Pimagazine Asia V9 Iss 5

A S I A’ S

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VOLUME 9 ISSUE 5

CHINA FRIEND OR FOE? IoT & Asia’s Energy Market

Fuel Cell Roundtable, Dry Cooling Insights, Nuclear Simulation, Interviews & Much More Inside!

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Dangjin Unit 4 in South Korea, which features our multi-fuel CFB technology, produces 105 MWe of power from palm kernel shells, wood pellets and coal.

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► Combined heat and power ► Waste-to-energy

Editors Note they could are long gone, well unless you are Russia, but that’s another story for another day.

The next and most efficient option is of course through corporate takeovers, shell companies and funding, I found lots of significant evidence of this, which of course I will be covering in later editions.

We always hear that the Asia & Pacific Power and Energy markets are developing robustly, and that the dark days of 2008 are long behind us. But its only when you spend time exploring development sites in the region and speaking with those with feet on the ground do you realize just how buoyant things actually are.

We are all fully aware of government policy around the World in relation to invasions etc, but looking at what I have seen with my own eyes, the new wars are being fought in the board room with take overs, share ownership and the occasional brown envelope to ensure a strong bidding position for contracts. Obviously, I can only speculate on the brown envelope situation as I have no firm proof that this practice is still taking place, but mark my words when I say that the New Wars will be fought in the boardroom so powerful countries can legally take control of the populations energy resources. I’m not pointing the finger just at China of course, the One thing that surprised me on my travels USA, UK, Germany, Russia, many other was, the impact China’s manufacturers and countries are following suit in their suppliers have been having. Everywhere goal for dominance and control, all be it I seemed to look there was a Chinese legally through the process above. company involvement, whether directly through contract allocation or indirectly Thanks for your continued support and via company share ownership. It led me we look forward to hearing from you. to think, is China attempting to take over and control the regions resources through business?

Sean Stinchcombe Editor The days of invading a Country because Over the past few months, I have spent some significant time in the region, in fact 10 countries over 8 weeks, my digestive system is begging for mercy, my body clock is completely confused, but I wouldn’t change the experience for anything! Generally the time I spend in the region is simply for site studies and events, so not as much time as I would like, so having the opportunity to travel and see first hand the huge developments and opportunities have been a real eye opener for me. It actually fills me with immense confidence in the region, and confidence for the entire Power & energy market.

Power Insider Media Limited, Smithys Cottage, Ashford Old Farm, Ilton, Ilminster, Somerset,UK. T: +65315868664 M: +44(0) 7930572199, E: sean@pimagazine-asia.com, W: www.pimagazine-asia.com

Power Insider media limited are the publishers of pimagazine asia. Pimagazine asia is published bi monthly and distributed to senior decision makers throughout Asia and the Pacific. The publishers do not sponsor or otherwise support any substance or service advertised in this publication; nor is the publisher responsible for the accuracy of any statement in this publication.

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Contents Inside This Issue 6 10 18 22 24 30 34 38 45 48 50 52 53 56 63 70 74 76

4 | POWER 04 | POWER INSIDERINSIDER VOLUME VOLUME 9 ISSUE55ISSUE 2

FEATURES

Company news China The role of generator sets in the new landscape of microgrids Keith Khoo, Kolhler Singapore PTE LTD The Dominance of Chinese Manufacturesrs Dry Cooling in Asia The Energy Bunker in Lübreck Fuel Flexible CFBs are the Future of Solid Fuel Power Generation S&C builds Ameren a Microgrid To Study Distribution Use Cases Solar PV in developing countries Enn Õunpuu Founder and CEO Elogen AS John Shen Chairman & CEO Palcan Energy Corporation Scott Blanchet -Nuvera The What, Why and How of Opacity measurement What is Microgrid and why is it important?

The next step in improving nuclear learning Sonita Lontoh More Durable and Versatile Membranes Attract Investments from Water and Wastewater Utilities Undergoing Privatization

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COMPANY NEWS

Mitsubishi Heavy Industries, Ltd. (MHI), Mitsubishi Hitachi Power Systems, Ltd. (MHPS) and Mitsubishi Heavy Industries Compressor Corporation (MCO) have successfully completed testing of MHPS’s 2-shaft 120MW H-100 Gas Turbine.

The H-100 utilizes the latest combustor technology and is the industry leader in terms of low NOx (single digit ppm) for full-load operations. With this, Mitsubishi Heavy Industries Group is able to provide innovative solutions for thermal power plants as well as mechanical drive LNG (liquefied natural gas) applications, utilizing high-efficiency compressors manufactured by MCO. Following successful completion of testing, MHI President & CEO Shunichi Miyanaga commented, “We are confident this can be a game-changer for the LNG industry, as well as thermal power plants, in terms of lower production costs. We can now deliver increased productivity, reduced complexity and lower lifecycle costs, while significantly reducing plant emissions.”

The H-100 Gas Turbine offers highefficiency, heavy-duty, high-reliability, and low-maintenance. Benefits of the two-shaft gas turbines for LNG mechanical drive application include reduced footprint, broad variable-speed operation, shortened start-up time and space savings.

Mitsubishi Heavy Industries Group will further integrate and expand the diverse product and technology lineup of its energy and oil & gas business to meet market needs.

About Mitsubishi Heavy Industries, Ltd. Mitsubishi Heavy Industries, Ltd. (MHI),

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headquartered in Tokyo, is one of the world’s leading industrial firms with 80,000 group employees and annual consolidated revenues of around 38 billion U.S. dollars. For more than 130 years, the company has channeled big thinking into innovative and integrated solutions that move the world forward. MHI owns a unique business portfolio covering land, sea, sky and even space. MHI delivers innovative and integrated solutions across a wide range of industries from commercial aviation and transportation to power plants and gas turbines, and from machinery and infrastructure to integrated defense and space systems.

For more information, please visit the MHI Group website: http://www.mhiglobal.com.

New HIMOINSA Power Cubes with FPT engines The company has developed seven new models of the Power Cube generator set with FPT engines and an electric radiator with a frequency changer to optimise the generator’s fuel consumption.

HIMOINSA adds seven new models with FPT engines to its Power Cube generator sets, supplying between 411kVA and 579kVA for the 50Hz and 60Hz markets.

Their electric radiator has been fitted with a frequency changer that adapts its speed depending on cooling needs.

This optimises fuel consumption by the radiator and so leads to the generator set running more efficiently.

The Power Cubes with FPT engines still have the characteristic compact dimensions of this range of generators, in 10foot containers, facilitating transport and logistics. Their remote cooling system,

installed on the top of the container, optimises space.

Two of the new models, the HPCW 420 D5/6 and the HPCW 505 D5/6 can run at 50Hz and 60Hz interchangeably. These dual-frequency models are especially attractive for port applications or to meet the needs of rental companies, which work in different markets.

In addition, eight Power Cube HPCW- 500 D5/6 generator sets with C13TE7 engines and Cramaco alternators will supply all the power for the whole infrastructure required to hold Dakar 2018. HIMOINSA, the official power supplier of the rally raid, has designed a plan to supply power to the more than 10 camps that ASO plans to set up along the 9000-kilometre course, which will cross Peru, Bolivia and Argentina.

With the addition of the new models, HIMOINSA is expanding the power range of its Power Cube series, which already included four generator sets ranging between 500 and 700 kVA with MTU engines.

Solar power costs will fall by another 60 percent over the next decade giving an already booming market another boost, the head of the International Renewable Energy Agency (Irena) said on Monday.

Solar power is in the midst of boom because of sharp drops in costs and efficiency improvements, pushing global capacity from virtually zero at the start

of the century to 300 gigawatt (GW) by the end of 2016, a figure expected to rise again by 2020.

Irena expects 80 to 90 GW of new solar capacity, enough to power more than 8 billion LED light bulbs, to be added globally each year over the next 5 to 6 years, Adnan Amin, the director general of Irena said, exceeding a forecast of 73 GW from the International Energy Agency (IEA).

“This could easily accelerate as costs decline in the future,” said Amin. “China alone can do 50 GW a year.”

“In the next decade, the cost of (utility scale) solar could fall by 60 percent or more,” he said in Singapore on Monday.

That growth will mark China as the world’s biggest and fastest growing solar market as Beijing relies on renewable power to cut air pollution from coal-fired power plants.

While Amin said that India would also see sharp solar growth in coming years, he expected Southeast Asia to be more mixed.

“There is a target of 23 percent (power generation) in ASEAN for renewables by 2025. We think it’s ambitious but it’s achievable,” he said.

The solar power share of the Association of Southeast Asian Nations’ (ASEAN) 10 members is currently negligible.

Amin said improvements in solar technology were especially expected from thin films, which can be applied on windows.

While this is already possible, it remains

prohibitively expensive.

Irena also expects the cost of batteries, key to back up a technology that relies on daytime, to fall by 60 percent to 70 percent in the next decade.

Despite its boom, Amin said potential U.S. trade barriers would only make solar energy more costly for the world’s largest oil consumer.

U.S. President Donald Trump is expected to announce by early next year whether to take measures to limit imports after the U.S. International Trade Commission found in September that domestic panel makers had been harmed by cheap imports.

“It’s not always the best strategy to try to protect your industry and have high prices. Because in the long-term what you want to do is drive down the cost of energy,” Amin said.

Enel, through a joint venture between the Group’s fully-owned renewable energy subsidiary Enel Green Power S.p.A. (“EGP”) and Dutch Infrastructure Fund (“DIF”), has begun construction of the 137.7 MW1 Bungala Solar One photovoltaic (PV) plant, which is located near Port Augusta in South Australia. The plant constitutes the first part of the Bungala Solar PV Project, whose capacity will total more than 275 MW2.

“We are proud to lend our experience to the development of renewables in Australia through Bungala Solar, the

country’s largest solar plant currently under construction,” said Antonio Cammisecra, Head of Enel Green Power. “This project marks the first step of our growth strategy in a country which boasts such an abundant resource base and whose renewable capacity is expected to surge in the next years. Against this backdrop, Enel Green Power aims to become a key player in Australia’s green energy sector.”

Enel will invest approximately 157 million US dollars in the overall 275 MW project, with a total investment amounting to 315 million US dollars financed through a mix of equity and project finance with a consortium of local and international banks.

The Bungala Solar project is fully contracted with a long-term power purchase agreement with Origin Energy, a major Australian utility.

The construction of the second part of the facility, Bungala Solar Two, is expected to start by the end of 2017, while the 275 MW facility will be fully operational in the beginning of 2019. Once completed, the overall Bungala Solar facility will be able to generate around 570 GWh per year, equivalent to the energy consumption needs of approximately 82,000 Australian households, while avoiding the emission of over 520,000 tonnes of CO2 into the atmosphere.

The Bungala Solar One facility, which will cover an area of approximately 300 hectares, will consist of about 420,000 polycrystalline PV modules mounted on single-axis tracker structures which will follow the Sun’s path from east to west increasing the amount of energy produced by the plant, compared to PV modules with fixed structures. The power generated by the facility will be delivered to the country’s transmission grid via the Emeroo and Davenport Substations near Port Augusta.

Australia has 18 GW of installed renewables capacity, producing around 17,500 GWh, equivalent to 17.3% of the country’s electricity output3. The Federal Government’s Renewable Energy Target (“RET”) programme has set an objective of having 23.5% of energy generated from renewable sources by 2020 and is complemented by State-level initiatives aimed at increasing renewable energy generation through a tender-based mechanism.

Enel Green Power, the Renewable Energies division of Enel Group, is dedicated to the development and operation of renewables across the world, with a presence in Europe, the Americas, Asia, Africa and Oceania. Enel Green Power is a global leader in the green energy sector with a managed capacity of around 39 GW across a generation mix that includes wind, solar, geothermal, biomass and hydropower, and is at the forefront of integrating innovative

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technologies like storage systems into renewable power plants.

In what observers say is a departure from the previous stance of going slow on hydropower projects, the Uttarakhand government is now pushing hard for faster clearances for 10 hydro power projects in the state. Towards this aim, the state is seeking the intervention of the central government in order to bolster the power generation capacity of the hill state.

During a recent visit by Niti Aayog vicechairman Rajiv Kumar to Dehradun, power secretary Radhika Jha gave a detailed presentation to him in which she raised the issue of the stalled hydro projects in the state as a result of which investments to the tune of Rs 41,000 crore, she said, are on hold in Uttarakhand.

A few of these projects are Lata Tapovan (171 MW) in Dholiganga river as well as Loharinag Pala (600 MW) and Pala Maneri (480 MW), both of which are on the Bhagirathi river.

After the flashfloods in 2013, all the hydropower projects in the state were put on hold by the Supreme Court. However, citing that the held-up projects were impacting the state’s power sector growth, the power secretary said that the state government had given a presentation to the Niti Aayog requesting that “implementation of 10 small hydro

8 | POWER INSIDER VOLUME 9 ISSUE 5

projects (with a total capacity of 82.5 MW) should be allowed in Bhagirathi Eco‐sensitive Zone, as has been allowed in other ESZs.”

However, conservationists are not pleased with the fresh interest of the Uttarakhand government in the hydropower projects. Himanshu Thakkar, convenor, South Asia Network on Dams, Rivers and People (SANDRAP) told TOI, “It is surprising that the state government instead of completely scrapping the hydropower projects is trying hard to revive them. I feel it would be a big mistake if this is allowed to happen.”

Nexif Energy, an independent power producer in Australia and Southeast Asia, has announced that it has reached financial close for the first stage of the Lincoln Gap Wind Farm in Australia.

“As a new, independent participant to the Australian market, we are excited to implement an innovative contracting strategy that will not only provide renewable power to thousands of Australian homes but also optimise the use of grid-scale battery storage on a commercial basis” Located near Port Augusta in South Australia, the Lincoln Gap Wind Farm project’s 126 megawatts (MW) first stage involves the construction and operation of 36 wind turbines, supported by innovative offtake contracts with Snowy Hydro and ERM Power. The full project, a 59-wind turbine farm, will

produce 212MW, which is enough electricity to power approximately 155,000 homes. The project will feed into the State’s electricity grid via the ElectraNet transmission network.

The project also includes installation of a utility scale battery system of 10MW, with potential expansion capability to utilize battery technology advancements. This will be one of Australia’s largest private sector-initiated and owned grid battery systems not underwritten by a government contract or funded by government grants.

“As a new, independent participant to the Australian market, we are excited to implement an innovative contracting strategy that will not only provide renewable power to thousands of Australian homes but also optimise the use of grid-scale battery storage on a commercial basis,” said Matthew Bartley, a Founder and Co-Chief Executive Officer of Nexif Energy. “We value the support of all project stakeholders who have worked with us along the way to achieve this important milestone.”

Lincoln Gap will be constructed under the terms of a turnkey contract with Senvion Australia and is expected to begin operation in Q1 2019. The Clean Energy Finance Corporation (CEFC) will act as financier, lending up to A$150M (US$115M) for construction of the first stage of the wind farm and Investec has provided facilities totalling A$39M (US$30M) for working capital and let-

ters of credit.

“We are committed to becoming a leading regional independent power generation company and are striving to achieve this by briskly executing on our active projects in Australia, Vietnam and other markets such as Thailand, Bangladesh and the Philippines,” added Surender Singh, a Founder and Co-Chief Executive Officer of Nexif Energy. “We are also seeking additional large-scale investment opportunities in AsiaPacific as we continue to look toward the future.”

Nexif Energy was formed in 2015 by independent power management company Nexif and global private equity firm Denham Capital. Nexif Energy’s equity commitment for Lincoln Gap represents its largest investment to date.

“This is another landmark project for Nexif Energy and builds upon prior Denham investments in Australia. We are excited to continue expanding Denham’s international power investment footprint across the Australian and Southeast Asian markets with the Nexif Energy platform,” said Denham Capital Director Saurabh Anand. “The region presents significant growth opportunities and we look forward to investing in more projects in the near future alongside Surender, Matthew and their team.”

About Nexif Energy Nexif Energy was formed in August 2015 by Nexif, a Singapore-based independent power management com-

and renewable power generation assets across Southeast Asia and Australia.

Schneider Electric, the leader in digital transformation of energy management and automation, along with NGK INSULATORS, LTD., the worldwide leader of manufacturing advanced ceramic products, announced on November 8 the conclusion of a memorandum of understanding (MOU). Under the MOU, the two companies will explore global opportunities to jointly market NGK’s NAS (R) battery and Schneider Electric’s inverter (Conext (TM) Core XC ES).

With increasing demand and use of renewable energy, there is an increasing need for large-capacity battery storage systems, which can stabilize the distribution of electricity, and global demand is expected to grow going forward.

In November, 2016, the team of NGK and Schneider Electric successfully conducted integration testing of the interface between the NAS battery and ES Box at NGK’s factory in Komaki City, Aichi Prefecture, central Japan.

The integration of Schneider’s outstanding energy management technology and NGK’s advanced battery storage technology makes it possible to store large amounts of electricity with a smaller footprint. This offer is unique in the battery storage market and as a source of renewable energy, and it contributes to reduction in CO2 emissions.

The Conext Core XC ES is a series of

pany, and Denham Capital, a leading global energy-focused private equity firm with more than US$9.0 billion of invested and committed capital across eight fund vehicles. Nexif Energy’s goal is to develop, finance, construct and opportunistically acquire conventional

central inverters designed for high efficiency and flexibility for battery-based energy storage systems. The series has peak efficiency of 99.1% and its flexibility allows the inverter to be configured with voltage and power output up to 680 kW.

NGK was the first in the world to commercialize the NAS battery system, which has the capacity to store megawatts of electricity. The NAS battery system boasts an array of superior features, including large capacity, high energy density and long life. It is capable of maintaining high output of electric power for long periods of time.

Since 2002, NGK has delivered NAS battery systems with total output of more than 530,000 kW and storage capacity of 3.7 million kWh at about 200 locations worldwide. The systems are being used for load leveling and emergency power supply as well as stabilizing and smoothing power output from renewable energy sources. NGK continues to support the growth of renewable energy, cutting energy costs and reducing the burden on the environment by supplying large-capacity NAS battery systems.

The death toll in a transformer blast in India’s western state of Rajasthan on Wednesday (Nov 1) rose to 14, China’s Xinhua news agency reported officials as saying.

Seven people are undergoing treatment in hospital after the explosion.

The blast took place on Tuesday in Khatloi village of Shahpura, near Jaipur city, the capital of Rajasthan.

According to officials, the transformer blasted while people had assembled for a marriage function.

“The poorly maintained transformer exploded yesterday, killing four on the spot and injuring 17 others,” a local government official said. “Though the injured were taken to SMS hospital, more than 10 people succumbed to their injuries during the night, taking death toll to 14.”

The cause of the blast was being ascertained.

State Chief Minister Vasundhara Raje has announced a high-level inquiry and expressed grief and shock over the deaths.

Locals said the transformer exploded at around 3.30pm (local time), while pre-wedding functions and rituals were taking place inside a house and guests were assembling outside.

“Women were busy singing folk songs for the wedding and children and elders were standing outside the house when suddenly an explosion took place,” a local resident, Mr Bhola Ram, said.

“The blast spewed hot oil due to which several people, mostly women suffered severe burn injuries.”

The tragedy triggered protests by locals against the government and electricity department.

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CHINA China is the world’s most populous country with a fast growing economy that has led it to be the largest energy consumer and producer in the world. Rapidly increasing energy demand, especially for petroleum and other liquids, has made China influential in world energy markets.

China has quickly risen to the top ranks in global energy demand over the past few years. China became the largest global energy consumer in 2011 and is the world’s second largest oil consumer behind the United States. The country was a net oil exporter until the early 1990s and became the world’s second largest net importer of crude oil and petroleum products in 2009. The U.S. Energy Information Administration (EIA) reports that China surpassed the United States at the end of 2013 as the world’s largest net importer of petroleum and other liquids, in part because of China’s rising oil consumption. China’s oil consumption growth accounted for about 43% of the world’s oil consumption growth in 2014. Despite China’s slower oil consumption growth in the past few years, EIA projects China will account for more than one fourth of the global oil consumption growth in 2015.

Natural gas use in China has also increased rapidly over the past decade, and China has sought to raise natural gas imports via pipeline and as liquefied natural gas (LNG). China is the world’s top coal producer, consumer, and importer and accounts for almost half of global coal consumption, an important factor in world energy related carbon dioxide emissions.

China’s rising coal production is the key driver behind the country becoming the world’s largest energy producer in 2009.

China’s sizeable industrialization and swiftly modernizing economy helped the country became the world’s largest power generator in 2011.

China is the world’s most populous country (1.36 billion people in 2013) and has a rapidly growing economy, which has driven the country’s high overall energy demand and the quest for securing energy to the International Monetary Fund (IMF), China’s annual real gross domestic product (GDP) growth slowed to a reported 7.4% in 2014, which was the lowest since 1990, after registering an average growth rate of 10% per year between 2000 and GDP, measured using purchase power parity (PPP) exchange rates surpassed U.S. GDP in 2014, goods and services across countries, attempting to show what exchange rates would have to be to buy the same basket of goods in different places. As costs are much higher in the industrialized world, comparisons of GDP

by PPP exchange rates tend to boost the relative size of economies in less developed nations.)

