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Vol. 158 No. 2 February 2014

More Concerns and More Tools
for Plant Control
One Way to Reduce MATS
Compliance Costs
Capacity Market Coming to
Texas?
Using the NIST Cybersecurity
Framework
The Westinghouse Advanced Logic System (ALS)
platform is the rst eld-programmable gate array-based
safety system instrumentation and control solution to be
licensed by the U.S. Nuclear Regulatory Commission.
Our ALS solution is a logic-based platform that doesnt use
a microprocessor or software for operation, but instead
relies on simple hardware architecture. Not only is the
ALS system maintainable for the long term, but it is also
scalable and can provide single-system replacements or
full safety instrumentation and control replacement.
To learn more, visit us at www.westinghousenuclear.com
THE NEXT GENERATION OF
SAFETY SYSTEMS SOLUTIONS
THE ADVANCED
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CIRCLE 1 ON READER SERVICE CARD
February 2014
|
POWER www.powermag.com 1
On the cover
In most coverage of power plant instrumentation and control issues, its typical to empha-
size the role of new technologies and capabilities, but ensuring best practices and ergo-
nomics for human operators, as at Great River Energys Coal Creek Station (see p. 20), is
an equally important consideration. Source: Winsted Corp.
COVER STORY: INSTRUMENTATION & CONTROL
32 Remote Monitoring and Diagnostics Within a Smart Integrated Infrastructure
Faced with emissions retrofits, fuel switches, and increased cycling, maintenance
staffs nearly everywhere are finding themselves pushed to deliver more with less.
Thats where state-of-the-art remote monitoring and diagnostics can help.
3 6 Establishing Proper Pressure Drop for Feedwater Flow Control Valves
Heres your tutorial on conventional industry methods for establishing control valve
pressure drop plus an explanation of why they cannot be used in power plants with-
out reviewing all plant operating scenarios.
40 Generation Cybersecurity: What You Should Know, and Be Doing About It
These days, basic cybersecurity measures are as critical at generation plants of all
types and sizes as proper dust control at a coal plant, and unless everyone from the
CEO down to the auxiliary operator observes them, the consequences can be severe
and lengthy.
FEATURES
PLANT AUTOMATION
46 Using Neural Network Combustion Optimization for MATS Compliance
Neural net systems have not only demonstrated reduced boiler emissions and im-
proved combustion efficiency, but they also now can reduce the administrative costs
of complying with the Mercury and Air Toxics Standards (MATS).
CYBERSECURITY
49 NIST Cybersecurity Framework Aims to Improve Critical Infrastructure
The new framework developed by the National Institute of Standards and Technology
with industry stakeholders is designed to provide a prioritized, flexible, repeatable,
performance-based, and cost effective approach to managing cybersecurity risk.
POWER POLICY
52 Texas and the Capacity Market Debate
Industry watchers both in and far beyond ERCOT are waiting to see what shape and
name will be given to some sort of capacity market in Texas, which has long held firm
to an energy-only market whose seams are pulling far too tightly these days.
RENEWABLES
56 Japan Ramps Up Renewables
Though long a leader in developing renewable generation, Japan suffered a setback
in that sector, too, following the Fukushima disaster. New legislation, subsidies, and
(finally) an integrated national grid should help place the country back on course to
expand the role of renewables.
Established 1882 Vol. 158 No. 2 February 2014
32
36
56
www.powermag.com POWER
|
February 2014 2
DEPARTMENTS
SPEAKING OF POWER
6 Let There Be (LED) Light!
GLOBAL MONITOR
8 Mexico Embarks on Historic Energy Reform
9 White Rose Project Wins UK Government CCS Backing
10 THE BIG PICTURE: Power Pie Pieces
12 Japan, South Korea Stick to Nuclear Ambitions
14 American Physical Society Pushes for Reactor Licensing Beyond 60 Years
15 Using Carbon Dioxide to Produce Geothermal Power
18 POWER Digest
FOCUS ON O&M
20 Upgraded Control Room Consoles Improve Ergonomic
21 Reliable Fire Protection for Turbine Rooms
26 Corrosion Protection for FGD Vessels
28 Retrofitting Mechanical Draft Fans to Optimize System Performance
LEGAL & REGULATORY
30 Speeding Forward with Integrating Plug-in Electric Vehicles
By Vidhya Prabhakaran, Davis Wright Tremaine LLP
59 NEW PRODUCTS
COMMENTARY
64 Are You Ready to Compete with Your Customers?
By James Newcomb, Rocky Mountain Institute, and Ben Paulos, Americas Power
Plan
Connect with POWER
If you like POWER magazine, follow us online for timely industry news and comments.
Become our fan at facebook.com/POWERmagazine

Follow us on Twitter @POWERmagazine
Join the LinkedIn POWER magazine Group
In The Power Plant Controls Market in China, associated with this issue in our
archives at powermag.com, youll find Editor Gail Reitenbachs interview with the China
business development manager for Emerson Process Management Power & Water and
gain insight into the current state of control systems for Chinese power plants.
In The Power Potential of Southern Africa, Associate Editor Sonal Patel notes
that power produced by South Africa represents 40% of Africas total, yet that country
is tackling a crippling supply shortfall. Emergencies are offset with imports from its
neighbors in southern Africasome that are electricity poor and some that are latent
supply giants.
More POWER Online
9
12
26
Uneventful is paradise.
Combined cycle stations. Nuclear reactors. Hydroelectric
power plants. In places like these, where any problem could
mean catastrophe, you want each day to be as uneventful
as the next. The insights from GE Predictivity solutions
power the future by connecting intelligent machines, data
and people. From Bently Nevada condition monitoring to
Masoneilan valves, GEs Measurement & Control business is
improving the health of industry by keeping your operations
running smoothly without incident. And that is paradise.
To learn more about our end-to-end solutions,
visit ge-mcs.com.
|
February 2014 4
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EDITORIAL & PRODUCTION
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Putting Nature to Work
A utility client was looking for ways to reduce selenium
and mercury from the industrial waste stream of a coal-red
power plant. Their focus was on nding tools to preserve
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E n g i n e e r i n g , A r c h i t e c t u r e , C o n s t r u c t i o n , E n v i r o n m e n t a l a n d C o n s u l t i n g S o l u t i o n s
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February 2014 6
SPEAKING OF POWER
Y
ouve no doubt heard that U.S.
power plant emissions have been
dropping overall and that one of
the reasons has been decreased thermal
generation resulting from essentially flat
demand. As of Jan. 1 this year, you have
former president George W. Bush to blame,
or thank, for a major factor contributing
to that nearly flat demand growth: more
energy efficient lightbulbs.
More Heat Than Light
Incandescent bulbs (or lamps, as
theyre called in the industry) convert
less than 10% of the energy used into
light, wasting over 90% as heat. That
heat can add to space-cooling needs,
which adds to overall energy costs. The
energy-efficiency standards Bush signed
into law in 2007 require new bulbs to
use about 25% less energy than com-
mon incandescent models, but some are
even more efficient.
As of the new year, producing and im-
porting 100, 75, 60, and 40 W bulbs is
banned. But that doesnt mean the death
of incandescents. The law has loopholes for
rough-service, specialty (as in applianc-
es and chandeliers), colored, low-wattage,
three-way, and halogen bulbstechnical-
ly, a more sophisticated, and expensive,
type of incandescent. However, for most
applications, youll have to choose some-
thing else when your stockpile of Edison
filament lamps burns out.
Cost Containment
Lighting accounts for roughly 10% to
12% of average residential electricity
costs and 19% of power use nationwide.
Cut that percentage by 25% to 80%, and
over time, more expensive bulbs pay for
themselves. However, in our immediate-
gratification, throw-away culture, low
first costs get all the attention. We can
tell ourselves we are saving money by
buying replacement incandescents at a
lower price than the light-emitting diode
(LED) bulbs displayed on the next shelf,
but eventually, we pay the price for first-
cost thinkingin higher electricity bills
and more-frequent bulb purchases.
LED prices range enormously, depend-
ing upon the style, rating, quality, and
where you buy them, so Ill use the ex-
ample of eight recessed flood lights we
recently bought at Costco to replace a
hodgepodge of traditional and com-
pact fluorescent light (CFL) models we
were testing in our kitchen. (Our first
LED switchover was made in the garage.
No regrets there, as we have higher lu-
mens, zero flicker, and no cold weather
performance penalty, as with fluorescent
tubes.)
Our LEDs (for replacing the equivalent
of 60 W bulbs) are shaped like the original
lamps, use 13 W, and deliver 750 lumens
for an estimated annual cost of $1.57
per bulb, according to the manufacturer
(based on 3 hours/day at 11/kWh). At
the same electricity rate and usage level,
a 60 W incandescents energy cost would
be $7.23/year. With savings of $5.66/
year/bulb, each $18.75 LED should pay
for itself in 3.3 years. (Its possible to get
other styles of 60 W-equivalent LEDs for
even less.)
Yes, low-income consumers may need
to budget for a gradual transition to
LEDs, putting them first in fixtures used
most frequently (so they save the most
on their electricity bills) and using CFLs
as a bridge technology elsewhere. They
will also find that many utilities offer
bulb replacement incentives.
Go Directly to LED
The Department of Energy claims that by
2027, widespread use of LEDs could save
about 348 TWh (compared to no LED use)
of electricity: This is the equivalent an-
nual electrical output of 44 large electric
power plants (1000 megawatts each).
Does that mean more plant closures? Per-
haps, though they are more likely to be
fossil than nuclear plants, despite the
title of Michael Kanellos Oct. 28 Forbes.
com article, Can LED Bulbs Make Nuclear
Plants Obsolete?
As noted, initial costs for incandes-
cent alternatives may determine technol-
ogy choice for some. But of the available
options, LEDs are clearly the way to go.
Energy efficiency is the main reason they
are being promoted, but LEDs also offer
superior safety, lighting quality, and lon-
gevity benefits.
Current LED bulbs are sold in a range of
lumen (rather than wattage) ratings and
can offer dimmable capability and wider
angles of light dispersion than earlier
models. You can also choose bulbs along
the spectrum, from cool to warm, de-
pending on their Kelvin rating. Though
we all grew up under yellow-toned incan-
descent light, cool white bulbs provide
cleaner light, more like natural daylight,
which can be useful for settings where you
want to reveal true colors.
Compared to CFLs, LEDs promise lon-
ger life (22.8 years at 3 hours/day for
the model we bought) as well as full lu-
mens when you flip the switch, instead
of the warm-up period needed for fluo-
rescents. And, unlike CFLs, they contain
zero mercury (Im with my predecessor
in finding the Environmental Protection
Agencys instructions for cleanup of bro-
ken CFLs impractical).
Longevity offers benefits beyond life-
cycle cost. For our house, it means we
should never again have to drag out the
pole light bulb changer to replace bulbs.
For power plants, which are increasingly
switching to LEDs, it means both lower
operating costs and decreased main-
tenancea growing concern for bud-
get- and staffing-constrained plants. For
example, portions of Arizonas Palo Verde
Nuclear Generating Station, the largest
nuclear plant in the U.S., have been up-
graded using 130 LED fixtures. The fix-
tures manufacturer, Albeo Technologies,
claims expected savings in energy con-
sumption will pay for the cost and instal-
lation within two years.
If you still cant handle this years
sticker price for LEDs, manufacturers claim
prices will fall as demand for LEDs ramps
up. You can thank me for being an early
adopter when you buy your first LED lamps
next year.
Gail Reitenbach, PhD is editor of
POWER. Follow her on Twitter @GailReit
and the editorial team @POWERmagazine.
Let There Be (LED) Light
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February 2014 8
Mexico Embarks on
Historic Energy Reform
Mexicos much-awaited constitutional
energy reform, passed on Dec. 12 by the
federal congress and a week later by the
required majority of state congresses,
could spark increased private participation
in power projects, lower electricity prices,
and transform the profile of the countrys
state-dominated power sector.
The Mexican Congress must still pass
supporting legislation within 120 days
from the date of the official publication
of the Energy Reform, and the executive
branch has a year to create a supporting
regulatory regime. Beyond that, authori-
ties will need to design contracts to allow
expanded private sector participation in
the oil, gas, and power sectors.
Discussions on the reform were initi-
ated earlier in 2013, and for experts like
Alex Choinski, a partner at the law firm of
McDermott Will & Emery, the final package
seems especially broader than expected.
Significantly, the reform allows state-
owned oil and natural gas monopoly
Petrleos Mexicanos (Pemex) to partner in
projects and to allow private companies
and new entities formed by the govern-
ment to participate in exploration and
production. The Ministry of Energy will
now also be able to issue permits to pri-
vate industry for refining and petrochemi-
cal activities.
On the power generation front, the
state has historically retained exclusive
control over transmission and distribution
of power through the Comisin Federal de
Electricidad (Federal Electricity Commis-
sion, CFE), a company created and owned
by the Mexican government and which is
also Mexicos dominant generator. Mexi-
cos infrastructure includes 209 generating
plants with a combined capacity of 52.5
GW. As a result of a 1992 law that partially
opened electricity generation to the pri-
vate sector, about 22.6% of that capacity
consists of plants built with private capi-
tal; these 22 plants are mostly combined
cycle gas-fired turbines.
Under the reform, the private sector
will be allowed, on behalf of the state, to
build, operate, finance, and extend infra-
structure required for the public service
of transmission and distribution. The pri-
vate sector will also be allowed to gener-
ate power and possibly sell it to end-users.
The Comisin Reguladora de Energa will
have the authority to regulate and grant
permits to private sector generators and
regulate and establish transmission and
distribution fees.
The CFE and Pemex, meanwhile, will be
transformed into productive state com-
panies, meaning they will retain control
over their separate budgets and perfor-
mance. It essentially corporatizes those
entities, Choinski explained. The intent
is to make them more competitive and
more productive, but not pull them out
of the picture.
Another significant change entails the
creation of the Centro Nacional de Con-
trol de Energa (National Center of Energy
Control, CENACE), a federal agency that
will operate the national power system
and power market to ensure nondiscrimi-
natory access to the national grid. This
is important because under the current
regime, CFE controls the entire pro-
cess, and there is no competitive market
pressureno independent system opera-
tor in the middle of all thiscreating a
wholesale power market on the genera-
tion side, which would ideally bring down
power rates, Choinski said. The current
reforms intend to create that wholesale
power market with the hopes that the
savings derived from competitive bidding
would then be transferred to consumers
and end users.
Mexico suffers prohibitive electricity
rates partly because of CFEs monopoly and
because its costs for natural gas are higher,
he added. The reforms create a more com-
petitive wholesale power market that ben-
efits from the concurrent liberalization of
oil and gas mid-stream distribution, which
promises to create a market where gas sup-
ply for power generation will be cheaper.
Finally, while an overwhelming major-
ity of Mexicos electricity generation is
derived from fossil fuels, particularly gas,
coal, and petroleum products, the reform
calls for the establishment of a national
program for sustainable use of energy
within a year of becoming effective. It
also calls for a law to regulate the survey,
exploration, and exploitation of geother-
mal resources (Figure 1).
The transition period during which Mex-
ico will shape a new regulatory scheme to
support the reforms is bound to be pro-
tracted, Choinski projected: The country
is essentially creating the contours of a
new generation market. As he told POWER,
There are a lot of details that have to be
worked out because the guidelines are gen-
erally broad. Certainties set down by the
legislation include a provision for turnover
of resources from CFE to the new national
1. Earthly power. Mexico has the fourth-largest geothermal power reserves in the world,
and proposed reforms call for a law to regulate exploration and exploitation of the energy source.
Alstom in December signed a $40 million contract with the Comisin Federal de Electricidad to
build the 25-MW Los Humeros III-Phase A geothermal plant in the state of Puebla, a plant that
will operate in tandem with two plants recently installed in the same area: Los Humeros IIA and
Los Humeros IIB (shown here). Courtesy: Alstom
February 2014
|
grid operator over a certain period of time
and certain provisions that allow CFE to
continue transmission and distribution re-
sponsibilities for a period of time.
White Rose Project Wins
UK Government CCS
Backing
The UKs faltering plans to establish a
carbon capture and storage (CCS) indus-
try by the 2020s got a renewed boost in
December as the government pledged to
back the Drax Groups White Rose project
proposal. The 426-MW coal-fired project,
to be built on land adjacent to the exist-
ing Drax Power Station near Selby in North
Yorkshire at a cost of 2 billion ($3.3 bil-
lion), is expected to be fully equipped
with CCS technology from the outset to
capture 90% of all the CO
2
produced by
the plant. The trapped greenhouse gas will
then be transported by pipeline for per-
manent storage deep beneath the North
Sea seabed.
The multimillion pound contract
awarded by the UK government to Capture
Power Ltd., a consortium of Alstom, Drax,
and BOC (a unit of Linde AG) for a front
end engineering and design (FEED) study,
marks a major milestone in the UK CCS
Commercialisation Programme. The UK in-
troduced a similar $1 billion competition
to help develop full-chain CCS projects in
in 2007, but the $1 billion grant evapo-
rated after the Department of Energy and
Climate Change (DECC) failed to reach a
financing deal with one remaining final-
istLongannet. The second $1 billion
competition announced in April 2012 to
support practical experience in design,
construction, and operation of commer-
cial-scale CCS was opened to both gas
and coal-fired power plants. Later that
year, the DECC issued a shortlist of four
contenders: Teesside, White Rose, Peter-
head, and Captain Clean Energy. Shell and
SSEs Peterhead project in Scotland and
the White Rose project were named as the
two preferred bidders in March 2013.
The White Rose FEED contract also in-
cludes the planned development of a CO
2

transportation and storage solutionthe
Yorkshire Humber CCS Trunklineto be
undertaken by National Grid Carbon Ltd.
Capture Power and National Grid Carbon
will now work with the UK government to
conclude a project contract for the con-
struction and operation of the full-chain
CCS project that will demonstrate oxyfuel
combustion technology. Project co-devel-
oper Alstom will build, operate, and main-
|
February 2014 10
THE BIG PICTURE: Power Pie Pieces
KEY
WASHINGTON
The generation proles of some states have seen a marked transformation over the last two decades. Note: All pie charts
are based on generation data (in MWh). Source: Energy Information Administration Copy and artwork by Sonal Patel, a
POWER associate editor
CALIFORNIA
FLORIDA
ILLINOIS
NEW YORK
PENNSYLVANIA
TEXAS
Wood and
Wood Derived
Fuels
Wind
Solar Thermal
and Photovoltaic
Pumped Storage
Petroleum
Other
Nuclear
Natural Gas
Hydroelectric
Geothermal
Coal
Other Biomass
Other Gases
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February 2014 12
tain the power plant, including its carbon
capture facilities, while BOC will build, op-
erate, and maintain the air separation unit
that provides oxygen for the operation of
the oxyfuel combustion capture plant. A
final investment decision could come as
early as 2015, which could mean construc-
tion will begin by 2016 and the plant will
be operational by 2020.
According to the Global CCS Institute,
nearly $22 billion was committed by an
assortment of governments in direct fund-
ing for large-scale CCS demonstration
projects between 2008 and 2012, but
some funding mechanisms were canceled
before they were legislated due to the
global financial crisis or changing gov-
ernment priorities. As of October 2013,
for example, the institute estimated the
highest amount of funding any single CCS
project could receive from the European
Unions NER300 program is 290 million.
Given the programs rules, the interna-
tional CCS watchdog group says, two CCS
demonstration projects at most are likely
to be funded in the second roundwhich
represents less than 10% of the 6 billion
to 9 billion proposed by the European
Commission when the program was initial-
ly designed. The fall in funding value is
largely due to the decreased carbon price
in Europe; the NER300 program is funded
by the forward sale of carbon allowances.
Notably, the White Rose CCS project is the
only applicant the UK government has put
forward to the European Investment Bank
for NER300 funding.
CCS has been the cornerstone of the
UKs plans to bolster its energy security
and mitigate climate change, and the DECC
has pushed for a reform of the UK electric-
ity market so CCS will be able to compete
with other low-carbon sources. The UKs
FEED award to White Rose in December
was announced at the opening of the Drax
coal-to-biomass conversion unit (Figure
2). Drax, which is looking to transform it-
self into a predominantly wood pelletfu-
eled generator, recently converted one of
its six generating units at the 4-GW Drax
station to biomass and intends to convert
a further two units by 2016 at a cost of
700 million.
Japan, South Korea Stick
to Nuclear Ambitions
Japan and South Korea, countries that
depended heavily on nuclear power before
the Fukushima catastrophe in 2011 (Fig-
ure 3), separately released draft long-term
energy plans in December, both placing
renewed emphasis on nuclear.
As it redrafted its energy plan, Japans
Ministry of Economy, Trade and Indus-
try underscored nuclears importance as
a base-load power source that serves
as a foundation for the stability of the
resource-poor island nations energy sup-
ply. The draft also calls for the reactiva-
tion of all the countrys 50 reactors that
are shut pending safety reviews by the
Nuclear Regulation Authoritybut it
stops short of endorsing construction of
new nuclear plants or replacing old ones
with new ones.
The ministry stated that electricity
prices have soared because the country
has been forced to import fuel for ther-
mal power generation to offset the loss
of nuclear power. The higher power rates
have caused companies to transfer pro-
duction overseas or suffer tremendous
losses, it said.
No dates have been set to restart the
reactors, and the countrys 10 utilities
have significantly increased their use of
coal and liquefied natural gas (LNG). LNG
imports jumped to 6 trillion ($57 billion)
in 2012nearly double the 3.5 trillion
spent on LNG imports in 2010.
