for consumers as well as provide real time information on power demand to those that want to access cheaper, off-peak electricity. Meralco plans to integrate the smart grid with the network of affiliate Philippine Long Distance Telephone Co. (PLDT). The possibility of transition to smart grid technologies is also being considered in Indonesia. According to local analysts, the introduction of smart grid technologies will help the country to solve

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such as poor energy infrastructure, unreliable power sources and environmental degradation. This project is personally supported by Indonesia’s President Susilo Bambang Yudhoyono The President recently asked the country’s business to take innovative energy initiatives to answer the challenges of population growth in the country and the world. The Indonesian government plans to triple Indonesia’s electricity output by 2025, while reducing reliance on imported oil and switching to local coal, gas, and renewable and nuclear energy. Finally, the introduction of smart grid technologies has already begun in Singapore. According to local government plans, the use of smart grids and renewable energy sources will help to develop a robust and efficient future electricity system. As part of this initiative, The Agency for Science, Technology and Research’s Singapore (A*STAR) has launched a $38-million Experimental Power Grid Centre (EPGC) to support the development of future smart power grids, technologies and applications. The Energy Market Authority (EMA) is a statutory board under Singapore’s Ministry of Trade and Industry, and is responsible for the development of the country’s energy’s market. They recently awarded a contract to a local consortium of Daily Life Renewable Energy Pte Ltd (DLRE) and OKH Holdings Pte Ltd (OKH) to design, build, own and operate a smart grid test-bed on the island of Pulau Ubin located off the

northeastern corner of the main island. Located on Jurong Island, the Experimental Power Grid Centre has the capacity to produce up to 1 MW of electricity, making it one of the largest experimental power grid facilities in the world. It is likely that the implementation of the announced smart grid projects will require the participation of big Western corporations. There are several companies that are engaged in research in smart grid technologies. One of them is Microsoft, which in 2009 announced the development of Microsoft Smart Energy Reference Architecture, designed specifically for utilities. According to Microsoft, the new technology can serve as the basis for development of the “integrated utility of the future.” In addition to Microsoft, Cisco is currently developing an intelligent communications IPinfrastructure, while General Electric has developed the intellectual smart-meters. Finally, the US giant Oracle has developed a software package for smart grids. According to analysts at Pike Research, a market research and consulting firm that provides in-depth analysis of global clean technology markets, smart grid technology can provide ideal solutions for Southeast Asia’s developing countries, as well as for the more advanced economies in China and Japan. The implementation of smart grid technologies in Asia Pacific and Southeast Asia regions is expected to create a multi-billion dollar market opportunity for

telecom operators, equipment manufacturers and other services providers in the region. According to The Korea Herald, some 3.5 billion smart meters will be installed by 2016 in the both regions. Though quite small in scale, initial smart grid rollouts in Southeast Asia (which will be consuming over half of all Asia Pacific electricity by 2020) are focusing on remote or smart meters, investments in SCADA systems, and small steps toward automation. Analysts at Pike Research predict that during the next several years the main benefits from the implementation of smart grid technologies will be gained by distribution companies, which currently represent the most attractive market segment for smart grid development. In the long term, because of the development of distributed generation, renewable energy, and power accumulators the importance of smart grid technologies will significantly increase. However, despite the numerous benefits associated with the use of smart grid technologies, some analysts warn that their wide-spread occurrence may be associated with a number of potential threats. One such threat is cyber security. Some power markets, especially South Korea, have issued cautions about the integration of BPLs into power grids. While it has not significantly affected its modernized power grid yet, Korea Electric Power Corporation (Kepco), the largest electric utility in South Korea, surmised that ‘hacking or cyber attacks’ could be the smart grid’s threat of the future. power insider july/august 2012 83