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China mitigated the 2008 global financial crisis with a massive stimulus package spread over two years that helped bolster China’s investments and industrial demand. Economic growth has slowed since 2012 as industrial production and exports decreased and as the government attempted to curb high debt levels and excessive investment in certain markets. In response to the rapidly slowing economy and deflationary trend in 2014, the government eased its monetary policy through interest rate cuts, providing medium term loans to Chinese banks, and reducing the reserve requirements by banks. These measures have been followed by the government’s announcement of a smaller, more strategic fiscal stimulus targeting infrastructure projects in 2015.

New leadership emerged in China in March 2013 when Xi Jinping became President and Li Keqiang assumed premiership. The new administration is keen to initiate economic and financial reform in China in the interest of greater long term and sustainable growth. In November 2013, at the Third Plenum, a major policy meeting held every five years, the Chinese government outlined broad principles for economic reform

in China. The government is pursuing incremental policy and economic reforms to create more balanced economic growth and to shift away from an economy driven primarily by excessive investments and exports to an economy characterized by greater domestic consumption.

In the energy sector, the government is moving toward more market based pricing schemes, energy efficiency and pollution controlling measures, and competition among energy firms, as well as making greater investments in more technically challenging upstream hydrocarbon areas and renewable energy projects. China has been seeking ways to attract more private investment in the energy sector by streamlining the project approval processes, implementing policies to foster more energy transmission infrastructure to link supply and demand centers, and relaxing some price controls.

Total primary energy consumption Coal supplied the majority (nearly 66%) of China’s total energy consumption in 2012. The second largest source was petroleum and other liquids, accounting for nearly 20% of the country’s total energy consumption. Although China has made an effort to diversify its energy supplies, hydroelectric sources (8%), natural

gas (5%), nuclear power (nearly 1%), and other renewables (more than 1%) accounted for relatively small shares of China’s energy consumption. The Chinese government plans to cap coal use to 62% of total primary energy consumption by 2020 in an effort to reduce heavy air pollution that has afflicted certain areas of the country in recent years. China’s National Energy Agency claims that coal use dropped to 64.2% of energy consumption in 2014.

The Chinese government set a target to raise nonfossil fuel energy consumption to 15% of the energy mix by 2020 and to 20% by 2030 in an effort to ease the country’s dependence on coal. In addition, China is currently increasing its use of natural gas to replace some coal and oil as a cleaner burning fossil fuel and plans to use natural gas for 10% of its energy consumption by 2020. Even though absolute coal consumption is expected to increase over the long term as total energy consumption rises, higher energy efficiency and China’s goal to increase environmental sustainability are likely to lead to a decrease in coal’s share.

Coal China is the largest producer and consumer of coal in the world and ac-

counts for about half of the world’s coal consumption.

China’s vast coal resources enable the fuel to remain the mainstay of the country’s energy industry and have supported the country’s massive economic growth over the past decade.

China has been the world’s leading coal producer and consumer since the early 1980s and accounted for close to half of the global coal consumption, an important factor in world energy related

CO2 emissions. According to the World Energy Council, China held an estimated 126 billion short tons of proved recoverable coal reserves in 2011, the third largest in the world behind the United States and Russia, and equivalent to about 13% of the world’s total coal reserves.

Coal production rose 9% in 2013 from 2012 to nearly 4.4 billion short tons.

Chinese government data indicate that Chinese production and consumption declined by nearly 3% in 2014, the first decline in the coal industry in 14 years.

These trends reflect the economic downturn particularly in coal consuming sectors such as steel and cement, slower electricity demand growth, greater hydroelectricity generation, and China’s stricter environmental regulations recently imposed on high polluting industries, including coal.

Although there are 28 provinces in China that produce coal, Shanxi, Inner Mongolia, Shaanxi, and Xinjiang contain most of China’s coal resources and virtually all of the large state owned mines. China currently has about 12,000 coal mines producing primarily bituminous coal and a fair amount of anthracite, lignite, and metallurgical coke. These coal types are used primarily to generate electricity and heat as steam coal and to smelt iron ore and produce steel as metallurgical coal.

Much of China’s steam coal resources (used for electricity and heating) are located in the north central and northwestern regions, whereas higher valued coking coal and anthracite reserves are found mostly in the central and coastal parts of China.

Coal comprised nearly 66% of China’s total energy consumption in 2012. In 2013, China consumed an estimated

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4.0 billion short tons of coal, representing about half of the world total.

Coal consumption in 2013 was almost three times higher than it was in 2000, when China’s coal demand began swiftly increasing. In 2012, China’s coal consumption growth decelerated as a result of the country’s industrial slowdown and stricter regulations in major urban areas, particularly in the highly urbanized northeastern region and the Pearl River Basin area in the southeastern region, to reduce environmental pollution. China plans to cap coal consumption at 4.6 billion short tons by 2020. Overall, China plans to close 2,000 small coal mines between 2013 and 2016 to enhance overall efficiency and safety in the sector. About half of China’s coal was used for power gen-

ing 65% of Prior to 2009, China’s domestic coal production generally met all of its consumption requirements, and the country was a net exporter. However, in recent years, the country has significantly increased its import volumes because of higher demand. Historically a net coal exporter, China became a net coal importer in 2009 for the first time in more than two decades. Total imports rose to 360 million short tons in 2013, about 14% higher than 2012 levels. Indonesia and Australia are the largest coal exporters to China, supplying 65% of China’s imports in 2013.

The government imposed restrictions on coal imports with high ash and sulfur content starting January 2015 and reinstated the import tariff at 3% to

northern China, an increasing amount of coal needed to be transported over long distances from these supply regions to the demand centers along the coast and in the southern and eastern provinces via rail and truck. In recent years, the country has struggled with transportation bottlenecks in shipping coal to market, creating regional imbalances. Also, international coal prices, which have declined overall since 2011 and at times have fallen below China’s domestic prices, have made imports more commercially competitive with China’s own coal supply, particularly for electric utilities along the coastal regions.

As coal demand growth has eased since 2012, the country has witnessed an oversupply of coal and rising inven-

eration in 2012. The industrial sector, including steel, pig iron, cement, and coke, accounted for 41% of coal use, and the remaining share was consumed by the residential, service, and other sectors. Coal consumption generally tracks economic growth, electricity demand, and industrial sector output.

Prior to 2009, China’s domestic coal production generally met all of its consumption requirements, and the country was a net exporter. However, in recent years, the country has significantly increased its import volumes because of higher demand. Historically a net coal exporter, China became a net coal importer in 2009 for the first time in more than two decades. Total imports rose to 360 million short tons in 2013, about 14% higher than 2012 levels. Indonesia and Australia are the largest coal exporters to China, supply-

6% to protect market share of domestic producers and pare back the recent excess supply Coal imports declined in 2014 as a result of slower economic and electricity consumption growth as well as excess domestic supply. China imported about 320 million short tons in 2014, an 11% drop from 2013 levels.

Although coal consumption has remained lower than production over the past several years, imports have risen substantially since 2008, creating large stock builds. The rise in imports from 2008 to 2013 is primarily driven by steady demand growth and the high coal transportation costs resulting from bottlenecks in China’s railway system, which makes imported coal economically attractive, especially in southeastern China. Because the bulk of incremental coal produced moved to more remote areas in western and

tories. Despite this surplus, some of China’s major coal producers, particularly in key coal producing provinces in north central and northwestern China that have larger and lower cost mines, continued to increase production, albeit at a more moderate pace. Producers in these regions, primarily the state owned enterprises, are able to reduce their unit costs through higher output and economies of scale. However, the majority of coal companies in China were unprofitable in 2014 as coal prices continued to be low. Some small mines in Inner Mongolia that produce lower calorific coal and transport most of their coal outside of the region have suspended their output in response to weaker demand and revenue losses.

Also, Shanxi province responded to the oversupply in 2015 by ending the approval of all new coal mine projects

12 | POWER INSIDER VOLUME 9 ISSUE 5

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until 2020. Mines that are able to keep their costs low in the current low coal price environment will be able to maintain higher production levels.

China reformed the coal tax structure at the end of 2014. The resource tax imposed on coal mining companies shifted from being a volume based system to being a value based system, allowing local governments to collect between 2% to 10% of the value of domestic coal sold. As part of the reform, China’s State Council removed all surcharges and fees for coal production. This reform allows coal producers to reduce some of the production costs from high taxes paid to the local governments, especially in a low price environment. In 2013, China began addressing the regional imbalance of coal supply and demand through investments in greater railway capacity, storage and coal processing facilities, and higher electricity transmission capacity to enable electricity generated from coal to travel long distances to demand centers. China commenced operation of its third and longest coal dedicated rail line running from the north central Shanxi province to the northeastern Shandong province at the end of 2014.

China’s coal industry has traditionally been fragmented among large state owned coal mines, local state owned coal mines, and thousands of town and village coal mines. The top stateowned coal companies, including Shenhua Group and China National Coal Group (China’s largest coal companies), produce about 50% of the country’s coal.

Local state owned companies produce about 20%, and small town mines produce 30% of the coal output each year. As the government regulations and economic factors from a low price coal environment force more inefficient and small mines to close, the share of production from large state owned companies is likely to rise. China has about 10,000 small local coal mines that have insufficient investment, out dated equipment, and poor safety practices. These mines are typically inefficient and are a source of pollution.

The goal of industry consolidation is to attract greater investment in new coal technologies and to improve the safety and environmental record of coal mines.

In contrast to the past, China is becoming increasingly open to foreign investment in the coal sector in an effort to modernize existing large scale mines and to introduce new technologies in the coal industry. State owned enterprises partner with foreign investors in the coal sector. Areas of interest in for-

14 | POWER INSIDER VOLUME 9 ISSUE 5

eign investment include coal to liquids, CBM production, coal to gas, and slurry pipeline transportation projects.

Electricity China became the world’s largest power generator in 2011. Coal and hydroelectricity continue to be the leading sources of the country’s electricity generation and installed capacity. China is moving to generate more power from nuclear, renewable sources, and natural gas in efforts to address environmental concerns and diversify its electricity generation fuel slate.

China is the world’s largest power generator, surpassing the United States in 2011. Net power generation was an estimated 5,126 Terawatthours (TWh) in 2013, up 7.5% from 2012, according to EIA estimates. Electricity generation has more than doubled since 2005, although power generation, which is mostly driven by economic and industrial demand, decelerated after the global financial recession in 2008 and 2009 and, again, starting in 2012. The industrial sector currently accounts for almost three quarters of China’s electricity consumption. Annual growth in electricity generation was a decade low 4% in 2014, according to preliminary data from NBS. This deceleration was mainly a result of significant slowdown of activity in heavy industries, especially the steel industry, as well as weather.

China plans to rely on more electric generation from nuclear, renewable sources, and natural gas to replace some coal, with the goal of reducing carbon emissions and the heavy air pollution in urban areas. China’s installed electricity generating capacity was an estimated 1,260 gigawatts (GW) at the beginning of 2014. China’s capacity rose by almost 90 GW from a year earlier and doubled from 630 GW in 2006. As China’s generating capacity expanded over the past several years in response to its economic development, the country’s capacity grew to be the highest in the world. Installed capacity is expected to grow over the next decade to meet rising demand, particularly in large urban areas in the eastern and southern regions of the country.

EIA projects installed capacity will double to 2,265 GW by 2040, propelled by a combination of capacity from coal, nuclear, and renewable sources. Fossil fuel fired power capacity has historically made up about three fourths of installed capacity, and coal continued to dominate the electricity mix with 63% of total capacity in 2013. However, non fossil fuels have been increasing their portion of installed capacity over the past few years.

China’s electric generation is controlled by state owned holding companies, although limited reforms have opened up the electricity sector to some private and foreign investments. China is seeking to improve system efficiency and facilitate investment in the power grids.

In 2002, the Chinese government dismantled the monopoly State Power Corporation (SPC) into separate generation, transmission, and services units.

Since the reform, China’s electricity generation sector has been controlled by five stateowned generation companies —China Huaneng Group, China Datang Corporation, China Huadian Corporation, China Guodian Corporation, and China Power Investment Corporation. These five companies generate nearly half of China’s electricity.

Much of the remainder is generated by local owned enterprises or by independent power producers (IPPs), often in partnership with privately listed arms of the state owned companies. Deregulation and other reforms have opened the electricity sector to foreign investment, although investments have been limited so far.

During the 2002 reforms, the SPC divided all of its electricity transmission and distribution assets into two new companies, the China Southern Power Grid Company and the State Grid Corporation of China, which operate the nation’s seven power grids. The State Grid Corporation operates power transmission grids in the north and central regions, while China Southern Power Grid Company handles those in the south. China also established the State Electricity Regulatory Commission (SERC), responsible for the regulation enforcement of the electricity sector and facilitation of investment and competition to alleviate power shortages.

As part of the current Chinese leadership’s efforts to streamline government agencies, the government eliminated SERC in March 2013 and transferred the agency’s duties to the NEA. China is seeking to improve system efficiency and the interconnections between the grids through ultra high voltage lines, as well as to implement a smart grid plan. The first phase was completed in 2012, and subsequent phases are slated for completion by 2020.

Electricity prices On grid (electricity sold by generators to the grid) and retail electricity prices are determined and capped by the NDRC. The NDRC also determines the price that coal companies should receive from power producers for a cer-

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tain level of electricity. China attempted to reform electricity prices in 2004 by initiating a policy that will pass through fuel costs, although on grid prices were modified infrequently. As a result, high coal prices in 2011 and lower government controlled power tariffs contributed to financial losses for electric generators. Coal prices declined in

particularly in fossil fuel fired capacity. Although much of the new investment over the past several years was earmarked to alleviate power supply shortages, the economic crisis of 2008 and the deceleration of Chinese economic growth after 2012 resulted in a slower demand growth for electricity.

Power demand typically follows eco-

2012 and have remained relatively low for the past few years. These lower prices prompted the government to lower on grid tariff rates for coal fired power plants, giving power producers some financial reprieve. As reforms in the natural gas pricing mechanism took place, electricity tariffs for gas fired power plants were linked to higher natural gas prices. Cost savings by power generators is designated for funding renewable energy subsidies.

Additionally, the NDRC doubled the surcharge in 2013 on renewable energy use to all end users excluding residential and agriculture sectors. These measures were designed to encourage more investment in renewable energy infrastructure and to facilitate a greater shift towards using alternative fuels.

Electricity generation The Chinese government has prioritized the expansion of nuclear, natural gasfired, and renewable power plants as well as the electricity transmission system to connect more remote power sources to densely populated areas along the coasts. Although coal remains the primary source of electricity generation, China is seeking ways to curb expansion of coal fired generation.

Rapid growth in electricity demand this past decade spurred significant investment in new power stations,

nomic cycles and rebounded in 2010 as the Chinese economy recovered from the recession. However, annual power demand growth slowed considerably to just 5% in 2012 and 7.5% in 2013 as a result of weaker industrial output and slower economic growth. The government is investing in development of the transmission network, integration of regional networks, and construction of new generating capacity.

Fossil fuels Fossil fuels, primarily coal, made up 77% of power generation sources and nearly 70% of installed capacity. Coal is expected to remain the dominant fuel in the power sector in the coming years, while natural gas is set to increase and replace some of the coal fired capacity in the northeastern and southeastern coastal areas where power demand is higher. Oil fired generation is expected to remain small in the next two decades. In 2013, China generated about 3,937 TWh from fossil fuel sources, up about 7% from 2012.

Installed fossil fuel fired capacity was 863 GW at the end of 2013.

Because of the large amount of domestic reserves, coal will continue to lead the fuel slate for power generation, even as China diversifies its fuel supply and uses cleaner fuels. Coal serves as the primary source of fuel

16 | POWER INSIDER VOLUME 9 ISSUE 5

for power, although plant utilization rates have declined slightly from 60% in 2011 to 56% in 2014. As happened with coal mining, the Chinese government is closing small and inefficient plants to modernize the coal fleet in favor of larger, more efficient units as well as technologically advanced ultra supercritical units, which operate at the highest levels of pressure and temperature for a coal plant. Also, China has prohibited companies from building new coal fired power plants around three major cities—Beijing, Shanghai, and Guangzhou—as air pollution rates have become a problem in recent years.

China is building more coal fired capacity closer to the inland coal producing centers and expanding electricity transmission to alleviate air pollution from major urban areas along the coast.

Natural gas currently plays a minor role in overall power generation and accounted for only 43 GW of installed capacity at the end of 2013. However, the government plans to invest heavily in more power plants fueled by natural gas, a growing marginal fuel source.

In 2014, companies added another 12 GW to the electric grid, and 18 GW of gas fired power is under construction.

China is able to obtain gas from increasing production of domestic sources as well as several import alternatives, but coal still remains the less expensive fuel except in the large southern coastal cities where natural gas is more available and competitive. Natural gas serves as a fuel source primarily during peak demand for power, and storage for natural gas is extremely low. These factors affect natural gas supply available for electricity. The utilization rate of gas fired plants averaged 30% in 2013.

There are several examples of China’s effort to bring new efficient gas fired units online, some in conjunction with new LNG terminals such as those in Guangdong and Shanghai. Also, Beijing authorities are replacing all of its coal fired facilities, representing 2.7 GW of capacity, with more efficient gas fired plants by 2016. By early 2015, Beijing had closed three of the four major coal fired power plants in its campaign to significantly reduce coal consumption by 2017. Overall, China’s effort to shift coal fired generation to more gas fired generation in the long term depends on the country’s ability to increase gas supply through domestic production and imported sources, to improve the infrastructure for gas transmission, and to regulate coal use.

Nuclear Although nuclear generation is a small portion of the country’s total power

generation portfolio, China is actively promoting nuclear power as a clean, efficient, and reliable source of electricity generation. China generated 106 TWh of nuclear power in 2013, making up only 2% of total net generation.

However, the country rapidly expanded its nuclear capacity in the past few years, which will likely boost nuclear generation in the next few years.

China’s net installed nuclear capacity was more than 23 GW as of April 2015 after the country added ten reactors with more than 10 GW since the beginning of 2013. All of China’s nuclear plants are located along the east coast and southern parts of the country, but China plans to assess the construction of inland facilities, according to its latest energy strategy plan. By April 2015, Chinese companies were constructing an additional 23 GW of capacity, more than one third of the global nuclear power capacity currently being built.

These plants are slated to become operational by 2019 and roughly double China’s current capacity. Several more

currently proposed facilities. China also intends to build strategic and commercial uranium stockpiles through overseas purchases and continue to develop domestic production in Inner Mongolia and Xinjiang. Also, China is developing nuclear fuel reprocessing facilities expected to come online by 2017, according to the World Nuclear Association.

Hydroelectricity and other renewables The Chinese government has a stated goal to produce at least 15% of overall energy consumption by 2020 from non fossil fuel sources as the government addresses environmental issues.

Chinese companies invested a record level $89 billion in renewable energy projects in 2014, 31% higher than 2013 investments. China, now the world’s leading investor in the renewable energy sector, will likely continue sizeable investments through the next five year period to reach its renewable energy and carbon emission goals. China is encouraging investment in renewable energy and accompanying transmis-

facilities are in various stages of planning.

Following Japan’s Fukushima Daiichi nuclear accident in March 2011, China suspended government approvals for new nuclear plants until safety reviews of all facilities were completed and a safety framework was approved by the State Council. New plant approvals and construction resumed in October 2012, and the commissioning of new capacity has steadily increased. China’s government plans to boost operational nuclear capacity to 58 GW and to have 30 GW of capacity under construction by 2020. As part of this effort, the government is encouraging private investment in nuclear project development and a more expeditious approval process for

sion infrastructure through a variety of financial and economic incentives.

Because of its cost effectiveness and sizeable resource potential, hydroelectricity has become China’s key source of renewable energy generation. China was the world’s largest producer of hydroelectric power in 2013. The country generated about 894 TWh of net electricity from hydroelectricity, representing 18% of the country’s total net electricity generation, according to EIA estimates. After a severe drought in the southwestern region that resulted in lower hydroelectric production in 2011, and the completion of the Three Gorges Dam in 2012, hydroelectric generation growth rebounded in 2012.

Installed hydroelectric generating

capacity was 280 GW at the end of 2013, according to FGE, accounting for more than one fifth of total installed generating capacity in China. The world’s largest hydropower project, the Three Gorges Dam along the Yangtze River, was completed in July 2012 and includes 32 generators with a total maximum capacity of 22.5 GW. The dam generated almost 99 TWh in 2014, the world’s highest level of hydropower generation in any year. Another massive hydropower dam and China’s third largest, Xiangjiaba, entered operations in 2013 with four of its eight turbines.

The 6.4GW project, also along the Yangtze River, is slated for completion in 2015. The Chinese government plans to increase hydroelectric capacity to 350 GW by the end of 2020. However, China has faced some delays on projects resulting from environmental concerns and complications of population displacement needed to build the dams.

In 2013, China was the world’s second largest wind producer, generating about 132 TWh, a level about 38% higher than in 2012. China’s installed ongrid wind capacity was 76 GW at the end of 2013 and has grown exponentially since 2005. However, absolute wind power capacity stood at about 91 GW, representing a shortage of transmission infrastructure to connect wind farms to the electric grid. The government has encouraged investment in grid development and measures to improve flexibility in the transmission system, especially during peak hours.