The revised draft will be presented to a
team tasked with revising the 2010 Basic
Energy Plan, which had called to increase
nuclears share of total capacity to 41%
by 2019.
Meanwhile, South Koreas crippling
electricity shortfall, which stemmed
from a documentation scandal that led
to the closure of several nuclear units,
was alleviated this January. Koreas
Nuclear Safety and Security Commission
(NSSC) approved restart of operations at
Shin Kori Units 1 and 2 and Shin Wol-
song Unit 1OPR-1000 reactors that
only began commercial operation be-
tween February 2011 and July 2012. A
draft of the countrys next long-term en-
ergy plan suggests, meanwhile, that the
country will temper plans for a massive
nuclear expansion.
The documentation scandal and subse-
quent power crunch began in November
2012, after authorities initiated an inves-
tigation into faked certificates for small
components at five nuclear plants. Two
3. Cleaning up. Three years after the Fukushima Daiichi disaster, Tokyo Electric Power Co.
(TEPCO) continues clean up efforts at the stricken nuclear plant. In November, TEPCO began
moving nuclear fuel assemblies from Reactor Unit 4 to the Common Spent Fuel Pool (shown
here). Courtesy: Greg Webb/IAEA
2. Avatar. As Drax, Alstom, and BOC pre-
pare to build the 426-MW White Rose carbon
capture and storage project on land adjacent
to the existing 4-GW Drax Power Station
shown here near Selby, in North Yorkshire,
Drax plans to convert three of six units at the
power station from coal to wood-pellet bio-
mass. Courtesy: Drax
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February 2014 14
units, Yonggwang 5 and 6 (since renamed
Hanbit 5 and 6), were taken offline to
have the parts replaced. In April 2013,
the NSSC ordered Shin Kori Units 1 and
2 (Figure 4) and Shin Wolsong Units 1
and 2 to halt operations while authorities
investigated faked safety certificates for
cabling. Startup of the newly built Shin
Wolsong 2 continues to be delayed as the
reactor has its cabling replaced. In Octo-
ber 2013, authorities indicted 100 people
for corruption in the scandal, including a
top former state utility official, and the
country has been struggling to restore
public confidence in nuclear power.
The government of the resource-poor
country had banked on a nuclear-heavy
energy future, calling for nuclear plants
to supply 59% of the countrys power
by 2030up from the current 25%a
plan that called for the addition of 24
GWe of nuclear capacity. But a draft pro-
posal submitted to parliament by the
energy ministry in December would raise
nuclear reliance to only 29% by 2035.
That was still the higher end of a range
recommended by an energy task force
in October, the ministry pointed out. A
future with at least that much nuclear
power was critical both for energy secu-
rity reasons and to reduce carbon emis-
sions, it said.
The proposed goal will require South
Korea to add 45 reactors to its existing
fleet of 23 (11 are in the pipeline) within
the next two decades. The draft proposal
also foresees that electricity consumption
will double by 2035, though the govern-
ment has set a goal to reduce demand by
at least 15%, which may be achieved by
further price hikes. Starting in July, South
Korea will lower consumption taxes on
LNG but raise taxes on coal generation.
The energy basic plan will, meanwhile,
be finalized after public hearings and fur-
ther discussion with related government
agencies. For more on South Koreas en-
ergy troubles, see South Korea Walks an
Energy Tightrope in POWERs November
2013 issue.
American Physical Society
Pushes for Reactor
Licensing Beyond 60 Years
Allowing nuclear generators to operate
some of the existing 100 U.S. nuclear re-
actors longer than their 60-year licensed
limit could help offset a potentially mas-
sive power supply gap that could ensue as
those nuclear plants begin shutting down
by the year 2030, the American Physical
Society (APS) suggests in a report released
last December.
The report notes that there are no statu-
tory prohibitions against renewing nuclear
plant licenses beyond 60 years (the Nucle-
ar Regulatory Commission is considering
if new rules may be required for license
renewal beyond that term) and that 20-
year renewal periods are currently autho-
rized under existing regulations. But if no
licenses are renewed beyond 60 years and
no new reactors are built to compensate,
about 100 GW20% of the nations power
supplycould begin shutting down by the
year 2030 and would need to be replaced
by other generating sources.
As of June 2013, 73 of 100 operat-
ing units had been granted renewal to
60 years, though one was subsequently
closed. At least 15 units are under review,
nine units are intending to renew, and
seven will shut down, not intending to
renew (Figure 5).
The decision to extend nuclear plant
life is both complex and urgent, says
the nations leading physicist organiza-
tion, whose 50,000 members hail from
academia, national laboratories, and in-
4. A revival. In May 2013, South Korean authorities halted operations at four recently com-
pleted nuclear units after discovering that safety-related control cabling with falsified documen-
tation had been installed at Shin Kori Units 1 and 2 (shown here) and Shin Wolsong Units 1 and
2. Regulators approved restart of the first three units in December 2013; Shin Wolsong Unit 2 is
still awaiting approval to start commercial operation. Courtesy: KEPCO
5. An atomic age. By the end of 2013, at least 42 of the nations 100 commercial operat-
ing reactors were between 30 and 39 years of age, 37 were between 20 and 29 years of age,
and 20 reactors were more than 40 years old. This figure shows the timeframe in which current
reactor licenses are set to expire. Courtesy: NRC
February 2014
|
dustry. According to the studys committee, which included
members from the Electric Power Research Institute (EPRI)
and two federal laboratories, long-term license extensions
will involve interrelated technical, economic, regulatory, and
policy issues. Further, replacing these units will require long-
lead planning, estimated at 10 to 15 years prior to scheduled
retirement of the plant. Hence, the window of opportunity
is shortutilities will begin facing a decision of whether to
renew licenses starting in five years, they say.
Several efforts are under way to examine the potential for
long-term operation of the nations existing reactors. The De-
partment of Energy (DOE) oversees, with cost sharing from in-
dustry, the federal Light Water Reactor Sustainability Program,
and EPRI, backed by industry, runs the Long-Term Operation
Program. Current results from both programs do not indicate
any technical show-stoppers that would prevent the renewal
of licenses from 60 to 80 years, assuming rigorous applica-
tion of maintenance, inspection, and aging management pro-
grams, the report says.
One focus that will require particular attention, however, is
component and materials aging, but both programs are estab-
lishing a pathway of research, surveillance, and response that can
manage these challenges, the APS contends. There are uncer-
tainties involved in any engineering assessment, especially over
long periods of time. For example, no mathematical model can
identify what bolt will corrode on which day; instead, the models
predict the likelihood, with a range of uncertainty, that a portion
of the bolts are likely to need replacement within an estimated
period of time. The more substantial the research program is, the
better the overall activity will be: uncertainty will be reduced,
lead time for preventive action will be increased, predictions will
be more accurate, surveillance will be better informed, and the
response will be more targeted.
Yet, the organization warns that with a mere five years left
before plants should begin facing renewal decisions, U.S. en-
ergy strategies must make renewal a feasible choice. This could
come from policies to boost energy security and climate change
mitigationand on the basis that nuclear reactors today ac-
count for more than 60% of the nations near-zero-carbon en-
ergy production. Because a utilitys decision to renew a license
hinges on an assessment of the costs of long-term operation
of the plant against costs of constructing a new coal, natural
gas, or nuclear plant, the APS recommends a more substantial
fundamental research effort by the DOE that would buy down
risk and reduce uncertainties.
The renewal of licenses is not an end in itself, the APS says,
admitting it is not a long-term solution. However, it does pro-
vide valuable time to establish a balanced and durable energy
future for the nation, which can be used to develop a clean
energy future.
Using Carbon Dioxide to Produce
Geothermal Power
A new kind of geothermal power being developed by a team of sci-
entists from the Lawrence Livermore National Laboratory (LLNL),
the University of Minnesota, and the Ohio State University could
sequester carbon dioxide (CO
2
) while boosting power generation
by at least 10 times compared to existing geothermal energy ap-
proaches.
The plant design resembles a cross between a geothermal
plant and the Large Hadron Collider, featuring a network of
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February 2014 18
subsurface concentric rings of horizontal
wells inside which CO
2
, nitrogen, and wa-
ter circulate to draw heat from deep below
ground up to the surface, where it can be
used to turn turbines and generate elec-
tricity. This well arrangement encircles
the injected fluids with a subsurface hy-
draulic dam, functioning much like a hy-
droelectric dam. The intent is to recover
the maximum energy benefit from fluid in-
jection operations, a major improvement
over conventional geothermal power sys-
tems, noted Tom Buscheck, an LLNL earth
scientist, as the team debuted an expand-
ed version of the design at a December
American Geophysical Union meeting.
The researchers say CO
2
absorbs subter-
ranean heat more efficiently than water.
Extraction rates are 1.7 to 2.7 times larger
with CO
2
than with water because CO
2
mass
flow rates are up to five times greater
(given a fixed pressure difference between
injection and production wells). Computer
simulations suggest that a system of four
concentric rings of horizontal wells about
three miles below the ground, with the
outer ring being more than 10 miles in
diameter, has the capacity to produce as
much as 500 MWmuch more than the
average 38 MW produced by a conven-
tional geothermal plant. A plant of that
design might also sequester as much as 15
million tons of CO
2
per year.
The approach, which stems from a
design developed by Martin Saar of the
University of Minnesota, adds nitrogen to
the mix to enable highly efficient energy
storage for an unprecedented duration.
Much of the energy required to drive
the hot fluids out of the deep subsurface
to surface power plants can be shifted
in time to coincide with minimum power
demand or when there is a surplus of re-
newable power on the electricity grid,
Buscheck explained.
Meanwhile, the fledgling technology
has a number of advantages over en-
hanced geothermal systems (EGS), which
are essentially man-made reservoirs cre-
ated where there is hot rock but little
natural permeability of fluid saturation.
In EGS, fluid is injected into the subsur-
face under controlled conditions, which
causes pre-existing fractures to open.
The new plant design doesnt require
hydrofracturing of the reservoir, and it
uses lower reservoir temperatures and
pressures. Plus, it would likely sequester
more CO
2
with more emphasis on seques-
tration, the researchers say.
There are a number of caveats, how-
ever. One is that it would need to be con-
nected, likely by pipeline, to a large CO
2

source, possibly a coal-fired plant fitted
with carbon capture. Buscheck added,
however, that a pilot plant based on this
design could initially be powered solely by
nitrogen injection, in order to prove the
economic viability of using CO
2
. The study
also showed that this design can work ef-
fectively with or without CO
2
, broadening
where this approach could be deployed.
The research team is currently working
on more detailed computer model simula-
tions and economic analyses for specific
geologic settings in the U.S.
Startup company Heat Mining Co.,
which was spun off from the University
of Minnesota, holds the worldwide patent
to an earlier form of the researchers ap-
proach, dubbed CO
2
Plume Geothermal
(CPG) and is looking to put an operational
project online by 2016. The South Dako-
tabased company admits, however, that
its CPG power system, which works like
a giant pressure cooker to vent pressure
and reduce the risk of CO
2
leaks, requires a
capped saline aquifer at least 2.5 kilome-
ters deep, a minimum aquifer temperature
of 50C, and a minimum of 1 million metric
tons of stored CO
2
(Figure 6).
POWER Digest
EUs Highest Court Says French On-
shore Wind Tariff Is Illegal. The Court
of Justice of the European Union (EU)
ruled on Dec. 19 that a French regulatory
mechanism allowing network distribu-
torsnamely lectricit de France and
non-nationalized distributorsto recover
from final power consumers additional
costs arising from an obligation to pur-
chase wind-generated electricity at higher
than market prices constitutes an inter-
vention through state resources. The as-
sociation Vent De Colre! (Wind of Anger)
and 11 other anti-wind groups urged the
French Conseil dtat (Council of State) to
annul the 2008 ministerial order that al-
lows full cost recovery from consumers in-
stead of through a public service fund, as
was previously required. The French coun-
cil asked the highest court that interprets
6. Deep potential. Researchers say sequestered carbon dioxide (CO
2
) can be used to
boost power generation by at least 10 times compared to existing geothermal approaches. As
shown, the University of Minnesotadeveloped CO
2
plume geothermal (CPG) system could be
established in deep saline aquifers or components of enhanced oil recovery. Developers say
the approach has a number of advantages over enhanced geothermal systems (EGS). Courtesy:
Saar and Randolph
February 2014
|
EU law to decide whether the offset mechanism is attributable to
the French state and whether it constitutes an advantage granted
through state resources.
Funds financed through compulsory charges imposed by na-
tional legislation, managed and apportioned in accordance with
the provisions of that legislation, may be regarded as State re-
sources, the Luxembourg-based court ruled. France must now
annul the ministerial decree that introduced the tariffs within
three months. The implications of the decision for similar subsidy
programs established by other European countries was not im-
mediately clear, though observers suggest the European Commis-
sion could cite the French case as additional support for action
against Germanywhose management of renewable subsidies is
under EU investigationto force it to conform with notification
and reporting obligations.
TEPCO Commissions Two Ultrasupercritical Coal Plants.
Tokyo Electric Power Co. (TEPCO) in December began commer-
cial operation of two large ultrasupercritical (USC) coal units:
the 600-MW Hirono No. 6 in Fukushima Prefecture and the 1-GW
Hitachinaka No. 2 in Ibaraki Prefecture. TEPCO said in a state-
ment both units achieved 45.2% efficiency, the worlds highest
thermal efficiency among coal-fired thermal stations. Byprod-
ucts from the Hirono plant are expected to be used as raw mate-
rial for cement. Japan plans to put online at least nine other
coal units of more than 500 MW each by 2028, and it will build
at least 12 new gas-fired units next year to scale back on the
use of expensive crude and fuel oil plants. According to TEPCO,
coal is expected to ensure stable supply because it is widely
distributed by many countries such as China, the U.S., India,
and Australia.
Tennet Gets Financial Boost for North Sea HVDC Offshore
Wind Connectors. Tennet, a transmission system operator in
the Netherlands and Germany, on Dec. 9 secured a 500 mil-
lion ($680 million) corporate loan from the European Investment
Bank (EIB) to co-finance the construction and operation of three
offshore high voltage direct current (HVDC) linesa total of 2.2
GWthat will connect wind farms in the North Sea to the Ger-
man grid onshore: HelWin1, SylWin1, and DolWin1. The lines are
integral to installing at least 6.5 GW of offshore wind by 2020, as
required by Germanys Energiewende. Tennet has already installed
or is erecting a total connection capacity of 6.2 GW. The three
HVDC lines are expected to be completed in 2014 and 2015.
Third Offshore UK Wind Farm Scuttled. Scottish Power,
a subsidiary of Spains Iberdrola, on Dec. 13 canceled plans to
build the 1.8-GW Argyll Array Offshore Windfarm off the coast of
Tiree in the Inner Hebrides, which the company admits has some
of the best wind conditions of any offshore zone in the UK.
The company said the 5.4 billion ($8.86 billion) project was
not financially viable in the short term, but noted that if cost
reductions continued across the offshore wind sector, the project
could become viable in the long term. Scottish Power, however,
also said the projects progress had been halted by the presence
of hard rock, challenging wave conditions that could affect con-
struction, and a possible environmental impact to the signifi-
cant presence of basking sharks in the area. In November, just
after the UK government announced new subsidy prices under a
renewable energy support plan from 2018, RWE abandoned its 4
billion Atlantic Array offshore wind project off Devon, and Cen-
trica said it was selling its stake in another major offshore wind
farm, the Race Bank, off East Anglia.
Reliance Brings Second Sasan UMPP Unit Online. On
Dec. 13, Reliance Power commissioned the second unit (rated
660 MW) of its 3,960-MW Sasan Ultra Mega Power Project (UMPP)
in Madhya Pradesh, India. The unit started power generation in
what Reliance said was the shortest time of just about a month
from boiler light up, a feat made possible by adopting innova-
tive commissioning methods. The Sasan UMPP is an integrated
power plant and coal mining project. Four other units at the
plant are under advanced stages of construction and should be
commissioned this year.
L&T Starts Up 700-MW Supercritical Plant in India. Lar-
sen & Toubro (L&T) on Dec. 9 put into operation the first of two
700-MW supercritical units at the Rajpura thermal power plant
in Punjab. The second unit is expected to come online in March
2014. Coal for the Rajpura power plant, an estimated 6.75 mil-
lion metric tons per year, has been secured through a fuel supply
agreement with South Eastern Coalfields. Officials noted, though,
that if there is a shortage, or Coal India does not provide coal, a
provision allows imports of up to 10% to 12%. L&T has projects
totaling about 11 GW under implementation on engineering, pro-
curement, and construction basis across the country.
Ghana Commissions 400-MW Hydropower Plant. Ghana on
Dec. 20 commissioned the 400-MW Bui Hydroelectric Dam in the
Tain District of the Brong Ahafo Region. The $622 million project
(funded by China and the Exim Bank of China) increases Ghanas
total installed power capacity by 20%, boosting plans by the West
African country to become a regional powerhouse. The country,
whose gross domestic product growth is estimated at 7% to 8%,
seeks to increase its power capacity to 5,000 GW by 2016.
Sonal Patel is a POWER associate editor (@sonalcpatel,
@POWERmagazine)
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February 2014 20
Upgraded Control Room
Consoles Improve
Ergonomics
Great River Energy (GRE) is a not-for-
profit electric cooperative that generates
and transmits power for 28 member co-
operatives throughout southern, central,
and northern Minnesota and northwestern
Wisconsin. With a generating capacity of
more than 1,100 MW, Coal Creek Station
in Underwood, N.D., is the cooperatives
largest power plant.
The plant operates two boilers fueled by
lignite coal, which is supplied by nearby
Falkirk Mine. Lignite is a softer coal that
contains higher water content than other
types of coal. GRE uses a patented coal-
refining process called DryFining, which
utilizes waste heat from the plant to dry
and refine the coal, making it burn cleaner
and more efficiently.
Recently, GRE upgraded the consoles
in the control room at Coal Creek Sta-
tion to improve ergonomics for workers
monitoring plant operations (Figure 1).
The primary reason for the upgrade was
to improve the operators sightlines to the
top row of monitors in the control room.
In order to see the top monitors, opera-
tors were tilting their heads too far back
and experiencing eyestrain from trying to
focus on information on the screens.
Team Effort
GRE worked with Winsted Corp. to design
and install new ergonomic consoles. In or-
der to eliminate any need to drill holes
in the floor or move wires or cabling, the
new consoles needed to fit the existing
footprint and floor penetrations.
The control room upgrade was really a
team effort between our operations, elec-
trical and instrumentation, IT, safety and
management staff and Winsted Custom Di-
vision along with their installation team,
said Mark Baisch, control room operator at
Coal Creek Station. Together, Winsted and
GRE created a design that includes three
custom Matrix-Evo consoles in a horse-
shoe formation.
Two of the consoles sit back-to-back,
with each controlling one of the two pow-
er generation units (Figure 2). They are
laid out identically, so regardless of which
unit an operator is controlling, the pro-
cess is the same. For instance, the turbine
generator control is always on the left
no matter which console you are facing.
Each of these consoles has five monitors
mounted to it, plus the operators local
area network computer.
The third console controls the coal-
refining process. Its a bit smaller than
the other consoles and has only four sta-
tions, but otherwise it houses the same
equipment. The reason for this is that the
control system is operator-based, which
means operators can run any of the con-
trols from any of the three workstations,
depending on how they log in.
More Than Just Aesthetics
To improve sightlines and reduce physi-
cal stress to operators, Winsted followed
ergonomic standards for control room de-
sign outlined in ISO 1106. The monitors
on each of the consoles are mounted sev-
eral inches below the work surface using a
unique, track-style mounting system. The
system uses an integrated horizontal alu-
minum track, which enables easy adjust-
ment of post-mounted brackets.
While the vast majority of the control
system is digital and controlled via com-
puter, there are a number of hard panel
switches mounted to the console that
1. Coal Creek Station distributed control system console. Courtesy: Win-
sted Corp.
2. Coal Creek Station control room. Courtesy: Winsted Corp.
February 2014
|
must also be visible and accessible. The
new consoles meet the operators needs,
said Baisch. They solved the neck strain
issues and improved the visibility of the
top monitors.
Additional console features included
metal base cabinets and Corian work sur-
faces to reduce combustibles in the control
room for safety and insurance reasons. Win-
sted also incorporated some slat wall pan-
els that allowed file management systems
for paperwork, books, and a phone tray to
be kept off the work surface. The new con-
sole also maintained the Americans with
Disabilities Act (ADA) requirements, allow-
ing enough space for a wheelchair or other
assistive device to roll through.
In addition to ergonomic and ADA con-
siderations, it was important that the new
consoles be scalable to allow for future
upgrades to the control room. The track
mounting system supports a wide variety
of monitor arrays. This will allow GRE to
eventually replace the existing 20-inch
monitors (4:3 aspect ratio) with todays
more common 22-inch model (16:9 aspect
ratio) without having to make any altera-
tions to the console.
From design to installation, the con-
sole upgrade in the control room at Coal
Creek Station was a success. Winsted
worked closely with GRE to complete the
installations during plant outages, so
disruption to plant operations was never
a concern. Most importantly, the consoles
provided vastly improved ergonomics for
control room operators, enabling them to
do their jobs more comfortably and with
greater efficiency.
Rusty Hellen, senior designer for Win-
sted Custom Division (info@winsted.com).
Reliable Fire Protection for
Turbine Rooms
Fire protection for power plant turbine
rooms has typically been a game of
tradeoffs. Enclosure integrity issues in
older facilities can render CO
2
and halon
systems ineffective. In new and old facili-
ties alike, CO
2
systems are a considerable
safety hazard. However, a new system
available from Victaulic may help protect
plants without compromising. The fol-
lowing case study explains the benefits
achieved by one plant that switched from
a halon system.