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HIbbArD CASe StuDy

FORWARD THINKING: a case study on underwater InspectIon of new generatIng assets and hole pluggIng In an actIve surge shaft U

nderwater inspections at hydroelectric dams are a hot topic amongst major power producers when it comes to identifying potential issues with their structural assets. For many years now, owners of hydroelectric dams have been performing inspections on their older underwater assets in order to set up proactive maintenance plans and to achieve regulatory compliance. In these cases, the older assets are inspected utilizing dive teams and remotely operated vehicles (ROVs), potential problem areas are identified, and rehabilitation plans are carried out to mitigate risks to the structure. This is an accepted course of action for most owners and is a good way to extend the usable life of their assets. However, while regular inspection is usually part of the standard plan for older facilities, it is considerably less common to see power producers performing detailed underwater inspection on their newer assets. Despite the assets being newer, conducting thorough inspections once the plant has been commissioned can be beneficial in several ways: The plant can be examined to see if it is operating properly after a short period of running allowing for the identification of premature wear, leaking, or of areas that might have been negatively affected during the commissioning process. If there are areas of concern that are discovered that were not seen during dry walkthroughs, swift resolution can occur between the ownership, construction companies, and insurers to mitigate the hazard. If there are no areas of high concern found, the inspection can be used as support detail for agreement between the owners and the insurer as well as to support acceptance of the structure from the construction companies. The following case study will examine a generating facility in Bhutan where this type of forward thinking with a newer facility allowed the owner, Druk Green Power Corporation, to identify issues very early on so that a plan could be put in place to mitigate a potential disaster. pHAse 1: inspeCTion In 2010, due to equipment capabilities and previous inspection experience at hydroelectric plants, Hibbard Inshore was hired to inspect two facilities in Bhutan utilizing their fleet of ROVs equipped with video cameras and multiple types of sonar. The purpose of these inspections was to look at the underwater structures of each plant to determine how well they were holding up after they had been commissioned. While one of the plants, Chukha Hydro, had been in operation for some time, the owner decided to also proactively inspect their newer Tala Hydropower

Figure 1 Hole with Protruding Material from Initial Inspection Plant. While both facilities had been inspected in a dry state prior to commissioning, the owner thought it prudent to also inspect them now that they had been operating to determine whether any conditions of concern were present after the introduction of water. This would be the first inspection of these structures since they had been filled. In order to perform the inspections, Hibbard Inshore used two ROVs, a Long Range Sub-Atlantic Navajo with 5 kilometres of tether and a 600 meter depth rated LBV600-6. The combination of these two vehicles allowed Hibbard Inshore to inspect the internal portions of each plant’s underwater structures to look for signs of wear and degradation such as concrete spalling, out of round conditions, cracking, holes, sediment buildup, and debris. During the inspections of the head race tunnels, surge shafts and pressure piping, the Hibbard Inshore ROV saw several small anomalies that were considered “areas to watch” for the future to make sure further degradation wasn’t

Figure 2 Hibbard Inshore 5 km Sub-Atlantic Navajo and 2 km Seabotix LbV for Initial Inspection

occurring, and the ROV detected several small holes in the concrete in the bottom of the surge shaft at the newer Tala Facility. After observation with the ROV cameras, it was clear that particulate in the water was being sucked through each of the holes meaning that there were flow paths from inside of the Surge Shaft to underneath the structure. This finding was of great concern to the future stability of the structure.

pHAse 2: HAZArd MiTiGATion Very shortly after the discovery of these holes with flow, the plant owner, the construction company responsible for the original construction of the surge shaft, and Hibbard Inshore all proactively looked for solutions to permanently stop the flow through these holes to prevent further degradation. Since the plant provides a great source of power and revenue for the region, it was determined that solutions to plugging the holes that would allow the plant to maintain its normal 8 hour shutdown windows each day would need to be designed. The access to the holes was through the surge shaft, which was accessible through a tunnel and was 180 meters in height with approximately 100 meters of water depth under normal operating conditions. Because the flow through this area of the plant under operating conditions is around 10 meters per second, all materials would need to either be securely in the hole or completely removed from the surge shaft each day prior to the scheduled generation, so that no risk would be introduced that could have a negative impact on the turbines. A project of this exact nature to make a permanent hole repair without dewatering at 100 meters of depth, with the restriction of 8 hour outage periods, confined location, and high flow periods in between outages to the team’s knowledge had not previously been performed without manned entry. However, due to the short outage times, the confined nature of the work, and the depths involved, it was determined that utilizing an ROV provided safety and economic benefits over attempting to use a commercial dive team. Upon conferring with the Hibbard Inshore team which included Dr. Ray Henn of The Colorado School of Mines and Brierley Associates, the first option that was discussed was to devise a power insider july/august 2012 85