The NEA reported that on grid capacity rose to 96 GW in 2014, indicating infrastructure development is rapidly occurring. As part of its renewable energy targets, the NDRC aims to increase wind capacity to 200 GW by the end of 2020.

China is also aggressively investing in solar power and hopes to increase capacity from 15 GW at the end of 2013 to 100 GW by the end of 2020.

The NDRC began providing generous financial incentives for solar equipment manufacturers in 2012, which have led to a boom in large scale solar projects.

Biomass use in China is relatively small, mostly for heating and cooking in rural areas, and for small scale power projects. The NDRC has created price and tax incentives for investments in biomass and waste incineration projects through feedin tariffs. By 2014, the total installed biomass power capacity in China was 10 GW, with a targeted capacity of 30 GW by 2020.

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White Paper

ÂŽ

The role of generator sets in the new landscape of microgrids The demand for primary energy, the energy needed to meet the basic needs of the population for heating, transport and electricity consumption, has consistently grown in recent decades. Since 2010, it has increased by a factor of 1.5 and, according to the International Energy Agency, it is predicted to grow 32% by 2040. How can this growth be sustainable in the long term? The energy mix needs to be remodelled to make way for cleaner forms of energy, without sacrificing the stability of supply we currently enjoy. On this last point, this is where generator sets play a crucial role. Generators add reliability to this new mix, which has to meet many requirements at the same time: it has to be efficient, compatible with the existing infrastructure everywhere, adapt to demand at any given time and reduce the environmental impact caused by the unstoppable increase in global energy needs.

Massimo Brotto HIMOINSA SALES ENGINEERING MANAGER

Distributed Energy to meet longterm energy demand

demand for energy resources. But this growth has set a course: the process has to be sustainable. The last United Nations

Increased consumption in countries such

Climate Change Conference, held in

as India and China, global population

Paris in 2015, set out the path towards

growth and the significant industrial

a low-emission economy, with the

development that is taking place have

commitment of the 195 countries that

an enormous effect on the upswing in

signed the agreement. The majority have

heeded the agreement and have started to put solutions in place to reduce their dependence on coal.

Technology already offers concrete solutions to these needs. “Distributed Generation� makes it possible to take energy production to where the energy is, with units that, by working autonomously and without depending on

Control

the electricity grid, can produce energy continuously and sustainably.

Microgrids represent the most developed Distributed Generation model to date: systems, whether connected to the grid or not, which can combine different conventional and renewable technologies. In addition to energy generation, they have two distinctive features: control, the most intelligent part, which predicts consumption and work cycles; and storage devices, the

MICROGRID

18 | POWER INSIDER VOLUME 9 ISSUE 5

heart of a microgrid, which together

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Combining generators with a smart Hybrid Renewable Energy Systems

management system makes it possible to plan running hours to perfection and to increase the microgrid’s efficiency

RENEWABLE TECHNOLOGIES

CONVENTIONAL TECHNOLOGIES

• SOLAR

• GAS

• WIND • BIOMASS

+

• DIESEL

enormously.

SOLAR DIESEL

SOLAR GAS

The combination of a conventional fossil fuel-powered generation plant with a

BIOMASS COAL

=

100% renewable energy plant offers significant advantages.

• COAL WIND SOLAR

WIND DIESEL

Firstly, it provides an uninterrupted power supply, which a renewable energy plant alone is unable to guarantee.

SOURCE: FROST&SULLIVAN

Secondly, it significantly reduces running costs. A typical load pattern of these plants shows how the combined use of

with power electronics compensate for the load variations of renewables and are much more efficient in energy production.

To make all this equipment work, a monitoring system is required to collect and communicate all data, both from the grid and from the other connected sources, in a smart grid environment.

At present, one third of energy supplied by microgrids comes from generator sets, another third from wind energy and

such as the legislative framework, the

generator sets with renewable energy

distance from the national electricity

offers not only a significant fuel saving,

grid, and the cost and profitability of

but also reduced overall running and

electrifying an area, considering its

maintenance costs. Running hours will

population density and its level of

always be lower and less maintenance

industrialisation. Even so, this market is

and lubricant, filter or injector changes

expected to grow at a brisk pace, around

will be required.

17.1% per year for the next five years, and rural and island electrification is expected to lead the process as a whole, with year-on-year growth of 23%.

Suitable conditions for the installation of a hybrid plant Hybrid solutions are especially attractive for industrial markets, such as the mining

However, the global trend is certainly

Advantages of incorporating generator sets in hybrid generation plants

to combine different technologies to

Incorporating generator sets into

power for shops, farms or households.

eliminate the negative aspects they

these hybrid systems guarantees that

All these applications share a number of

each have when used individually, and to

the system is reliable: it ensures that

common features:

reduce dependency on fossil fuels. The

energy is always available. They are the

•

falling price of solar panels is making the

ingredient in the mix that provides a very

connected to the grid or have

transition much smoother and countries

sound solution to the intrinsic instability

excessively high electricity costs.

such as the United Arab Emirates, Saudi

of renewable energy, because, unlike

Arabia, Qatar, Germany and Chile have

renewable energy, generators are not

with around 4,000 running hours

started to encourage renewable energy

dependent upon often unpredictable

per year. The ideal situation for a

projects with this goal.

natural conditions.

hybrid plant is most of the demand

The appeal of combining fossil fuels

In addition, generators function as a

occurring during the day, when solar

and renewable energy, and its success,

very useful storage alternative that can

largely depend on external factors,

respond very quickly to load variations.

the rest from microturbines, solar panels or fuel cells.

BALANCE OF SYSTEM SMART GRID

20 | POWER INSIDER VOLUME 9 ISSUE 5

or telecommunications sectors, as backup energy in rural areas and islands, as well as a single source of continuous

•

They are places that are not

Their demand is up to 5MW,

sources are available.

•

They have a high level of exposure

s

ed?

le

the investm

wind exposure should be at least 4

estimate that 4,800,000 litres of diesel

generator s

to sunlight or wind.

To guarantee m/s.

Countries such

current consumption. is 2,312kWh/m² and annual asirradiance Chile, Peru would be required.

recouped w

current toa sunlight wind. To guarantee irradiance is consumption 2,312kWh/m²isand annual Basedconsumption. on these figures and depending return onorinvestment, solar electricity approximately and India, or regions such as the If three HIMOINSA HTW-2030 T5 Based on price theseoffigures airradiance return on should investment, solarthan electricity consumption is approximately on the diesel and anddepending solar irradiance, be more 17,520MWh/year.

For constant daily Caribbean, Asia Pacific, Middle East generator sets, which supply a total of on the price of diesel and solar irradiance, irradiance should be more than 17 ,520MWh/year.

For constant daily the investment in a plant that combines 1,300kWh/kWp or, as applicable, consumption of 4MW for 12 hours, let’s

Conclusio

thegenerator investment in with amany plant that combines 1,300kWh/kWp or, as applicable, consumption of 4,800,000 4MW for4.85MW 12 hours, let’s sets solar panels could be wind exposure should be at least 4 geographical estimate that litres of diesel and North Africa are are installed, how hours generator sets withthree solar to panels could be In the trans wind beChile, at least 4 estimate that 4,800,000 litres of diesel recouped within five years. m/s.exposure Countriesshould such as Peru would be required. areas thatChile, meet all these optimal would it take to recoup an investment recouped within three to five years. m/s. such assuch would be HIMOINSA required. HTW-2030 T5 energy pro and Countries India, or regions asPeru the If three

conditions for Ifinstallation. like T5 this? much fuel could be saved?

India, natural or Asia regions suchMiddle as the East three HIMOINSA HTW-2030 Caribbean, Pacific, generator sets, which supply a total How of Conclusions currentand consumption.

Caribbean, Asia Pacific, Middle East generator sets, which supply a total of Conclusions and NorthThey Africahave are geographical 4.85MW are installed, how hours enough space for the Themany monitoring systems arefrom responsible In the transition conventional Based on• these figures and depending

forms of pr

unquestion and North geographical 4.85MW installed, how hours areas thatAfrica meetare all these optimal would itare take to recoup anmany investment In energy the transition from to conventional production moreisrenewable installation of solar panels.

Where for detecting which energy source that all these optimal would it take to recoup an investment on theareas price ofmeet diesel solar irradiance, natural conditions forand installation. like this?

How much fuel could be saved? energy production to more renewable coming yea forms of production, generator sets natural conditions for installation. like this?

How much fuel could be saved? this under a the roof, theThe ratio shouldsystemsthe at anyforms given time. So, during They have enough space that for monitoring are best responsible of production, generator the•investment in is a plant combines unquestionably have a role tosets play in theavailability • They have enough space for Where the The monitoring systems are responsible installation of solar panels. for detecting which energy source is unquestionably have a role to play in the be around 10 square metres per the hours of greatest solar irradiance, coming years.

Their capacity to ensure generator setsofwith solar panels could be demand th installation solar panels.

Where for detecting which energy source is this is under a roof, the ratio should the best at any given time. So, during coming years.ofTheir capacity to ensure availability energy to meet increasing kW generated.

Where this is on the the generators work at a minimum this is under a roof, the ratio should the best at any given time.

So, during recouped within to fiveperyears. the hours of greatest solar irradiance, be around 10 three square metres availability energy to meet increasing environme demand of that is more challenging from an be around 10 square metres per the ofwould greatest kW generated.

Where is on thekilometres thehours generators worksolar at level. a irradiance, minimum ground, 20this square In this way, the service life of the demand that is more challenging from an environmental point of view makes them a sound so kW generated.

Where this is onwould the the generators workthe at aservice minimum ground, 20 square kilometres level.

In this way, life of the environmental pointto ofthe view makesinstability them a sound solution intrinsic be required per MW. engine is increased and therefore the ground, 20 square kilometres would level.

In this way, the service life of the be required per MW. engine is increased and therefore the a sound solution toand theaintrinsic instability of renewab of renewables, useful storage be required per MW. engine is increased and therefore the running costs of storage the running and maintenance costs of and the maintenance of renewables, and a useful alternative. Generators respond quickly alternative.

In the transition from conventional running and maintenance costs of the alternative.

Generators respond quickly unit are reduced. And ofunit course, Case study: how integrating arefuel reduced.

Andload of course, fueland, when variations occur when when load unit are reduced. And of course, fuel Case study: energy how integrating energy production towith more when load variations occur and, when consumption is considerably reduced. renewable a renewable integrated in the management of consumption is considerably reduced. a smart consumption is considerably reduced. renewable energy with works a integrated in the management of a smart integrated generator set actually forms of production, generator sets In this specific case, it would mean grid, make it possible to plan running In this specific case, it would meanspecific case, generator set actually works In this grid, makeititwould possible mean to plan running an annual saving of 1,600,000 litres of hours and to increase the efficiency of grid, make Let’s suppose that a hybrid plant is unquestionably have a role to play in an the annual saving of 1,600,000 litres of hours and to increase the efficiency of Let’s suppose that a hybrid plant is diesel per year, more than one third of an annual savingtheofwhole 1,600,000 system. litres of installed in Chile, in a regionthat where hybrid solar diesel perisyear, more than one third of hours and t Let’s suppose plant coming Their capacity to ensure the whole system. installedyears. in Chile, in a region whereasolar

Conclusions

Case study: how integrating renewable energy with a generator set actually works

installed in Chile, in aincreasing region where solar availability of energy to meet

diesel per year, more than one third of

the whole

demand that is more challenging from an environmental point of view makes them

PV PV 36% 36%

a sound solution to the intrinsic instability of renewables, and a useful storage

DIESEL DIESEL 64% 64%

alternative. Generators respond quickly when load variations occur and, when integrated in the management of a smart POWER [kW]

’s

consumption of 4MW for 12 hours, let’s

POWER POWER[kW] [kW]

ly

1,300kWh/kWp or, as applicable,

grid, make it possible to plan running

DIES 64%

HOURS [h] HOURS [h]

hours and to increase the efficiency of the whole system.

HOURS [h]

PV 36% DIESEL 64%

Massimo Brotto Massimo Brotto

HIMOINSA SALES HIMOINSA SALES ENGINEERING MANAGER ENGINEERING MANAGER

With more than 15 years of experience, With more than 15 years of experience, he he leads a team of professionals providing technical leads a team of professionals providing technical support to the sales department working support to the sales department andand working on on development of generator applications thethe development of generator set set applications with batteries renewable systems.

In terms with batteries andand renewable systems.

In terms of new product design, he focuses on optimising of new product design, he focuses on optimising profitability minimising running costs. profitability andand minimising running costs.

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Welcome to PiMagazine Asia, can you tell us a bit about Kohler?

Kohler are a global force in power solutions since 1920, Kohler is committed to reliable, intelligent products, advanced engineering and responsive after-sale support.

You can find us on nearly every continent on the planet. Over the years, we’ve amplified our global reach—acquiring SDMO Industries, a worldwide leader known for its premium range of generators sets. Together, we’ve built on the legacy of two leading brands to create one of the largest generator manufacturers in the world—and continued an unwavering focus on reliable power systems and innovation.

Our R&D, manufacturing, sales, service and distribution facilities span the globe from Kohler, Wisconsin, to Brest, France. And while we’ve maintained two world-renowned brand names, today Kohler and SDMO operate as an integrated global organization that’s leading the way in design and manufacturing.

We deliver integrated industrial power systems for emergency, prime and continuous applications worldwide—from

22 | POWER INSIDER VOLUME 9 ISSUE 5

data centers and hospitals to water treatment facilities and government offices. With a deep understanding of your industry, we excel in designing customized power systems that simplify your most complex challenges.

Frequent Power outages & increasing demand, unmet by a poor grid infrastructure are currently driving demand in the diesel generator market. How quickly can your business respond to the market from initial order to installation?

Kohler has a wide range of generators for different application requirements.

We keep stock accross the different models and power capacity in our storage facilities in Singapore, France and Dubai for emergency cases. Further to that, we work with partners on their generator stock in their warehouse for commonly sought after units. We also certify our partners’ service teams to support the installation and commissioning. When required, the Kohler aftermarket and service team can provide support as well.

Due to growing environmental

restrictions around the World, what plans do you have in place to ensure your generators meet stringent environmental concerns?

One of the key environmental concerns when it comes to generators is exhaust emission. Kohler’s new KD range offers customer the option of an emission optimized engine to meet emission requirements. Our current products, both 50Hz and 60Hz, adhere to US EPA standards and requirements.

What are the key issues to enable power generation to remote communities for industrial and residential usage?

One of the main problems for power generation in remote areas is the accessibility to service and maintenace teams. This tends to lead to the break down of generators due to the lack of servicing and maintenance. In between service intervals, it is also important to regularly monitor the status of the generators. Kohler’s remote monitoring capability allows the maintenance team to achieve real-time monitoring and even full control of the generator remotely through their mobile devices.

Ease of maintenance is very important to many when deciding on which genset to install. On installation, what do your company do to ensure the gensets keep the lights on?

Kohler’s latest KD series generators are designed with the ease of service and maintenance in mind. Kohler G-drive engines are modular. Different engine models share the same parts and components. Our service team and distributors can stock up on parts inventory that can be used across different engine models. This ensures that spare parts are readily available. All components and parts have been tested rigorously and can run for longer intervals before the need for replacements.

Infrastructure development is particularly strong all over Asia at present. What market verticals are you seeing the most growth and what are the reason for this?

Power utilities is one of the important vertical markets. This is due to the strong drive to grow the economy in many developing countries. Many of these counties still have a shortage of stable power grids. As such, government of these countries will continue to drive the growth in this area. Data centers are also one of the key markets due to the proliferation of digitalization, cloud technology and e-commerce. Many players will tap on this segment to capture the huge potential of growth. in addition, we are expecting the construction sector

to gain momentum. This includes commercial buildings, residential, manufacturing facilities, etc.

Fuel economy is another key driver when considering a genset. Just how economical are your sets and why?

Kohler’s latest KD series G-drive engines are designed with fuel economy as a key consideration. These engines have the best fuel consumption at more nodes than any competitors from 800kW to 2500kW. Their high pressure common rail injection system reaches an injection pressure of 2200 bar and causes fine vaporization of the fuel. This ensures efficient ignition, combustion and exhaust. The common rail system also comes with a standard leakage pipe that returns unused fuel to the fuel tank. Our compact design engines are able to produce more power with a smaller engine design. A smaller engine in

general consumes less fuel for each revolution.

The ability to tailor your products to a specific customer application is very important and many companies do not have this flexibility. Can you give our readers an example of how you have tailored your solution to meet a customer requirement and the benefits they received on receiving your solution?

We pride ourselves on our ability to offer highly customizable solutions to our customers. We are able to custom-

ize any key components such as the alternator or controller as specifed by our clients. At Kohler, we have a dedicated team for unique projects that require specifications outside of the standard scope. For a particular bank project, the customer required two sets of back up generator systems to work in parallel to support the load.

However, the customer specifically asked for both sets of backup generators that have different engines and alternators as they would like to avoid the risk of failure for only using single engine and alternator model. We were able to offer a solution of two sets of backup generator systems that use a totally diferent engine and alternate brand to work seamlessly in parallel to support the critical load.

I would like to thank you for your time today, it’s been a great experience and an interview I’m sure our

readers will love. Before we sign off here, can you summarise why any company would benefit from working with you?

As a single-source provider, you can be confident that every power system is loaded with designed and manufactured components from Kohler.

Total system integration assures you that no matter how large or complex the project, everything works together seamlessly–from generators and transfer switches to paralleling switchgear and controllers. That’s the KOHLER® difference.

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ROUNDTABLE

Shanghai Electric’s 1000 MW Class Ultra Supercritical Power Plant

The Dominance of Chinese Manufacturers OUR EXPERT PANEL

According to market leaders in the USA, Europe and Asia, China has come to dominate the power equipment market in a very damaging way.

Corporations in China have flooded the market with cheap and readily available products, with monopolies in the thermal power sectors. The Chinese Government have been accused of violating international trade laws and destroying jobs by facilitating this dominance with subsidies, land grants and zero duty taxes. Additionally, customers and competitors have slandered the quality of Chinese equipment, calling it poorly made using, subpar materials.

24 | POWER INSIDER VOLUME 9 ISSUE 5 44 POWER INSIDER MAY / JUN 2013

But is this a fair representation of the manufacturing market?

PI Magazine Asia has asked the experts, and has put together a panel of market leaders to discuss China’s position in the power equipment market. Taking part inis Yuxi Zhang, Project Manager of Development Division at Harbin Turbine Co. (YZ), Lingsong Tsai, the Overseas Project Manager and Chief of Global Business Development at Jiangsu Electric Power Design Institute (LT), and Antony Qinghua Zhang, Commercial Manager of the EPC Division at Shanghai Electric (AQ).

Shanghai Electric, Harbin and Jiangsu give their opinions on China’s manufacturing dominance in the power equipment market.

www.karpowership.com

power for asia

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ROUNDTABLE: CHINESE MANUFACTURERS

Is Chinese dominance in the power equipment market damaging?

China’s rise to the top of the manufacturing food chain has been stratospheric, having added about 600,000 MW of power generation capacity in the last 10 years. Chinese manufacturers are gaining the monopoly in India, a country that is attempting to bolster its domestic manufacturing base, with a 35% share of the thermal equipment market alongside private players. But how did China achieve this rapid climb?

What are the reasons for China’s stranglehold on the power equipment market?

High quality and inexpensive, and what is more, Chinese manufacturers have a strong production capacity.

Due to cheap Chinese labor costs, as well as rapid development in industrial manufacturing technology and electric power construction markets in the past thirty years, power equipment in China has great advantages in the market. At the same time Chinese labor is comparatively high in efficiency and quantity, so the product delivery time is very short. China began to build a large number of 1000MW scale of Ultra-supercritical power plant and 1000kV class UHV power transmission & transformation projects in recent years, which also promoted the technology level of Chinese power equipment.

Fast delivery, cost effective and world class equipments with state-of-the-art technology.

Standing from developers’ position, setting up a power plant within shortest period of time, with reasonable costs and excellent quality means they can maximize returns on their investment. It will make more sense if we extend the same logic to a developing country, who normally has limited capital available for funding the development of their power generation sector, but is hungry for power and energy to fuel the development of their economy.

Is the Chinese dominance in the power equipment market positive because it provides competitiveness?

Chinese manufacturers just try their best to provide competitive equipments.

China can provide a lot of electrical equipment of the same technical standard, hence reducing significantly the price on the market, which can also be realized on the EPC market. At the same time, the fierce market competition has promoted the development of technology, which has brought a positive significance to the market in my opinion.

26 | POWER INSIDER VOLUME 9 ISSUE 5

The Chinese power equipment suppliers now provide more options for power developers when they come to choose their vendors or subcontractors. This certainly provides competitiveness to the market in terms of offering more choices, more values, and better services to the developers. The participation of Chinese equipment suppliers does improve the health of the system by reducing overall cost and adding efficiency of the system.

Why has this dominance caused such a backlash?

I did not feel obvious backlash, but in my opinion all countries hope their domestic manufacturing industry vigorously develops, so there will be some form of resistance to foreign manufacturers.

