FULL COMMERCIAL OPERATION BY JULY 2023 FOR THREE POWER PLANT PROJECTS IN CHINA

In 2022 Siemens Energy entered into separate agreements with Guangdong Energy Group and Shenzhen Energy Group to deliver a total of four H-class combined cycle power units to their power plants located in the Guangdong-Hong Kong-Macao Greater Bay Area in southern China.

The new and updated power plants - due for completion in a matter of a few months - will help to meet the growing power demand in the region. In addition, with the one-hundredth unit sold, the projects also mark a milestone in the story of the SGT-8000H gas turbine.

Under the agreement with Guangdong Energy, Siemens Energy will deliver a 675MW combined cycle power generation unit, including a SGT5-8000H gas turbine, a steam turbine, two generators and related auxiliary equipment, and long-term maintenance service for the plant in Guangzhou owned by Guangdong Yuehua Power Co.

The existing coal-fired power plant will be upgraded to a modern, higher-efficiency gasfired plant, reducing carbon-dioxide emissions by more than 60 %. It will generate 2.3 billion kWh of energy annually and is expected to go into commercial operation in mid-2023.

The agreement with Shenzhen Energy includes supplying three H-class combined cycle power units for the Phase II project at the Dongbu plant and the upgrade project at Mawan power plant. The scope includes three SGT5-8000H gas turbines, three SST-5000 steam turbines, three SGen5-3000W generators, and auxiliary systems.

The two projects, both located in Shenzhen, are scheduled to go into operation by the end of 2023 and in mid-2024 respectively. The annual total generation of the two plants is expected to exceed six billion kWh.

With a population of over 70 million, the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) is among the most dynamic regions in China. It is intended that GBA will grow into a global sci-tech innovation centre and a role model of sustainable development for the country. As early as December 2019, Siemens Energy and Shenzhen Energy agreed on a strategic partnership in the areas of R&D and smart and green energy for the projects.

China has 117.21 gigawatts (GW) of gas plant projects in varying stages of development; whilst Vietnam has 76.94GW. These are followed by Brazil (61.72GW), Bangladesh (40.55GW), and the US (38.77).

Overall, the global capacity in development increased by 22% to 748GW year-on-year. GEM noted these cost an estimated US$601b in capital expenditure.

“The boom in gas plant construction risks creating an ‘age of gas’ that will last for decades and make the climate crisis worse,” Jenny Martos, Project Manager for the Global Gas Plant Tracker, explains.

“Aiding this expansion is the continued conversion of coal to gasfired power stations at a time when we should be rapidly shifting away from fossil fuels, not prolonging their use.”

Currently, a few gas-fired power plants are being retired because they are unable to stop and start quickly enough.

However, most existing gas-fired power plants remain profitable, especially in countries without a carbon price, due to their dispatchable generation and because shale gas and liquefied natural gas prices have fallen since they were built.