Upgrading a Fire Suppression
System
The Putnam Power Plant is located in East
Palatka, Fla., about 60 miles south of
Jacksonville. The plant is owned by Florida
Power & Light (FP&L) and was built in the
1950s. Putnam was converted to a gas/oil
combined cycle plant in the 1970s, and
its two 550-MW units have three turbines
each: two combustion and one steam.
When officials at the plant decided to
replace their halon system with a Victaulic
Vortex Fire Suppression System, it resolved
some issues associated with traditional
turbine fire protection systems and of-
fered an array of additional benefits.
Putnam was originally outfitted with a
halon fire suppression system. For halon
to effectively suppress a fire, room integ-
rity is required. Given the age of the build-
ing, this was a significant challenge.
Suchat Sonchaiwanich, principal engi-
neer for FP&L technical services depart-
ment explains, Every time there is a major
outage, we have to take the roof off and
haul the turbine out. When complete, we
put the roof back. Each time we do this, we
have to perform an enclosure integrity test.
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February 2014
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All of the steel and the roof of the building
has to be tight, which makes it difficult to
get a positive test back. In fact, it often
fails because we have an older building and
there is too much leakage.
With older turbines in the facility that have
doors and dampers that do not fully close, the
plant couldnt get a sealed enclosure (Figure
3) without a considerable retrofit expense.
Should an incident arise while the doors and
dampers are open, the halon system wouldnt
work effectively as designed.
With sustainability, safety, and room
integrity issues top of mind, FP&L hired
Space Coast Fire and Safety to provide a
new fire suppression system for the plant.
Officials at Putnam investigated several
options, including CO
2
systems and the
Victaulic Vortex Fire Suppression System.
In the fire protection industry, CO
2
has
been around for awhile and has been used
effectively over the years in unoccupied
areas. The National Fire Protection Asso-
ciation and U.S. Environmental Protec-
tion Agency (EPA), however, have taken
an aggressive stand on its use, making it
increasingly difficult to install, given the
risk factors associated with the gas. Ac-
cording to the EPA, at the minimum de-
sign concentration for its use as a total
flooding fire suppressant (34%), CO
2
is le-
thal. As a result, it requires pre-discharge
alarms and activation delays to allow for
the evacuation of personnel. Similar to
halon, CO
2
systems also require good en-
closure integrity to function properly.
A Nontoxic System
With room integrityor lack thereof
among the top considerations for a new fire
suppression system at the Putnam Power
Plant, the contractor and plant engineers
evaluated and ultimately selected the Vic-
taulic Vortex Fire Suppression System as a
replacement for the halon system. Victaulic
Vortex is the industrys first hybrid clean
agent/water mist system; in 2009, Factory
Mutual established a new categoryFM
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3. Electrical enclosure zone panel.
Courtesy: Victaulic
|
February 2014 24
5580to classify such systems.
The system extinguishes fires without
the use of toxic chemicals or gases by
deploying a high-velocity, low-pressure
mixture of water and nitrogen. Water is
introduced to a jet stream of nitrogen at
supersonic speed within the unique emit-
ter (Figure 4). The nitrogen atomizes the
water, forming a dense homogeneous sus-
pension that enters the protected space
at 40 miles per hour. The unique swirling
pattern quickly fills the hazard space and
attacks the fire, overcoming aerodynamic
forces that typically decelerate and dif-
fuse water droplets, absorbing the heat
and starving the fire of oxygen (view the
system animation at bit.ly/17dYp0B).
Although water and turbines generally
dont mixwater can damage or shock the
casing, resulting in expensive repairs
the size of the water droplets emitted
from the Vortex system is so small that
the mist does not damage equipment.
At less than 10 microns in size, the wa-
ter droplets are up to 100 times smaller
than water particles delivered through
traditional water mist systems. This small
size allows for improved heat absorption
and total extinguishing. Activation of the
three-dimensional total flooding system
results in uniform cooling because the
water and nitrogen blend is transported
throughout the entire hazard area, com-
pletely surrounding the equipment. As
little as 1 gallon of water is released per
emitter per minute. The small water drop-
lets surround the equipment with minimal
to no wetting, preventing water damage.
Residual moisture is barely detectable fol-
lowing discharge.
Unlike halon and CO
2
systems, the Vic-
taulic Vortex system does not require room
integrity. The system extinguishes fires in
open, naturally ventilated areas, meaning
it would work even with doors and damp-
ers open. The turbine enclosures at Putnam
did not have to be retrofitted, resulting in
significant cost savings for the plant.
Besides room integrity purposes, Son-
chaiwanich said, the other big reason for
selecting Vortex was for safety purposes.
The nitrogen Vortex uses is a friendly gas.
It provides adequate and sufficient time
for personnel working nearby to get out.
System activation is immediate when
sensors detect smoke or heat. There is no
delay in activation to evacuate personnel
because the system emits only nontoxic
agents. Personnel are safe during activa-
tion; reduction of oxygen in the space is at
levels within safe breathing tolerances.
Configuration Options
The new system was installed in the first
unit at the Putnam plant in 2012; instal-
lation and commissioning on the second
unit was completed in March 2013. The
contractor worked within shutdowns to
replace the old system, thus reducing the
impact on plant operations.
The Vortex system at Putnam is config-
ured with zone control panels to isolate
activation to just the unit affected by a
fire (Figure 5). The two units share the
nitrogen supply, which is stored in cylin-
ders (Figure 6). Nitrogen cylinders sim-
plify long-term maintenance relative to
CO
2
cylinders. Rather than yearly weight
tests, as are needed for CO
2
cylinders,
gauges indicate adequate nitrogen levels.
Maintenance best practices dictate that
the cylinders be inspected for possible
replacement about every 12 years. Hoses
should be inspected every five years.
Not long after the Putnam project be-
gan, officials at FP&Ls Lauderdale Power
Plant, also a two-unit combined cycle fa-
cility, selected the Victaulic Vortex system
to replace that plants CO
2
system due to
personnel safety concerns.
The CO
2
system at the Lauderdale plant
was designed with one tank to supply both
units, and activation couldnt be isolated
to just one unit. During maintenance, the
whole system had to be removed from ser-
vice, requiring a shutdown of the plant in
accordance with site policy. As at the Put-
nam plant, the Lauderdale plant installed
the new system to enable activation in
just the affected unit. Lauderdale, howev-
er, utilizes bulk tanks instead of cylinders
for the nitrogen supply; two tanks supply
each turbine. This configuration ensures
ample nitrogen supply to each turbine, al-
lowing the plant to keep the nonaffected
turbines operating after a fire.
Installation and commissioning at Unit
4 of the Lauderdale plant was completed
in April 2013. Installation at Unit 5 is
scheduled for completion in 2014.
Frank Barstow is a Vortex sales repre-
sentative with Victaulic.
4. Vortex emitter protection in turbine room. Courtesy: Victaulic
5. Mechanical enclosure zone
panel. Courtesy: Victaulic
6. 80-L nitrogen cylinders and
manifold system. Courtesy: Victaulic
at your ngertips More
introducing the new POWER website
Easier to use. Mobile-optimized. More ways to share.
Same exceptional editorial. Extraordinary design.
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|
February 2014 26
Corrosion Protection for FGD Vessels
Roughly five years ago, the power industry readily embraced the
new Alloy 2205 metal as a more lightweight and cost-effective
substrate for the construction of flue gas desulfurization (FGD)
absorbers and vessels than traditional heavy-duty stainless steel
and carbon steel substrates, including the more common Alloys
304 and 316. Assuming that the surfaces of the Alloy 2205 FGD
absorbers and vessels were properly prepared and lined, early test
reports indicated that the substrate would hold up well, except
perhaps under conditions such as crevice corrosion or corrosion
under film buildup (Figure 7).
New Substrate Gives Way to Old Corrosion
Challenges
Prior to lining, Alloy 2205 requires a clean surface with a sharp
profile and blast profile (depth). For most high-build linings or
coatings, a 3-mil profile is needed. However, for most alloys, ad-
jacent unlined surfaces also need to be protected during abra-
sive blasting to ensure that the surfaces are not contaminated
by iron.
Because most slag abrasives contain iron, garnet or aluminum
oxide abrasives are preferred choices, provided that they are able
to produce the required sharp profile. As with carbon steel, the
surface must be tested for salt contamination, and cleaned if
necessary, to the lining manufacturers requirements. One differ-
ent feature with alloys is that the surface must be coated or
primed soon after blasting, unless dehumidification control holds
the relative humidity to less than 40%, as the surface will not
show the typical discoloration, as carbon steel does, due to sur-
face oxidation.
Despite acceptable surface preparation and application of lin-
ings, many Alloy 2205 vessels located at more than 40 power
plants across the U.S. are now showing evidence of severe pitting
and corrosion under scale buildup, including worm holing, after
just one year in service. Apparently, much of the pre-testing of
Alloy 2205 did not take into consideration the effects of a high
concentration of chlorides/fluorides under the scale buildup, or
that it creates the same corrosive effects of crevice corrosion.
Not All Solutions Are Created Equal
Increased demand for corrosion-related repairs to Alloy 2205 ves-
sels has given rise to some new corrosion solutions with varying
degrees of efficacy.
One repair alternative used by plant owners is to clad the in-
terior of the FGD vessel with an alloy metal that is known to
perform well in these service conditions and costs less than other
alloys, such as Alloy C276. Nevertheless, common drawbacks to
this option include material availability. Alloy metal can often be
in short supply, which forces owners to wait for extended periods
until the material becomes available.
The biggest drawback to this repair solution, however, is cost.
Between the high price of the material and the skilled welders
needed for installation, some estimates put the cost of cladding
up to $75 per square foot. Furthermore, localized leaks can still
seep under the cladding and attack the alloy underneath virtu-
ally unnoticed. Worse, this repair process is fairly time-intensive,
resulting in significant downtime, which some plants estimate at
up to $1 million per day in lost revenues.
Over the past 10 years, vinyl ester linings have been the most
common method of corrosion repair for both carbon steel vessels
and many types of alloys. These linings can be very effective
and are increasingly being utilized in Alloy 2205 corrosion re-
7. Typical flue gas desulfurization vessel that will be
lined to protect the substrate. Courtesy: International Paint
8. An installer spraying Ceilcote lining onto tank
walls. Courtesy: International Paint
9. An installer rolling fiberglass reinforcement into
wet basecoat. Courtesy: International Paint
|
February 2014 28
pairs. Nevertheless, test data reveals that there are multiple vari-
ables within a lining systems chemistryeven environmental
factorsthat can directly impact its long-term effectivenessor
failureon Alloy 2205.
Its All in the Chemistry
In order for an appropriate lining system to be properly speci-
fied for new vessel construction or repair, the plant owner and
contractor must give the lining manufacturer a detailed list of
the vessels operating conditions and the owners goals for usage.
The list may include information like temperature variables, exact
chemicals used, or function of the vessel. Factors such as tem-
perature can affect differences in the permeation resistance of
the material, while certain chemicals used inside the vessel may
require a specific polymer base, such as an epoxy, epoxy novolac,
polyester, chlorendic polyester, vinyl ester, novolac vinyl ester,
or hybrid novolac.
In addition to the correct polymer base, an effective lining or
coating requires the optimization of many other ingredients and
elements, such as wetting agents, inhibitors, promoters, flexibi-
lizers, and resins (Figure 8 and 9). Together, these formulations
can make a huge impact on critical performance issues, including
chemical and abrasion resistance, adhesion characteristics, ap-
plication properties, crack-bridging capability, impact resistance,
and even regulatory compliance. Most importantly, these lining
formulations must undergo extensive laboratory testing and dem-
onstrate effectiveness during actual in-service evaluation.
Tying It All Together
Provided that the manufacturers test data meets the performance
requirements of a given project, other factors, such as the cost of
the installation and projected production downtime, will also play
a big part in the project equation. Thats when the linings ap-
plication characteristics, such as high-build single-coat options
and fast cure rates, can help provide the most cost-effective and
fastest return to service possible.
At about half the cost of alloy metal cladding, an appropri-
ate lining system can be installed in just several days. Though
other outside determinantssuch as ease of access to the ves-
sel, equipment and scaffolding, surface preparation, and onsite
scheduling of tradescan delay the installation process, owners
should expect a successful lining project to be completed within
about two to six weeks and offer up to 30 years of service with
only minor maintenance.
Bill Slama (bill.slama@akzonobel.com) is a senior technical
advisor with International Paint/Ceilcote Products.
Retrofitting Mechanical Draft Fans to
Optimize System Performance
Mechanical draft fans are used exclusively in power generation to
move air and gas from one point to another. They create draft in
a process system so that fluid media can be induced, forced, and
boosted. Among all draft fans, centrifugal designs are the most
common in the power industry. They are robust in construction
and resilient in operation.
Capital investment, as well as the downtime generation loss to
replace these machines with a brand new installation can be sub-
stantial. An economical alternative, which can save both money
and time, is to retrofit an existing fan. This article discusses pos-
sible options and offers some strategies to maximize available
resources for retrofitting these fans.
New Demands on Old Technology
Most U.S. power plant fans have been in operation for some time.
Many were installed in the 1960s and 1970s, and are still in use
after 40 or 50 years. They were sized and selected for certain flow
requirements with little margin for future modifications. As poli-
cies have changed and populations have boomed, the demands
placed on plants have also been altered.
Some specific reasons that might prompt a plant to retrofit
its existing fan are new environmental regulations, an emissions
control system upgrade (such as converting from an electrostatic
precipitator to a fabric filter), a boiler fuel conversion (such as
changing from bituminous coal to Powder River Basin coal), the
fan is being scheduled for retirement, or changed system de-
mand. Due to the high cost associated with a new installation,
retrofitting the existing fan is usually preferred.
Generation output (MW) 40 45 49
Pre-installation motor amperage (amp) 257 263 274
Post-installation motor amperage (amp) 202 214 226
Table 1. Draft fan motor amperage at various gen-
erating loads. Motor current was reduced using the optimization
technique. Courtesy: ProcessBarron
10. Pre-installation velocity vectors. Flow separation is evi-
dent in the images. Courtesy: ProcessBarron
11. Post-installation velocity vectors. Flow separation was
reduced utilizing the optimization technique. Courtesy: ProcessBarron
February 2014
|
Furthermore, addressing any one of these issues will usually
result in new system requirements for fans, such as a change
in air/gas temperature, gas composition, suction/supply pres-
sure needs, volume requirements, or power consumption due to
changing the air/gas characteristics. This means that any fan
retrofit is an engineering project in its own right.
The goal of any retrofit is to minimize modifications to the
existing fan while maximizing the fans flow and pressure ca-
pability as it relates to current system demands. Ideally, this is
accomplished utilizing the existing casing without modifying the
foundation. Goals for the project will normally include identifying
the lowest capital cost, staying within the current motor horse-
power with no new electrical infrastructure, and making minor
or no modifications to the existing fan, foundation footprint,
ductwork tie-ins, and related fan components.
However, the ultimate solution may require modification to
one or more of the following: fan wheel, fan casing, drive motor,
ductwork tie-ins, and even the foundation in some cases. When
retrofitting, its also advisable to make use of a computational
fluid dynamics (CFD) study for validation purposes. This computer
based computational process cuts down on modeling costs and
saves precious time. Actual model tests can also be performed
with a geometrically similar fan, if budget and time allow.
There are several techniques that can be used to accomplish
a successful retrofit. Among them, optimization and right-
sizing are the ones most commonly used. Two short case studies
illustrate both of these approaches.
Optimization
A utility plant in the Midwest was unable to meet peak load dur-
ing the summer months. The draft fan was being operated at or
above the maximum motor amperage load. A flow performance
test and subsequent CFD study confirmed that the inlet cone
velocity was not properly diffused. The fluid media inside the
blade passages were separating and as a result the fan was not
performing efficiently. A new, high-efficiency, optimized rotor
and inlet cone were installed. The existing motor was reused. The
plant met load demands successfully with horsepower to spare.
Table 1 and vector plots in Figures 10 and 11 demonstrate before
and after results.
Right-Sizing
The draft fan at another utility plant in the Midwest was experi-
encing vibrations and generating a lot of noise, which concerned
plant management. A comprehensive flow performance test was
performed. It was determined that the fan was oversized for the
application. A redesigned, right-sized rotor was installed using
the existing shaft and drive system. A minor modification was
made to the casing.
Post-installation analysis revealed no vibrations. The acoustics
issues had also been resolved. The synergies of the right-sizing
process also produced an added benefit in the form of energy
savings (Table 2) resulting in a rapid return on investment.
Evaluating Solutions
A retrofit fan design requires a detailed and careful review of
existing system performance and operational data. The most
effective strategy is a total system approach: Analyze each
component; isolate critical paths; and provide a practical
engineering solution. When retrofitting a power plant fan,
engineers should evaluate the entire draft system; perform
a field inspection; establish baseline flow parameters; es-
tablish baseline geometry; calculate future system require-
ments; study interactions between fan characteristics and
system demands; customize a retrofit fan to suit the pro-
jected system requirements; predict future fan performance;
perform mechanical, metallurgical, and structural (civil)
studies; validate theoretical basis with a CFD study; and per-
form a geometrically similar fan model test (depending on
time and budget).
The most critical path through a draft system is the draft
fan. The key to a successful retrofit is the pragmatic applica-
tion of a sound theoretical basis. Determining a solution re-
quires comprehensive study and a clear understanding of the
problem it is meant to address. Understanding the dynamics of
draft machines and their interactions with systems is extremely
important. Experience and access to resources on the subject
matter are other key ingredients for achieving success in the
retrofit process.
Nurul Moni Talukder, PE (mtalukder@processbarron.com) is
chief engineer in the Air & Gas Handling Group at ProcessBarron.
Generation output (MW) 300
Pre-installation motor amperage (amp) 185
Post-installation motor amperage (amp) 136
Table 2. Before and after draft fan motor amperage.
Motor current was reduced using the right-sizing technique. Courtesy:
ProcessBarron
Dont Miss Important Online-Only
Content
Each monthly issue of POWER offers a mix
of current issues, emerging concerns, and
long-tail contentarticles with lasting
value. But if you only read the magazine,
youre missing online-only content from
our eletters. You can subscribe to any
of them using the link at the top right of
powermag.com. Here are a few online-
only stories you might have missed:
Fracking May Cut Total Water Use From
Increase in Gas-Fired Power
EPA Publishes Draft Carbon Pollution
Rules
ISO-NE: Brayton Point Retirement Denied
Coal Plant Backers Support EPA
Supplemental BART Rule for Navajo Plant
EIA: Gas Price Hikes Pushed Up Wholesale
Power Prices Across U.S. in 2013
New Geothermal Plant Begins Serving
California Through One Nevada
Transmission Line
|
February 2014 30
Vidhya Prabhakaran
Speeding Forward with
Integrating Plug-in EVs
A
pproximately 150,000 plug-in electric vehicles (PEVs) are
already on the road in the United States, according to vari-
ous reports. These vehicles include relatively wallet-friend-
ly PEV options like the all-electric Nissan Leaf and the Chevro-
let Volt as well as a host of plug-in hybrid-electric vehicles like
the Ford Fusion Energi and Toyota Prius PHV. But also speeding
around is the all-electric Tesla S, a luxury PEV that is competing
with (and in certain states like California, reportedly outselling)
premium brands like Volvo and Porsche.
Sales of PEVs in 2013 appear to be up significantly from 2012,
and 2012 sales were up significantly from 2011. Compelling in-
centives from various state governments are increasing sales. For
example, California, Georgia, and Washington all provide finan-
cial incentives for PEV purchases. Similarly, California, Georgia,
and New York all allow use of designated High Occupancy Vehicle
(HOV) lanes by PEVs regardless of the number of occupants in
the vehicle. No surprise that reports indicate that the leading re-
gional markets for the sale of new PEVs are Atlanta, Los Angeles,
New York, San Francisco, and Seattle.
While President Obamas stated goal of putting one million
PEVs on the road by 2015 may not happen, the integration of
future PEVs with the electrical grid is an increasing priority for
state regulators. The actions already taken by regulators in the
PEV center of the United StatesCaliforniawill likely provide a
window into similar regulatory activity all across the country as
demand for PEVs increases.
California Gets into Gear
The California Public Utilities Commission (CPUC) initiated a
rulemaking in 2009 to prepare California investor-owned utility
systems for customer adoption of PEVs, among other alternative-
fueled vehicles. The rulemaking included three phases that will
likely be replicated in regulatory proceedings in other states.
In the first phase, the CPUC determined that a charging
service provider is not a regulated utility simply by virtue of
its resale of electricity as a transportation fuela conclu-
sion that the California Legislature then codified in statute
in 2011.
In the second phase, the CPUC addressed a number of barriers
associated with PEV deployment. Electric utilities were required
to plan for where PEV charging would likely occur in their service
territories. The CPUC also adopted electric rates and appropriate
metering options for PEV charging that it believed would not be
too burdensome. Perhaps most importantly, the CPUC determined
that the costs of any upgrades necessary to accommodate basic
residential PEV charging would be treated as a shared cost among
all ratepayers rather than assigned to PEV owners.
In the third phase, the CPUC monitored and evaluated utility
education and outreach activities with regard to PEVs.