The most obvious example is that because of the advantage of Chinese electrical equipment, Chinese companies begin to get more and more share on the market compared to Japanese and South Korean companies in the EPC market, which is almost the same story with Japanese and South Korean companies’ triumphing over European and American companies in earlier years.

In general, the so called “backlash” is actually the reaction of intensified competition in the market, especially with the background of post global financial crisis after 2008, when the global economy comes to the down cycle and results in fewer power projects available in the market.

Is Chinese power equipment poor quality?

As our contributors have argued, one reason for Chinese manufacturer’s dominance is their ability to turn projects around very quickly and at reduced costs. But do these advantages come with a cost? Chinese power equipment has had mixed reviews, with companies like India’s Reliance Power still investing millions and megawatts into China’s supercritical technology, whilst companies like BHEL consider the equipment inferior.

The international market is not convinced that Chinese vendors meet the stringent technical assurances from third party certification bodies to bring the equipment in line with global standards. That means that Chinese vendors are allegedly bringing equipment on to the market doesn’t deliver exceptional safety standards, quality components or performance over the lifecycle of the plant.

The equipment apparently emits more pollution, isn’t fuel efficient and allows less flexibility in fuel choice. Additionally, Chinese equipment in general tends to need more maintenance at earlier dates and has been known to completely fail. A notorious example of this

is at the Sagardighi thermal power station in India, when the turbine blades supplied by Dongfang collapsed within weeks of the station commencing commercial generation. But is Chinese equipment that bad?

Why do so many other vendors claim Chinese power equipment to be inferior?

What qualities do Chinese vendors have?

All vendors have their own advantages, and if a vendor’s equipment is inferior it will be sifted out. So in the international markets, we can not claim any vendor’s equipment is inferior.

Firstly, it is because China has developed very fast, but most people from other countries still regard China as undeveloped.

Secondly, due to China’s active domestic market, most of the best companies are busy undertaking orders domestically, so the first companies going to overseas market are comparatively small scale and second-rate.

For the reasons above, some failures occurred and owners began to form an impression that Chinese suppliers are poor in quality.

In fact, leading power equipment manufacturers in China are superior to their European and American counterparts whether on technology research, product manufacturing, or quality control, which is the reason why most European and American power equipment suppliers have their large-scale R&D centers and OEM works in China.

Chinese power equipment suppliers emerged as new players in international market in the beginning of the 21st century, and faced the same criticism as the Japanese in the 1960’s and the Koreans in the 1980’s. Chinese players shall invest more to improving communication skills and advertising. For example, we have units operating in various countries with fabulous performance parameters that few people know about. However, we’re focusing on the comments from our end users rather than other vendors, since it is eventually the clients using our equipments who understand the real story. Regarding the quality of Chinese equipments, there’re below facts to be known: t 1PXFS HFOFSBUJPO FRVJQNFOU FTQFDJBMMZ core equipments such as boiler, turbine, and generators, are high end & technologically intensified products which are designed and manufactured to operate under extremely bad working conditions.

There are strict international standards for those special utility equipments to be followed, which means Chinese power equipment suppliers are following the same international standards as their international peers do. t $IJOB IBT UIF MBSHFTU JOTUBMMFE QPXFS generation capacity in the world with its total volume of 1140 GW, in which nearly 70% is thermal power. All power

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ROUNDTABLE: CHINESE MANUFACTURERS equipments and technologies supplied by Chinese players have been well operated and proved in the domestic market before entering the international. The only difference that might exist is erection quality, which needs to be taken care of properly both by the local erection team and supervisors. t /PXBEBZT UIF TVQQMZ DIBJO PG QPXFS generation equipments has became completely integrated and internationalized, it has been found that nearly all international peers are actually using similar sub-vendor or sub-supply system as we are, they have actually set up their sourcing centers in China purchasing critical components and materials for benefits of cost effective and fast delivery. This phenomenon on the other hand has reflected that the Chinese power generation equipments supply chain have been able to meet most strict quality plans required internationally.

Based on above elaborated, we do believe that Chinese power generation equipments are in line with the world class quality and we’re confident that time will tell the truth.

What needs to be done to show that Chinese equipment can compete for reasons other than price?

The production facilities are international advanced, and HTC has complete product design systems and experimental verification capacities. HTC has achieved a lot in the thermal power steam turbine and combine cycle turbine international market, and in the domestic nuclear steam turbine market.

Additionally, HTC has competitively performed in the new energy field.

Firstly, Chinese products and enterprises lack effective publicity and advertising.

Secondly, the service concept in China companies has to be improved, and cannot yet perfectly meet the requirements of overseas markets in product design and on-site services.

Finally, as more Chinese first-class equipment manufacturing companies and EPC’s have begun to get involved in overseas market, it will be become a reality that Chinese companies can supply excellent power equipment and carry out EPC projects around the world.

Fast delivery and commitment to delivery, and continuously improving technology. Due to large scales of manufacturing, Chinese power generation equipment suppliers such as Shanghai Electric can deliver equipments comparatively fast. Shanghai Electric is investing heavily in R&D, with massive experience accumulated from delivering the largest number of thermal power units in the world (more than 300GW in total).

Shanghai Electric will deliver more new technology along with our equipment to our

28 | POWER INSIDER VOLUME 9 ISSUE 5 46 POWER INSIDER MAY / JUN 2013

clients. In the domestic market we’re developing double reheating technology for ultra supercritical units with single capacity of 1260 MW, and in India we have modified our boiler design to accommodate the high ash content Indian coal.

Also, the learning curve of Shanghai Electric in overseas market in last decade has enabled it to improve its project management skill under international environments, which will eventually help us deliver better service to the clients.

What are the major project achievements that you reached with your equipment in China and other markets in Asia that demonstrate positive attributes for your technology?

There are so many achievements in China and international markets it is hard to choose our most significant.

In the recent five years, our company has finished six 1000 MW coal-fired power generating units, and nearly 600 km of 1000kV grade UHV transmission lines as well as other large projects. These projects are of high design and environmental standards, and the energy consumption index has reached the world level. As you may know, the world’s best coal consumption standards in a coal-fired unit are also in Shanghai, China.

In China, from 1950s Shanghai Electric has delivered more than 300 GW power generation equipments to the country and is the single largest contributor to the thermal power generation capacity of the country.

In India, Shanghai Electric has delivered power equipment to developers for projects including the Reliance Sasan 6x660MW project, the Adani Tiroda 5x660MW project, the HPGCL Hisar 2x600MW project, the Reliance Buttibori 2x300MW project, the JSW Ratnagiri 4x300MW project, and the CESC Hadia 2x300MW project, amongst many others.

Is imposing sanctions to control China’s dominance the right thing to do?

Chinese manufacturers have been accused of dumping power equipment in foreign markets, allowing them to sell products cheaper than their market value, and India has imposed sanctions in the thermal power equipment market. In order to reduce the sheer volume of Chinese products being imported, the government last year announced a 21% import duty on all imported power equipment. Broken down, this duty includes a 5% basic customs duty, 12% counter-veiling duty and 4% special additional duty on import of power equipment. The tax will only affect projects approved after September 2012,

but is this kind of action the most positive step to take?

Do you think imposing sanctions from countries like India, to control China’s dominance by implementing import duty, after pressure from the likes of BHEL is unfair?

Yes. Chinese equipment’s price advantage will be weakened because of the import duty, but we can not control it. All we can do is to provide high quality products and excellent after-sale service; I think that is the key.

Sanctions will not solve the problem; on the contrary, it can only lead to trade wars.

As far as I know, Chinese power equipment manufacturers and power EPC companies do not get any special subsidies from the Chinese government, their prices reflect the actual cost which is needed to complete the work in China, so the sanctions are not fair.

What are the potential consequences for the imposition of the import duty in India?

It will just prevent foreign manufactures from entering the Indian market. And because of the lack of competition, India domestic vendors will experience slow development, even the economy.

In the past few years India has imported large amounts of coal-fired power generating units from China, and the Chinese EPC’s won a lot of contracts. However, this trend has fallen in recent years. Why are Chinese products are so welcomed in India? There are two reasons, the large demand in the Indian power market, and people’s preference to low-price products.

If India is to levy high tariffs on Chinese products, the only result is that there will be harm to the power development of India, leaving the people of India with insufficient and unstable power supply.

The increased duty will eventually be transferred to power developers, causing increased initial investment cost. Accordingly, higher tariffs will be charged so as to recover the increased cost. PI

JOIN THE DEBATE The interview panel make some interesting, and controversial points.

What do you think? Do you agree or diagree? Send us a tweet, using the hastag #chinesemanufacturers @pimagazineasia

NO, IT’S NOT A FATA MORGANA! THIS IS ENEXIO DRY COOLING SOLUTIONS. Uninterrupted top performance even in arid areas with depleted or zero water resources: You can rely on our water saving power cooling solutions.

www.enexio.com

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DRY COOLING FOREWORD

Ever growing water use, increasing environmental pollution combined with the threat of climate change and enhanced shrinking of resources make imperative water conservation.

Seemingly, there is limitless quantity of water in the Earth. Though majority of the water resources are saline water (ocean and sea) – only approx. 2.5 % of freshwater. More than two third of the freshwater is frozen, thus the available freshwater for consumption is less than 0.7 % that of the total water resources.

Even the vast volume of salt water is endangered by man-made pollutions (chemicals, plastic, oil, CO2 and thermal) – resulting in dead zones, red tidal, strange species and flora, especially in the shallow coastal marine areas. One such polluting source is water withdrawal for thermoelectric power.

The major stress is on the freshwater use. The mentioned eligible 0.7% of the total water quantity (abt. 80% surface water, 20% stored in undersurface aquifers) is distributed unequally in the Earth. There is a fierce competition between the different sectors (domestic, agriculture mainly irrigation, industry, thermoelectric) for the available sources.

The thermoelectric water consumption is only 3%. This relatively small percentage value on global basis, however, represents very intensive use locally, exerting an extra stress on water availability at the whole region.

In this respect it shall be taken into account that proven water conserving power cooling solutions have been available for decades whereas “it is not easy” to substitute water for irrigation and domestic use. For example opting for a wet cooling system now has lasting effects. It influences not only the economics of the power plant itself (through making dependent the stability of electricity production on long term water availability), but also influences the surrounding region environmentally and economically by depriving of water use the other sectors (agriculture, industrial processes or domestic) for 3-5 decades – i.e. the whole life-span of the power plant. On the other hand, water conservation in itself is not enough to justify the ap-

30 | POWER INSIDER VOLUME 9 ISSUE 5

plication of any water saving cooling method, it shall also be a cost effective one to make its use attractive for power plant owners.

Therefore, it is important to improve the economics of cooling systems by applying novel ideas. Subject of the present article is introducing the whole portfolio of ENEXIO’s dry/wet cooling systems what are intended to extend the economic viability of water saving cooling against traditional water thirsty ones. The best is to base decision on a comprehensive evaluation comparing the most promising cooling system options for a new power plant. However, it is vital for such an evaluation to consider a realistic water cost, which reflects the total value of the water (regarding also its value for other sectors and the environmental impacts).

Cooling technologies

Presently the overwhelming part of thermoelectric cooling uses either once-through (OTC) or wet cooling systems. Share of each is over 40% somewhat higher for OTC than that of the wet (2/3 of the nuclear power capacity is cooled by OTC, nearly 1/3 by wet). The share of cooling and spray ponds is over 10%. This is the situation both, globally and in the USA. Thus, the water thirsty solutions dominate the market.

The water conservation type cool-

ing systems have only a tiny portion: presently (2017) a bit more than 10% globally and only abt. 2% in the USA. Within these figures the dry cooling systems dominate, whereas the share of dry/wet solutions is still low, though their features promising an increasing demand rate worldwide.

Main power cooling options

The use of water saving solutions are governed either by the physical scarcity of the water or by environmental reasons, including foreseeing lack of water in the future (unfortunately the latter is rarely regarded). It is interesting to note that in the South African Republic and some Middle-and Near-East countries (Turkey, Syria, Iran) the ratio of dry cooling systems exceeds traditionally more than 20% - due to the mentioned physical scarcity of water and meanwhile incentives to site power plants also in the inland areas.

However in the last decade, in parallel with the dynamic increase of new power demand brought with it a significant demand for dry cooling in China.

More recently, measurable number of existing wet cooled plants are targeted to be converted to dry/wet ones.

SELECTION OF COOLING SYSTEMS

ENEXIO is supplier for any of the power cooling systems except the OTC. However, the water conservation type cooling methods represents its core

Fig. 1. Cooling system classification

IN ASIA

INVESTIGATION Environment

Selecting the most economic water conservation type cooling system from the promising methods for a certain thermal power plant a comprehensive investigation and comparison shall be conducted based on indispensable data.

In some cases, these data are not completely available, therefore assumptions shall be made.

Since any cooling system types for power plants are translating the environmental conditions into turbine backpressure variation, actual and historical local weather conditions are extremely necessary, such as: average air pressure, absolute minimum and maximum Dry Bulb and Wet Bulb ambient air temperatures and the most important data is the hourly Dry Bulb Temperature for a typical year (see Fig. 3.) or average of five years with the cor-

competence: dry and dry/wet solutions. Most of these cooling systems have been developed and introduced by ENEXIO and its predecessor companies.

Given the numerous variants, it is important to select optimum solutions. Based on a range of evaluations, ENEXIO determined several charts for orienting selection among these cooling system variants related to targeted yearly and daily water consumptions.

Such charts (see Fig. 2.) specify promising areas for applying different water conserving solutions, valid only for certain range of economic factors.

Fig. 2. Areas for different cooling system configurations

METHOD OF

Fig. 4. Temperature duration curve for DBT and WBT

responding Relative Humidity or Wet Bulb Temperature.

Behavior and year round performance of cooling systems are depending on the so-called temperature duration curves (see Fig 4.) by which annual power output; annual water consumption can be calculated.

Steam turbine

Fig. 3. Example of Temperature variation for DBT on the site

Beside the environmental conditions the actual (or considered) steam turbine type and characteristic is also essential for correct evaluation. The operational backpressure ranges shall be taken into account when configuring DRY or DRY/WET cooling system vari-

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COLD-END CHARACTERISTICS OF INVESTIGATED VARIANTS 225

ALL-WET DRY-SPRAYED

200

max. allowable backpressure: 19.3 kPa

DRY/WET-V1 Turbine backpressure, mbara

175

DRY/WET-V2 DRY/WET-V3

150

DRY/WET-V4

125 100 75 50 25 0 -5

0

5

10

15

20

25

30

35

40

45

Ambient dry bulb temperature, °C

Fig. 6. Backpressure variation vs. DBT

Fig. 5. Steam turbine characteristic curve

WATER CONSUMPTION OF INVESTIGATED VARIANTS

"NET" OUTPUT OF INVESTIGATED VARIANTS 1260

4000

1240

3500

1220 1200

3000

"Net" output,MWe

Water consumption,m3/h

4500

2500 ALL-WET

2000

DRY-SPRAYED 1500

DRY/WET-V1

1180 1160

ALL-WET 1140

DRY-SPRAYED

1120

DRY/WET-V1

1100

DRY/WET-V2

DRY/WET-V2

1000

DRY/WET-V3 500

DRY/WET-V3

1080

DRY/WET-V4

DRY/WET-V4 1060

0 -5

0

5

10

15

20

25

30

35

40

45

ants for the investigation (see Fig. 5.)

RESULTS

Performances, characteristics, water consumptions

To support comparison among different variants their characteristics are plotted on the same charts in different grouping:

cold-end characteristics (i.e. turbine back-pressure vs. DBT) (see Fig. 6.) similarly „net” output variations versus DBT (here „net” output is gross output less cooling system auxiliary power only) (see Fig. 7.) further charts for variation of water consumption of different variants vs.

DBT (see Fig. 8.)

Based on the results of “net” output & water consumption of investigated variants bar charts for relative year round “net” electricity generation and year round water consumptions are intro-

32 | POWER INSIDER VOLUME 9 ISSUE 5

0

5

10

15

20

25

30

35

Ambient dry bulb temperature, °C

Ambient dry bulb temperature, °C

Fig. 7. Net output variation vs. DBT

-5

Fig. 8. Water consumption variation vs. DBT

duced (see Fig. 9. and Fig.10.). Mentioned characteristics and their evaluation for different periods (including year-round period divided to peak and off-peak periods) all production and consumption values can be determined

and used for annual evaluation.

ECONOMIC EVALUATION

For the economic evaluation of the cooling systems their impact on the

YEAR-ROUND WATER CONSUMPTION

(in % of ALL-WET water consumption = 27.54 million m3/y) 15% 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%

Fig. 9.

DRY-SPRAYED

DRY/WET-V1

DRY/WET-V2

DRY/WET-V3

DRY/WET-V4

40

45

is assumed to cover the costs of planned and unplanned maintenance activities and also the foreseeable replacements, too.

YEAR-ROUND "NET" ELECTRICITY GENERATION (ALL-WET : 100% = 9 877.6 GWh/year)

100% 99% 98% 97% 96% 95% 94% 93% 92% 91% 90%

DRY-SPRAYED

DRY/WET-V1

Fig. 10.

power plant is to be investigated with a simplified present value based lifecycle evaluation considering the main economic factors.

Costs from cooling system affected equivalent unavailability differences: Effects reducing efficiency and performance or causing forced outages and extended maintenance periods are the main sources of equivalent unavailability. Not only the unavailability of a cooling system itself shall be taken into account but also its impact on the unavailability DRY/WET-V2 DRY/WET-V3 DRY/WET-V4 of the power cycle as a whole. The percentage equivalent unavailability difference can be regarded as proportional reduction be deducted from the “gross” output in net electricity production. value for evaluate the year-round “net” electricity generation (i.e. gross turbine electricity generation reduced only by the cooling system auxiliary power consumption).

Capital cost: Functionally equivalent cooling systems with complete scope are investigated independently if the required scope is usually supplied by the cooling system vendors or not.

Water Costs: Specific make-up water costs are applied for the annual water consumptions to determine the yearly water cost of the different variants. Such specific costs shall include all potential items: acquisition of raw water or water rights, cost of delivery (potential reservoir), in-plant treatment, blow-down treatment and disposal.

Costs or gains coming from differences in electricity production: Evaluation is based on the year-round „gross” electricity generation.

Costs or gains coming from differences in auxiliary power consumption: Auxiliary power consumption shall

The results of the present value evaluation opens route to determine to make sensitivity analysis in function of the most important economic factors as well as developing so called economic viability envelopes introducing the relative cost or gains compared to a base solution – e.g. in most of the cases an ALL-WET cooling system.

See exemplary chart on Fig. 10.

SUMMARY

Maintenance Cost: Maintenance cost

100

ECONOMIC VIABILITY ENVELOPE

Present value gain (-) or cost (+) difference over the ALL-WET [m€]

50

COST 0

GAIN -50

DRY-SPRAYED DRY/WET-V1 DRY/WET-V2

-100

DRY/WET-V3 DRY/WET-V4

-150

Assumed specific make-up water cost: 0.85 €/m3 (constant) -200

0

15

30

45

60

Specific Electricity price [€ / MWh]

Fig. 11.

75

90

Given the growing need for fresh water, the importance of water conservation type solutions in the thermoelectric power industry is increasing.

The wide variety of water saving cooling methods developed by ENEXIO offer attractive solutions for power industry considering any constellation of environmental and economic conditions.

To give the right answer to the demands makes an emphasis on a comprehensive evaluation considering the cooling solutions as part of the complete power plant.

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THE ENERGY BUN

”We have been using MWM gas engines since 2012. So far, we have purchased eleven gensets from Mannheim with a total electrical output of about 17 MW for the modernization and operation of our cogeneration network for the district heat supply of Lübeck and the vicinity. The 11th and most recent of them has just been installed at a rather unusual location“, says Fred Schmeyers, Head of Heat Supply at the municipal utility provider Stadtwerke Lübeck. What he is talking about is a graded round bunker from 1941 in the borough of St. Lorenz-Süd, which was transformed into a cogeneration power plant that goes live in 2017.

The regional energy supplier Stadtwerke Lübeck operates the city’s district heat network in different subnetworks. About € 30 million have been invested in the development and modernization of decentralized cogeneration power plants and district heat lines. The district heat network comprises 14 combined heat and power plants, two more are planned.

Round Bunker Becomes Cogeneration Power Plant The most recent project is the former air-raid shelter in St. Lorenz-Süd (Lübeck/Germany).

Some of the special issues faced by the developers included the fact

34 | POWER INSIDER VOLUME 9 ISSUE 5

that the bunker is a graded building and its outer walls, which are made of bricks and reinforced concrete and have a thickness of 2.5 m, had to be penetrated in order to make room for the cogeneration power plant. ”The statics represented a major challenge. Massive ceilings and walls had to be torn down“, remembers project supervisor Björn Ruschepaul.

An MWM TCG 2020 genset with 20 cylinders and a

power-to-heat plant with a thermal output of 2500 kW form the core of the plant, which supplies 1,200 households in the borough of St. Lorenz. Apart from the engine, burner, and boilers, the system comprises two water tanks

NKER IN LÜBECK

with a total storage capacity of 110 m³.