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HIbbArD CASe StuDy

Figure 3 Packer Initial Concept Drawing method to pump grout from the surface into each hole while leaving the shaft flooded. In this scenario, the Hibbard Inshore ROV would be able to prepare each hole for grouting by clearing it of debris using an onboard saw and a hydraulic drilling system. Once the hole was cleaned out, a customized grout packer would be inserted to allow the ROV to attach the grout hoses from the surface and the grout to be pumped into each hole. It was determined that this approach would be very risky due to the fact that it was unknown how large a void existed underneath the surge shaft slab, and therefore it was unknown how much grout would be needed to sufficiently fill each hole. What was also unknown was whether each of the holes communicated with the others under the shaft. There were concerns that the grouting would need to be performed in a single 8 hour shift at each hole. If so, pressure differentials would need to be closely monitored to avoid inadvertently placing forces on the slab that would result in cracking or heaving, which would be disastrous. Because the grouting of each hole needed to be completed in a single 8 hour shift,180 meters below where the grout system would have to sit at the top of the surge shaft, the engineering issues for grouting were deemed to be complex. Understandably, the owners were looking for a low risk option that could be completed quickly to reduce or eliminate the flow through the holes as through additional investigation, the owners found the exit path of the water from inside the surge shaft which was now exiting through the side of the mountain. Because of this and the complexity of the grouting scenario, and the accelerated timeline of the project, that option was set aside in favour of providing customized plugs to fill each hole. It was determined that the concrete placed to create the slab at the bottom of the surge shaft was M20 concrete and that specialized plugs based on grouting packers could be placed into each hole and inflated using high pressure water to complete a seal.

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These packers were specially designed to be inserted by the ROV, have the water hoses hooked up and unhooked by the ROV and then be epoxied into place by the ROV. Each packer was made from stainless steel and was coated in vulcanized rubber to provide a sealing surface. The packers were specially designed in order to create a seal while not exerting forces that would exceed the compressive or tensile strengths of the concrete and still requiring great force to remove them from each hole, thereby allowing them to remain in place safely during operations. After discussing other possibilities, it was determined by the owner and construction company that this was the best method for repair, and the Hibbard Inshore team was hired to design the packers with Baski Inc. of Denver, Colorado so that they could be inserted by the Hibbard Inshore Sub-Atlantic Mojave ROV. The packers were designed, manufactured and tested by Baski Inc. with guidance from Hibbard Inshore and Dr. Henn, and were shipped to Bhutan for installation in early April of 2012. Several sets of packers were manufactured in order to account for the possibility of varying sizes of holes. The hole sizes were estimated from the previous inspection, but it was not known how the holes might have changed since that time, and due to the urgency of the project, the owner, construction company and Hibbard Inshore all agreed that Hibbard Inshore should come prepared for a variety of scenarios. Upon arrival at site, the Hibbard Inshore ROV was deployed to first measure the holes to determine if there had been any noticeable change from the previous inspection in 2011. The ROV was deployed to the bottom of the surge shaft, and measured each of the holes to confirm that they had not changed in size or nature since the previous inspection. Upon confirming the current size of each, the proper packer sizes were selected for each hole, and the ROV set forth to prepare each hole to receive its own packer plug. This preparation included inserting a measuring tool into each hole to determine if there was anything blocking the path of the packer as the packers had a minimum insertion length required to make a proper seal. Differential pressure tests were performed to evaluate communication between the holes and learn more about the nature of the leaks. A ROV operated drill was brought in case any of the holes needed to have lodged debris cleaned out, and a ROV operated saw was also brought to deal with a piece of protruding material sticking out of one of the holes. Once the holes were inspected and measured,

Figure 5 Packer Final Construction two packers were inserted one at a time by the ROV, inflated to seal from the surface while monitored by the ROV, epoxied into place. The hoses and interface piece were then removed to minimize any material protruding from each hole.Only enough epoxy was inserted into each packer to aid the seal, and grouting under the slab was not performed from inside the shaft due to the previous concerns. Two of the three existing holes had packers inserted during this operation, and a fourth smaller hole was filled with epoxy. A packer fill of the third larger hole was attempted multiple times, but the monsoon season had begun by the end of the project, reducing visibility in the bottom of the surge shaft to almost zero and making it impossible to perform the third insertion until the water clears up. This insertion will occur once the water does clear; however, positive results were found from the insertion of the initial 2 plugs as it was found that the flow rate through the side of the mountain had reduced by approximately 60%, meaning that these holes were the primary source of leakage and the packer insertions worked properly.