In 2012, California Governor Jerry Brown issued an executive
order setting targets to reduce the transportation sectors green-
house gas emissions to 80% below 1990 levels by 2050 and to
get 1.5 million zero-emission vehicles (including PEVs) on the
California roads by 2025. In an effort to help kick-start efforts
to meet these goals, Brown and the CPUC announced a $120
million settlement with NRG Energy to resolve claims related to
its portfolio of power plants in California. As part of that settle-
ment, NRG agreed to provide $100 million to fund fast-charging
stations and other PEV infrastructure at no cost to taxpayers and
to encourage consumer adoption of PEVs.
The CPUC Accelerates Integration Activities
More than 20 light-duty PEV options are now available in Califor-
nia, and automakers are introducing new models, new financing
options, and medium- and heavy-duty PEVs. Increased market
penetration of PEVs means potentially both denser and more
volatile energy usage across a utilitys distribution grid. More
advanced charging station equipment allows vehicles to recharge
batteries fasterbut at higher voltage levels.
All of these advances mean that the CPUC, in its recently
opened rulemaking to consider programs, tariffs, and policies for
alternative-fueled vehicles and especially PEVs, has to be even
more concerned with ensuring that adequate infrastructure is in
place to meet increased electric demands on the grid.
At the same time, the CPUC will need to evaluate the pos-
sibility that PEV charging can be used to actually serve grid
needs. Specifically, the CPUC will begin to determine if it can
create policies and guidelines to help harness the usage char-
acteristics of and technologies within PEVs to allow them to
potentially serve as a grid asset. For example, PEVs may be able
to reduce:
Operating costs for facility and vehicle owners
The utilities distribution maintenance requirements
Energy prices in the wholesale market
Furthermore, the CPUC will evaluate and craft policies that
allow for the potential interplay of smart grid technologies and
energy storage solutions with PEVs.
The rest of the country will pay close attention to the CPUCs
ability to successfully integrate PEVs onto the electric grid with-
out stifling innovation. The lessons learned from the CPUCs
initial foray into these issues should help regulators across the
country make the right decisions and policies that will allow for
a robust and competitive PEV marketplace.
Vidhya Prabhakaran (vidhyaprabhakaran@dwt.com) is a senior
associate in Davis Wright Tremaines energy practice group in the
firms San Francisco, Calif. office.
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February 2014 32
INSTRUMENTATION & CONTROL
Remote Monitoring and
Diagnostics Within a Smart
Integrated Infrastructure
I
t seems as if each week brings further
bad news for coal power plants. Recently,
Consumers Energy sought relief to close
three power plants, South Carolina Electric &
Gas announced it would cease operations at
the Canadys Station, and the Tennessee Val-
ley Authority announced the closure of eight
additional coal units, removing 3,000 MW of
coal-fired generation from its fleet. A Platts
report released in August 2013 predicts that
retirements of coal-fired plants will surge
through 2015, when the U.S. Environmental
Protection Agencys Mercury and Air Toxics
Standards go into effect. Although some por-
tion of this lost electrical generation will be
replaced by natural gas combustion turbines,
barring further CO
2
regulation, the remain-
ing fleet of coal power plants will see greater
demand and thus will operate at higher capac-
ity factors.
Coal accounted for 50% of U.S. generation
in 2005 and by recent estimates will end 2013
at 39.3%, with natural gasfired generation
being 27.5%. According to the U.S. Energy
Information Administration, coal generation
will continue to slowly increase through 2029
in absolute numbers, even as its percentage
of our generation mix slowly declines. The
message is clear: Most coal power plants will
weather the near-term storms but will require
continuous improvement in order to continue
operations for the years to come.
Challenges for Future Coal Plant
Operations
Compliance with the Clean Air Act Amend-
ments of 1990 changed the focus at most
coal-fired power plants from performance to
emissions, and as a result, the net plant heat
rate of the U.S. coal fleet has worsened steadi-
ly. This trend extended through 2012, and giv-
en the rush to meet ever-tightening emissions
Coal power plants face more and greater challenges to their continued operations
than at any time since the Industrial Revolution. As a result, utilities must employ
new strategies for balancing the competing pressures of emissions compliance,
economic dispatch, reliability, and performance. A combination of software tools
and domain knowledgeplus an informed methodology for linking and applying
these tools and knowledgeis helping to meet these challenges.
Una Nowling
February 2014
|
regulations, the trend is expected to continue.
These emissions mandates worsen heat
rate (see sidebar) both by requiring addition-
al air quality controls and by forcing units
to switch to low-sulfur coal, primarily Pow-
der River Basin (PRB) coal. Furthermore,
according to a recent National Renewable
Energy Laboratory study, the need to accom-
modate deep cycling at coal power plants will
increase as our electric generating system
continues to evolve (especially with the ad-
dition of increased variable renewable gen-
eration), which will place severe demands on
unit operations and equipment.
As a result of the impacts of emissions ret-
rofits, fuel switches, and increased cycling,
maintenance staff are finding themselves
pushed to deliver more with less budget.
A Smarter Way to Manage
Monitoring
As one grizzled coal unit operator told me re-
cently, We have thousands of thermocouples
and meters and sensors and alarms, and on a
good day we can pay attention to 1 in 10. We
know were missing data that could help our
performance and maintenance planning, but
unless we hire 10 more operators, what can
we do?
His plant manager expressed it this way:
We spent millions adding plant instrumenta-
tion and controls over the years, and its time it
started working harder for us. These concerns
are common throughout the industry, and an
excellent way to address them is through re-
mote monitoring and diagnostics as part of an
integrated, smart infrastructure.
For example, one such platform, offered
by Black & Veatch, is called Smart Integrated
Infrastructure (SII). It combines human knowl-
edge and experience with computer monitoring
and control systems to allow a utility to not only
manage its generating fleet but also optimize
and evolve its operations to respond to change.
A critical piece of the SII puzzle is the
thousands of sensors and controls at each
coal power plant, many of which not only
provide real-time data but also record their
data in a plant historian. These sensors pro-
vide operators critical feedback for control-
ling the power plant, but at the same time,
they can create information overload. The
result is that many subtle changes and early
warning signs of performance, operations,
and maintenance problems are overlooked.
To solve this conundrum, some utilities have
turned to remote monitoring and diagnostics
(M&D) to manage their data and leverage the
information provided by plant systems under
an SII framework.
Implementing Remote Monitoring
and Diagnostics
Remote M&D can be implemented for any-
where from one to all units in a generating
fleet, with economies of scale encouraging
A Decade of Worsening Heat Rates
Four factors have contributed to historically increasing heat rates
(Figure 1).
Emissions Controls Retrofits. Plant emissions controls
contribute to efficiency losses at the power plant through direct
and indirect auxiliary power consumption, as well as potential
negative combustion and heat transfer impacts (Table 1). If the
total life-cycle energy costs of the reagents and waste associated
with emissions controls are considered as well, then the impacts
on energy production efficiency are even greater.
The Move to Powder River Basin (PRB) Coal.
Although low in sulfur and fuel-bound nitrogen, PRB coals
have a much lower heat content and much higher moisture
content, which presents challenges for most coal power
plants that were designed for bituminous coal. Not only does
the greater moisture content result in poorer boiler efficiency
than when burning a bituminous coal, but the greater fuel
burn rate of the PRB coal can result in increased auxiliary
power at the power plant.
These effects can be profound; one study conducted on behalf
of the Electric Power Research Institute by Black & Veatch found
that a 500-MW (net) coal power plant that switched from Northern
Appalachian coal would expect to experience, on average, 4.2%
poorer boiler efficiency and a 5.9% increase in auxiliary power,
with an overall heat rate impact of 5.0%.
Increased Unit Load Cycling. U.S. energy demand has
seen significant variation in recent years due to unusual weath-
er patterns and depressed economic conditions, as well as price
competition from natural gas generation. When coal power plants
operate at lower loads, they tend to suffer from poorer heat rates.
Increased numbers of starts and stops can not only negatively
affect heat rate, but they also can significantly increase mainte-
nance costs.
Shifting Maintenance Priorities. Depressed economic
conditions, price competition, and pending shutdowns of coal
power plants due to emissions regulations have placed combined
pressures upon power plant maintenance budgets. Several power
plants report that they can no longer spend money on efficiency
upgrades and must devote most of their maintenance budgets to-
ward activities that keep the plant running, regardless of the ef-
ficiency losses.
1. Increasing heat rates. Over the last decade, the av-
erage net plant heat rate (NPHR) for the 100 coal-fired power
plants with the most net generation has worsened by 149 Btu/
kWh. Source: U.S. Energy Information Administration
2012 NPHR 2003 NPHR Linear (2012 NPHR) Linear (2003 NPHR)
Plant ranking (1=largest)
N
P
H
R

(
B
t
u
/
k
W
h
)
Heat rate penalty
Flue gas desulfurization: limestone forced-
oxidation
1.5%1.9%
Flue gas desulfurization: lime spray dryer 1.2%1.5%
Selective catalytic reduction 0.5%0.6%
Selective noncatalytic reduction 0.05%0.10%
Mercury capture via activated carbon injection 0.4%0.5%
Table 1. Typical heat rate penalties incurred by emis-
sions control equipment. Though they are necessary for regu-
latory compliance, plant emissions controls increase heat rate. Source:
U.S. Environmental Protection Agency and Black & Veatch
|
February 2014 34
systemwide integration. The key components
of a remote monitoring and diagnostics sys-
tem include:
The plant data acquisition systems and
plant data historians.
A reliable communications network be-
tween the plant and a central data hub.
Analysis software at the data hub,
which employs advanced pattern rec-
ognition to enable early detection and
diagnosis of plant equipment and per-
formance anomalies.
Operational intelligence experts, who
assess the data trends, alarms, and diag-
nostic reports to determine if corrective
actions are needed to respond to a dy-
namic situation.
Because many utilities have cut costs
dramatically by reducing their engineering
staff, some have turned to third-party ex-
perts to provide their M&D resources. This
mode of operations provides many benefits
for the utility. Perhaps the greatest is avoid-
ing a large investment in engineering staff for
power plants that may potentially be idled
or even shut down due to economic or emis-
sions concerns.
Remote M&D Successes
For more than 20 years Black & Veatch
has worked with scores of utilities world-
wide to provide M&D services, and as a
result it has a wealth of success stories
from these efforts. Though some of these
successes may seem like small potatoes,
the benefits provided in terms of reduced
operating costs, improved heat rate, fewer
unplanned outages, and lower operations
risk typically far outweigh any investment
in an M&D system.
Case 1: A Mill Bites Off More Than
It Can Chew. Operators of one pulver-
ized coal unit believed that their coal mills
were performing within specifications, but
they were surprised when remote M&D en-
gineers noted a small but statistically sig-
nificant sudden increase to one pulverizers
motor amps, differential pressure readings,
and hot air damper positions. Further anal-
ysis revealed that the heat rate of the unit
would experience sudden variations when-
ever that coal mill was brought into service
(Figure 2).
An analysis of the trends suggested that
the coal feeders were delivering more coal
to the mills than indicated, and fast-track
troubleshooting by the plant staff avoided
potential problems with both mill reli-
ability and combustion issues. They first
checked the gravimetric feeders load cell
by calibrating the feeder, and then further
troubleshooting revealed a problem with the
feeders variable-frequency drive, such that
the feeder was running nearly twice as fast
as indicated.
Because of the early warning from the
M&D system and engineers, the mills per-
formance was quickly returned to normal.
Case 2: Turbine Troubles Tackled. John
Twitty Energy Center (JTEC) Unit 1 is a
194-MW coal-fired unit. Due to a shortage
of on-site engineering staff, JTEC chose to
use remote monitoring to leverage off-site
3. One of our expansion joints is missing The loss of this extraction line expan-
sion joint not only cost $25,500 per month in lost efficiency, but the unit also lost 4.5 MW of
capacity as a result. Courtesy: Black & Veatch
2. The trends are clear. It was obvious something was wrong with the 4D mill, but
what? Source: Black & Veatch
NUHR by measured coal flow dropped unrealistically low, so measured coal flow
must really be lower than actual flow rate.
Problem went away when Mill 4D was out of service,
so probably is the 4D feeder flow rate.
Indicated total flow dropped unrealistically, at same time as Mill
4D amps and dP increased. Probably pushing too much coal for
the PA flow.
February 2014
|
engineering expertise. This remote M&D
implementation was highly successful, al-
lowing the operators to uncover and fix sev-
eral serious problems at the unit. Two notable
examples include an internal extraction line
failure and unexpected turbine deposits.
In the case of the extraction line failure,
a deviation in pressure ratios in the low-
pressure turbine pointed to an expansion
joint failure (Figure 3). Upon inspection
during a weekend outage, it was found
that the expansion joint had completely
failed, allowing steam admission directly
into the condenser.
In the case of the turbine deposits, six
months following a high- and intermedi-
ate-pressure turbine upgrade, unit capacity
dropped approximately 17 MW, high-pres-
sure turbine efficiency dropped 4.8%, and
intermediate-pressure turbine efficiency
dropped 3.5%. Remote diagnostic efforts
ruled out stop and governing valve issues and
instead pointed to turbine deposits as the root
cause. This allowed for a shorter reparative
outage, during which a chemical wash re-
stored the capacity.
The monthly savings in fuel costs for these
reparative actions was estimated at $25,500
and $37,500, respectively.
Case 3: Oil Is the Lifeblood of Your
Bearings. In some instances, operators are so
busy responding to plant alarms and keeping
the power flowing that they can miss subtle
trends that point to potentially serious mainte-
nance problems down the road. Such was the
case with one unit, where the air heater guide
and support bearing temperatures suddenly in-
creased from their normal 140F to 160F.
Because this was well below the alarm
point of 195F, no notice was taken of the
temperature increase (Figure 4). However,
remote monitoring engineers noticed the
trend and asked the operators to investigate
the issue. The problem was quickly deter-
mined to be a very low oil level, which had
led to a loss of oil flow to the air heaters up-
per guide bearing.
After adding 9 gallons of oil to bring
it back to proper level, bearing tempera-
tures returned to normal, and a potential
unplanned outage and expensive repairs
were avoided.
Case 4: Failure Is Not an Option. Al-
coas Warrick Power Plant is critical for
providing both power and steam for its alu-
minum smelting operations in Newburgh,
Ind. So when continuous monitoring efforts
detected a slow increase in the feedwater
heater terminal temperature difference, it
was time to investigate. The increase was
confirmed by redundant sensors, so after
ruling out externally accessible options, an
internal visual inspection revealed a parti-
tion plate failure in the feedwater heater
(Figure 5). The impact of this failure was
significant, resulting in a loss of 40 Btu/
kWh heat rate and 0.4 MW.
After repairs were made, another partition
plate failure was detected in the same manner
less than two years later.
Early Detection Saves Money
With the exception of the JTEC turbine de-
posit case, most of these problems were not
easily detected by an already overworked
plant staff. According to Stan Piezuch, se-
nior performance engineer at Black & Ve-
atch, There are many examples where
statistical anomaly detection has uncovered
a developing problem which is still below
alarm thresholds. And of course thats the
point, since its beneficial to detect prob-
lems as early as possible, giving the plant
staff more time and flexibility to deal with
the problem before damage occurs or they
lose production.
An old saying in the data analysis world
posits: uncontrolled information is noise
and risk; controlled information is power and
security. Not only is this true, but in the case
of coal power plant operations, controlled in-
formation is profit.
Una Nowling (nowlinguc@bv.com)
is a project manager and technology
lead for fuels at Black & Veatch. She
has worked on fuels-related issues and
analyses at more than 550 different units
over 20 years, specializing in coal, natural
gas, and biofuels. She is also an adjunct
professor of mechanical engineering at
University of Missouri-Kansas City.
4. One of these trends is not like the others. In this case, the higher alarm point
did not detect low oil level, but the remote monitoring engineers werent fooled. Source: Black
& Veatch
4B AH HOT END BRG TEMP
now running +20F hotter than oil temp
5. A heat transfer short-circuit. Partition plate failures are a common source of hid-
den efficiency loss in a feedwater heater. Source: Black & Veatch
|
February 2014 36
Establishing Proper Pressure
Drop for Feedwater Flow Control
Valves
I
n power plants with drum-type boilers and
constant-speed main boiler feed pumps,
the feedwater control valve (also referred
to as the drum level control valve) provides
the means for controlling flow to the boiler.
On the other hand, in power plants equipped
with variable-speed turbine-driven main boiler
feed pumps, the feedwater control valves are
usually eliminated from the main circuit but
may still be used on the startup circuit with the
smaller motor-driven startup feed pump.
In either application, the feedwater con-
trol valve is in critical and severe service. As
such, it must be sized and designed to pro-
vide adequate drum level control and cope
with varying drum pressures expected over
the range of plant operating conditions. In
this regard, one of the important parameters
to be evaluated is the control valve pressure
drop at the rated condition, as well as during
off-design conditions.
The control valve pressure drop needs to
be established carefully, as it is a performance
debit resulting from increase in horsepower
associated with the pressure head of the boil-
er feed pump. Use of variable-speed drives
or turbine drives on the boiler feed pump can
avoid this debit by eliminating the control
valve altogether. Boilers designed for sliding
pressure operation generally utilize variable-
speed drives or turbine drives not only to
eliminate the control valve penalty but also
to take advantage of minimized performance
debits at part loads due to lower pump head.
The part-load advantage is not available with
fixed pressure operation, where boiler pres-
sure remains constant and the pump pressure
head must remain high, even at part loads.
This article highlights the various plant
operating scenarios that must be considered
while evaluating the control valve pressure
drop. It also points to the fact that the con-
ventional methods used in industry for estab-
lishing control valve pressure drop cannot be
used in power plants without reviewing all
plant operating scenarios.
Note that the difference between the boiler
feed pump head-flow curve and the system re-
sistance curve (Figure 1) provides the basis for
the pressure drop available for the drum level
control valve. During startup and low-load op-
eration, when drum pressures are low, the valve
may experience severe service due to high
pressure drop. These conditions could lead to
valve cavitation and subsequent destruction of
the valve trim along with pipe hammer, which
could lead to piping and piping support dam-
age. It is, therefore, essential that the sizing
and design of the drum level control valve be
such that these problems are avoided. For this
purpose, the entire range of service conditions
should be provided on the valve data sheet, as
this will enable the valve supplier to make the
correct valve/trim selection.
Conventional Methods for
Establishing Control Valve
Pressure Drop
In general industrial applications, control
valve pressure drop has commonly been
established by one of the three methods
discussed below. However, note that these
methods may not be adequate for feedwater
control valve applications, which require ad-
ditional evaluation taking into consideration
the high static pressure head involved in
pumping feedwater to the boiler.
Traditional Method. This method traces
back to the ISA Handbook of Control Valves
by J.W. Hutchison, which provides guidance
for control valves in a pumped circuit. Accord-
ing to this method, the pressure drop should
be 33% of the dynamic loss in the system at
rated flow, or 15 psi, whichever is greater. In
this context, the dynamic loss in the system is
expected to include the pressure drop of the
100% open control valve. Other references al-
low the control valve pressure drop to be 25%
to 50% of the dynamic loss in the system, ex-
clusive of the control valve pressure drop.
Feedwater control valves play a critical role in boiler operation. One important
parameter of their design is the pressure drop at the rated condition as well as
off-design conditions. However, conventional methods used for establishing con-
trol valve pressure drop cannot be used at face value without reviewing all plant
operating scenarios.
S. Zaheer Akhtar, PE
Courtesy: Bechtel Power Corp.
February 2014
|
Connell Method. In this method, the
minimum pressure drop assigned to the con-
trol valve is based on pump discharge pres-
sure, increased frictional pressure drop due
to maximum flow rate, and base pressure
drop to account for the fact that even in the
wide open position the control valve gener-
ates some pressure drop. The Connell corre-
lation is expressed in the equation below:
( ) B r e
Q
Q
P dP
n
d
s
+ + + = 1 1 . 1 05 . 0
2
where:
dP is differential pressure,
P
s
is the pressure at the beginning of the
system (pump discharge),
Q
d
is the design flow rate in the line,
Q
n
is the normal flow rate in the line,
e is the differential pressure (dP) across
the process equipment at normal flow,
r is the dP across only the piping and
valves at normal flow, and
B is the base dP for the control valve.
Minimum Control Valve Pressure Drop
Method for Pumped Application. In this
method, attributed to F.C. Yu, the control valve
in a pumped application is assigned a minimum
pressure drop at maximum design flow rate and
maximum 80% control valve open position (as-
suming control valve regulating range is 20%
to 80% valve open position). The control valve
opening is then checked at normal flow to make
sure that the opening is not below the minimum
20% open limit. The minimum pressure drop
is 10 to 15 psi greater than the pressure drop at
valve full-open conditions.
Method Application Examples
Below is the computation used when apply-
ing the various methods for determining the
assigned control valve pressure drop for the
drum level control valve. Note that the val-
ues are not exactly comparative because each
method uses parameters that are not common
to all three methods.
Traditional Method:
Dynamic losses = 75 psi at normal flow
Control valve dP = 33% of dynamic loss-
es, including control valve dP
Therefore, dP / (75 + dP) = 0.33, where dP
= 38 psi
Connell Method:
Pump discharge pressure = 3,000 psi.
Base dP for control valve = 11 psi.
Dynamic losses at design flow = 1.2 times
normal flow.
Control valve dP = (0.05 x 3,000) + 1.1 x
[(1.2)
2
1] x 75 +11 = 197 psi.
Minimum Control Valve Pressure Drop
Method for Pumped Application:
Obtain valve characteristic curve showing
the coefficient of flow (Cv) versus % valve
opening and check Cv at 80% open (for
example: Cv = 150 at 80% open).