The entire process from the planning to the completion of the cogeneration power plant in the Bunker took about 18 months, especially because it was not easy to find a suitable place for a cogeneration power plant in the densely developed borough of St. Lorenz-Süd. By using the round bunker, a suitable location has been found that is approved by the population and that combines the use and preservation of a historical structure with modern energy and heat supply.

Fred Schmeyers goes on: ”We believe in the performance, high efficiency, and reliability of the engines from Mannheim. The MWM Service Center in Berlin provides technical support. With

full maintenance contracts for all cogeneration power plants, we ensure high availability of our gas gensets, whose average operating time amounts to 6,500 hours a year. As we use the same genset types at all our cogeneration power plant sites, our engineers have even learned to perform minor maintenance and repair tasks themselves. All ten engines run very reliably and the 11th will follow in 2017.“

Project with Special Challenges The district heat network of Stadtwerke Lübeck comprises 14 cogeneration power plants in the city area, two more are planned. The locations of the cogeneration power plants are consolidated in nine district heat subnetworks. The bunker cogeneration power plant is part of the ”St. Lorenz“ district heat network in

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Lübeck, which also comprises two more cogeneration power plants.

Technical Specifications BHKW

genset was unloaded with a crane and rolled into the bunker on special load rollers. Walls with a thickness of 2.5 m had to be penetrated, removing about 25 m³ of bricks Go live 2017 Engine type TCG 2020 V20 and concrete. Moreover, due to the building conservation regulations, Electrical output 2,000 kW elements such as the visible wall Thermal output 2,130 kW edges, the old safety paint, and the Electrical efficiency 43.7 % bunker doors had to be preserved.

Thermal efficiency 46.5 % The MWM gas engines of the TCG Total efficiency 90.2 % 2020 series are perfectly geared to the challenges of a dynamic market environment and runs on all gas Moving the ”Core“ into the Bunker types: natural gas, biogas, landfill Following the heavy goods transgas, sewage gas, mine gas, etc.. port from Mannheim, the 18 t Our models in the output range of

36 | POWER INSIDER VOLUME 9 ISSUE 5

1,000 – 2,000 kWel meet the high requirements of a broad range of applications and guarantee efficiency, reliability, flexibility and environmental sustainability, together with low lifecycle costs and high profitability.

More than 2000 power generators of this type with approximately 2,800,000 kWel have already been installed around the globe.

For more information please visit www.mwm.net Source: Caterpillar Energy Solutions GmbH, Mannheim/Germany Author: Frank Fuhrmann June 12, 2017

Bench test your energy costs.

Cogeneration with MWM gas engines makes energy economical again.

We work hard, day in and day out, to improve the excellent efficiency and reliability of our gas engines and power generators. Because every bit of progress we make helps our customers cut their energy costs even faster. www.mwm.net

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Fuel Flexible CFBs are the Future of Solid Fuel Power Generation

By Robert Giglio, VP of Strategy and Business Development, Sumitomo SHI FW New wind and solar projects continue to dominate recent global capacity increases. But when dispatchable power is required, particularly in developing countries, coal remains the fuel of choice for utility-scale plants. Global coal use for power generation continues to rise primarily due to rapid growth of the Indian, African, and Asian power markets that value low cost solid fuels.

Every steam plant built today has unique design fuel requirements.

For example, economic and policy constraints often dictate use of difficult to burn indigenous fuels or co-firing with biomass or agro fuels. Also, in most power markets, fuel flexible yet reliable plants are essential because renewable assets, particularly rapidly fluctuating

38 | POWER INSIDER VOLUME 9 ISSUE 5

solar and wind generators, can inflate power prices while reducing power grid stability and reliability.

Finally, plant owners desire the least expensive fuel available, often sourced globally, to avoid being tethered to a single fuel for the life of the plant. Only circulating fluidized bed (CFB) combustion technology satisfies all of these oftencontradictory design requirements.

Fuel Markets in Flux

The traditional 6,000 kcal/kg global steam coal market has flourished for the past 50 years but lately the market has experienced a rapid transition where price often trumps quality. As coal mines mature, mining operations move to lower quality coal seams. Indonesian coal, for example, dominates the global coal market with about 50% of its exports being highmoisture, sub-bituminous coals

with gross-as-received higher heating value (HHV) ranging between 3,900-4,200 kcal/kg. Further, the best quality Indonesian coal reserves are expected to produce coals with average HHV no greater than 5,200 kcal/kg (with economical washing levels) in the future.

The resulting trend is a growing supply of discounted coals, domestic lignites, and waste coals that provide a significant economic advantage for fuel-flexible plants capable of burning these lower rank, less expensive fuels. The shift toward a more flexible solid fuel market, where buyers and sellers are pleased to trade fuel quality for price, appears to be permanent.

Expanding low quality solid fuel markets have dramatically increased the value of fuel flexibility for utilityscale power plants and have been the primary driver behind the large CFB power plants coming on-line

Figure 1. The low temperature operation of the CFB reduces NOx emissions and limestone injection into the bed removes SO2. In addition, the design virtually eliminates slagging and corrosion from fuel-bound contaminants. The result is lower first cost installation, reduced O&M costs, and higher plant reliability compared to PC technology. Source: Sumitomo SHI FW over the last 10 years, examples of which are included at the end of this article. CFB plants, unlike pulverized coal (PC) plant designs, give plant owners a choice whether to stay with premium steam coal or to venture into the broader fuels market and leverage the available price discounts for lower rank coals, even for ultrasupercritical plant designs.

Fuel Combustion Flexibility

Changes in the global solid fuel market provide a market advantage to owners of plants that are fuel agnostic. But fuel flexibility means more than just being able to burn a wide range of coals or even coal and biomass mixes. It also means that plant reliability, maintenance, ease of operation, and stack emissions must be largely unaffected over a very wide range of fuel quality including coal and biomass fuel mixes.

PC boilers have trouble burning low quality fuels due to their narrow fuel range that typically demands 5,500 kcal/kg (23 MJ/ kg) HHV or higher energy content, fuel moisture below 30%-35%, and volatility above 20%. However, this is not the case for CFB technology. Modern CFBs can efficiently

burn both low rank coals and high energy fuels like petcokes and anthracites with heating values ranging from 1,500 to 8,500 kcal/kg (4 to 35 MJ/kg), fuel ash and moisture levels as high as 60%, and volatiles down to 5%.

The CFB’s high reliability when burning low rank coals is based on its unique flameless, lowtemperature combustion process.

Unlike conventional PC boilers that rely on an open flame, the CFB’s circulating solids are used to achieve high combustion and heat transfer efficiency. Fuel circulates until completely burned. The ash in the fuel does not melt or soften due to the CFB’s low combustion temperatures which allows the CFB to avoid the fouling and corrosion problems encountered in conventional boilers.

From an environmental aspect, the low temperature CFB combustion process minimizes NOx formation and allows limestone to be fed directly into the furnace to capture SOx as the fuel burns. In most cases, SCR and flue gas desulphurization (FGD) systems are not needed for NOx and SOx control, dramatically reducing the plant’s first cost, annual O&M cost, and water consumption while improving overall

plant reliability and efficiency.

For a PC boiler to control fouling, slagging, and corrosion when burning low rank coals, such as high sodium lignite, the furnace cross section and height must increase considerably, as much as 45% in height and 60% in footprint.

Further, unlike a PC, a CFB doesn’t need soot blowers to control the build-up of deposits and slag in the furnace since the circulating solids keep the furnace walls, panels and steam coils clean, allowing for the most efficient heat transfer possible while reducing boiler maintenance.

Thermographs of CFB and PC furnaces illustrate the thermodynamic differences between the two combustion technologies (Figure 1). The green regions are where the combustion temperature is around 850C while the red regions show temperatures nearly at 2000C. Finally, unlike PC boilers, the fuel doesn’t have to be finely ground, dried or dispersed into the furnace by burners avoiding the cost and maintenance of fuel dryers, mills, coal pipes and burners. For the CFB, the fuel is coarsely ground and dropped into fuel chutes using gravity to get the fuel into the boiler.

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Superior Life- Cycle Economics It’s a well-known industry fact that steam generator outages are the single largest contributor to reduced plant availability, which therefore determines the project’s financial success (Figure 2). For example, consider a 600 MWe supercritical coal plant that burns $50/tonne (4,500 kcal/kg) Indonesian coal and sells power at $100/ MWh at a base 90% capacity factor. A loss of four percentage points in annual capacity factor will reduce the plant’s bottom line economics $13.8 million, or $212 million NPV (after $212 milion) over its 30-year operating life. Figure 3 illustrates long-term operating data for different technology solid fuel-fired power plants in different regions of the world. The CFB demonstrates up to an average 5.5 percentage point superiority in plant availability factor over 15 years, depending on fuel selection.

Loss in plant income due to limited plant reliability

Plant Capacity Factor Figure 2. Poor plant reliability can result in tremendous losses in plant income. The net present value is based on a 30-year term and 5% discount rate. Source: Sumitomo SHI FW

Figure 3. Global data sources supports claims of higher CFB long-term plant availability. CFB plant availability data is based data reported over 2000-2015 period for CFB plants mainly located in Europe. NERC (North America Reliability Corp), VGB and WEC (World Energy Council) availability data based on thermal steam power plant (PC and CFB) data reported over the a The operating cost of fuel is the largest line item on the balance sheet for any power plant so the economic advantage often goes to the plant that can operate reliably with lower rank, and therefore lower cost, fuels. The magnitude of the fuel cost savings can be demonstrated by using the same supercritical plant example above firing $70/tonne (5,500 kcal/kg) coal as a base (Figure 4). Reducing the cost of fuel by $10/tonne will add $7 million to the plant’s bottom line for a single year and $102 million over 30 years.

40 | POWER INSIDER VOLUME 9 ISSUE 5

Dangjin Unit 4 in South Korea, which features our multi-fuel CFB technology, produces 105 MWe of power from palm kernel shells, wood pellets and coal.

A New Global Leader in Sustainable Energy Solutions

We are excited about our new company, Sumitomo SHI FW, as it allows us to dedicate our talent and quality of service on our fluidized bed technologies, which we see as the future for converting economical solid fuels and waste into clean and sustainable energy.

Products and services

Key attributes of the new company are:

► Metallurgical waste heat boilers

► Largest and most experienced team of fluidized bed experts

► Full range of boiler

► Largest global delivery network for fluidized bed technology

► CFB and BFB steam generators ► CFB and BFB gasifiers ► CFB scrubbers

and AQCS services

► OEM of nearly 50% of the operating CFBs in our served markets

Project Delivery

► Largest global network of fluidized bed R&D resources and capability

► D&S equipment supply

Please visit our new website at shi-fw.com and come see us at trade shows to learn more about our exciting new company.

► Turn-key boiler and AQCS islands ► Long term service partnerships

Industries Served ► Power ► Industrial ► Combined heat and power FOLLOW US ON TWITTER: @PIMAGAZINEASIA WWW.PIMAGAZINE-ASIA.COM | 41 ► Waste-to-energy

Fuel Cost Savings

Figure 4. CFB technology allow plants to fire a wide range of coals, resulting in huge operating cost savings over the life of the plant. The net present value is based on a 30-year term and 5% discount rate. Source: Sumitomo SHI FW Plant Case Studies There are many recent projects that illustrate the successful application of Sumitomo SHI FW CFB technology in circumstances much like the above case study. The following four projects illustrate the fuel flexibility of the CFB, each in unique applications.

The Lagisza CFB Power plant is the longest operating supercritical CFB power plant in the world today (Figure 5). Located at Tauron’s Lagisza power plant in Bedzin, Poland, the plant has been in operation since 2009. At the heart of the plant is a 460 MWe supercritical SFW CFB featuring many unique first-of-a-kind design features and a very impressive net plant efficiency of 43.3% (LHV) on bituminous coal. Perhaps most importantly, the plant meets its permitted stack emissions without SCR or FGD equipment, thereby saving Tauron over $100 million in its construction cost and millions more each year in avoided O&M costs.

Figure 5. The 460-MWe Lagisza CFB Power Plant located in Bedzin, Poland, has been in operation since 2009. Source: Sumitomo SHI FW CLECO’s Brame Energy Center, located in Boyce, Louisiana, is noted for its ability to burn a widerange of market fuels (Figure 6). The plant consists of twin CFB boilers feeding a single steam turbine generator the produces 660 MWe. The plant is designed to burn multiple fuels, including 100% petroleum coke, 100% Illinois No. 6, 100% sub-bituminous Powder River Basin coal, and can co-fire up to 92% lignite or co-fire up to 5% paper sludge or wood waste. The plant entered commercial service in February 2010.

42 | POWER INSIDER VOLUME 9 ISSUE 5

Figure 6. CLECO’s 660-MWe Brame Energy Center, located in Boyce, Louisiana, is the largest CFB in North America and burns a wide variety and combination of fuels sourced based on best price. Source: Sumitomo SHI FW The DGF Suez Energia Polska Polaniec Plant, located in Polaniec, Poland, is the world’s largest biomass CFB power plant (Figure 7).

The 205 MWe (gross) plant burns a spectrum of wood biomass and agricultural crops and byproducts.

The net plant efficiency is 36.5% (LHV).

Figure 7. The DGF Suez Energia Polska Polaniec Plant entered commercial service in 2012. SHI FW was the EPC contractor for the plant and fuel yard, in addition to supplying the boiler island.

Source: SHI FW

Perhaps the most impressive example of a utility-scale CFB plant is the 2,200 MWe Samcheok Green Power Plant currently being commissioned in Samcheok, South Korea (Figure 8). The Samcheok plant has four 550 MWe Sumitomo SHI FW CFBs utilizing ultrasupercritical steam conditions (257 barg, 603C/603C). The Samcheok plant will meet even tighter stack emissions without using FGD equipment, saving Korea’s Southern Power Company (KOSPO) over $250 million in construction cost. The plant is designed to burn a wide range of import coals including sub-bituminous highmoisture coals (20%-42%). The CFBs are also capable of co-firing indigenous bituminous coal and up to 5% biomass. The plant is designed to operate with a 42.4% net efficiency (LHV) and went into full commercial operation in December 2016, taking their place as the most advanced CFB units in the world.

Figure 8. The 2,200 MWe Advanced Green Power CFB Plant in Samcheok, South Korea. The plant is currently in its commissioning phase. Source: Sumitomo SHI FW

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44 | POWER INSIDER VOLUME 9 ISSUE 5

CASE STUDY MICROGRID

S&C Builds Ameren a Microgrid To Study Distribution Use Cases S&C Featured Solution: EPC Location: Champaign, Illinois

Customer Challenge Ameren Illinois, a regulated electricity-delivery company whose parent Ameren Corporation serves 2.4 million electricity customers, was interested in building a microgrid with two nested microgrids at its Technology Applications Center near the University of Illinois campus to support the center and a 1-MW Figure 1: A look at the various components of Ameren’s microgrid.

“S&C was instrumental in helping Ameren pave the way for the industry in microgrid research, use cases, and understanding how to apply microgrids on the distribution level.”

—Richard J. Mark, Chairman and President, Ameren Illinois residential load. The project would help the utility learn more about the operations, control, and integration of Distributed Energy Resources (DER) on its distribution system.

Ameren wanted to build a microgrid to test 16 use cases where it saw a potential to create a return on investment. This return could include improving grid resiliency and reliability; more easily incorporating renewable energy; and enabling the utility to go off-grid to supply power, which would be beneficial if a major storm knocks out overhead lines supplying electricity from the main source of power generation. Importantly, Ameren wanted the ability to “black start” the microgrid and be able to return to the grid from island mode without an outage occurring.

The traditional power-distribution approach is to send electricity hundreds of miles across its distribution system from centralized generation sources. Ameren recognized the need for examining a microgrid where local Distributed Energy Resources (DERs) are becoming new generation sources. These DERs include primarily energy storage and natural gas, along with such renewable energy sources as wind and solar.

Ameren’s challenge was that it wanted a testing facility that simulated a real-world environment that used the same switchgear, sensing, and protections systems to accommodate both grid-connected and islanded power sources. This would be especially complicated because the main grid has a fault-current potential of thousands of amperes, while the faults within an islanded microgrid could be in the tens of amperes.

S&C enabled Ameren to run multiple renewable energy sources uncurtailed in a 12-kV islandable microgrid.

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S&C Microgrid Solution Improves Power Reliability for Research Facility

Adapting to the challenge of different power systems was an important factor in Ameren meeting its goals, and it had to have a partner that could take the project from concept to full construction in less than six months.

S&C Solution S&C has supplied Ameren with grid protection and switching equipment for years. The utility was familiar with S&C’s reputation and experience in establishing effective and sophisticated microgrids.

Ameren ultimately chose S&C as the sole engineering, procurement, and construction contractor for its project.

The project involved creating a nested 50-kW microgrid within a 1-MW microgrid, all interconnected at 12 kV. S&C would oversee the construction of both a 100-kW wind turbine and a 125-kW solar array for Ameren, and it would provide the utility with two 500-kW natural gas generators as additional alternative energy sources.

Most importantly, S&C would provide a 250-kW/ 500-kWh energy-storage capability that would serve as the backbone of the 50-kW microgrid, enabling it to operate on 100% renewable generation.

Working with Ameren, S&C developed adaptive protection and control software to help transition the multiple generation sources into and out of “microgrid mode” without creating an outage. Separately, following a utility outage, S&C developed a means to “black start” the microgrid without the need for a reference voltage from the utility source.

To accomplish this, S&C deployed a PureWave® SMS250 Storage Management System, which provides battery energy storage for the smaller of the two microgrids. The PureWave SMS-250 allows Ameren to fully integrate renewable energy sources, such as wind and solar. The wind and solar generation can run uncurtailed in the microgrid and can even exceed the load because the PureWave SMS-250 can be put into charging mode while still providing the microgrid reference frequency and voltage.

S&C supplied Remote Supervisory Vista® Underground Distribution Switchgear to integrate the various systems. It also provided SpeedNet™ Radios to support device communication. To provide the “glue” to make the various sources of generation work smoothly both on the main grid and within the islanded microgrid, S&C deployed IPERC’s GridMaster® Microgrid Control System. Nine IPERC cybersecure, adaptive, and distributed Intelligent Power Controllers were installed on the system to provide control functionality of the microgrid.

May 30, 2017 © S&C Electric Company 2017, all rights reserved

46 | POWER INSIDER VOLUME 9 ISSUE 5

Results With a microgrid operating at a utility-scale voltage of 12 kV—with multiple levels of control—Ameren is now well on its way to researching microgrids and how to use them to supply power at the distribution level for future endeavors. This also was a “first-of-itskind” engineering effort; no company had previously developed a way to conduct a seamless return to utility power after entering microgrid mode at utilityscale voltages.

S&C met its tight timeline to get the system online, and it worked with a dedicated Ameren engineering team to successfully apply the microgrid to all of the use cases Ameren wanted the microgrid to accommodate.

S&C also demonstrated that Ameren could use 100% renewable energy resources such as wind or solar in conjunction with energy storage to power a microgrid. Moreover, S&C essentially took on four typically separate projects that would focus solely on generation through a generator, a battery, solar, or wind, and it created and tied each of the four generation sources together to provide power into the microgrid.

Despite having to manage 10 to 15 different contractors—with up to five being onsite at one time— and working 10-hour days, seven days a week, no injuries occurred during the project. S&C also provided a two-day training session with the customer and every contractor on the project to help transfer knowledge about the microgrid’s operation and potential uses.

Figure 2. The PureWave SMS-250 serves as the backbone of Ameren’s 50-kW microgrid.

sandc.com

180-1076

Substations that can hide in a city ?

Certainly.

Bustling urban centers need efficient and reliable electricity, but have little room to accommodate large electrical installations. ABB’s Gas Insulated Switchgear (GIS) technology can shrink the size of an electrical substation by as much as 70 percent, so it can be located in the midst of cities and in other space-restricted areas, sometimes even indoors or underground, minimizing environmental impact. We offer a range of products, systems and services for power generation, transmission and distribution to help increase power capacity, enhance grid reliability, improve energy efficiency and lower environmental impact. With a 125 year heritage of technology innovation ABB continues to shape the grid of the future. For more information please visit us at www.abb.com

ABB Pte Ltd Power Grids Division 2 Ayer Rajah Crescent 139935 Singapore Tel: 6776 5711 www.abb.com

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SOLAR PV IN DEVELOPING COUN

With the Paris Agreement being enforced a year after its adoption, countries are developing their plans to implement their Nationally Determined Contributions (NDCs), to achieve their energy targets. Both Energy Efficiency and Renewable Energy initiatives are pivotal strategies of these NDCs and will be fundamental to countries’ ability to meet their commitments.

While developing countries are key to mitigating global carbon emissions, meeting the long-term goals set in the Paris Agreement represents an ambitious and strategical approach towards renewable energy and energy efficiency initiatives.

According to the International Energy Agency, Renewable Energy activities from developing countries will have an overall reduction of 1.4 Gt in CO2 emissions by 20201. The fact that solar PV is a locally available energy resource with minimum Operating & Maintenance costs, makes this technology a fundamental ingredient in the energy mix of developing countries, when compared to other renewable energies.

This article aims to provide a compre-

48 | POWER INSIDER VOLUME 9 ISSUE 5

hensive overview of the development of Solar PV in Developing Countries, including trends driving this technology and its expansion.