Figure 4 Packer CAD Model

Figure 6 Hibbard Inshore Sub-Atlantic Mojave for Packer Insertion

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Figure 7 Hibbard Inshore Mojave Monitoring Packer epoxy Fill In conclusion, this was a case that started with the plant owner thinking proactively about their new generating assets. Because of this forward thinking, they were able to find an issue that could have become very serious had it not been addressed. With the facility still being new, the owner was able to enlist the help of the original construction company to work together to make appropriate repairs to the structure, and they accomplished this through hiring Hibbard Inshore to design and implement a repair method for their unique circumstance performing the work safely and without significantly interrupting the regular plant operating schedule.

Figure 8 Packer Cap with Floats for retrival after Disconnect

â&#x20AC;&#x2DC;In 2010, due to equIpment capabIlItIes and prevIous InspectIon experIence at hydroelectrIc plants, hIbbard Inshore was hIred to Inspect two facIlItIes In bhutan utIlIzIng theIr fleet of rovs equIpped wIth vIdeo cameras and multIple types of sonar. the purpose of these InspectIons was to look at the underwater structures of each plant to determIne how well they were holdIng up after they had been commIssIoned.â&#x20AC;&#x2122;

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Rotomac case study

EuropEan class powEr plants and EquipmEnt at a fraction of thE pricE wElcomE to thE world of usEd/

surplus powEr GEnEration EquipmEnt! R

otamac was established in 1997 by its Managing Director, Stephen Baxter, following a career of some twenty years in turbo-machinery manufacture and service. The decision to develop an independent business, bringing equipment and service solutions to the power generation industry, has proved to be a very fruitful initiative. Rotamac is now recognised as the UK’s premier used equipment supplier and indeed – a global supplier of used and surplus power plant equipment. Along with the high growth seen in recent years, in all areas of the developing world, there has been an inexorable increase in the demand for power. Rotamac has been at the forefront in meeting the demand for used and surplus equipment, focusing upon the Indian Sub-continent, Asia, Africa and South America. Used equipment solutions bring very significant benefits to a business requiring power plant / power plant equipment. Most notably, the major benefit is significantly lower capital outlay. Capital – particularly at this time – is in limited supply, lower capitalisation can be the difference between viability and the inability to realise a project. At a time when many manufacturers of new equipment are quoting delivery times of up to two years, very short lead-times are another major benefit that can be realised by utilising used equipment. Quite literally, it is possible to select a used equipment solution and have it installed and operating, producing valuable revenue – ahead of time, as it were – within months, not years. Today, there is an abundance of very high quality used power plants and used equipment available in Europe. As companies suffer in the European environment, opportunities emerge for businesses in the developing world to get their hands on some amazing deals. European class power plants and equipment at a fraction of the price, its bargain time!! Rotamac has supplied complete power plants, boilers, turbo-generators, transformers and a multitude of other used equipment solutions to dozens of businesses in developing nations, over the fifteen years or so since the company’s formation.

The company has become rightly seen by many of its clients as the supplier of choice for their power generation needs. rotamac’s equipment solutions include: • Supply of used / surplus (new) power plants and equipment. • Project Management. • Health, Safety and Environmental Planning & Compliance Management. • Plant dismantling and packing. • Freight. • Plant re-erection. • Service solutions, including;

• • • • • • • •

Supply of spare parts. Equipment overhaul and refurbishment. Field services. Repair services. Component upgrades. Equipment re-design. Equipment modifications. Performance rerating.