Using maximum design flowrate (Q) of
2,300 gallons per minute (gpm) and Cv
value at 80% open, calculate the control
valve dP as follows: Control valve dP = (Q
/ Cv)
2
x specific gravity = (2,300 / 150)
2

x 0.9 = 212 psi. Ideally, this is the pressure
difference, which should be available be-
tween the pumps head-flow curve and the
system resistance curve (exclusive of the
control valve pressure drop) at the maxi-
mum design flowrate of 2,300 gpm.
Now, using the same valve characteristic
curve, select the Cv at minimum control-
lable 20% open (for example: Cv = 45 at
20% open).
Assume that the minimum operational
flowrate (for example, 800 gpm) will be
handled by the valve at minimum 20%
open position, calculate the valve dP as
follows: Control valve dP = (Q / Cv)
2
x
specific gravity = (800 / 45)
2
x 0.9 = 284
psi. Ideally, this is the pressure difference,
which should be available between the
pumps head-flow curve and the system
resistance curve (exclusive of the control
valve pressure drop) at the minimum op-
erational flowrate of 800 gpm.
Note that due to high static head of a
boiler feed pump in a power plant applica-
tion, the Traditional Method for establish-
ing control valve pressure drop provides a
low pressure drop, which is inadequate for
this application. The remaining two methods
(Connell Method and Yus Method, or Mini-
mum Control Valve Pressure Drop Method
for Pumped Application) consider this high
static head in the calculation and result in a
more reasonable value. These methods can
be used as the first iteration but should not
be used without additional checks. The ad-
ditional checks should be done to ensure
that the selected valve sizing (Cv and dP) is
able to deal with all operating scenarios with
valve opening remaining within the accept-
able controlling range of the valve. For this
purpose, it is essential to recognize the vari-
ous operating scenarios and functional con-
siderations at the power plant, which impact
the control valve dP.
Functional Considerations for
Drum Level Control Valves
The basic functional consideration for a drum
level control valve serving a power boiler is
that it should be capable of covering a wide
range of operating parameters.
Normal Flow Versus Minimum/Maxi-
mum Flow. In a power boiler fitted with a
constant speed motor-driven pump, the drum
level control valve should be capable of han-
dling the required flow during normal plant
load as well as that required at reduced load
(including startup).
In addition, the drum level control valve
should be capable of handling maximum
flow requirements, which could arise due to
a combination of feedwater flows in addition
to the rated flow, such as boiler blowdown,
sootblowing, or spray water usage.
If startup or low-load operation results in
too severe of a range for one valve, a second
startup control valve may be required to split
the service conditions.
Ability to Restore Drum Level. The
maximum flow requirement established
should be utilized and checked against the
flow requirement when trying to restore
drum level from low level to normal level. In
case the drum level drops to around the low-
level mark and the boiler is operating under
full-load conditions, it may not be possible to
restore drum level without reducing load, un-
less the feedwater system has been designed
1. Establishing drum level control valve pressure drop. Courtesy: Bechtel
Power Corp.
|
February 2014 38
for the extra flow capability.
Consider a boiler drum with a 3-minute
storage between the normal level and the low-
low level in a plant that is operating at full
load. If the drum level dropped to the low-low
level due to transient conditions, in order to
restore drum level in a short period of time
(for example, 15 minutes) without decreas-
ing load, the feedwater pump and the associ-
ated control valve will be expected to handle
20% flow above normal load operation (since
3 minutes x 100% = 15 minutes x 20%). On
the same basis, if the drum level is to be re-
stored over a longer period (for example, 30
minutes), then the feedwater pump and the as-
sociated control valve would need to handle
only 10% flow above normal load operation.
This additional surge capability is built into
the control valve normally operating at 80%
of full travel and the pumps design point be-
ing above the 100% operating point.
Boiler Makeup During High Drum Pres-
sure Condition (Pressure Safety Valve
Discharging). The ASME Boiler & Pressure
Vessel Code, section I, paragraph PG-61.1 re-
quires that the source of feeding shall be capa-
ble of supplying water to the boiler at a pressure
of 3% higher than the highest setting of any
safety valve. Under the conditions mentioned
in the code, the increase in drum pressure re-
duces the pressure drop available to the drum
level control valve. This reduces the feed flow
to the drum, and the control valve is required to
open further to compensate, if possible.
If the control valve is already fully open
and unable to compensate for the flow reduc-
tion, then care should be taken that the re-
duced flow rate does not decrease to a point
where it falls below the pumps minimum
flow recirculation point; otherwise, all flow
will be diverted to recirculation, and no flow
will reach the boiler drum. Such a condi-
tion is unacceptable, as it would violate the
ASME code requirement.
A Graphic Example
These design conditions and the control
valve pressure drop variation can be well
represented on a graph similar to the generic
one shown in Figure 1, which includes the
boiler feed pump (constant speed) head-flow
curve, system resistance curve, and the con-
trol valve pressure drop (dP
cv
).
As flow increases, the available pressure
drop across the control valve decreases. As
a result, the control valve opening increas-
es. The increase in control valve opening is,
however, restricted to around 80% to 85%
(due to controllability considerations), and
the corresponding Cv establishes the maxi-
mum flow capability of the control valve.
Figure 1 also shows that as the pressure
head increases due to high drum pressure
(highest set pressure of pressure safety valve
plus 3%), the system resistance line moves
upward and cuts back on the available pres-
sure drop across the control valve. At this
point, the control valve opening increases,
reducing the valve dP to compensate for the
increase in pressure head.
The result is that the operating point
moves to the left side of the head-flow curve.
At this point, it is important that the control
valve opening remains within its operating
range; otherwise, the drum level may not be
controllable. It is also critical that this oper-
ating point falls on the right hand side of the
minimum recirculation flow line; otherwise,
the entire flow through the feedwater pump
will go toward recirculation, and no flow will
reach the drum.
Specific Design Considerations
Some of the specific operating cases and func-
tionalities of the drum level control valve that
also need to be considered are discussed below.
Combined Cycle (2 x 2 x 1) Plant Operat-
ing in Single Train (1 x 1 x 1). In the case of
a 2 x 2 x 1 plantassuming one high-pressure/
intermediate-pressure (HP/IP) boiler feedwa-
ter pump per heat recovery steam generator
(HRSG)the HP pressure could operate at 135
bar. However, this HP pressure could decrease
significantly to 85 bar during 1 x 1 x 1 operation
(50% steam turbine load). Under these condi-
tions, the pump continues to operate along the
pump characteristic curve, but due to lower
pressure in the drum, the control valve closes
and has to take a high-pressure drop.
The control valve pressure drop could be as
high as five to six times the normal pressure
drop. At this point, the question to be addressed
is whether the control valve remains within the
regulating range when it closes and experiences
the high dP during 1 x 1 x 1 operating condi-
tions. If at this high dP the control valve is out
of regulating range, then a different base dP for
the control valve must be selected.
Combined Cycle Bypass Spray Op-
eration. On a steam turbine trip, the HRSG
steam is bypassed (usually 70% to 100%) and
the bypass sprays are placed in service. The
HPcold reheat (CRH) bypass valve spray
water is often taken from the IP section of the
HP/IP pump. However, in some cases, the IP
section spray water pressure may not be high
enough, and the spray water is taken from the
HP discharge section of the pump. In either
case, the spray water requirements enhance
the flow capacity of the HP or IP section of
the pump, depending on the location of the
takeoff spray water line.
Consider the case of added capacity when
spray water is taken from the HP discharge
section and assume that the HP section flow
has to be upgraded by 20% to include the by-
pass spray water flow. This 20% additional
capacity can be considered as spare during
normal operation and can be utilized, if re-
quired, for drum level makeup (from low
level to normal level), for example, in a 15-
minute time period.
Therefore, the drum level control valve
should be suitable for handling the 20% ad-
ditional flow with a significantly reduced
pressure drop as projected by the difference
between the pump curve and the system re-
sistance curve. In other words, under these
conditions the control valve will open wide
but must remain within the regulating range
of the control valve.
Combined Cycle Part-Load Operation
at 75% Load. In the case of part-load op-
eration with combustion turbine generators
at 75%, the HP feedwater flow can decrease
to around 60% of normal flow while the sys-
tem head could decrease by around 75% to
80% (due to lower HP steam outlet pressure).
With a constant speed feed pump, the lower
feedwater flow along with the drop in sys-
tem head requires the control valve to absorb
the additional pressure drop and, as a result,
the control valve tends to close. The extent
of valve closure should be verified to ensure
that the control valve remains within the con-
trolling range under these conditions.
Valve Pressure Drop and Cavitation.
High-pressure drop across the control valve
(especially that experienced during commis-
sioning and startup) can lead to cavitation,
which can destroy the valve trim in a short
period of time (within a few days of opera-
tion). Therefore, power stations have typically
used a two-valve arrangement working in split
range operation. The smaller sized valve (with
anti-cavitation trim) is used for startup condi-
tions, while the other, larger valve (without
anti-cavitation trim or minimal anti-cavitation
trim) is used for higher-load operation.
Alternatively, a single valve with a char-
acterized disc stack can be used to handle the
wide range of operation. The bottom of the
trim provides low Cv values and provides
anti-cavitation features, but at higher valve
openings the anti-cavitation features decrease
and resemble a standard trim.
Pre-operational Procedure. Note that
before commissioning the boiler there are
several pre-operational procedures, such as
boiler fill, chemical cleaning, passivation,
steam blow, and startup. For each step, the
boiler drum must be supplied with feedwater,
and this procedure should be clearly estab-
lished up front.
Usually, the boiler is filled using the boiler
fill pump because low drum pressure and low
feedwater flow is outside the range of the
feedwater control valve. But some of the other
pre-operational steps may require the use of
February 2014
|
the startup feed pump (usually provided when
using turbine-driven feedwater pumps) and its
associated drum level control valve. If the drum
level control valve is to be used under these cir-
cumstances, it will be subjected to high pres-
sure drop due to low drum pressures during the
pre-operational process and startup.
It is important that these cases be indicated
on the valve data sheet to enable the valve
vendor to provide the correct valve suitable
for handling high pressure drops and any ex-
pected cavitation at low valve openings.
As an example, the commissioning startup
on some subcritical boilers requires boiler pas-
sivation to be conducted by filling the boiler
with feedwater and chemicals and increasing
drum pressure in steps from 0 barg to 50 barg.
This pressure level exceeds the capability of
the boiler fill pump; therefore, the startup feed
pump may be required for this operation. Such
an operation imposes a high pressure drop
across the drum level control valve, which
should be specified accordingly.
Supercritical Boilers. Supercritical boil-
ers do not utilize the conventional boiler drum
used in subcritical boilers. Instead, they have
once-through flow through the tubes, except
at startup, when the boiler circulation pump
is in operation along with makeup flow from
the startup (motor-driven) feed pump and its
associated control valve.
The startup feed pump, in some cases, is sized
to serve as a standby pump as well. Such a start-
up/standby pump would typically be rated for
30% maximum continuous rating (MCR) flow
and 100% MCR head. In such cases, the associ-
ated control valve experiences a large pressure
drop during pre-start/startup conditions.
The pre-start process for supercritical boil-
ers involves a boiler flushing operation for
achieving proper water chemistry, followed by
the first burner light-off (cold start). A typical
flushing operation is carried out at around 20%
MCR flow with no pressure in the boiler. On
first burner light-off, the boiler feed is at 3%
forward flow (to prevent economizer steam-
ing) and the boiler circulating pump provides
head due to 32% MCR flow around the fur-
nace. Under these conditions, the control valve
is exposed to severe operating conditions due
to low flow and high pressure drop.
The pressure drop decreases during the
startup sequence as the boiler pressure in-
creases. In any case, in order to avoid valve
damage, the operating conditions specified
for the control valve should cover the entire
range of pre-startup and startup conditions to
which the valve will be subjected.
Steam Blow Operation for Boiler Ex-
ternal Piping. During steam blow operation,
the boiler drum pressure is increased to a cer-
tain value (approximately 700 to 1,100 psig,
depending on the blow path) and then the
blow valve is opened until the drum pressure
is bled down to a low value (about 150 to 450
psig). The drum is then re-filled with feedwa-
ter at the low drum pressure, which imposes
a high pressure drop across the drum level
control valve. If the control valve trim is not
designed for this operation, the trim could be
damaged during this process.
One Size Does Not Fit All
The Connell Method and Yus Method may
be used as a first approximation in establish-
ing the pressure drop for the feedwater con-
trol valve. However, the value obtained from
the first iteration needs to be further checked
and modified as necessary. This is to ensure
proper functioning of the feedwater control
valve under all operating scenarios (includ-
ing startup). These operating scenarios and
corresponding operating parameters should
be clearly identified on the valve data sheet
submitted to the valve supplier.
S. Zaheer Akhtar, PE is a principal engi-
neer for Bechtel Power Corp., Frederick, Md.
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February 2014 40
Generation Cybersecurity:
What You Should Know, and Be
Doing About It
C
ybersecurity has become a topic of in-
terest over the past year in generation,
owing to new developments in North
American Electric Reliability Corp. Criti-
cal Infrastructure Protection (NERC CIP)
regulations, awareness of the vulnerability of
generation control systems, and several inci-
dents that have caused downtime and produc-
tion issues for generation owners.
The intent of this article is to help gen-
eration owners and operators understand
what cybersecurity vulnerability is and to
outline some basic first steps in reducing
the risk to production from cybersecurity
vulnerabilities.
Vulnerabilities and Exploits
Cybersecurity issues are not like issues nor-
mally seen in a control system. Excepting
human performance issues, control system
events are naturalthey evolve from the
A professional engineer specializing in the cybersecurity of industrial control systems
explains cybersecurity controls that should be present at every generation plant and
why they are needed for basic risk reduction from everyday cybersecurity threats.
Michael Toecker, PE
Courtesy: Michael Toecker
How the Rules Have Changed
The best real-world example of how the
rules can change from a cybersecurity
event is Stuxnet. Stuxnet has been ex-
tensively studied from a control systems
perspective by Ralph Langner, who first
identified that the virus was targeting
Siemens controllers.
In Langners final paper on Stuxnet (To
Kill a Centrifuge), he states that the en-
tire Natanz control system down to the
controller level was altered to wreck the
centrifuges used for the Iranian nuclear
enrichment program. The malicious code
decoupled the legitimate code during
the preprogrammed attack on the cen-
trifuges. The malicious code replayed 21
seconds of history and masked the actual
values from the legitimate logic. Lang-
ner even suggests that certain pressure
probes that would have monitored over-
pressure, and tripped the system as pro-
tection, were de-calibrated by the attack
code to mask the need for pressure vent-
ing as long as possible.
In an environment where the con-
trol system has the final say on what
is wrong within a process, the creators
of Stuxnet used the system against the
very engineers who were entrusted to
fix it.
February 2014
|
physical characteristics of the system under
control. Engineers have studied these prob-
lems and created mechanisms that respond
before the conditions affect production. But
these problems involve physical laws and
forces that are deterministic and (to an ex-
tent) predictable.
Cybersecurity issues are different; they
involve a human intelligence. Though the
forces of nature are impressive, they are not
clever, nor resourceful, nor cunning. Exploits
and vulnerabilities are created to defy and
change the rules of systems they target (see
sidebar How the Rules Have Changed).
The Lack of Security in Control
Systems
Most commercial software now is built to en-
force good security principles. For instance,
when navigating to a banking website to
make a transaction, there are multiple lay-
ers of security so that the bank has a reason-
able belief that a user is authorized to make
a transaction.
Industrial control systems dont possess
these mechanisms. An entity that can com-
municate with a control system can make
changes that should be reserved for opera-
tors and engineers. The only limiting factor
is how difficult the learning curve is when
learning to speak to the control system. Lack
of security was built in during original devel-
opment, and it hasnt changed for most con-
trol products.
For example, Project Basecamp was a
Digital Bond project in 20112012 to evalu-
ate and catalog the security vulnerabili-
ties present in several programmable logic
control (PLC)based controller platforms.
What was found was expected: The systems
under test had numerous issues that an at-
tacker with communications could exploit
to alter a process.
Digital Bond researchers found that
configurations could be changed or their
firmware altered. Many systems had un-
documented features and accounts that gave
new privileges when accessed, and several
systems could be easily crashed with a sin-
gle command.
The conclusion was clear: Control system
development has not kept pace with modern
cybersecurity issues.
Compounding the lack of security in con-
trol systems is the tendency for those sys-
tems to fail when exposed to network traffic
and data that is common on corporate net-
works and the Internet but that exceeds the
original design.
Experience points to a single conclusion:
Malicious programs or people who can com-
municate with a control system are able to make
changes, operate, or crash a system entirely.
Establish a Perimeter
Because of the vulnerability of control sys-
tem software and hardware as it stands today,
a strong network perimeter is vital (Figure
1). There are three goals when establishing
a perimeter:
Prevent external entities from accessing
the control system networks and devices
(see sidebar Example of Excessive Auto-
mation Capability and Risk Reduction).
Prevent control system networks and de-
vices from accessing external entities.
Limit access, in cases where access to or
from control systems networks and de-
vices is required to meet a valid business
need, to the minimum capability neces-
sary to get the job done.
Though there is a tendency to focus on IT
connections, dont ignore automation con-
nections. Automation connections are often a
direct route to the internal workings of your
system, and they are often configured for a
lot more capability than is required for func-
tionality. External automation connections
are often done with protocols that are well-
known to engineers and security profession-
als. Additionally, the methods used for these
automation connections have changed over
1. Typical automation network setup. This diagram shows external networks and
the distributed control system (DCS) network as well as a buffer zone called a demilitarized
zone. This demilitarized zone is used for systems that communicate with specific systems in
the DCS network and with limited systems on external networks. Source: Michael Toecker
External networks
Including Internet
External
firewall
Internal
firewall
Distributed control
system network
Operator
workstation
DCS
controller
Demilitarized
zone
Remote
access
host
File transfer
server
Performance
monitoring
Engineer
workstation
Historian
Notes:
Tier 1 systems may communicate to external networks
Tier 2 systems may communicate with Tier 1 systems
Tier 3 systems may only communicate with Tier 2 systems
Example of Excessive Automation Capability and Risk
Reduction
An engineer at a coal mine-mouth plant
has identified that her distributed con-
trol system (DCS) has a Modbus connec-
tion to a coal-handling facility, run by
a separate mining subsidiary. This is an
external connection, as the responsibil-
ity and accountability for the mining
subsidiary is not directed toward the reli-
able production of power. The connection
feeds necessary operational data into the
DCS regarding coal volume, and it cant
be removed.
When evaluating the Modbus connec-
tion, the engineer discovers that while
the handling facility only uses a small
subset of points, the connection allows
access to a chunk of points the handling
facility staff have no need to access and
that could cause operational issues.
Recognizing that the mining facil-
ity has very little responsibility and ac-
countability for power plant operations,
she recognizes that the extra points are
a risk to her operation. She takes steps to
limit the points available via Modbus to
only those necessary through the engi-
neering application, and removes control
points entirely.
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the years, with pure IP, Ethernet to serial converters, and serial servers
becoming good options for reliable communication but coming with
an additional risk as well.
Prioritize Patching for Exposed Systems
In my experience, generation engineers are concerned about the risk of
patching systems. The reasoning is that patches can often introduce un-
known elements to what is a functioning system. This view is supported
by anecdotes of patches that have negatively affected operations. Ad-
ditionally, patching comes with additional manpower and testing costs,
ones that should be evaluated before undertaking a patch.
Not patching runs a similar risk as not fixing a piece of equipment
when there is a known problem. For instance, if a pump has a ten-
dency to overheat, the decision might be to limit usage and to watch
closely for problems.
However, a watch and see approach in cybersecurity is based on
a faulty assumption that tools and personnel are available who can
recognize a cybersecurity compromise at the same level as they can
diagnose and troubleshoot an overheating pump. Even many security
professionals can have difficulty recognizing malicious code in the
wild without considerable experience and investment. This level of
capability simply does not exist at most generation plants, and it is not
a core function of making electric power.
Unpatched systems are vulnerable to simple exploits, many of
which have point-and-click usage. Without periodic patching, systems
would remain vulnerable forever, awaiting a motive to compromise.
Patching every time a vulnerability is discovered is a worthy goal but
is not appropriate for a generation environment. What is needed is a
more intelligent process that patches based on risk and that limits risk
to the control system.
Prioritized patching is an approach that ensures that systems with
the most exposure to the outside world are patched first, and other
systems follow on a set schedule. No matter what, control system
engineers should set the patch schedule for their control systems and
never patch a system when it can affect operations. Digital Bond has
used three tiers:
Tier 1: Patch systems with external connections as soon as possible
after testing.
Tier 2: Patch systems that can communicate with Tier 1 systems
during biannual outages.
Tier 3: Patch everything else at least annually.
Ideally, Tier 1 systems are those systems that would not have
an impact on operation. Specifically, these would be things like
external-facing historians, performance-monitoring systems,
remote access, and human-machine interfaces (HMIs) not used
by operators. Tier 2 systems would be interface systems, those
responsible for passing data to and from Tier 1 systems. They
would ideally not have a major control function, and should be
patched on a scheduled basis. Tier 3 consists of critical devices
and systems that, if compromised, could affect the production of
electric power.
The risk of not patching everything in an IT environment would be
that viruses could spread throughout the environment quickly. How-
ever, control systems are already so vulnerable that simply being on the
same network as a control system would allow an attacker much more
capability than using an exploit.
Say No to Indiscriminate Use of Technician Laptops
Laptops are the newest tools at a generation site. Turbine tuning is
routinely done with a laptop and a set of sensors, and protection relays
are configured as well. Most major control system vendors have stan-
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February 2014 44
dard software, and this software is installed
on laptops from an ease-of-use perspective.