Solar PV Trends in Developing Countries Currently adopted in 46 developing countries, Feed-in tariff (FIT) policies are the most extended form of Solar PV support2. This has been reflected in countries such as Algeria, which implemented a FIT in 2014 for both solar and wind projects; Costa Rica which proposed new FIT rates for solar PV systems; and Ghana, which placed temporary caps on its FIT until upcoming solar PV projects can be assessed.

Public finance mechanisms are also frequently used as platforms to stimulate the growth and investment of Solar PV technologies. India, Mongolia, Jordan, El Salvador and Pakistan are among the countries which added new policies and extended existing policies in this regard3.

Tendering has also gained momentum in recent years for Solar PV projects in

developing countries, with new record low bids below $0.03 per kWh in some markets4. Very low bids for solar PV projects in 2016 and early 2017 were achieved by developing economies such as India, Jordan, Argentina, Saudi Arabia, the UAE and South Africa5. Also, Mongolia and Zambia saw record low national bids for winning tenders in 20166.

Regarding the manufacture of Solar PV units, China dominated global shipments throughout 2016, for eight consecutive years7. The top 10 manufacturers, of which a vast majority are China-based (including Trina Solar, JA Solar, GCL, Yingli Green Talesun and Risen), accounted for about 50% of the shipments during 20168.

Expansion of Solar PV in Developing countries

Solar PV has been an emerging technology in developing countries, with Asia leading the paces:

l Asia Region (excluding Japan): Asia solar PV plants account for approximately 42% of the overall installed capacity9 of solar plants in the world.

NTRIES

America can be found in Chile, in the Atacama desert, having installed capacities of 100 MW and 246 MW. l Africa Region: Solar PV installed capacity accounts for approximately 2.5% of the worldwide total12. However, the fact that Africa features the highest hours of sunlight per year, circa 4,300, which equates to 97% of the possible total capcity13, gives solar PV energy the potential to be fitted in virtually any location in the continent without the need of large scale grid developments. South Africa is the leading country for Solar PV in Africa, with 1,243 MW of installed capacity, followed by Nigeria, with 976 MW and Egypt, with 540 MW14.

Although several challenges exist for the expansion of Solar PV in developing countries, including the development of a transmission infrastructure network and the inclusion of subsidies, the globalisation of Solar PV systems in developing countries is now a reality, especially in Asia, which accounts for a significant proportion of the worldwide installed capacity.

While solar energy development in offgrid and mini-grid solutions is often the

most competitive solution in develioping countries, major challenges exist which include: complex financial and organisational questions; bottlenecks in the financing, management, business models, sustainable operations and maintenance; difficult local social and economic conditions.

Solutions that can solve these challenges include: providing stand-alone solutions such as solar home systems with micro credits or a fee for service; installing mini-grids via a different business model; using capital subsidies and cost recovery via tariffs.

Furthermore, policy changes are another challenge that developing countries have to face as most energy policies are often short sighted. Many developing countries remain focused on grid extension, urban electrification or on large hydro, gas or coal power plants without any long-term strategy for sustainability and supply. When demand outstrips supply, this approach is costly (power shortages, losses for the economic sector) and shows how much diversified electricity generation capacities, especially in rural areas where the use of off-grid solar technologies can bring reliable electricity, is needed15.

China is the leading generator in Asia with 52%, i.e. 8,548 MW, of the solar capacity installed in the region, India follows China’s lead with 2.3 MW and Thailand comes next with 518 MW installed capacity. Kazakhstan, Pakistan and the Philippines together account for 1 GW of solar PV energy10. l South America Region: Solar energy is in its early stages in this region, as it accounts for only 2.3% of the worldwide installed capacity11. However, some countries such as Peru are focusing in extending Solar PV installations throughout rural areas by subsidising household connections for future Solar PV systems. Also, two of the largest PV operative plants in South 1 International Energy Agency. (2015). World Energy Outlook 2015. Paris, France: International Energy Agency.

2 Renewable Energy Policy Network for the 21st Century. (2016). Policy Database.

3 Renewable Energy Policy Network for the 21st Century. (2016). Renewables 2016 Global Status Report.

4 Aberman, N. et al. (2015). Climate Change Adaptation Assets and GroupBased Approaches: Gendered Perceptions from Bangladesh, Ethiopia, Mali, and Kenya. International Food Policy Research Institute. Discussion Paper 01412.

5 Aberman, N. et al. (2015). Climate Change Adaptation Assets and Group-Based Approaches: Gendered Perceptions from Bangladesh, Ethiopia, Mali, and Kenya. International Food Policy Research Institute. Discussion Paper 01412.

6 Republic of Mali. (2012). Fourth general population and housing census (RGPH2009). Bamako, Mali: Republic of Mali 7 Aberman, N. et al. (2015). Climate Change Adaptation Assets and GroupBased Approaches: Gendered

Perceptions from Bangladesh, Ethiopia, Mali, and Kenya. International Food Policy Research Institute. Discussion Paper 01412.

8 UN Women. (16 September 2015). In Mali, renewable energy boosts agricultural production 9 Snapshot of Global Photovoltaic Markets (2015). Photovoltaic Power Systems Programme. Report IEA PVPS T129:2016 10 Top 50 Solar Plants in Asia: The lands of rising solar (2017). Solarplaza.

11 Snapshot of Global Photovoltaic Markets (2015). Photovoltaic Power Systems Programme. Report IEA PVPS T1-29:2016 12 Snapshot of Global Photovoltaic Markets (2015). Photovoltaic Power Systems Programme. Report IEA PVPS T1-29:2016 13 Dunlop, S. (2008). A Dictionary of Weather. OUP Oxford. ISBN 9780191580055.

14 Top 50 Solar Plants in Africa: The lands of rising solar (2017). Solarplaza.

15 European Photvoltaic Industry Association (2011). Solar Photovoltaic Electricity Empowering the Word. Report Solar Generation VI.

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Welcome to PiMagazine Asia, can you tell us a bit about Yourself, Company & Areas of Expertise?

Hello, I’m Elcogen CEO Enn Õunpuu. I have a degree in Physics and Technology from Tallinn University and more than 25 years’ experience founding and leading multiple companies in the entry services and equipment, construction, real estate and banking industries.

I was a founder of the Estonian Power and Heat Association, an NGO uniting Estonia’s most prominent power and heat companies.

I served as the Head of the Revision Committee and was a Member of the Board for more than 8 years. After realising the future potential of solid oxide fuel cell (SOFC) technology, I founded Elcogen in 2001 with the aim to develop SOFC cells operating at 650°C made of abundant, low cost materials and manufactured with scalable, standard process.

Since then my team has developed the Elcogen business to be an international SOFC manufacturer and supplier to more than 60 global clients.

Fuel Cells are undergoing rapid development & are being employed in a variety of applications, Can you explain how your technology fits in?

Our industry-leading SOFC technology is positioned to achieve market-enabling targets in the three most critical fuel cell performance parameters: efficiency, lifetime and cost.

Elcogen customers currently include system integrators of residential, commercial and industrial power generation units to the automotive industry and those with interests in power-to-

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fuel capabilities. Elcogen’s cell design and stack modularity allow for a large power range: from sub-kW units to multi-MW system.

Our cells and stacks offer all the benefits of low- temperature technology.

Our cells can be incorporated into third party stack designs and our stacks offer proprietary, best-in-class modular builds, which truly maximise our technology’s advantages.

Elcogen’s solutions enable fuel cell system manufacturers to bring their products to the global commercial market for a variety of applications by solving cost, efficiency and lifetime issues.

What are your current experiences with fuel cell applications in Asia?

Elcogen currently supplies to more than 60 global clients and many of those are in Asia, particularly in Japan.

Our applications in Asia have included micro-CHP residential projects of 700kW electricity and distributed

power for commercial buildings in the 5-20 kW electricity range.

Elcogen has also undertaken activities around electrolysis and automotive applications

There has been a huge amount of discussion around SOFC technology, what are the benefits of SOFC? SOFCs are now gaining ground and maturing as a technology, with their unique properties making them suitable for many applications. The SOFC is the most efficient device available for power generation: 60 per cent net electrical efficiency for a small, 1 kW

system fed with natural gas has already been achieved.

Compared to other fuel cells SOFCs are the most efficient and have much longer lifetimes and are also highly fuel-flexible – SOFCs can use natural gas, biogas, methanol, ethanol etc.

The SOFC can also be reversed to work as an electrical power storage system, allowing to capture excess renew-

able power (for example generated by wind turbines or solar PV panels) in the form of chemical energy: in other words, regenerating a fuel for future use

What fuel cell applications do you envisage having the most growth in Asia and why?

Residential and commercial systems in Japan are real growth area for Elcogen.

As part of its “ENE-FARM” project, the Japanese government is planning to install 1.4 million residential fuel cell system by 2021 and 5.4 million by 2030. A public-private partnership driven by the country’s Ministry of Economy, Trade and Industry, ENEFARM is arguably the most successful fuel cell commercialisation program in the world.

Also under the project, commercial applications in the 5-20kW power range will benefit from government subsidies

to help products penetrate mass markets more quickly.

In addition, I think electrolysis storage will be next big thing, especially given the intense development of the sector by companies like Toshiba and Tokyo Gas for example.

Asia is in a race to develop its hydrogen highway, what can governments in the region do to increase fuel cell adoption for power applications?

Japan has already proven its support for fuel cell and hydrogen technologies, having world leading initiatives for different technologies and applications.

But there is a lot still to do in China.

Initial signs from government is the promotion of fuel cells as an environmentally friendly alternative for power generation.

There are lot of power companies who are already very interested in including fuel cells into their power generation technology portfolio, so government support for these companies will open the door to at least gigawatt-size annual market opportunities for fuel cells.

Like Japan, Korea has been discussing for several years now the necessity to embrace fuel cell technology, but unfortunately they are still very far from what Japan has actually achieved.

It’s essential for the Korean government to take Japan’s lead as a good example of implementing very efficient initiatives that promote rapid market growth because the willingness from industry is clearly there.

From a country basis in Asia, which countries offer the best opportunities and why?

In Japan, we see very clear interest from government to bring fuel cells and hydrogen to the mass market.

Government-supported initiatives underpin both residential and commercial applications.

New developments in China will also be a key opportunity. The country’s next five-year plan sets clear targets in energy efficiency and a reduction of environmental pollution from power

production – natural gas will increasingly replace coal. This will be a huge opportunity for the fuel cell industry.

We’re already seeing this from the actions from several Chinese companies.

Korea is still lagging behind but that has mainly been caused by internal politics in recent years. Today we’re already seeing rising interest from leading Korean technology corporates.

From an application perspective, why should Fuel Cell be into a microgrid over a diesel generation set?

Fuel cells beat diesel or even gas fired gen-sets in every category – there are no other energy conversion technologies that can beat fuel cells in terms of conversion efficiency for that matter.

Depending on power range, fuel cell systems can be up to three times more efficient in power generation compared to internal combustion engines.

In addition, there are almost zero emissions such as NOx or solid particulates and fuel cell systems operate almost silently, so can be installed practically anywhere.

I would like to thank you for your time today, it’s been a great experience and an interview I’m sure our readers will love. Before we sign off here, can you summarise why any company would benefit from working with you?

Thank you. Elcogen is currently the only company in the word capable of manufacturing low temperature, ceramic SOFC cells and stacks. Elcogen’s cells can already begin to operate at 600ºC while other SOFCs require 750ºC or even 900ºC. A much lower operating temperature allows fuel cell stack and system manufacturers to use low cost materials and components, which are not usable at higher operating temperatures.

Reduced system costs, facilitated by these low-cost materials, are a critical component of bringing SOFCs to the mass market.

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Welcome to PiMagazine Asia, can you tell us a bit about Yourself, Company & Areas of Expertise?

I have been working in renewable energy industry particularly in fuel cell industry over 25 years. Now, clean energy is an important and emergent issue in the whole world. Hydrogen fuel cell technology is the one of hottest emerging technology. I have been the CEO of Palcan for 10 years and managed the program of fuel cell R&D and commercialization.

I found the Palcan Energy Corporation 18 years ago in Vancouver of Canada and Palcan has worked on the research and development of hydrogen and methanol fuel cell related technology since. Since 2004, Palcan has moved most of its business to China and now Palcan has four companies in China which focus on different R&D, manufacturing and marketing for methanol fuel cell product.

I think that the methanol reforming fuel cell is the best technology to meet the EV requirement in China. We have successfully used this technology to develop a variety of applications, such as range extended delivery vehicle or bus.

Fuel Cells are undergoing rapid development & are being employed in a variety of applications, Can you explain how your technology fits in?

Hydrogen fuel cell are undergoing rapid development in China. However, the hydrogen fuelling infrastructure is a key problem for the commercialization of hydrogen fuel cell products. We use methanol and water mixture as fuel and produce hydrogen on-board. The power produced on-board re-charge battery as range extender. In this way, EV problem of short range and long re-charging time have been solved. China has already built the methanol refueling infrastructure and this enable our technology to be quickly

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commercialized in China.

What are your current experiences with fuel cell applications in Asia?

Past 12 months, we are cooperating with Dongfeng Vehicle co., Ltd and have developed MFC range extended delivery truck in China. The truck is now under certification process and will be commercial available soon in China. Dongfeng is a state-owned, the one of largest car manufacturing enterprise in China. It is also the biggest EV Car manufacturer in China.

Until now, we have applied MFC in military field, communication base stations, and other vehicles already.

There has been a huge amount of discussion around MFC technology, what are the benefits of MFC? Methanol is a liquid and easy to transport and store. The infrastructure for methanol fuelling station has been built in China. Coal is the main raw materials for methanol production in China and China has produced over 50% methanol in the world. The methanol cost in China is low and running cost is also low comparing to petrol/diesel cost.

What fuel cell applications do you envisage having the most growth in Asia and why?

Fuel cell range extender will be the first mass market in China. Hydrogen fuel cell have been recognized as a long-term strategic technology which must be developed in China. Chinese government has set a plan which includes hydrogen fuel cell EV as the key area. There are lots of politic support and financial support for fuel cell industry.

I believe that fuel cell sector will have a rapid growth with the government’s strong support.

Asia is in a race to develop its hydrogen highway, what can governments

in the region do to increase fuel cell adoption for power applications?

The region government can set up demonstration projects such as hydrogen highway or hydrogen park. Actually. there are more than ten similar projects which has been set up by provincial or city level government in China.

From a country basis in Asia, which countries offer the best opportunities and why?

I think that China offers the best opportunities for the FC commercialization opportunities.

There are lots of politic support and financial supports in China for fuel cell companies The EV market is huge in China and which will offer the cost down opportunity.

Many companies in China start to invest in FC sector and manufacturing supply chain is getting mature quickly..

From an application perspective, why should Fuel Cell be into a microgrid over a diesel generation set?

The conversion efficiency of diesel generation is not high and its running cost is higher than methanol reformer fuel cell in China. Diesel generation is also one of the big sources of air pollution.

I would like to thank you for your time today, it’s been a great experience and an interview I’m sure our readers will love. Before we sign off here, can you summarise why any company would benefit from working with you?

20 years experiences in fuel cell R&D and commercialization .

Palcan has been doing business in North America, Europe, Asia many years. deeply involved in Chinese fuel cell market for many years.

Welcome to PiMagazine Asia, can you tell us a bit about Yourself, Company & Areas of Expertise?

As a company, Nuvera Fuel Cells draws on a 25-year history of hydrogen and fuel cell technology development – and turning those technologies into products for customers. Nuvera has developed and deployed complete on-site hydrogen generation and refuelling stations for industrial and on-road vehicles. Our fuel cell stacks have been used in a wide variety of power systems in markets such as chlor-alkali, combinedheat and power, industrial vehicles (i.e. fork lifts), aerospace, marine and automotive. Nuvera continues on the path to commercialization of what we believe to be a superior Nuvera® fuel cell stack for the zero-emissions vehicle market. The Nuvera® stack is the core of the Nuvera® fuel cell system, a lead acid battery replacement sold in lift truck markets, as well as the core of our focus on developing superior fuel cell engines for OEM integration in other demanding motive markets. . As we establish a fuel cell engine portfolio for our parent company, Hyster-Yale, we are also pursuing synergistic applications throughout the mobility and transportation industries.

Fuel Cells are undergoing rapid development & are being employed in a variety of applications. Can you explain how your technology fits in?

Nuvera develops, designs and manufactures polymer-electrolyte membrane (PEM) fuel cell stacks and engines with unique advantages for highly demanding mobility applications. Our patented fuel cell technology is well suited to meet the high power density and durability demands of heavy duty vehicle

applications. The distinctiveness of Nuvera® fuel cell stacks and the capabilities of our team were the foundation for Hyster-Yale Group’s acquisition of Nuvera in 2014. The combination of Nuvera’s state-of-the-art technology and Hyster-Yale’s global commercialization capabilities offers customers unique expertise for strong partnerships in repowering vehicles with clean, convenient hydrogen.

What are your current experiences with fuel cell applications in Asia?

Nuvera is in discussions with OEM and other potential partners in Asia.

Applications include on-road, light-and heavy-duty vehicles such as buses and delivery vans, as well as off-road, railbased vehicles.

There has been a huge amount of discussion around SOFC technology, what are the benefits of SOFC? Nuvera is a PEM fuel cell technology company and does not offer SOFC technology or products.

What fuel cell applications do you envisage having the most growth in Asia and why?

More and more, OEMs continue to identify fuel cells as a compelling technology for a zero-emissions replacement of ICEs, as well as replacement of batteries in vehicles that require higher outputs and greater continuity in operation. Mobility applications benefit from fuel cells due to the convenience offered by hydrogen as a form of “portable” electricity. As a vehicle’s energy demand increases, fast-charging with electricity from the grid becomes impractical. With hydrogen, vehicles can be charged in minutes, similar to

filling a tank with gasoline or diesel.

Hydrogen combines the clean benefits of a battery-electric vehicle plus the convenience and productivity benefits of liquid fuel.

In the US, vehicle applications that “return to home” at least daily have been identified as a good initial launch point to justify early investments in hydrogen infrastructure. Clear benefits – productivity, workplace health, sustainability, space savings, energy control and total cost of ownership – make industrial forklift operations one of the fastest growing sectors using fuel cell technology today. Similar fleets, both on and off road, represent a very good starting point for Asia as well and could act as the initial nodes for the build-out of the larger hydrogen refuelling infrastructure. Buses, delivery vans, light rail, material handling equipment, airport and sea port equipment are all prime candidates for near-term conversion to hydrogen power with fuel cells.

Asia is in a race to develop its hydrogen highway, what can governments in the region do to increase fuel cell adoption for power applications?

Ultimately fuel cell engines will need to compete on a cost basis directly with internal combustion engines. As a solidstate technology, with far fewer unique components, fuel cell stacks have the potential to achieve lower costs in the long-run. The global, historical investment in manufacturing ICEs creates a significant cost gap compared to fuel cells, where such investment is only just beginning. Government support through playfield-levelling policies such as carbon taxes, fuel cell electric vehicle subsidies and zero-emissions vehicle mandates can help bridge this cost gap

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while manufacturing investments and fuel cell volumes grow. Another way the government can help is by establishing programs to buy fuel cell based products for their own fleets, both on road and off. One specific example is mail delivery, which is a perfect example of a “return to home” fleet with a predictable and consistent duty cycle.

From a country basis in Asia, which countries offer the best opportunities and why?

China is showing strong sales forecasts for fuel cell buses. This and other industry and policy indicators, such as China’s forward-thinking policies on emissions reductions, are an encouraging sign of increasing fuel cell interest.

Japan has established national and international markets for fuel cell technology and continues to benefit from its governments commitment demonstrated for hydrogen infrastructure. South Korea as well continues to build on a long history of supporting fuel cells for both stationary power and vehicle applications.

From an application perspective, why should Fuel Cell be into a microgrid over a diesel generation set?

The obvious advantage of fuel cells over diesel is emissions reduction related to both pollution and climate change. Practically speaking, using hydrogen fuel cells for powering an electrical grid enables load-levelling to be done with renewable energy stored as hydrogen. Grid energy storage is a major hurdle for full-scale deployment of intermittent renewables such as wind and solar. If you think of hydro-

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gen as portable electricity, the flexibility and convenience of storing excess renewables in this form becomes clear.

Renewables stored as hydrogen can be redeployed to the stationary electrical grid or redirected as convenient transportation fuel, depending on the demand. Hydrogen can be the link needed to connect the stationary and transportation energy systems in a new way that brings added reliability and security to both.

I would like to thank you for your time today, it’s been a great experience and an interview I’m sure our readers will love. Before we sign off here, can you summarise why any company would benefit from working with you?

The offering of Nuvera spans the entire

hydrogen value chain: from hydrogen production, to compression, to storage and dispensing, and ultimately the conversion of hydrogen into electricity with fuel cells. Nuvera® fuel cell technology offers high-performance for motive applications, and our company’s commitment to full commercialization is strong. The broad experience we offer, on both the energy and vehicle sides of the industry, enables us to provide our customers valuable perspectives for the practical and successful deployment of fuel cell engines. Nuvera® fuel cells deliver outputs ranging from 10 to 100 kw and higher for demanding motive applications. Unique patents, such as metallic bi-polar plates and open-flow field design distinguish the durability and efficiency of the Nuvera® fuel cell stack.