projects worldwide italy to tanzania – used 20 mw Back pressure turbo-Generator set Rotamac were contacted by a Sugar Company based in Tanzania. In the past, the sugar company had experienced power shortages which had lead to production interruption. The factory required a turbo-generator to provide power for its factory, irrigation, and residential area and to supply power to the grid. The sugar company already had in place a boiler, and required ROTAMAC to source a back-pressure turbo generator, which would meet the design rating of the boiler. ROTAMAC’s specialist sourcing capability and its comprehensive market knowledge meant an equipment option was quickly sourced, and – following inspection of the equipment – an order was placed to supply the 20MW back pressure turbo generator set. As this article goes to press, the turbo-generator set is to undergo complete overhaul, prior to its dispatch to Tanzania. uK to romania - used 10 mw Biomass plant An Independent Power Producer based in Romania embarked upon a biomass fuelled power plant project, to burn wood. The project involved the erection of a boiler and condensing steam turbinegenerator set, producing electricity to be delivered to the grid. Having already installed a new boiler, the IPP contacted ROTAMAC to source and supply a used turbo-generator, in order to reduce project expenditure and ensure that the project would be brought into operation as early as possible. ROTAMAC quickly sourced a 10 MW

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condensing turbo-generator, which was overhauled and upgraded by Rotamac prior to its delivery. italy to Uruguay - 13 Mw Biomass power plant An E.P.C Contractor in South America required a biomass plant of 10 -15 MW, the plant would burn wood chips, and ROTAMAC was challenged by the client to source a suitable plant, of not more than ten years of age. The result of Rotamac’s highly successful efforts to source a plant was an order for two complete 12 MW biomass fuelled power plants. The plants sourced were to be displaced due to re-powering (increase to a higher Rating). Holland to pakistan–2 off 14.83 Mw steam Turbine-generator sets A textile company in Pakistan required additional power generating capacity and sought two 15 MW back-pressure steam turbine-generator sets. Rotamac located two identical Siemens steam turbine-

generator sets, having only 35,000 hours of service and in superb condition. The client benefitted by acquiring equipment manufactured by the world’s best steam turbine company, of excellent condition, delivered to his factory in Pakistan within a matter of weeks, all at an investment of only a fraction that would be required

to obtain a new equipment solution. Used equipment can bring huge contributions to your business and Rotamac is in the driving seat in delivering the most effective used equipment solution. If you need power plant, or used equipment, why not give them a call and see how they can enrich your company! power insider july/august 2012 89

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PAN GLOBAL CASE STUDY

PLANT TRAINING BOB CLARKE, PRESIDENT, PANGLOBAL TRAINING SYSTEMS

Welcome Bob to the current issue of PI Magazine Asia. Thank you for taking time to speak with us. CAN YOU PROVIDE US WITH A BRIEF OUTLINE OF YOUR OPERATIONS AND OFFERING FOR THE POWER MARKET? Thank you for inviting me into this very important conversation. PanGlobal is world leader in providing both standardized and customizable educational

materials designed specifically for the learning needs of operating and maintenance personnel in power plants and related facilities. Designed and developed to support Canada’s national certification program for power engineering professionals, PanGlobal products cover the required background in physical sciences plus the complete range of applied technical knowledge needed to support learning at all levels of the profession from entry-level operators up to the chief engineers of major power generating stations. PanGlobal’s products are delivered to individuals around the world in both instructor-led and self directed learning environments by traditional colleges, private training groups, and corporations performing their own internal training. These are the only single source learning materials approved by both US and Canadian national certifying bodies. PanGlobal learning ware consists of a customizable mixture of the following elements: Textbooks (in both paper and electronic formats), Knowledge and Competency Workbooks and Instructor Guides. Online resources available for these elements include: E-book content, media, learning activities, assessments and LMS support. PanGlobal materials are available in Metric and USCS unit systems and in French and Spanish, along with the original English editions. MANY UTILITIES ARE SEEING A VAST AGE GAP IN COMPETENCY OF OPERATIVE PERSONNEL, HOW CAN THIS BE SOLVED TO