There is nothing inherently wrong with
using a laptop to complete vital work, but
laptops are not wrenches and screwdrivers.
They are multipurpose, and they have the
capability to affect operations that exceed
the scope of work. Laptops in industrial en-
vironments tend to migrate between control
system tasks and web browsing, email, and
basic file storage. Switching between the
outside world and the control system in-
creases the risk of an outside influence on
the processand does so without any intent
from the user.
Restricting laptops becomes an even
more important policy when the technician
laptop is owned by an outside contractor.
That laptop has likely been to several other
industrial sites. It may even have been con-
nected to various Wi-Fi access points for
Internet usage, and it probably isnt get-
ting the patches and anti-virus updates it
should. Logically, allowing a previously
Internet-connected laptop to plug in to a
control system network is not a good risk-
prevention strategy.
Laptops for control system use should be
segregated from normal IT laptops and never
used for IT functions like email and general
web browsing. They should receive updates to
anti-virus and patching. These laptops should
be checked out for usage and have appropri-
ate maintenance and training procedures, just
like a tool that can have a detrimental effect
on operations if used incorrectly. Laptops not
owned and managed by the plant should nev-
er be allowed to connect without inspection,
just like other specialized tools a contractor
would bring on site.
Restrict Other Removable Media
CDs and DVDs have been the usual way
that control system software is distributed
to users, but use of USB drives for simple
file transfers has exploded over the past sev-
eral years in automation. All of these means
of moving files from system to system are
grouped under the heading of removable
media. Backups of control systems are con-
ducted using large removable media, vendors
often bring a set of tools and scripts on USB
removable media, and the configurations for
many automation devices can be loaded di-
rectly from removable media.
The use case of removable media makes
it very attractive for reliably infecting sys-
tems. Removable media is almost exclu-
sively used to swiftly transfer a program or
file that is immediately needed. Once on the
system, it is run by user action. If that file/
program is a virus or other malicious code,
it is now resident on your control system, re-
gardless of the individuals intent. To mod-
ify a familiar safety quotation: That which
must be done fast is never done securely
(see sidebar Incidents Involving Remov-
able Media at Generation Sites).
Removable media should never be di-
rectly connected to control systems without
a rigorous inspection process. The inspec-
tion process should make use of anti-virus
and should include a means to verify that
vendor software is unaltered. Vendor soft-
ware on removable media should come
directly from the manufacturer, with no
potential for added files. Removable media
used for control systems should be reserved
for control system use and never used on
noncontrol systems.
Use Anti-Virus
In generation, we make extensive use of pro-
tective relaying systems to detect known fault
conditions and respond to those fault condi-
tions by taking prescribed action before dam-
age to equipment occurs. Protective relays
are used everywhere because of regulations,
and because the calculus of risk is simple: A
single event has the potential to harm a sig-
nificant capital investment and lose revenue,
and the cost of the prevention via protective
relay is far less than the consequence of not
preventing it. Protective relaying isnt per-
fect, but it is significantly better to operate
with it than without it.
Anti-virus is the protective relay concept
applied to computer systems and processes.
Anti-virus continuously monitors for known
cybersecurity conditions and halts the activity
before it can damage the system. Anti-virus
will not protect you from new or unknown
conditions, but it does provide good protec-
tion against what has already been found and
classified. Not all control systems can use
anti-virus, due to age of the operating sys-
tem, but all should investigate its usage as a
good control.
There has been discussion about anti-vi-
rus between generation professionals over
the past decade. Many see it as a drain on
computing resources, as the protection re-
quires a certain level of processing power
and memory to be effective. Additionally,
there is a risk of a false positive, where the
anti-virus flags a valid process as a threat
and shuts it down. As a false positive could
be a vital control system process, this is
a risk that must be considered during the
testing of new signatures and during up-
dates of programs.
Howeverto reuse the protective relay
examplerelays may also experience false
positives, and the consequences of a relay
misoperating can be equally nasty. Funda-
mentally, the risk of misoperation was deter-
mined to be less than the risk of operating
without protection, and procedures were put
in place to test settings. The same type of
procedure is necessary to minimize the nega-
tive aspects of using anti-virus.
Major DCS and control system vendors in
electric power have endorsed the use of anti-
virus (though they generally require you use
Incidents Involving
Removable Media at
Generation Sites
From a historical perspective, USB drives
have the public award for the most im-
pact on generation operations. In Octo-
ber 2012, ICS-CERT Monitor (published
by the U.S. Department of Homeland Se-
curitys Industrial Control Systems Cyber
Emergency Response TeamICS-CERT,
http://ics-cert.us-cert.gov) called out
two specific instances of virus infec-
tion at generation plants involving USB
drives. In the first case, a third-party
technician infected a turbine control
system with the Mariposa virus via a
USB drive. The Monitor states that the
Mariposa infection and cleanup delayed
the restart of the plant by three weeks.
The Mariposa virus is a botnet virus
discovered in December 2008, which
allows victim systems to be rented for
use in conventional hacker attacks on
the Internet. The primary tactic is con-
ducting denial of service attacks, where
significant network traffic is directed at
a target from multiple infected systems,
crashing the target. Effective detection
and prevention (via anti-virus) has been
available for Mariposa since early 2009.
If the Monitor article is accurate about
the three-week delay being a result of
the virus, this is three weeks of lost
revenue due to a fully detectable and
preventable issue.
The second incident involved an em-
ployee who was backing up two engi-
neering workstations and inadvertently
used an infected USB drive. ICS-CERT
does not call out the malware found,
but once again, updated anti-virus
found it upon a scan via the companys
IT department. Here too, regardless of
individual intent, the control system
was compromised by an easily detect-
able and preventable virus.
February 2014
|
the anti-virus product they have tested with
their software). Consult with your vendor on
anti-virus that can be used on your system,
what the common activities are, and make
sure you cover your corner cases (such as
OPC servers or other software that is not part
of the vendor testing requirements).
Get a Third-Party Cybersecurity
Risk Assessment
Once the basics above have been covered,
its time for a more in-depth assessment of
your cybersecurity risk. A third party should
be consulted to see what other measures may
be appropriate to your environment and the
level of risk they would remove. Ideally, the
best time to conduct an assessment like this
is during an outage, coordinated with all the
other work that will be conducted on site.
There will be findings in this third-party
assessment, but the key is to identify that
your initial controls have been configured
appropriately and to look for other risks that
should be addressed. And, as noted above,
access to the control system network should
not be given to the third party without a plan
to ensure that systems and scripts will not
cause production issues. The same tools and
techniques used by security assessors can
crash a system just as easily as a malicious
attacker can.
Numerous suppliers exist to provide cy-
bersecurity services, but there are fewer that
specialize in control systems and generation
in particular. Control system vendors also of-
fer this service, but many also sell products
to solve the same cybersecurity problem.
Try to get a team that has some experience
in industrial environments, as they are most
aware of risks, and discuss the risks and re-
wards carefully.
The report should include a list of specific
cybersecurity findings from the assessment, an
appropriate rating of the risk each poses to op-
eration, and general steps to fix the problem.
Security Work Is Never Done
Most cybersecurity incidents arent Stux-
net; they are mundane in nature. There is
consistent research on threats being done by
numerous companies around the world. Hav-
ing a good cybersecurity program that limits
normal risk allows for the opportunity to find
more malicious and targeted viruses that may
target generation systems.
For this article, I was asked to provide
good practices for cybersecurity in genera-
tion, irrespective of NERC CIP compliance
concerns. If you are a NERC CIP plant, these
practices will likely aid your compliance pro-
gram, but they will not make you compliant
on their own. The intent of these recommen-
dations is to provide efficient risk reduction
from cybersecurity events, answering the
question Where should I put my next dol-
lar in order to get the biggest cybersecurity
improvement?
There will undoubtedly be discussions of
controls that Ive missed, or other prudent
controls that should take precedence before
the ones discussed in this article. These dis-
cussions are valuable, because they provide
different perspectives on the problem of secur-
ing generation control systems. The practices
in this article are not meant to be the final say,
but they should provide a place for concerned
operators of generation facilities to start.
Michael Toecker, PE (toecker@digital-
bond.com) is a cybersecurity consultant,
engineer, and White Hat Hacker for Digital
Bond Inc. (www.digitalbond.com) special-
izing in the cybersecurity of industrial
control systems, predominantly those
used in power generation.
For more information, call Wrights Media at 877.652.5295
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Using Neural Network Combustion
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Dec. 21, 2011, set maximum achievable con-
trol technology (MACT) emission standards
for specific classes of hazardous air pollutants
(HAPs) found in the flue gases of coal- and
oil-fired utility boilers. The emission limits
vary based on the type of coal burned and
whether the units are new or already in opera-
tion at time of publication of the final rule.
Specifically, MATS sets removal standards
for mercury (Hg), acid gases (such as hydro-
chloric acid [HCl] and hydrofluoric acid),
toxic non-mercury metals (such as arsenic,
chromium, and nickel) and organic HAPs.
MATS also limits HCl emissions (a surrogate
for acid gases) and filterable particulate mat-
ter (PM, a surrogate for non-mercury HAP
metals). Total non-mercury HAP metals and
individual non-mercury HAP metals can be
used as an alternative to the filterable PM
limits. Coal-fired electric utility steam gen-
erating units (EGUs) equipped with flue gas
desulfurization (FGD) systems may use SO
2

limits as an alternative to HCl limits. Com-
plying with these complicated and interre-
lated standards will require boiler operators
to develop new operating and maintenance
practices. MATS identifies neural network
optimization software as a best combustion
practice for NO
x
and CO reduction.
MATS Drives Work Practice
Standards
MATS also requires new work practice stan-
dards to increase combustion efficiency, thus
decreasing CO, NO
x
, and HAPs such as dioxin
and furan that cannot be measured by continu-
ous emissions monitoring systems. NO
x
and
CO reduction tuning includes burners, overfire
air (OFA) controls, concentric firing system
improvements, control system calibrations, and
adjustment of combustion zone temperature
profiles. Selective catalytic reduction (SCR) and
selective noncatalytic reduction (SNCR) are in-
cluded in the NO
x
tuning requirement.
Work practices include burner and com-
bustion control inspection and maintenance,
tuning combustion controls, maintaining re-
cords of CO and NO
x
emissions before and
after burner adjustments, and submitting
reports after each tune-up. The data must be
taken while operating at full load or the units
predominant operating mode.
The tune-up requires inspection of all burn-
er and combustion controls, and cleaning or re-
placement of any components of the burner or
combustion controls as necessary upon initia-
tion of the work practice program and at least
once every required inspection period. The
inspections include operation such as damper
operation, cyclone and pulverizer coal feeder
loadings, or other pulverizer and coal mill per-
formance parameters. Also, air-fuel ratios must
be calibrated and functioning properly, includ-
ing calibration of excess O
2
sensors, adjusting
OFA systems, changing optimization software
parameters, and calibrating associated actua-
tors and dampers to ensure that the systems
are optimally operated. Burner or combustion
control component parts needing replacement
that affect the ability to optimize NO
x
and CO
must be installed within three calendar months
after the burner inspection.
The work practice and tune-up testing
reports must be submitted to the EPA every
three yearsexcept for those units that em-
ploy neural network optimization software.
For those units, the reports may be submit-
ted every four years, following MATS imple-
mentation in 2015. Depending on the unit
specifics, this additional year may produce
significant costs savings.
The effect of the work rules on unit op-
erations is difficult to quantify at this time.
However, the cost of plant testing and outag-
es for repairs prior and subsequent to the test-
ing will likely be substantial. For example, a
one-day outage of a 500-MW coal-fired plant
will result in lost revenue of about $250,000,
assuming replacement generation is $20/
MWh more expensive.
Optimizing Combustion
Real-time combustion optimization systems
have demonstrated substantial value for reduc-
ing NO
x
emissions, controlling CO, and im-
proving heat rate for over a decade. In addition
to improved emissions performance, optimized
combustion can also reduce opacity, accelerate
unit load ramping and load following, reduce
tube leakage incidents by alleviating the reduc-
ing conditions typically found inside the pri-
mary furnace, and reduce slag agglomeration
through better management of the fuel gas exit
temperature. These problems are often cited as
the cause of most forced outages or reduced
unit availability and/or capacity.
Modern neural network-based combus-
tion optimization technologies have evolved
significantly since their introduction in the
mid-1990s. Early optimization systems were
manpower intensive to sustain targeted im-
provements, causing some unit operators to
bypass the neural network. Todays more so-
phisticated systems combine neural network
based optimization and model predictive
control (MPC) to extract knowledge about
the combustion process, determine the opti-
mal balance of fuel and airflow in a furnace,
and quickly respond to changing conditions.
Neural networks are based on nonlinear,
multivariable steady-state models derived
from historical unit operating data that iden-
tify the best combination of independent op-
erating variables that will produce the best
possible combustion efficiency and the lowest
possible emissions. MPC employs dynamic
models used to predict changes that will oc-
cur during the next few minutes of operation
and anticipate the effects of disturbances.
Specifically, these optimization processes
directly adjust the units distributed control
system (DCS) or other control system to
February 2014
|
PLANT AUTOMATION
more consistently position dampers, burner
tilts, OFA, and other controllable parameters
to continuously minimize NO
x
and CO. The
process of determining the optimal biases
and adjusting them accordingly is continuous
and occurs in closed loop, without the need
for operator action.
Strong Return on Investment
There are several important ways in which
combustion optimization provides economic
and operational value, even if the system is
focused on just the optimization of NO
x
and
CO required by the pending MATS work
practices. There are inherent boiler efficiency
improvements that will be achieved when op-
timizing NO
x
and CO as required by the rule.
Figure 1 shows an example of the boiler NO
x

reduction achieved with neural net combus-
tion optimization on a 600-MW coal-fired
unit. Note that the average NO
x
is approxi-
mately 19% lower during the 30-day test and
there were fewer excursions when the neural
net system was engaged.
Units with post-combustion NO
x
control
(SCR and SNCR) experience additional cost
savings from neural net combustion optimiza-
tion in two significant ways. First, combustion
optimization enables boiler controls to more
closely match boiler temperatures and NO
x

profiles to catalyst effectiveness and reagent
distribution as each changes over time. Second,
combustion optimization will reduce reagent
usage by 10% to 20%. Other beneficial side
benefits include reduced ammonia slip and
minimizing sulfur trioxide conversion (Figure
2). Combined with the typical fuel savings
achieved with combustion optimization, the in-
vestment in combustion optimization produces
a very attractive financial return. Table 1 shows
fuel savings and reagent cost savings for two il-
lustrative coal-fired units, one a large 600-MW
unit with an SCR, and the second a medium-
sized 350-MW unit with an SNCR.
Integrated Optimization
Boiler optimization, once synonymous with
furnace fuel and air mixing, now refers to the
integrated optimization of the combustion and
sootblowing processes, including the furnace
and backpass regions of the boiler. An example
of the holistic nature of boiler optimization is
seen in the sootblower system. The typical soot-
blowing system determines the specific boiler
zones to be cleaned and activates the needed
blowers and lances through the DCS system.
However, boiler cleanliness significantly im-
pacts combustion efficiency, and furnace tem-
peratures affect ash build up, fouling, and slag
formation. The complexity of these interrelated
processes must also be considered when the
best possible operating economics is the goal.
Resolving these complex relationships is
the strength of neural net combustion optimi-
zation systems. Heuristic models, representing
knowledge in the form of situation-action rules,
are the cornerstone of the neural net combus-
tion system. Instead of attempting to fully ex-
press every possible operating alternative in a
physical control system (an impossible task),
heuristic models use expert knowledge gleaned
from the plant data historian and plant opera-
tor experience to represent situations in which
plant operating experts know how best to react.
These rules can be systematically applied by an
inference engine, which automatically ranks a
set of possible actions described in the form of
situation-action rules and selects the optimal
action. In the sootblower example, the rule set
would determine when and where to perform
the next sootblowing operation so the overall
unit operation is cost-optimized. Expert rules
can also be used to address challenging discrete
changes in plant operations, such as determin-
1. Demonstrated advantage. The figure illustrates measured NO
x
produced (horizontal
scale) under the same operating conditions when the neural network is engaged (right) and
when removed from service (left). The data shown was taken at equivalent load, coal quality,
and ambient conditions. The vertical scale is percentage of time the boiler operates at the pre-
scribed concentration of NO
x
. Courtesy: NeuCo Inc.
2. Reduced operating costs. Ammonia flow required to meet a 90% NO
x
removal set-
point (vertical axis) over one year is illustrated with the neural net combustion optimizer enabled
(right) and secured (left). The horizontal axis is unit load. Source: NeuCo Inc.
|
February 2014 48
PLANT AUTOMATION
ing the most economic combination of pulver-
izers to put into service at a particular load.
The expert rules have become much more
sophisticated in recent years and today there are
processes that extract knowledge from experi-
enced operators with intimate knowledge of the
operation of a particular unit. These rules can
now be reflected in software so the knowledge
is permanently stored yet easily retrievable. The
expert rules approach can then be seamlessly
combined with neural networks, MPC, first-
principles equations, and other methods in the
best possible combination to solve a particular
problem, such as an integrated boiler combus-
tion optimization system.
Optimize Back-End Systems Too
Integrated unit optimization must go beyond
boiler optimization. Other plant operations
must be considered in order to substantially
increase the efficiency, availability, and emis-
sions benefits obtained though combustion
optimization. For example, boiler optimiza-
tion will impact flue gas temperatures, stoi-
chiometry, and unburned carbon in the flue
gas that will in turn impact FGD sorbent and
reagent use, and therefore the effectiveness
of the FGD used for control of HAPS under
MATS. The same may be said of reagents,
such as activated carbon, injected directly into
the boiler or flue gas for mercury removal.
The variable costs for these reagents can be
quite high, particularly those injected directly
into the flue gas. The emissions removal ef-
ficiency can be improved considerably by op-
timizing the injection rates of these chemicals
in response to not only load, but also the very
same operating parameters addressed with
boiler optimization. The best unit combustion
optimization system must consider tradeoffs
between boiler efficiency, NO
x
levels, reagent
use, and sorbent costs in order to minimize
total operating costs while adhering to emis-
sions and operational constraints.
MATS adds another layer of complexity
for operators of coal-fired plants beginning in
2015, so now is the time to begin developing a
compliance plan. A neural net combustion op-
timization system is the only holistic tool avail-
able that will help ensure MATS compliance
while at the same time paying for itself through
improved plant operating efficiency. An intan-
gible yet valuable side benefit is reducing the
testing and administrative reporting expense
that comes with MATS compliance.
Peter Spinney (spinney@neuco.net) is di-
rector of market and technology assessment
for NeuCo Inc. His background includes
more than 25 years of combined electric
power generation, economics consulting,
and government agency experience.
Operating and economic data Typical 600-MW plant Typical 350-MW plant
Net capacity (MW) 555 333
Capacity factor 75% 60%
Annual output (MWh) 3,646,350 1,747,620
Boiler type Tangential Opposed
Design heat rate (Btu/kWh) 9,850 10,000
Annual heat input (mmBtu) 38,828,700 18,396,000
Fuel cost ($/mmBtu) 2.00 2.00
Annual CO
2
output (tons) 5,379,686 1,575,776
Annual fuel cost $77,657,400 $36,792,000
Heat rate improvement -0.375% -0.375%
Annual fuel savings $291,215 $137,970
Baseline average boiler NO
x
(lb/mmBtu) 0.19 0.2
Baseline annual NO
x
(tons/year) 3,592 1,840
Nominal SCR/SNCR NO
x
reduction 90% 90%
Reagent cost ($/ton NO
x
) 3,009 500
Annual NH
3
cost reduction $110,874 $82,782
Total combustion optimization savings $402,090 $220,752
Table 1. Operating cost savings. This table shows fuel and reagent cost savings for a
600-MW unit with selective catalytic reduction and a 350-MW unit with selective noncatalytic
reduction with neural net combustion optimization, both burning Powder River Basin or other
subbituminous coal. The simple payback for the 600-MW unit is less than one year, based solely
on fuel and reagent cost savings. The cost savings that result from avoided MATS tune-ups and
avoided slagging and waterwall tube corrosion are unit-specific but will further reduce the pay-
back period, as will the cost of NO
x
allowances, if required. Source: NeuCo Inc.
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February 2014
|
CYBERSECURITY
NIST Cybersecurity Framework Aims
to Improve Critical Infrastructure
Yet another standard? No. What youll see this month is a tool designed to bring to-
gether all the relevant cybersecurity standards and put them in an appropriate
contexta frameworkso you can manage cybersecurity risk more effectively.
(And yes, managing that risk is everyones business, regardless of job title.)
Steve Mustard
A
year ago, on Feb. 12, 2013, Presi-
dent Obama issued Executive Order
13636, titled Improving Critical
Infrastructure Cybersecurity. The Execu-
tive Order instructed the National Institute
of Standards and Technology (NIST) to de-
velop a voluntary Cybersecurity Framework
that would provide a prioritized, flexible,
repeatable, performance-based, and cost ef-
fective approach for assisting organizations
responsible for critical infrastructure services
to manage cybersecurity risk.
The definition of critical infrastructure
in the Executive Order is: Systems and as-
sets, whether physical or virtual, so vital to the
United States that the incapacity or destruction
of such systems and assets would have a debil-
itating impact on security, national economic
security, national public health or safety, or
any combination of those matters.
As everyone working in the power industry
understands, power generation and transmission
assets are part of that critical infrastructure.