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May 2017

Produced by: Engineering 360 Media Solutions

The What, Why and How of Opacity Measurement Sponsored by: AMETEK Land

A power generation industry byproduct is the emission of smoke and dust from the stacks of combustion processes such as coal- and oil-fired generating units and industrial boilers.

While it is true that the industry is moving away from burning coal to burning newly plentiful and cleaner natural gas in the U.S., coal use in the generation of power will likely stay in the 20% to 30% range.

These emissions potentially damage the environment and cause health challenges for those living close to power plants. In response, agencies such as the Environmental Protection Agency (EPA) in the U.S. and Environment Agency in the UK regulate the emissions by establishing an Emission Limit Value (ELV), the amount of smoke or dust emitted without incurring legal penalties. To ensure compliance, power-generation plant operators must measure either particulate matter (PM) emissions or opacity and monitor and report measurement results to demonstrate compliance with current regulations.

Opacity is a measure of light attenuation, the fraction of light lost in crossing the stack. An opacity monitor is used to measure the optical characteristics of the stack gas.

Particulate matter includes smoke, dust, ash, soot, aerosol and fumes. One of the most obvious signs of PM emissions is a visible plume of smoke leaving a power-generation stack.

It is possible to measure the amount of light that passes through a gas containing PM, and light is lost through scattering, absorption or reflection by the particles. The loss depends on the number and the size of the particles and it is a measure of the PM concentration in the stack. A PM monitor measures optical characteristics of the stack gas, and uses the value to calculate the PM concentration in mg/m3. The calculation uses a calibration factor, unique to that specific installation.

Opacity, in comparison, is a measure of light attenuation—the fraction of light lost in crossing the stack. An opacity monitor is also used to measure the optical characteristics of the stack gas. However, in this case, the light lost through absorption and scattering is converted into a useful number—the stack opacity—which is made available as an output percentage.

In general, opacity and PM measurements are only required on processes burning coal, oil and waste materials such as incinerators. Natural gas does not contain dust and ash, so gasfired processes do not produce emissions of PM. But, as we’ll see, many natural gas power generation facilities are still required to monitor and measure PM and opacity.

Sponsored by:

Opacity and Emission Limit Value The ASTM D6216 standard defines opacity as the degree to which particulate emissions reduce (due to absorption, reflection and scattering) the intensity of transmitted photopic light and obscure the view of an object through ambient air, an effluent gas stream or an optical medium, of a given path length.

These processes are illustrated in Figure 1, indicating light rays passing through a sample while others are scattered, absorbed or reflected.

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Produced by:

The What, Why and How of Opacity Measurement

Some regulatory bodies set an emission limit value (ELV) in plume opacity at the stack exit. ELV can also refer to the mass concentration of PM emitted from the stack and be expressed as a mass concentration, as in 10 mg/m3 or 50 mg/ m3. The EPA sets emission limits in % opacity, but recently is moving to the use of mass concentration units. European regulators have always set limits in mass concentration units.

The choice depends on the compliance requirements of the local regulatory authorities.

Taking Measurements Opacity monitors must operate reliably 24/7 and also be rugged. Often used in extreme conditions, they are mounted outdoors at an elevated position on a stack where they are exposed to temperature extremes. Given the size of stack structures, there is also minor movement and the monitor must accommodate this displacement.

Figure 1. Dust particles scatter, reflect and absorb light.

Given the light intensity entering the sample is Io and the intensity leaving the sample is I, opacity is mathematically expressed as:

ASTM D6216 is a consensus standard written by users and manufacturers, requiring that a monitor/analyzer must meet defined performance standards and earn a certificate of conformity.

Opacity=(1- I )×100% I0

Should the sample contain no particles, the intensities I and I0 will be the same, and opacity is 0%.

Each opacity monitor must be configured and calibrated for the specific installation where it is used. Setting up requires that the following information be available and recorded: • The distance between the outer faces of the flanges, which are permanently fixed to the stack, excluding adaptors or other accessories. This is used, along with a list of accessories, to calculate the installation path length.

• The installation path length dimension is the distance between the transceiver and retro mounting flanges and is always greater than a flange-to-flange path length.

Figure 2. Sample with 0% opacity.

• The U.S. EPA requires the measurement and exit path lengths.

If the sample has particles that block all light, I = 0 and the opacity is 100%.

• Measurement path lengths are the inside dimension of the stack or duct at the measuring point. Since standpipes are purged, the measurement path length is the distance the light beam travels through the dustladen stack gases.

Exit path length is the inside dimension of the stack or duct at the point where gases are discharged to the atmosphere.

The measurement and exit path lengths are used to calculate the path length correction factor (PLCF), which is then used to calculate the opacity at the stack exit, the location where regulations require it to be reported.

When there is a straight stack, for example, the PLCF equals 1.0. Tapered stacks have PLCF < 1.0 and installations where monitors are installed on a narrow duct leading to the stack, have a PLCF > 1.0. When the PLCF is greater than 1.0, any error effects are magnified.

Figure 3. Sample indicating 100% opacity.

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The What, Why and How of Opacity Measurement

• AFU-APS-I/O—The transceiver requires 24 V dc power and provides limited connectivity. The Auxiliary Function Unit, Auxiliary Power Supply and I/O module provide additional functions including two 4-20 mA signals, mains power input and convenient screwterminal connections, which avoid the need for a customer-provided junction box.

•External Zero Device—Simulates a clear-path condition for servicing and for routing calibration checks, required for all applications subject to U.S. EPA regulations.

Figure 4. Path lengths required to configure an opacity monitor. Source: AMETEK Land.

Plant operators must not only meet the design requirements of ASTM D6216, they must also maintain a QA/QC written plan keeping records for the life of the monitor.

Figure 5. AMETEK Land 4500 MkIII Opacity Monitor. Source: AMETEK Land.

The AMETEK Land 4500 MkIII

The AMETEK Land 4500 MkIII meets all U.S. and European regulations. It offers very high reliability, given that there are no continuously moving parts. Most modern opacity monitors, including the AMETEK Land Model 4500 MkIII, use a double-pass design, wherein a transceiver projects a beam of light across the stack to a reflector, which returns the light to a detector mounted in the transceiver. Advantages of the double pass design method include:

The basic components of the AMETEK Land 4500 MkIII opacity monitoring system include: • Transceiver—Contains the light source and detectors, user interface and main microprocessor.

• Retroreflector—Passive device which returns the light to the transceiver. Unlike a mirror, the light returns in the direction it came, regardless of the angle of incidence. It is much less sensitive to changes in alignment, which occurs as stack temperatures change.

• Low-level sensitivity is increased since the light passes through the stack gases twice.

• No power is required at the reflector.

• Standpipes—Mount the transceiver and retro to the stack, and enable adjustment of the instrument’s optical alignment.

• A simulated zero condition is achieved by placing a reflector in the beam at the transceiver, shortcircuiting the stack.

• Purge Blower—Use is mandatory to protect the instrument’s delicate optical surfaces from the hot, corrosive stack gases.

The solution also offers a standard wide temperature range to -40 °C (-40 °F), flexible configuration, easy maintenance and servicing and a lifetime warranty on the light source.

• Air Hose—Connects the purge blower to the transceiver and retro.

It is important to note that purge air must be used in opacity monitoring to protect sensitive instruments from hot, corrosive stack gases, by keeping the optics clean and preventing corrosion and contamination of mounting tubes (See Figure 6).

• Fail-safe Shutters—Close automatically to protect optics if the purge fails temporarily. Protect the instrument and operator preventing stack gas escape when the instrument is removed from the stack for calibration and servicing.

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W W W. A M E T E K . C O M

The What, Why and How of Opacity Measurement

Basic weatherproofing is standard and a cover is required for exposed locations.

A pressure switch and pitot tube for sensing purge flow are recommended for all installations.

Why the AMETEK Land 4500 MkIII? Opacity monitoring is not going away. The trend globally, in fact, is to push emission limits even lower. Even though the EPA is currently under political pressure, and there may be a slowing of regulations going forward, existing regulations are there to protect the environment and will be enforced.

Globally, requirements are on the rise. The more sensitive the measurement, the more complex the monitor.

Even though natural gas is increasingly used for power generation, and unlike coal and oil, it does not require opacity measurements, producers may still need opacity monitors.

Natural gas is not a storable fuel. Given the lack of storage, and the need to maintain a backup fuel many process operators maintain the ability to burn oil and so they are required to have an opacity monitor.

Figure 6. Laminar flow in purge air designs streamlines travel in the same direction so that stack gases are not drawn back into the purge nozzle. Source: AMETEK Land.

There are several options for air purging, including: • Compressed air • Air mover and blower

AMETEK Land can provide annual calibration of the device and is available to advise on complex underlying regulatory rules and how to stay in compliance with them. In a confusing and compliance-laden industry, the AMETEK Land Model 4500 MkIII coupled with the company’s 70 years of experience and expertise, makes the purchase and use of an opacity monitor simple.

While there is a cost advantage to compressed air, a large volume of clean, dry air is required. It is usually impractical to deliver sufficient compressed air without putting stress on the on-site compressor. There would also be questionable air quality and unknown reliability in the use of compressed air.

It is generally not recommended.

A side-channel blower delivers reliable filtered purge air.

Based on the application, output from a single blower is split between both sides of the stack.

AMETEK LAND Stubley Lane Dronfield, S18 1DJ United Kingdom

ENGINEERING 360 MEDIA SOLUTIONS 30 Tech Valley Drive, #102 East Greenbush, NY 12061 Tel: +1 518 880 0200

ABOUT AMETEK LAND AMETEK Land is a global supplier of non-contact temperature measurement instrumentation, process imaging solutions and combustion and environmental analyzers.

Founded in 1947, LAND has been the premium supplier of temperature measurement solutions and combustion emissions monitoring.

AMETEK Land has facilities in the United Kingdom, China, France, Germany, India, Italy, Japan, Singapore, Spain and the United States.

The full range of non-contact temperature products includes high accuracy hand-held portables, fixed system spot temperature sensors, thermal line scanners, process thermal imagers and calibration sources. Many application specific systems solutions are available

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INTRODUCTION TO MICROGRID What is MicroGrid and why is it important?

The combined development of decentralized production and improvement in automation, storage, telecom and IT technologies create new paradigms when it comes to develop local distribution of energy. This paradigm is called MicroGrid as a local ability to control complex balance between connected loads and production on small networks.

MicroGrid is a word used in many different contexts. Even with a precise definition, a MicroGrid remains a living “ecosystem” where multiple functionalities and technologies can be integrated together. The level of integration will define how much value added a MicroGrid brings to its users.

The International Electrotechnical Commission (IEC) defines a MicroGrid as a group of “distinct distributed resources such as generators or loads”, located within close geographical proximity of each other, “so that they represent a single generator or load to the wider electricity system.”

GE Grid Solutions defines a MicroGrid as a grid with three fundamental main criteria described in the image below, but also with a power criteria: • MicroGrid has a size around 1 to 50MW and is a district, an island, a rural area.

• NanoGrid has a size below 1MW to 100kW and is a group of Building or houses • PicoGrid has a size below 100kW and is a Tertiary Building or a small community of houses Who are the MicroGrid Operators?

As a MicroGrid can be seen either as a portion of Grid (public or private) or a community of users (producers and consumers), the role of MicroGrid Operators can be very different and referring to different organization:

• Distribution Service Operators (DSOs)

manage a MicroGrid as one or multiple nodes of the electrical public grid • Private District Operators manage a MicroGrid as one or multiple private districts • including their energy networks • Virtual Community Managers managing as a MicroGrid only connected users and not the grid itself, providing services like energy optimization and flexibility aggregation.

These roles are illustrated in the next chapter through three typical business cases (among dozens of variations).

MicroGrid Objectives Grid Solutions studies a wide range of technical solutions based on a single coherent layered architecture. MicroGrid can take various forms into various contexts; the objectives of each MicroGrid will be a combination of the following to build a local virtuous circle.

Provide a competitive priced energy supply to all customers – Multi-energy local optimization and dispatch – Cost effective investment in infrastructure (avoid grid peak design with demand response) – Costs sharing with existing or shared infrastructures (electric assets; telecoms) Foster the local Growth – Jobs and tax with local grid management and decentralized resources – Local economical imbalance reduction with energy cost reduction and

production relocation Attract business and consumers – Community animation and efficient energy services – Competitive & Reliable energy access with stable pricing – Clean and local energy promotion Attract energy innovation and testing – Innovation programs development – Eco-Campus development Ensures sustainable microgrid business model – Minimize maintenance costs and operations – Improve billing and reduce non-technical losses – Reduce Fossil Fuel bill through energy mix mitigation Ensures innovative energy service delivery – Congestion Management – Production shedding – Fair Consumption shedding (insure equivalent supply time to anyone) – Secure supply for critical consumers / VIP / Super Tariffs Payers – Local Islanding in case of grid fault – Flexibility Aggregation for external energy and power markets

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Grid Solutions MicroGrid Centre of Excellence Grid Solutions – Legacy Alstom Grid has signed a memorandum of understanding (MOU) with The Pennsylvania State University to establish a global centre of excellence for MicroGrids at The Navy Yard in Philadelphia, Pennsylvania. This centre, the first of its kind, will help advance the development of

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MicroGrid technologies as part of The Navy Yard’s grid modernization project.

Neil Sharkey, Penn State’s vice president for research, said this agreement places the university and its partners at the forefront of the nation’s efforts to develop technologies that will improve energy efficiency.

“We are working to spur real innovation and job growth, as well as boost the efficiency of current technologies,” Sharkey said. “Energy efficiency is one of the easiest ways to improve our competitiveness and reduce costs.”

THREE TYPICAL BUSINESS CASES Enable high distributed generation penetration into local distribution grid nodes or islands.

In many regions of the world, such as Islands or very sunny parts of the world, Distribution Service Operators (DSOs) are facing a growing challenge with the rise of the renewable and decentralized production.

Connecting these assets on a traditional medium and low voltage grid creates quickly side effects on the quality of the signal with voltage and frequency disturbances, or even unpredicted reverse flows into the transmission grid.

These problems are not a fatality and can be solve using MicroGrid concepts on grid nodes with a high penetration of decentralized renewable generation. By

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rolling out a decentralizing intelligence and control on identified locations, the DSO can follow precisely the renewable development, keeping control of the grid and optimizing costs and delays of connection and reinforcement work.

These challenges have been solved by Grid Solutions in the NiceGrid Demonstration Project, enabling to: – Forecast accurately local production and available flexibility in an integrated manner – Monitor low voltage network in real time on both production and consumption – Implement advanced control systems to operate efficiently and in a coordinated manner network substations as well as production and consumption assets – Create synergies between smart metering and MicroGrid management Modernize industrial & logistic areas and create Business Eco Districts.

In cities shifting from an industrial activity to a service based business, urban refurbishment is a key question for local authorities to remain attractive for private investment and job creation.

For example, some industrial areas are being trans- formed by real estate promoters to private Campus or Eco Districts.

In these cases, an integrated design is built and requires coordinating various networks like telecom, electricity, gas or water, as well as existing storage capacity such as in cold or heat applications, or even energy conversion capabilities, like fuel

cells or heat pumps.

Microgrid technology is again a very good solution to create advanced functionalities by design. The business case is supported mainly by grid connection costs that are drastically reduced by an increased security of supply attracting businesses, and by savings on energy consumptions.

For the Private District Operator, the Grid Solutions layered architecture enables to deploy a global Eco-district development strategy. Each individual Microgrid contains local automation, telecommunication and intelligence, however the advanced services are proposed through a global shared IT layer, enabling cost synergies between all Eco-Districts. For the Operator, it is also a guarantee to create a global portfolio that can be aggregated to value flexibility on national or local flexibility markets.

Grid Solutions is working on these challenges on many projects such as Navy Yard in Philadelphia or Singapore NTU Smart Campus.

Enable cost effective access to electricity in fast growing demand areas.

In many developing countries, urban areas are facing a strong growth creating real operational challenges on old networks, generally designed around diesel generation assets to locally distribute the production.

These aging assets can barely face the increasing demand, where quality of service become difficult to maintain. This situation may initiate a vicious cycle when customers stop paying for electricity due to poor service quality.

A Microgrid approach is a good strategy to get out of this situation and increase both production capacities, number of customer connected and also quality of service.

In such a case, the diesel generation is modernized and network extensions create ability to connect both new customers’ locations and renewable production, generally competitive in this type of environment. In some cases, renewable

grid. Currently, the MicroGrid Cockpit will be integrated into the Distribution Management System.

A LAYERED ARCHITECTURE Grid Solutions Concept The GE Concept of a microgrid is based on a step-by-step pragmatic and powerful idea.

Layer one: The first step is about creating autonomous MicroGrids that manage in real time local energy balance and grid operations.

Layer two: The second step is to improve performance and build new services for MicroGrid stakeholders.

The second step is done using a shared IT host in a cloud environment to control multiple MicroGrids, an and diesel can be backed up with storage solutions (e.g. storing electricity generated

by PV during day to save evening energy peaks). This strategy is called “Hybridization” and requires local Power Mix Management.

For the distribution network operator, creation of MicroGrid self- managed nodes on the network enables effective daily operations because they can pilot them as a single point of consumption with a scheduled behaviour.

Grid Solution’s offerings main differentiation is the ability to create a layered architecture for service development, with one MicroGrid Cockpit for multiple physical MicroGrids.

Distribution Service Operators will be able to reinforce remote grids with MicroGrid technology keeping an ability to support local operations, taking advantage of a central system. This ability creates costs synergies (IT, workforce) between isolated networks and allows investing more on advanced services. Some of these services are Network losses calculation, Revenue collection, Remote Billing, Forecasting and Scheduling, Time of Use Tariffs or advanced Demand Response (instead of complete Load shedding).

A MicroGrid operator will need to implement numerous functionalities upon technical grid automation in order to create a virtuous cycle. The Microgrid for Rural Electrification Report, written by United Nations Foundation focuses on this virtuous / vicious cycle after the study of multiple MicroGrids around the world.

Understanding the key success factor and working on a MicroGrid service offering is a way for Microgrid operators to propose competitive offers and grow their portfolio while managing operational risks.

Ultimately, this layered architectre will be a facilitator when remote grids will be connected on the main national distribution

emerging solution also called ‘virtual grid management’.

LAYER ONE MicroGrid Automation Grid Solution MicroGrid Controller Grid Solutions’ MicroGrid controller called DCM495 is the most advanced technology available to support microgrid architecture. This is a multi-functional, hardened device designed for operations in the harsh environments of electrical substations and industrial facilities.

It is the local brain of the Microgrid, ensuring an autonomous ability to manage energy balance between production, consumption and eventually storage, on top of managing the MicroGrid asset protection.

It enables the integration of field devices, real time data concentration, and unification of MicroGrid data from a wide range of field devices. DCM495 also provides a local HMI for local MicroGrid management, as well as interfaces with MicroGrid cloud applications for remote management.

Installed in an Eco District substation, this controller enables to (i) optimize Power Mix Management for a better production price & reliability, (ii) improve energy efficiency, load shifting and resiliency and (iii) monitor sub-consumption in real time and automate assets.

Installed in a Distribution substation on

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a MicroGrid node, this controller enables to (i) Improve RES penetration above normal limitations on a local node monitored by a substation, (ii) Improve Resilience on a grid node managed by a substation through DER balance control and (iii) enable MicroGrid islanding to improve resilience on a grid node managed.

The key technical features are the following: 1. Modular software apps are available as options 2. Plug and Play Topology Processing 3. Multi interfacing: Multi sources, Multi storage, Multi loads 4. Layered Automation approach, distributed control and wide area automation 5. Scalability, Honey comb architecture support: Mono to multiple Telecom, Metering and Sensors To support this MicroGrid Controller, Grid Solutions proposes numerous key technical solutions to deploy MicroGrids: â&#x20AC;˘ Meshed Radio over IP & PLC Solutions: e-terra gridcode PLC

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For the MicroGrid operator, it handles congestion issues, alleviates overloaded nodes through the network handling peak loads, provides ancillary services like frequency regulation and voltage support, and helps meet seasonal requirements. By maintaining the ability to island from the wider grid, a MicroGrid can ensure robust and reliable supply for its enclosed loads, isolated from faults on the wider electricity system.

For the renewable power producer, it provides energy that can be made available very dynamically, allowing committing to a production plan and compensating variability; this maximizes the benefit of the renewable energy asset, qualifying the renewable power producer to trade the electricity within wholesale energy markets.

â&#x20AC;˘

hardware systems enable transmission of voice, data, teleprotection and any kind of critical and non- critical signal over HV-MV electrical lines.

Field Control Units: A range of smart meters and voltage sensors combined with automation functionalities to monitor and operate in real time MicroGrid assets, buildings and homes.

Battery Energy Storage Systems In a local MicroGrid or Nodal Grid, managing balance between production and consumption can require using network storage systems.

As a community asset, the price of storage services is shared between all the MicroGrid users instead of investing into their own private storage or accepting a lower quality of service.

LAYER TWO MicroGrid Cloud Services Operators can improve their multiple MicroGrids by setting up a unique hosted MicroGrid Control Centre.