REDUCE THE IMPACT OF STAFF SHORTAGE? With average workforce ages exceeding 50, and expectations of 40 to 70% of the workforce in electric and natural gas utilities reaching retirement age within the next several years, the severity of these issues can only increase unless positive steps are taken. In general, energy industries have a higher level of monetary resources with which to attract trained staff away from other industry sectors, however, beyond the short term this is not an effective or sustaining solution to manpower shortage. These issues are being addressed in Canada through the cooperation of all stakeholder groups in the adoption of rigorous standards for training and learning materials as required by law and adopted by industry. Industry representatives are actively reviewing the knowledge and skills requirements for entry-level and incumbent workers. Regulators and certifying bodies are increasing the flexibility of their examination processes, while maintaining the quality of their standards. Educators are working with industry and certifying bodies to ensure their students have the knowledge and skills required by industry and regulators. PanGlobal’s learning materials bridge the gap between these stakeholder groups enabling each group to evaluate the learning environment from its own perspective. Each group also has an equal opportunity to add input into the continuous redevelopment and updating of the standard PanGlobal products.

90 JULY/AUGUST 2012 POWER INSIDER

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Publishers of Power Engineering & Operator Learning Materials Educator, Corporate, Government or Individual Learning Material Solutions (Direct) 403-284-7367 (Toll Free in North America) 1-866-256-8193

OPERATOR LEARNING MATERIALS Textbooks & Workbooks Ebooks, Media & Self Assessments Custom Product Development Recognized by Third Party Licensing & Certification bodies across North America

Learning Materials since 1921

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pan global case study Oxidation & Mixing basin prior to outfall at Reliance Energy, 2 x 250MW Dahanu Thermal Power Station, Maharashtra, India.

How can regulation be used effectively to increase levels of maximum plant availability? Regulations within the utilities have ranged from inadequate to overly cautious. Historically, regulations identified set pressure and temperature limits within which plants must operate. Equipment inspections, based on these limits, generally do not take into account the diverse operating conditions that exist in different areas of the plant nor how certain process differences can radically affect the operating conditions required to efficiently maintain one plant versus another plant, which varies from the first only in the process difference. A risk-based inspection system is a management process in which inspection and other requirements are based on the inherent risk of each piece of operating equipment. Inspection and maintenance guidelines can then be adjusted according to the inherent risk of that equipment within its operating environment. In addition to safety, a comprehensive risk-based program will also typically consider environmental, economic, and other factors. wHat is available for utilities on self certification for tHeir power plants and tHeir employees? Equipment used in utilities are designed, developed and installed to exact international standards. PanGlobal works with utilities to establish and support incumbent worker knowledge and skill

requirements for this equipment using both internal and external certification processes. Through its online learner management system, standardized content and skills requirements can be identified, delivered and validated for situations ranging from individual plants to entire industries. increased preference for super critical boilers in asia, means increased operating parameters, How do you cater for maximum compliance in safety? At supercritical pressures, boiler and turbine efficiency improves significantly compared to the typical subcritical cycle. This efficiency improvement leads to reductions in both fuel input and emissions output but also an increased potential safety risk compared to traditional systems. Increased operator awareness and understanding of the changes in equipment construction and operating parameters is critical to the successful maintenance and compliance of any health and safety program. The main tools for improving health and safety performance are the implementation of a risk-based management system which identifies hazards, assesses risks and integrates knowledgeable operating staff into the process of controlling risk. can you tell us about some of tHe success stories tHat pan global Has seen in recent times?

PanGlobal has seen many of its partners achieve success in recent years. Some recent successes include: cross-border standardization of training materials for utility workers within corporations ranging from multinational electrical utilities to an international manufacturer of automobile tires, adoption of standardized learning materials across five nationally recognized centres of energy education in the United States, adoption of standardized learning materials by a multinational mining group for both its English speaking and Spanish-speaking divisions, increase in certification exam success of greater than 10% within one year of implementation of PanGlobalâ&#x20AC;&#x2122;s newly integrated approach to content design and development. wHat developments can we expect to see from pan global in tHe power industry for tHe near future? PanGlobal continues to work with its local, regional, national and international partners in developing the very best learning materials available for utilities around the world. With the full rollout of e-Books designed for knowledge and skills certification within a robust learning management system, PanGlobal can now offer industry-leading learning materials, media and assessments to a global audience with the assurance that PanGlobal learning elements will always be validated and approved by industry, by educators, and by regulators before delivery to individuals or corporations.

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