The State of Cybersecurity
Given the availability of a variety of stan-
dards for cybersecurity management, ques-
tions have been raised as to why an official
Cybersecurity Framework is required. Fur-
thermore, many of these standards have been
in existence for many years, and a popular
belief is that the requirements of these stan-
dards are being followed, so additional, simi-
lar standards will not help.
Unfortunately, the data show that even if
current standards are being followed, they
arent providing sufficient protection. There
are many publically available reports on cy-
bersecurity attacks, and there has been a com-
mon theme throughout them for the past few
years, exemplified by these statistics from
Verizons breach reports of 2012 and 2013:
97% avoidable with basic or intermediate
security controls (2012)
92% discovered by a third party (2012)
20% of network intrusions involved man-
ufacturing, transportation, and utilities
(2013)
76% of network intrusions exploited weak
or stolen credentials (2013)
The Verizon report (you can down-
load it here: www.verizonenterprise.com/
DBIR/2013/) used data from 19 global organi-
zations, including law enforcement agencies,
national incident-reporting agencies, research
institutions, and private security firms.
The Repository of Industrial Security Inci-
dents (RISI) produces an annual report that fo-
cuses specifically on industrial control systems
(ICS), and these reports provide conclusions
similar to those from Verizon. The 2013 RISI
annual report stated that 33% of all ICS inci-
dents were perpetrated using remote access.
The Verizon report from 2012 provides stag-
gering temporal statistics relating to cybersecu-
rity attacks. In 2012, 75% of attacks took just
minutes to result in an organization being com-
promised; however, 54% of these compromises
took months to be discovered (and, as noted,
92% of these discoveries were not by the orga-
nization itself). Even after this lengthy delay, in
17% of cases, it took months before restoration
was achieved after the breach discovery, and in
38% of cases it took weeks.
The statistics from Verizon cover all sec-
tors and industry types. Within industrial au-
tomationoriented sectors the situation varies
considerably. Many such organizations have
mandatory cybersecurity standardssuch
as North American Electric Reliability Corp.
Critical Infrastructure Protection (NERC CIP)
in the power industryand their cybersecuri-
ty management programs are good. However,
many organizations that have a potentially
high impact on the critical infrastructure (for
instance, water and wastewater organizations)
have a much lower degree of cybersecurity
management adoption (Figure 1).
There are many reasons for this situation,
and they include:
Lack of awareness in organizations, in
particular at the top of the organization.
Misunderstanding the level of risk an
organization has (for example, thinking
that only happens to other companies or
this has never happened before).
Inability to quantify the risk in likelihood
or impact terms, resulting in inappropriate
level of investment.
Lack of adequate training in cybersecurity
good practice, especially in regards to basic
controls such as good password manage-
ment, backups, and malware protection.
The purpose of the NIST Cybersecurity
Framework is to help tackle some of these
issues. The Cybersecurity Framework is not
another standard. Instead, it is a high-level
concept that brings together relevant standards
and sets them in an appropriate context.
The Cybersecurity Framework
Process
Following the Executive Order announce-
ment in February 2013, NIST issued a
request for information. More than 245 re-
sponses were received from asset owners,
product vendors, and consultants from all
1. Cybersecurity standards adop-
tion. The adoption of cybersecurity stan-
dards in the power industry may be higher
than in some other sectors, but the impact
of a compromised system is the highest.
Source: Steve Mustard
|
February 2014 50
CYBERSECURITY
industry sectors. NIST then arranged a series
of five workshops from May through No-
vember last year at various locations around
the country. At these workshops, typically
350 to 400 attendees representing asset own-
ers, product vendors, and consultants debated
various aspects of the Framework; between
the workshops, NIST reworked the gathered
information into new drafts.
The initial meetings focused heavily on
information technology (IT) systems and
the protection of data and information.
Many attendees were unaware of the specif-
ic issues associated with ICS or operational
technology (OT) systems where protection
is required:
Loss of system availability
Process upsets leading to compromised
process functionality, inferior product qual-
ity, lost production capacity, compromised
process safety, or environmental releases
Equipment damage
Personal injury
Violation of legal and regulatory re-
quirements
Risk to public health and confidence
The Automation Federation, along with
a number of asset owners with OT depen-
dencies, worked throughout the workshop
process, raising awareness of these issues
to ensure the Framework properly addresses
them.
A draft of the Cybersecurity Framework
was issued at the end of October 2013 for
public comment. After a 45-day comment
period, NIST will take the comments and
produce a final version for issue in February
2014 (after this issue goes to press).
Once issued, the Cybersecurity Frame-
work enters an ongoing maintenance and up-
keep cycle to reflect changing circumstances
and feedback from users.
How the Framework Can Help
Your Organization
The Cybersecurity Framework consists of
three key parts:
The Framework Core
The Framework Profile
The Framework Implementation Tiers
The Framework Core (Figure 2) helps pro-
vide an overview of the set of cybersecurity
management activities that an organization is
performing (or should be performing). Start-
ing with five functionsidentify, protect,
detect, respond, and recoverthe Core is
divided into categories (such as asset man-
agement, risk management, awareness, and
training) and subcategories (such as investi-
gate anomalies and perform forensics). Ref-
erences (to sector, national, or international
standard requirements or clauses) are then
listed with these subcategories.
The Framework Profile (Figure 3) helps
organizations quantify their desired outcomes
when implementing the Framework Core. A
Target Profile will show what the organi-
zation aims to achieve in terms of industry
standards and common industry practices.
The organization can then compare its Cur-
rent Profile (what it is currently implement-
ing and following) against the Target Profile
to produce a gap analysis.
The Framework Implementation Tiers
(Figure 4) help define how cybersecurity is
managed within an organization. There are
currently four tierspartial, risk-informed,
risk-informed and repeatable, and adaptive
which require increasing levels of rigor and
Framework Core
Categories Subcategories Information references
IDENTIFY
PROTECT
DETECT
RESPOND
RECOVER
Asset management,
risk management,
awareness and
training, etc.
IEC62443/ISA99,
ISO027001,
NISTSP 800-53,
etc.
Investigate anomalies,
perform forensics, etc.
2. The Cybersecurity Framework Core. Source: NIST
Current Profile
Category/Subcategory
.
.
.
Target Profile
.
.
.
Gap Identification
.
.
.
3. Gap analysis. Using the Framework Profile helps to identify gaps in an organizations
cybersecurity implementation plan. Source: NIST
February 2014
|
CYBERSECURITY
sophistication to achieve. In general, the aim
is for organizations to move from informal
processes, which are not widely deployed in
their business, to a culture of good cyberse-
curity practices supported by formalized and
adaptable processes.
The Cybersecurity Framework will not
automatically make an organization secure
from cybersecurity threats. However, adopt-
ing the Cybersecurity Framework will help
organizations be better prepared to deal with
these threats, by providing:
A high-level structure for an organiza-
tions cybersecurity management process.
A focus on the appropriate application of
standards.
A view of an organizations cybersecurity
management maturity.
A common cybersecurity vocabulary.
A clear statement to help senior manage-
ment understand what their organizations
need to be doing.
Possible government incentives for
adoption.
The intention of the Cybersecurity Frame-
work in its current form is to help raise the
overall level of cybersecurity preparedness
across all sectors and businesses. This is
especially important for those organiza-
tions that have so far done very little in this
area. Even organizations that already have
well-established cybersecurity management
programs can benefit from adopting the
Framework.
Electricity Sector Example
For a draft illustrative framework example for
electricity sector industrial control systems,
see http://1.usa.gov/1c3d3mx. The example
acknowledges that this industry needs to ac-
commodate a variety of legacy equipment
that requires special consideration when
implementing cybersecurity practices.
The example also notes that, Within
the electricity subsector there are many
stakeholders, including users, owners,
and operators of the national power grid,
as well as vendors, regulators and other
interested parties. As such, there are
many existing programs, guidelines, and
standards, to leverage when creating a
Framework Profile. Moreover, some orga-
nizations need to adhere to mandatory cy-
ber security standards, such as the NERC
CIPs. This Profile is written to be flexible
and adaptable to different sizes and types
of organizations within the electricity
subsector, regardless of compliance obli-
gations or existing programs.
What Should Organizations Be
Doing?
Regardless of how well-established an or-
ganizations cybersecurity management
program is, those with management respon-
sibility should:
Map out existing cybersecurity processes
in the organization to produce a current
profile.
Review recommended industry, national,
and international standards and identify a
target profile that the organization should
be following.
Perform a gap analysis of the current pro-
file against the target profile to identify ac-
tions to be undertaken to achieve the target
profile.
Review the actions and the target profile
and either confirm or revise the target pro-
file and required actions to achieve this
revised profile.
Raise awareness of cybersecurity manage-
ment processes and procedures throughout
the organization.
Identify cybersecurity information-shar-
ing channels within the sector and begin
the process of establishing cybersecurity
information-sharing processes.
In addition, organizations should con-
sider engaging (if they have not already) in
the Framework development process to help
ensure that the Cybersecurity Framework re-
mains relevant and valuable.
Next Steps
The Automation Federation has been ac-
tively involved in the development of the
Cybersecurity Framework, helping to
ensure that a focus is maintained on OT
systems and ensuring that appropriate stan-
dards, such as ISA/IEC62443 (Industrial
Automation and Control Systems Secu-
rity), are applied.
On completion of the workshop phase
of development, the Automation Federation
and its member organizations are working
with the White House and NIST on a series
of tabletop exercises and seminars across the
country to brief industry about the importance
of adopting the Cybersecurity Framework. In
addition, the Automation Federations cyber-
security subject matter experts will continue
to be engaged in the Cybersecurity Frame-
work development process.
Steve Mustard (steve.mustard@
au2mation.com) is an industrial control
system and cybersecurity consultant. He
is a Certified Automation Professional,
member of the ISA, Fellow of the Institu-
tion of Engineering and Technology, and
a member of the Automation Federations
Government Relations Committee.
Partial
Not formulated/ad-hoc
Limited awareness of
cybersecurity risk
Limited ability to
collaborate with other
organizations for
cybersecurity risk
management
Risk-
informed
Risk management
practice not
organization-wide
Awareness of
cybersecurity risk with
informal sharing of
cybersecurity information
within organization
No formal interaction
with other external
organization for
cybersecurity risk
management
Risk-
informed and
repeatable
Formal risk management
process
Organization-wide
management of
cybersecurity risk
Receives information
from external
organization and uses
this in risk management
decisions
Adaptive
Practices adapt based on
lessons learned and
predictions
Cybersecurity risk management is part of
the culture
Two way sharing of
information with external
organizations
Increasing rigor and sophistication
4. Move your organization forward. The Framework Implementation Tiers require increasing levels of rigor and sophistication. Source:
Steve Mustard
|
February 2014 52
POWER POLICY
Texas and the Capacity Market
Debate
The odds that the Texas electricity market will undergo change this year are high.
Despite the promise of low costs in an energy-only market, that market alone is
providing insufficient incentives for the reserve capacity needed by the states
growing population and economy.
Kennedy Maize
O
n Feb. 2, 2011, a winter storm gripped
the Lone Star State, bringing freez-
ing temperatures and heavy ice loads
onto the states electric infrastructure. Texas
experienced a series of unexpected rolling
blackouts. That circumstance changed the
dynamics of energy policy in the state, along
with the shape of energy politics. The out-
ages raised the issue of whether Texas should
implement a capacity market along with its
long-functioning energy market, to ensure
adequate electricity to consumers.
In the 2011 outage, more than a million
Texas customers lost service, some for ex-
tended periods. More than 200 power plants
shut down under ice loads and complica-
tions of cold temperatures, including frozen
coal piles at generating stations. The Elec-
tric Reliability Council of Texas (ERCOT),
the states wholesale electric market, scram-
bled to find adequate supplies of electricity
(Texas has sparse interconnections to the
rest of the U.S. grid), and short-term elec-
tricity prices soared.
As the crisis passed, Texan electricity bof-
fins scratched their heads (after removing
their Stetsons, of course) and began think-
ing about an aspect of the states wholesale
market that is different from several of the
other large electricity markets that have
come to dominate over half of the U.S., in-
cluding PJM Interconnection (PJM) in the
Middle Atlantic states, the Independent Sys-
tem Operator-New England (ISO-NE), and
the New York Independent System Operator
(NYISO). What those big markets have im-
plemented, and what Texas so far lacks, is a
market for electric capacity, or potential elec-
tricity supply, to exist alongside the conven-
tional market for energy supplied each and
every day (see sidebar Capacity and Energy
in Electricity Markets).
Restructured Markets and the
Disappearing Reserve
A little explanation is in order for those not
deep into the weeds of electricity market eco-
nomics. For those who already get it, please
bear with us.
In traditional regulated monopoly mar-
kets, which dominated the U.S. until around
the turn of the 21st century and which still
prevail in much of the Southeast and West,
state regulators require utilities to carry a re-
serve margingeneration in excess of whats
needed to meet day-to-day needs. This means
backup electric generating plants, paid for by
customers, which are ready to kick in when
it looks like the utility is going to be stressed
by weather or other events to meet its cus-
tomers needs for electricity. This amounts to
generating inventory.
Inventory is expensive. Thats a fact for
most businesses (and one of the motivators of
online commerce). But too little inventory is
also expensive, in terms of lost sales and lost
customers. In electricity markets, blackouts
are devastating in terms of economic costs and
political impacts. Though most electricity cus-
tomers pay no notice when the lights go on as
expected, they often raise a ruckus when the
lights go off unexpectedly. No utility distribu-
tion company wants to go before its regulators
to try to justify hundreds of thousands of cus-
tomers sitting in the dark for hours, days, or
weeks. And those customers have no choice
about seeking other suppliers. Its often a toxic
political environment for the suppliers.
Capacity and Energy in Electricity Markets
Whats the difference between capacity
and energy when it comes to electricity
markets, and does it make a difference?
That question is a key to understanding
the debate about how to structure the
organized wholesale competitive markets
that now provide electricity to more than
half of U.S. customers.
Capacity is the amount of electricity a
plant can deliver when it is operating at
full power. For example, a nuclear power
plant typically has a capacity of 1,000
MW. A wind plant may have a capacity of
something on the order of 100 MW. But
those numbers can be misleading, as
the nuclear plants capacity is available
around the clock, while the wind plants
capacity varies based on whether the wind
is blowing and how fast.
The U.S. Energy Information Adminis-
tration defines capacity as the maximum
electric output a generator can produce
under specific conditions. Nameplate ca-
pacity is determined by the generators
manufacturer and indicates the maximum
output a generator can produce without
exceeding design thermal limits.
On the other hand, energy is the amount
of electricity generators actually provide to
the grid and is available to be used at any
moment. Organized wholesale electricity
markets buy and supply electricity instanta-
neously. Thats energy. They buy capacity as
backup, or inventory, in case of shortages.
The PJM Interconnection, which has
the most mature and robust energy and
capacity markets for electricity, dating
back some 75 years, offers this definition
of capacity versus energy markets: En-
ergy markets are used to coordinate the
continuous buying, selling, and delivery
of electricity. Capacity markets provide
incentives that are designed to stimulate
investment both in maintaining existing
generation and in encouraging the devel-
opment of new sources of capacity.
February 2014
|
POWER POLICY
In the pre-restructured world of electricity,
the cost of inventoryexcess generating ca-
pacitywas simply folded into overall rates;
customers never really saw those expenses
of backup power. Supporters of competitive
markets assert that the result of the old sys-
tem was too much excess capacity, or power
inventory, also known as gold plating. The
utilities were able to reap a return on the in-
vestments in inventory, which encouraged
them to stockpile generation. The more they
spent, the more they earned.
Then competitive electricity markets
came along, beginning with Federal Energy
Regulatory Commission (FERC) Order 888.
One of the questions arising from the com-
petitive world of electricity procurement was
how to handle reserves. When restructuring
and competitive markets kicked in, driven
by FERC policies, the new markets had to
decide how to deal with the issue of backup
power, or capacity. One choice, which Texas
took, was to rely on daily energy markets to
supply the needed power. Markets would de-
termine how much inventory to carry. Texas
had always enjoyed an excess of electric sup-
ply, and there was no obvious reason in 1995
to expect that would change. Its restructured
market, among the most aggressive in the
country, elected to face shortages rather than
paying for excess generation.
In the East, where a massive blackout in
2003 hit some 50 million electric customers
from Canada to New Jersey, the new regional
transmission organizations (often created out
of long-standing existing power pool sharing
agreements such as PJM) decided to structure
competitive markets for both energy and ca-
pacity (see sidebar PJMs Capacity Market).
PJM, ISO-NE, and NYISO now conduct auc-
tions for generators to bid to supply backup
power supplies to the energy market. The ba-
sic concept is that market prices from capacity
auctions will be high enough to encourage in-
vestment in new electric generating plants and
to encourage large consumers of electricity
or companies that can aggregate small users
into large consumersto reduce their use.
This latter concept is demand response in
electricity industry argot. In the capacity mar-
kets, large consumers and aggregators of load
can bid demand response into the markets on
the same basis as generation. FERC blessed
this concept in its Order 745 in 2011.
Texas decided to keep the prices that con-
sumers must pay for electricity lower by
avoiding capacity costs. The choice between
an energy-only market and a capacity market
is clearly a matter of money.
A FERC technical conference last fall
explored the cost implicationsexpressed
as the missing moneyof introducing
capacity costs into the wholesale cost of en-
ergy. The missing moneyas economist
David Patton, market monitor for both ISO-
NE and NYISO, explainedis the differ-
ence between the levels of excess capacity
that an energy-only market would provide
(probably in the range of 7% to 10%) and
the higher planning levels that most electric
system operators want to see (in the range
of 17%).
The substantial costs of buying capacity in
advance, as opposed to buying energy today,
have proven controversial. In the PJM region,
both Maryland and New Jersey state regula-
tors and their governors objected to the higher
costs of PJMs inventorying capacity at mar-
ket rates. The public service commissions in
both states hatched schemes to use taxpayer
funds to subsidize new gas-fired generating
plants that would bid into the PJM capacity
market. The states perceived that the prices
awarded in the markets auction were too
high and the state-subsidized plants would
win in the auction and lower costs of future
generation. But PJM and FERC objected,
arguing that the state subsidies would drive
down bids in the capacity market auctions
because the subsidized plants would drive
out nonsubsidized competitors.
Federal courts in both states last year
nixed the Maryland and New Jersey plans,
saying that the federal government was in
control of these interstate markets and FERC
had blessed the capacity purchases. The legal
presumption that federal agencies have rights
that trump state regulatory commissions
blocked both Maryland and New Jersey. As
is often the case when it comes to the opera-
tion of sophisticated wholesale competitive
markets where state-regulated monopolies
once prevailed, considerable contention re-
mains about the need for capacity markets.
In overturning the New Jersey and Maryland
attacks on FERC, the courts didnt address
the economics in play in the debate over ca-
pacity markets.
Because buying reserve energy (inven-
tory) is expensive, consumer interests often
oppose the idea. Thats what motivated the
state governments in New Jersey (with a sup-
portive Republican governor) and Maryland
(with a supportive Democratic governor) to
offer their now-illegal options. A paper for
the libertarian Cato Institute concludes, The
theoretical case for capacity markets is weak
at best. Many of its arguments depend on
oversimplified assumptions that are at vari-
ance with reality, particularly those that are
necessary to produce the missing money phe-
nomenon. But the capacity markets in play
in the Northeast and Middle Atlantic states
are working, a powerful argument for their
wider use.
Texas Bucks Capacity Markets
The issue of capacity markets has now landed
squarely in Texas, where the three-member
PJMs Capacity Market
The PJM Interconnection, which covers a
wide swath of the U.S. from New Jersey to
Ohio, has the most robust and developed
capacity market among the organized
wholesale electricity markets. Known in-
ternally as the reliability pricing model,
the PJM capacity market rests on an auc-
tion each year to reserve capacity three
years ahead. As PJM describes it, PJMs
capacity market provides forward pricing
signals to encourage retention of exist-
ing resources and development of new
resources in the PJM region. Adequate
capacity resources are required to sup-
port the reliability and stability of the
electric grid for consumers demand.
The most recent PJM capacity auc-
tion last May produced good results for
the wholesale market, drawing a record
amount of new generation at lower prices
than previous sales. The results of this
years capacity auction reaffirm that well-
designed, mature markets are a power-
ful tool for procuring new resources at
competitive prices, said PJM CEO Terry
Boston. Again this year, we see record
amounts of new conventional generation
and strong showings from renewables and
energy efficiency.
The choice between an energy-only market
and a capacity market is clearly a matter
of money.
|
February 2014 54
POWER POLICY
Public Utility Commission of Texas (PUCT) is pondering scrapping
its energy-only approach in order to include a mandatory reliability
margin and an auction mechanism to achieve that margin.
Texas has what can best be described as an aspirational reserve
margin. The PUCT has established what it wants as a goal for excess
generation (somewhere around 14%), but there is no way to require
any participants in the ERCOT market to meet that target.
The North American Electric Reliability Corp. (NERC), the na-
tional judge of whether the nation has enough electricity capacity to
meet its customer demands, has long targeted Texas as a problem. In
its December 2013 report, Long-Term Reliability Challenges and
Emerging Issues, the Atlanta-based group said, Since 2011, NERC
has highlighted resource adequacy challenges in ERCOT.
The February 2011 blackouts (which came on the heels of
a 2006 summer set of politically fraught rolling blackouts),
sparked Donna Nelson, PUCT chairman, to push for a Texas ca-
pacity market. Nelson, a lawyer, was Gov. Rick Perrys advisor
on energy and telecommunications issues when he named her to
the powerful PUCT in 2008 and chairman in July 2011, after the
February energy crisis. She quickly concluded that Texas should
implement a capacity market to provide needed backup power to
prevent future blackouts.