This centre is the remote brain of multiple MicroGrids, enabling a better performance for each of them, and new services for all stakeholders.

The following set of functions can be delivered as a service, hosted in the operators preferred location, or within GE Grid Solutions best in class hosting partners.

Smart MicroGrid Operation Cockpit The Distribution operation cockpit

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will consist of dashboards providing a single pane of window for all business processes and system conditions to the MicroGrid operator. This component will provide situational awareness displays (Low voltage real time visualization, Voltage control and MicroGrid configuration) and corresponding summary of grid operation and commercial operation data. On top of these management functions, network development, simulation and planning tools can help operators enlarge and multiply MicroGrids.

DistributedResourcesManagement Distribution product service management allows MicroGrid Operators to ensure a better setting of each local MicroGrid Controller by managing each assets tenant contracts and programs from contract to DER KPIs, pre-billing and settlement functions. The software provides Distributed resources aggregation and modulation programs, TOU tariff management or Multi-Energy Optimizer and operational planning optimization. For example, various contracts with a DG operator will be modelled with information such as allowable operating limits adjusted in real time.

Advanced Data Analytics Services One of the key challenges and opportunities in a smarter distribution operation is how to derive added values and decisions from abundance of various operating and economic data. This component develops approach and algorithms for the off-line and on-line analytics utilizing the combination of grid operation and real time data acquisition. The corresponding analytical results will be provided as input to various business processes including DER Forecasting& Base Lining.These componentscan also

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provideenergyefficiencybenchmark services, flow reconciliation and losses optimization or theft detection.

Example of Grid Solutions Cloud Services User Interfaces IMPLEMENTATIONEXAMPLE GRID SOLUTIONS MICROGRID REFERENCES NICEGRID(FRANCE): Set near the city of Nice on the French Riviera, the NiceGrid project uses the iDMS (Integrated Distribution Management System)/DERMS (Distributed Energy Resource Management System) Smart Grid platform which interconnects smart homes, smart buildings, energy storage and an important quantity of solar photovoltaic panels, gathering them into a single integrated MicroGrid.

This project offers a better energy consumption management of the MicroGrid, and connects it to the main distribution network. http://www.nicegrid.fr/ ISSYGRID (FRANCE): Currently under deployment in an existing business district in Issy-les-Moulineaux, in the Paris suburbs, the IssyGrid project is piloted with the Alstom/EMBIX™ smart grid platform for eco-cities, interconnecting and piloting a variety of energy resources in the district such as homes with smart meters, smart commercial buildings and electrical vehicles. http://issygrid.com/ SMART GRID VENDÉE SIDEV (FRANCE): This project aims at delivering a Distributed Energy Resources Management System (DERMS) for the Vendee department, on the west coast of

France. It will pilot a range of smart grid technologies to tackle the changing energylandscape, integratingrenewable energies and modernising the electricity distribution grid. http://smartgridvendee.fr/fr/ DEPARTMENTOFENERGY PHILADELPHIA NAVY YARD MICROGRID (USA): This project will support President Obama’s Climate Action Plan and commitment to improve power grid resiliency in the USA and help critical facilities, communities and cities better prepare for possible electricity disruptions caused by extreme weather conditions. The objective of this funding is to perform research, development and testing of advanced MicroGrid controllers capable of managing and controlling MicroGrid systems to improve viability, reliability and resiliency of the electric distribution grid. http://www.alstom.com/ press- centre/2014/10/alstomreceives-12mdoe- funding-to-advance-philadelphia-MicroGridproject-/ NANYANG TECHNOLOGICAL UNIVERSITY (NTU) MICROGRID (SINGAPORE): The Renewable Energy Integration Demonstrator – Singapore (REIDS) initiative, will encompass the construction of a MicroGrid to manage and integrate electricity generated from multiple sources including solar, wind, tidal, diesel, as well as energy storage and power-to-gas solutions. http://www.unece.org/fileadmin/DAM/ energy/ se/pp/gere/1st_session_GERE_November_14/ 8._Mr._Hans_Puttgen.pdf GRID SOLUTIONS MICROGRID OFFERINGS

Inception Phase (Consulting)

• • •

Strategic Scenario Design Business Case Formulation Third Party Funding facilitation

Implementation Phase (Project delivery)

Design Phase (Consulting)

• • •

Architectures and step by step planning Organisational design and change management

• •

Turnkey delivery for local automation and IT delivery and integration Operational Training

Operational Phase (Business Services)

• • •

Field services IT & IS support Application maintenance

Engineering Training

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THE NEXT STEP IN IMPROV

by M. CHATLANI, B. GAGNON* allowing immersive and participatory, There is nothing negative about these Growth in electricity generation, individual or classroom learning. characteristics—it is just a reality. Digital particularly nuclear power, has levelled New Generation, New Needs natives are far more comfortable with out in Western Europe (except for Workforce replacement and workforce using technology in their everyday lives Britain) and the United States. The augmentation introduce nuclear and in their work places and are generally narrative in Asia is different. Nuclear newcomers of a new generation with more intuitive. power is growing significantly. From different backgrounds and affinities 2-D/3-D Visualizations and Simulation East to South Asia there are 128 operable than its predecessors. New generation to Enhance Nuclear Training nuclear reactors, 40 under construction workers entering the industry have been Programs and firm plans to build a further 90[1]. raised with modern digital technology L3 MAPPS has devised several learning China and India stand out. China integrated in everyday life. The widetechnologies that address these issues has successfully been building up its scale exposure to more and more and challenges which provide for the nuclear capacity and has 24 units under realistic video games, readily available use of “practice by doing” earlier in construction. With 22 operating reactors computers, tablets, smart phones and the conventional training cycle. These and 5 under construction in India, the internet has shaped the habits and technologies are Learning Modules, the country decided in May 2017 to minds of the Y (born 1980-1990) and Z System Knowledge Modules and proceed with building 10 more reactors. (born 1990 onwards) generations. These Learning Simulators. L3 MAPPS To support this growth, L3 MAPPS generations are “digital natives,” people has coupled 2-D and 3-D computer believes that the region is adding and who are “native speakers” of the digital visualizations with high-fidelity will continue to add personnel, many language and are extremely technology simulation to bring real-time, simulationof whom will be nuclear newcomers savvy, as opposed to older generations driven animated components and systems of a new generation with different or “digital immigrants” who were allowing immersive and participatory, backgrounds and affinities. Major not born in the digital world but have individual or classroom learning. With lifestyle differences between the two adopted many or most aspects of the new this innovative approach to training, L3 generations of workers result, among technology era [2].

MAPPS is making it possible to increase other things, in different learning habits These fundamental lifestyle differences student retention rates by making the and needs for this new breed of learners. result, among other things, in different learning experience much more interactive Interactivity, high visual content and learning habits and needs for this new and efficient. quick access to information are now breed of learners. Some of these habits Learning Modules for Generic necessary to achieve a high level of can be summarized [3] as: Fundamentals retention.

• They are highly visual learners With Learning Modules, students can To enhance existing training programs preferring to process pictures, explore how plant equipment is built 2 and or to support the establishment of sounds, and video rather than text. how it works. The 3-D external casings new training programs for newcomer • They are experiential learners who can be dissolved. Components can be countries, L3 MAPPS has With devisedthis innovative learn by discovery rather thanL3 being rotated zoomed display their classroom learning. approach to training, MAPPS is and making it topossible to inner learning technologies centered on twoby making“told.”

They likeexperience to interact with workings.

Not only the components increase student retention rates the learning much more interactive andare efficient. main principles: content to explore and draw their identified, but the physical operation is Learning Modules for Generic Fundamentals 1. Seeing is understanding, and own conclusions. Simulations, animated, eliminating the difficult task 2. Interacting helps remember. games, and role playing allow them of trying to mentally picture equipment With Learning Modules, students can explore plantthere” equipment and how it works.

The 3-D2-D L3 MAPPS has coupled computer to learnhow by “being and alsoistobuiltoperation from traditional, static external casings can be dissolved.

Components can be rotated and zoomed to display their inner visualizations with high-fidelity enjoy themselves. representations. workings.

Not only are simulationthe components identified, but the physical is animated, eliminating simulation to bring real-time, • They have shorter attention spans,operation so the difficult task of trying to mentally picture equipment operation from static 2-D driven animated components and systems prefer bite-sized chunks of content.

Sampletraditional, Learning Module

representations.

Sample Learning Module Learning Modules run within most popular web browsers such as Windows Internet Explorer or Google Chrome, removing the need to purchase and learn new enabling software. This makes access to Learning Modules both easy and flexible. The modules can be installed locally on the computer 70 | POWER INSIDER 9 ISSUE 5 that can be accessed by all teachers and students. Access can be given used or onVOLUME a central server directly to the modules or by adding simple web links to the existing courseware such as PDF documents, PowerPoint presentations, etc. The user interface is very simple, clean and intuitive,

VING NUCLEAR LEARNING simulation of the specific system runs behind the scenes to calculate all the system parameters (e.g. pressures, temperatures, flows, levels, voltages, currents, etc.) displayed on the active system diagram. System Knowledge Modules are fully interactive, allowing students to operate plant equipment and monitor the associated system’s realtime response. Examples of System Knowledge Modules include plant heating/cooling systems, level control loops, reactor protection, pump and motor breaker logic, AC and DC electrical distribution, etc.

Learning Modules run within most popular web browsers such as Windows Internet Explorer or Google Chrome, removing the need to purchase and learn new enabling software. This makes access to Learning Modules both easy and flexible. The modules can be installed locally on the computer used or on a central server that can be accessed by all teachers and students. Access can be given directly to the modules or by adding simple web links to the existing courseware such as PDF documents,

PowerPoint presentations, etc. The user interface is very simple, clean and intuitive, removing technological barriers between the students and better learning.

System Knowledge Modules With System Knowledge Modules, students can explore how systems are built and how they work. The system graphical representation (i.e. active system diagram) has the look and feel of a plant drawing (e.g. piping and instrumentation diagram, one-line electrical diagram, etc.). A high-fidelity

Sample System Knowledge Module Learning Simulators Learning Simulators have been designed to assist teaching and learning of major plant transients and the associated power plant systems and behavior, by coupling 2-D and 3-D interactive graphic visualizations with high-fidelity simulation. Focused primarily on the Nuclear Steam Supply System (NSSS) and containment, the goal is to increase the student’s understanding and retention of system behavior and major plant transients. Learning Simulators can be set up as standalone scenario-based 3 student devices (i.e. running pre-recorded scenarios) or can also be attached to utilities’ and colleges’ existing training

Sample System Knowledge Module

Learning Simulators FOLLOW ON TWITTER: WWW.PIMAGAZINE-ASIA.COM | 71 Learning Simulators have been designed to US assist teaching @PIMAGAZINEASIA and learning of major plant transients and the associated power plant systems and behavior, by coupling 2-D and 3-D interactive graphic

Feature - Standby Power Asia simulators to introduce a new level of situational awareness which has not been attained with most operator training simulators to date.

The first view presented by the Learning Simulator is that of the containment building, populated to scale with the major components of the reactor, reactor coolant and the emergency core cooling systems. This 3-D view helps the student understand the systems’ spatial orientation and geometry. Students can even look inside the equipment to see equipment internals and can turn on and off labels naming the various equipment or components. The same 3-D models are then used to show and explain the equipment and systems’ behavior with the help of high-fidelity simulation. Learning Simulators take simulator-calculated nodal properties such as temperature, pressure and void fraction, and display them within 3-D models of the plant piping and equipment using color maps. As system properties change, colors change accordingly, translating simulator data into colors on the fly. Dynamic, simulator-driven 3-D visualization provides a new way of looking at a systems’ behavior by presenting a comprehensive graphical representation of the complete system’s

state. Capitalizing on the “seeing is understanding” principle, the Learning Simulator converts thousands of data points into a simple, easy-to-understand dynamic image. Learning Simulator models differ from ordinary static images or video animations by providing control to the student, who can interact with them at will by panning, zooming and rotating the models, or choosing what to look at, such as which physical property is displayed, focusing on particular parts of the system, etc.

Sample Learning Simulator (PWR) While the dynamic 3-D models present a dynamic yet instantaneous snapshot of the systems’ properties, the Learning Simulator’s Analysis Screen completes the picture by providing additional engineering information on a 2-D representation of the systems, a mass and energy balance bar-graph as well as pre-defined or user-defined plots to understand the evolution of the systems’ properties and behavior.

Learning Environments The proposed learning technologies are well suited for classroom training, individual learning, and/or team building

using desktop or tablet PCs with or without touch technology.

Possible Learning Environments Conclusion As the Asian nuclear power industry continues to grow, a new generation of workers needs to be educated and trained. With this new audience, existing training methods and support tools should be enhanced to facilitate learning and to achieve high retention rates. The combination of interactive visualizations and simulation provides a modern medium that will not only fill the students’ need for technology and engagement—both in the classroom and outside the classroom—but also provide rich and valuable information that was difficult to convey in the first place. L3 MAPPS believes that these new learning technologies will help the nuclear power industry to train a knowledgeable workforce more efficiently. Intuitive, interactive learning technologies will benefit all generations of learners—not only digital natives. When it is easy to see, when it is easy to interact with, you can be sure that it will be easier to understand.

5 References [1] World Nuclear Association, Asia’s Nuclear Energy Growth, Updated January 2016.

[2] PRENSKY, MARC, Digital Natives, Digital Immigrants, On the Horizon (MCB University Press), Vol. 9 No. 5, October, 2001.

[3] HART, JANE, Understanding Today’s Learner, Learning Solutions Magazine, September 22, 2008. *L3 MAPPS, Montreal, Quebec, Canada

72 | POWER INSIDER VOLUME 9 ISSUE 5 Possible Learning Environments

Conclusion

ENHANCED LEARNING FOR NUCLEAR PLANT UNDERSTANDING

Learning Simulators: Enhancing Nuclear Plant Learning As the world’s preeminent supplier of full scope operator training simulators, L-3 MAPPS introduces Learning Simulators to bridge the gap between early nuclear worker training and operator training. This innovative new software environment leverages our detailed and accurate plant models. But instead of focusing on the procedural aspects of operating your plant, Learning Simulators provides a fully interactive and visual environment designed to facilitate true understanding of your plant’s behavior.

For more information on L-3 MAPPS’ Learning Simulators, visit L-3com.com/MAPPS or send us a request for a white paper at power.mapps@L-3com.com.

MAPPS

L-3com.com

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Sonita Lontoh is Currently Vice President of Marketing at Siemens and specializes in IoT. This article was first published on The World Economic Forum Agenda. To reach Ms Lontoh please email; slontoh@alum.mit.edu or Twitter @slontoh What does the internet of things mean for the energy sector?

When renowned American psychologist Abraham Maslow came up with his famous Maslow’s Hierarchy of Needs in 1943, he had studied what he called “exemplary” people, such as Albert Einstein, Eleanor Roosevelt and Frederick Douglass, to describe the pattern that human motivations generally move through. The highest level of need – self-actualization – referred to a person’s full potential and the realization of that potential. Maslow’s description of self-actualization can be summarized by the famous US Army slogan, “Be All You Can Be.” Maslow believed that for a person to realize their full potential, they must not only achieve the previous needs, but master them.

TechCrunch Network Contributor Jim Hunter wrote a piece last year entitled The Hierarchy of IoT ‘Thing’ Needs. In it, he suggested we start treating internet-connected ‘things’ more like people – in the sense of thinking about them the way you would an employee hired to fulfill a specific job function. He argued that this sort of mentality would help not just the individual thing, but the entire IoT network, achieve its full potential. I agree with this and therefore, have adapted the

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As an illustrative example to help explain the pyramid above, let’s examine the utility industry within the smart energy market in the United States. There is no lack of change in today’s energy landscape and no surprise that this puts the US energy industry at a crossroads – one of challenge, but also opportunity.

Utilities are at the heart of this transformation.

Level 1: Modernizing infrastructure and improving operations It may be easy to overlook the importance of modernizing existing power infrastructure, but the bottom line is that we cannot rebuild our power grid from scratch. We have to rely on intelligent technologies to improve the systems we have in place to improve power quality and security, and continue to deliver safe, affordable, reliable energy to consumers. Utilities are transforming while still performing. For example, a large percentage of BC Hydro’s smart meter programme’s benefits are realized in revenue protection/

assurance application. IoT-connected devices with tighter security have the ability to give utilities unprecedented levels of control over their operations through both improved hardware and digital technologies and fulfil this most fundamental need. Just as with Maslow’s theory, this most basic level of need must be met before the individual “thing” can focus upon the secondary or higher level needs.

Level 2: Enhancing efficiency and cost savings Maslow also coined the term “metamotivation” to describe the motivation of people who go beyond the scope of the basic needs and strive for constant betterment.

Similarly, focusing on digital technology drives efficiencies across a utility’s business by increasing the opportunity to integrate new renewable generation and distributed energies into their system to help go beyond the scope of basic infrastructure and operations.

Utilities are improving total uptime and reducing overall maintenance costs by deploying predictive maintenance analytics that increase the quantity and quality of maintenance schedules. For example, PPL Electric has reported a 38% improvement in service reliability enabled in part by the deployment of sophisticated analytical capabilities.

Level 3: Business transformation services for more value-added services to consumers In the final level, the value to a utility goes far beyond basic operational enhancements or efficiency, ultimately leading to major change to the business value for the utility, typically reflected in the form of new products and services that are outside of the traditional utility model and offering more value-added services to consumers.

The smart grid enables utilities to offer new services at both the wholesale and retail/consumer level by providing deeper insights on capacity demand, issue identification, pricing options and more.

Oklahoma Gas & Electric, in a bid to substantially shed load by 2020, is using customer analytics to gain visibility on individual customers’ responses to price signals. This is allowing them to identify the best customers to target with specific marketing campaigns.

To address the challenges described above and realize the full potential of a true IoT for smart energy, we need to modernize utilities’ infrastructure, improve operations and enhance efficiencies first, but the ultimate goal is to transform into a customer-centric company that can offer more value-added services to the endconsumers.

Author: Sonita Lontoh is the VicePresident of Marketing at Siemens Digital Grid and is a speaker at the 2017 Indonesian Diaspora Congress opened by the 44th President of the United States, Barack Obama.

This article was first published on the World Economic Forum Agenda.

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MORE DURABLE AND VERSATILE MEMBRANES ATTRACT INVESTMENTS FROM WATER AND WASTEWATER UTILITIES UNDERGOING PRIVATIZATION

Underserved frontier markets offer vast growth opportunities for providers of complete solutions, finds Frost & Sullivan’s Energy & Environment team The region-wide focus on cleaner water and wastewater in Southeast Asia has accelerated the pace of innovation in the membrane technologies market. Traditional technologies like microfiltration (MF) and ultrafiltration (UF) will give way to newer membranes with increased durability and greater application diversity, as well as novel membrane processes such as forward osmosis (FO).

“Investing in frontier markets such as Vietnam and the Philippines is a highrisk, high-reward proposition that creates significant opportunities for partnerships with entrenched regional players,” said Frost &Sullivan Energy & Environment Research Analyst Hari Raamanathan.

“Meanwhile, the industrial segment is emerging as a key end-user market, encouraging membrane technology companies to develop core capabilities as well as expertise in targeted client segments.”

Membrane Technologies Market in Water and Wastewater (WWW) Treatment in Southeast Asia, Forecast to 2021 is part of Frost & Sullivan’s Environment & Water Growth Partnership Subscription.

The US$351.4 million market is expected to grow to US$590.5 million by 2021, at a compound annual growth rate of 10.9 percent. Indonesia, Vietnam, and the Philippines will be the largest revenue contributors in the long term, due to the largely under-developed water sector and the strong regulatory support for new projects.The study covers the technology segments of MF, UF, nanofiltration (NF) and reverse osmosis (RO).

While the Southeast Asian market is ripe for growth, the nascence of its membrane technologies and its highly fragmented nature leave it vulnerable to competition from market leaders from Japan and Europe. Furthermore, compared to conventional forms of WWW treatment, the capital and maintenance costs of membranebased systems are high.

“The underfunded utilities in the frontier nations will be receptive to membrane

Contact: Carrie Low Corporate Communications – Asia-Pacific P: +603 6204 5910 F: +603 6201 7402 E: carrie.low@frost.com

76 | POWER INSIDER VOLUME 9 ISSUE 5

manufacturers that can deliver end-to-end solutions through build-own-operatetransfer or design-build-finance-operate contracts,” noted Raamanathan. “The most successful participants will be the ones that develop capabilities across both the municipal and industrial verticals, as urbanization and industrialization in Southeast Asia are creating a highly fertile market.”

About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community.

Membrane Technologies Market in Water and Wastewater (WWW) Treatment in Southeast Asia, Forecast to 2021 P91C-15

Melissa Tan Corporate Communications – Asia-Pacific P: +65 6890 0926 F: +65 6890 0999 E: melissa.tan@frost.com http://www.frost.com

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GAS CONTINUOUS POWER HIMOINSA FAR EAST. 101 Thomson Road, #15-05 | United Square Singapore 307591 | Tel.: +65 6265 10 11 | Fax: +65 6265 11 41 enquiries@himoinsa.com.sg

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