She also quickly ran into opposition from fellow PUCT Commis-
sioner Kenneth Anderson, also a Perry appointee and a lawyer. He
has argued forcefully against a capacity market for Texas. In testi-
mony to a state Senate committee recently, Anderson said, A manda-
tory capacity reserve margin will result in billions of unnecessary,
unavoidable and largely un-hedgeable costs to customers, without
guaranteeing rolling blackouts will not occur.
Hes had support from Texas business interests and the Dallas Morn-
ing News. The newspaper has said that arguments by power generators
that they need a market for their services are bogus. Thats nonsense,
and a scare tactic designed to get a payday from consumers, said the
editorial. PUC Commissioner Ken Anderson recently suggested as
much, challenging industry claims that Texas would lose $14 billion
over the next decade and a half because of power outages.
Nelson and Anderson butted heads for two years on the issue of a
capacity market for Texas. A vacancy on the three-member PUCT pre-
vented action. But last August, Perry filled the vacancy on the regula-
tory commission with Brandy Marty, who had been his chief of staff.
She is also an attorney and was a budget and planning guru for the
Perry administration before becoming his chief of staff. Although she
has not made her views known on the capacity market, many analysts
expect she will be the deciding vote to break the Nelson-Anderson
deadlock in Nelsons favor.
The policy debate in Texas is coming to a head in early 2014,
after much political maneuvering at the end of last year, according
to many observers.
Opponents of a capacity market have argued, as does PUCT Com-
missioner Anderson, that the costs of reserve capacity in a formal
market are too high. Thats won support from the Texas Association
of Manufacturers, which consists of large electricity users. Their
chief, Tony Bennett, argued in the Dallas Morning News that a ca-
pacity market assumes worst-case, hypothetical scenarios, and all
existing power generators receive the same subsidy payment, regard-
less of whether their power is ever needed or used. His group has
proposed an alternative, which he calls a Supplemental Reserve
Service. Under this plan, ERCOT would determine the amount of
additional power that needs to be purchased, say during the summer,
and would provide payments only to those generators who provide
the additional power.
Bennetts proposal, as outlined in the press, appears to duck the issue
of how much ERCOT might pay for the reserve power and the terms
and conditions under his alternative. As a practical matter, it appears
Bennetts plan could amount to a capacity market by another name.
Capacity Market or Bust?
Generators have promoted the idea of a classic capacity market, as
implemented in PJM, NYISO, and ISO-NE. Exelons John Orr told
the Dallas Business Journal, I need to be sent a signal and have a
reasonable expectation of what Im going to get or I wont drop a dol-
lar here. You have to think what youre competing against. Its a world
market for money and its certainly a national market for money. And
every other place is willing to pay you, but not here. Youre gambling
here if youre an investor.
Today, as the issue moves toward a resolution in Texas, the betting
is that Nelson and Marty will approve some sort of plan for a Texas
capacity market that resembles what exists in the Northeast. UBS
utilities analyst Julien Dumoulin-Smith, one of the savviest savants
of electricity markets, recently told his clients, in a private analysis
obtained by POWER, We see ERCOT as repositioning itself strate-
gically to make any new capacity market palatable; while clearly on
board with the idea in our view, the price must be right.
A major indicator will be the release of a report by the con-
sulting firm The Brattle Group, which is imminent as this article
is being written. Dumoulin-Smith says the reports recommen-
dation of a reserve margin for ERCOT could be crucial for the
debate on implementing a capacity market for the state; the rec-
ommended margin will determine the overall cost of a market.
The lower the suggested margin, the less capacity ERCOT will
have to buy and the less impact on overall consumer prices. In
any case, he says, Texas is moving toward some form of a capac-
ity market for ERCOT.
Kennedy Maize is a POWER contributing editor.
Grading Bobs 2013 Predictions
Dont miss former Editor-in-Chief Robert
Peltier, PEs self-grading of his predictions
for 2013. They can be found in his blog
posts dated 1/6/2014 and 1/7/2014. From
the POWERblog area of powermag.com,
click Read the latest to find the posts.
Weve started a discussion about his
predictions and grades on the LinkedIn
POWER magazine group. Comment there
if you agree or disagree with his grades!
Bobs predictions ranged from issues
concerning likely U.S. federal regulations
to natural gas prices. His overall grade?
My grade average works out to 3.53,
which is barely equivalent to an A- this
year, my highest score to date. Making
the Honor Roll for 2013 was an excellent
way to end the year.
Need an easy way to obtain more
information to make an informed decision?
Customized newsletters are now available giving
you everything you need to make the right decision.
Look for DecisionBriefs on www.powermag.com
For information, contact Matt Grant at mattg@powermag.com
PRODUCT DETAILS. SPECS. TUTORIALS.
DB DecisionBriefs |
INTRODUCING
|
February 2014 56
RENEWABLES
Japan Ramps Up Renewables
Already planning a major expansion of its renewable capacity, Japan has been
forced to redouble its efforts with the loss of its nuclear fleet after the Fu-
kushima Daiichi disaster. Though an array of obstacles stand in its way,
the nation hopes to triple its renewable output by 2030.
Thomas Overton
I
n 2010, intent on continuing its commit-
ment to energy efficiency and preventing
climate change, Japan enacted its second
Basic Energy Plan. The new policy docu-
ment, revising the first, from 2003, called for
dramatic increases in both nuclear genera-
tion and renewable energy, all with an eye to-
ward reducing the nations carbon emissions
25% below 1990 levels by 2020. Renewable
generation was to increase from 9% (almost
entirely hydroelectric) to 20% by 2030. Non-
hydro renewables would be supported by
expanding the existing feed-in tariff (FIT)
system, established in 2009 to support small-
scale solar photovoltaic (PV), to include
wind, geothermal, and biomass. An array of
other subsidies, credits, and tax exemptions
were planned to support the development of
new renewable technologies.
Japan has long been one of the leaders in
renewable energy, both in innovation and in
installed capacity. Its domestic solar PV in-
dustry, led by electronics giant Sharpthen
the worlds largest manufacturer of solar
panelsexpected to supply growing demand
worldwide for many years.
Much of this changed on March 11, 2011.
Though Japans nuclear industry sus-
tained the lions share of the upheaval fol-
lowing the Tohoku Earthquake and tsunami,
and the subsequent disaster at the Fuku-
shima Daiichi nuclear plant, those changes
have also forced Japan to reassess its plans
for renewable generation.
Much, however, has not changed. Japan re-
mains a nation with limited resources that must
import more than 90% of its energy needs. Its
economy, still the third-largest in the world, is
stagnant, mired in a two-decade period of flat-
to-negative growth in GDP. But its manufac-
turing sector remains one of the worlds most
advanced, and strong government and social
support for energy efficiency means the na-
tions electricity consumption has been level
for the past decade, with total generation for
2012 virtually the same as 2002 levels, accord-
ing to the Federation of Electric Power Compa-
nies, the association of the countrys 10 utilities
(though this also reflects the fact that Japans
entire nuclear fleet remains offline).
Current Policies and Problems
The 2010 Basic Energy Plan, which was
scheduled to begin taking effect last year,
has undergone repeated revisions. The pre-
vious government, led by the Democratic
Party of Japan, had planned for a complete
phase-out of nuclear by the 2030s combined
with an aggressive focus on renewables. The
new Liberal Democratic government, led by
Prime Minister Shinzo Abe, has backed away
from a nuclear retreat, saying in December
that nuclear would remain an important part
of the nations energy mix and that Japan will
only seek to reduce dependence on nuclear
as much as possible.
The most recent draft policy envisions the
nation reaching 25% to 35% renewable gen-
eration by 2030. The revised FIT system went
into effect in 2012 and sets fixed prices that
utilities must pay for renewable generation.
The initial tariff for solar42/kWh ($0.40/
kWh) over a 10-year period for small sys-
tems and over 20 years for those larger than
10 kWwas originally about twice that for
wind (23.10/kWh), though it was reduced in
April 2013 (to 37.8/kWh).
These generous subsidies, which are sub-
stantially higher than those offered elsewhere,
such as in renewable-friendly Germany and
Sweden, have led to a boom in solar con-
struction (Figure 1), resulting in an estimated
5 GW of new capacity added in 2013. As of
July, the government had approved 23 GW of
new solar projects, nearly all of it since the
new FIT came into effect.
Still, there are substantial barriers in the
way of reaching the ambitious 2030 targets.
Perhaps the biggest challenge is where to
site all this space-intensive generation in a
mountainous country that is one of the most
densely populated industrialized nations in
the world. The lack of space elsewhere has
meant many new large projects are being
sited in the less-populated north, particu-
larly on the island of Hokkaido. The recent
crush of applications for power sales
amounting to 25% of all projects approved
nationwidehas overwhelmed Hokkaido
Electric Power Co. (HEPCO), leading to de-
lays in processing.
The need to site so much generation so
far from population centers in the south has
also led to concerns about transmission ca-
pacity. HEPCO complained last April that it
had received applications for four times as
much new capacity as its grid is capable of
handling. The problem is so acute that the
countrys Ministry of Economy, Trade and
Industry (METI) has allocated nearly $300
1. Sunny skies. The 10-MW Komekurayama Solar Power Plant in Kofu, built by Tokyo Elec-
tric Power Co., came online in 2012. Courtesy: Sakaori
February 2014
|
RENEWABLES
million to build what will be the worlds larg-
est storage battery for HEPCO. The 60-MW
battery, due to come into service in 2015, will
boost HEPCOs ability to accommodate in-
dependent generation by an additional 10%.
Elsewhere, many applicants are being de-
nied access to local grids because of similar
overcapacity. A survey conducted by the Japan
Renewable Energy Foundation found that 20%
of the respondents were denied access and 37%
were approved, but with limited output.
While this is an issue with renewable gener-
ation nearly everywhere, it is a special concern
in Japan, which operates two separate national
gridsone at 60 Hz in the west and the other
at 50 Hz in the eastwith only limited ability
to move power between them. Worse, the 10
regional utilities typically operate as separate
systems, only rarely sharing power.
In hopes of addressing these issues, the gov-
ernment passed legislation in December that
would establish a single national grid company
by 2015. The aim is to better align standards
and practices across the regional utilities and
two grids. METI is also advising developers to
seek solar sites outside of Hokkaido.
Cost is another issue. One reason for the
high FIT is that prices for installed solar PV
in Japan are around twice those in Germany.
Land is more expensive, labor costs are high,
and limited space for installation often means
more sophisticated technology is necessary.
This is a problem despite the fall in solar
panel prices, which has wreaked havoc in the
nations renewables manufacturing sector.
Once supplying nearly 90% of Japans solar
PV demand, domestic manufacturers saw
importsmostly from Chinaclaim a 56%
market share last year. The competition has
forced Sharp to close three of its four solar
PV factories, while Panasonic recently can-
celled plans for a new domestic plant, decid-
ing instead to site it in Malaysia.
Wind generation has its own set of issues.
Though the nation has many areas of good
wind potential, bureaucratic hurdles have
slowed development, and the nation currently
has only 2.3 GW of installed capacity. New
wind projects are required to complete lengthy
and complex environmental assessments,
which have stalled several large projects, in-
cluding a 120-MW facility in Tokyo. Turbines
over 100 feet tall are required to incorporate
expensive seismic safeguards (though this is
the reason most of its existing turbines sur-
vived the earthquake unscathed). Even so, the
government is hoping that at least 10 GW of
wind generation can be added by 2030.
Another problem has been the lack of a con-
sistent energy policy. The national government
has seen six different prime ministers since
2008, and the frequent shifts in direction, es-
pecially since 2011, have created uncertainty
about future support for renewables. Industry
officials and policy analysts have stressed the
need for consistent, long-term policy goals if
further progress is to be made. Streamlining
approval processes and reducing bureaucratic
impediments will also be important.
Current Projects
Japans renewable output is dominated by
hydropower, but most of the current develop-
ment is focused on solar, with wind running
a distant secondthough the latter has the
most interesting potential.
Solar. More than 90% of Japans installed
capacity of non-hydro renewables is solar. In
2013, Japan became the fifth country with at
least 10 GW of solar capacity. In November,
electronics company Kyocera inaugurated
what is so far the nations largest solar PV
plant, the 70-MW Kagoshima Nanatsujima
Mega Solar Power Plant in Kagoshima City,
at the southern tip of the country (Figure 2).
The $275.5 million project, which comprises
290,000 solar panels manufactured by Kyo-
cera, is a joint venture between Kyocera and
six other companies. The consortium was
formed in July 2012, shortly after the FIT
program took effect, and construction was
completed in a little over a year.
Larger projects are in the works. Telecom-
munications and internet company Softbank,
which already operates seven solar energy
facilities across the country (though most are
fairly small), had plans for three large solar
plants in Hokkaido totaling 180 MW. The
uncertain situation on Hokkaido forced Soft-
bank to scale back the project to 110 MW.
Construction was due to start in October, with
completion scheduled for 2015.
Meanwhile, last January industrial giant Mit-
subishi announced plans to partner with another
firm to build an 80-MW solar plant in Tahara
City, in Aichi Prefecture southeast of Nagoya.
The $221 million project will be built by Toshiba
and is scheduled for operation in early 2015.
Wind. Japans wind industry has lagged
well behind solar. The largest currently op-
erating wind farm in the country is the 148-
MW Mutsu facility near Kyoto, but only a
handful of other projects larger than 50 MW
exist. Nevertheless, ambitions are large.
In 2012, Fukushima Forward, a project
backed by METI and a coalition of private
companies led by Marubeni Corp., began
what may one day become a 1-GW floating
wind farm off the coast of Fukushima Prefec-
ture. The first phase of the project comprised a
2-MW Hitachi turbine mounted on a spar buoy,
which began supplying power in November
(Figure 3). A floating 66-kV substation, the
first of its kind in the world, has also been con-
structed. The next phase of the project, slated
for March, will comprise two 7-MW Mitsubi-
shi Heavy Industry turbines. METI has com-
mitted $220 million for the five-year project.
If all goes well, the project may ultimately be
expanded to 143 floating turbines with a total
capacity of 1 GW by 2020.
Despite the technological challenges, ex-
perts think floating wind power may have
substantial potential for Japan. Though it has
many areas of prime offshore wind resourc-
es, the continental shelf around Japan is too
deep to construct the sort of fixed offshore
wind farms common in Europemore than
80% of its wind potential is in deep water.
The seas at the Fukushima Forward site, for
example, are around 100 meters deep. ME-
TIs long-term plan is to make Japan a world
leader in floating offshore wind power.
Another floating test project has been un-
derway off Nagasaki since May 2012. After
launching a 100-kW test bed, the project was
upgraded with a 2-MW turbine this past fall.
Geothermal. Japan has been producing
geothermal energy since 1966 and currently
has 17 geothermal plants in operation with
a total capacity of 535 MW. Most of them,
however, were constructed before 1974,
when the national government banned further
2. Biggest for now. The 70-MW Kagoshima Nanatsujima Mega Solar Power Plant is cur-
rently the largest solar plant in Japan. Courtesy: Kyocera
|
February 2014 58
RENEWABLES
development out of environmental concerns.
Though Japan, with numerous active volca-
noes, is thought to have enormous geother-
mal potentialas much as 20 GW, according
to government researchmost of it is found
in areas that have been set aside as national
parkland. Japans long cultural affinity for
enjoying its natural hot springs has made
geothermal development highly sensitive.
Even so, pressure from the nuclear shut-
down has caused some rethinking. Last
March, the government lifted the ban to al-
low five new projects to proceed, though
oversight is strict.
The FIT for geothermal is currently 27.3/
kWh for projects over 15 kW. Around 20 oth-
er projects are under consideration, though
some are quite small.
Hydropower. Hydro has traditionally
supplied the bulk of Japans renewable out-
put, around 70% in 2011. With an installed
capacity of 27 GW and 82.5 TWh of total
generation in 2011, Japan ranked eighth
in the world for hydroelectric production.
Almost no new capacity has been added in
decades, however, and nearly all of the na-
tions major hydroelectric potential has al-
ready been harnessed. Small-scale projects
continue to be developed, but these are not
expected to make a meaningful impact on the
generation mix.
The future is likely to be in pumped stor-
age. Japan has a number of large dams with
pumped storage capacity, and three major
pumped storage projects are due to come into
service in the next decade. The Kannagawa
Hydropower Plant in Nagano is currently
about one-third of the way through construc-
tion of its six-unit generating plant that will
ultimately reach 2,820 MW capacity, with
final completion expected in 2020. The 600-
MW Kyogoku Pumped Hydro Power Station
in Hokkaido is expected to be completed in
2022, and the Kazunogawa Dam in Yama-
nashi is adding 800 MW to its pumped stor-
age capacity, also by 2022.
Outlook
As this article went to press, METI was still
revising the latest Basic Energy Plan, and
was expected to present a new draft to a gov-
ernment panel in late December. Much of the
current debate centers on the role of nuclear,
but further efforts to open up the 10 regional
power companies to more competition are
also under discussion. Meanwhile, the nation
burned record amounts of imported coal and
liquefied natural gas in November, a situation
all parties agree is unsustainable. Whatever
direction Japan ultimately takes, a greatly ex-
panded role for renewables seems certain.
Thomas W. Overton, JD (@thomas_
overton) is POWERs gas technology
editor.
3. Setting sail. This 2-MW wind turbine
off the coast of Fukushima may be the first el-
ement of a planned 1-GW floating wind farm.
Courtesy: Marubeni Corp.
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2014
February 2014
|
NEW PRODUCTS
TO POWER YOUR BUSINESS
Inclusion in New Products does not imply endorsement by POWER magazine.
Three-Phase Noncontact Current
Transducer
The RCTrms-3ph current transducer from Power Electronic
Measurements offers a relatively convenient, safe, and accurate
solution for measuring current in three phases. It has a thin, clip-
around, exible sensor coil and provides true rms measurement
with 420 mA or 05 V output, enabling integration with
programmable logic controllers, SCADA systems, or automation
equipment. The DIN-rail or panel mountable design connects to
three Rogowski coils to capture measurements from three current
phases simultaneously. It is available in 18 current rating options
from 100 amp to 50,000 amp and a choice of 300 mm, 500 mm,
700 mm, or custom coil lengths.
The RCTrms-3ph operates from a 1224 V power supply. The
transducer provides a galvanically isolated measurement and uses
nonmagnetic materials, which ensures excellent linearity and
prevents damage from overcurrents. Typical accuracy is better than
1% of reading from 10% to 100% full scale. (www.pemuk.com)
Urethane-Lined Knife Gate Valve
DeZURIK offers a urethane-lined knife gate valve, model KUL, designed for on/off and throttling applications of abrasive slurry and
dry abrasive materials. KUL valves feature a one-piece, cast-in-place liner that provides bidirectional, drip-tight shutoff to either
150 or 250 psi. All wetted surfaces of the ductile iron body are lined with urethane. The valves are available in sizes 2 to 48 inches
with temperature ratings from 40F to 180F. (www.dezurik.com)
Portable Industrial Emissions Analyzer
The E5500 combustion analyzer is a complete portable tool
for emissions monitoring for regulatory and maintenance
use in boiler, burner, engine, turbine, furnace, and
other combustion applications. The analyzer includes
electrochemical gas sensors for O
2
, CO, NO, NO
2
, and SO
2
,
and can have a maximum of ve total gas sensors. The
standard EGAS software package includes the ability to
save and graph data in real time in the eld with a laptop or
in a laboratory with a personal computer.
Temperature measurements for the ue gas and air as well
as the differential temperature are standard features. The
differential temperature is used as part of the efciency
calculation. An internal pressure sensor allows the analyzer
to measure pressure and stack draft. With two pressure
inputs, a differential pressure can also be measured. Gas
velocity can be measured using the differential pressure and
an optional pitot tube. The analyzer comes standard with a
complete factory calibration. (www.E-Inst.com)
Opportunities in Operations and Maintenance,
Project Engineering and Project Management,
Business and Project Development,
First-line Supervision to Executive Level Positions.
Employer pays fee. Send resumes to:
POWER PROFESSIONALS
P.O. Box 87875
Vancouver, WA 98687-7875
email: dwood@powerindustrycareers.com
(360) 260-0979 l (360) 253-5292
www.powerindustrycareers.com
CAREERS IN POWER
NAES Corporation is a leading provider of
3rd party O&M services to the Independent
Power Industry. As we continue to grow, we
have constant needs for power professionals
across the nation.
For more info, log onto:
www.naes.com/careers
|
February 2014 60
To Advertise in POWER Classieds
CONTACT: Diane Burleson
PHONE: 512-337-7890
FAX: 512-213-4855
dianeb@powermag.com
CONDENSER & HEAT EXCHANGER TOOLS
CLEANERS, PLUGS, BRUSHES
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PH # 800-726-1026
e-mail: jrrinc@earthlink.net
www.johnrrobinsoninc.com
READER SERVICE NUMBER 200
POWER PLANT BUYERS MART
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LM6000
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50/60Hz, nat gas or liq fuel,
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Available for Immediate Shipment
Tel: +1 281.227.5687
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John.clifford@woodgroup.com
NEED CABLE? FROM STOCK
Copper Power to 69KV; Bare ACSR & AAC Conductor
Underground UD-P & URD, Substation Control Shielded
and Non-shielded, Interlock Armor to 35KV, Thermocouple
BASIC WIRE & CABLE
Fax (773) 539-3500 Ph. (800) 227-4292
E-Mail: basicwire@basicwire.com
WEB SITE: www.basicwire.com
OWNERS/MANAGERS
NEED SUPPORT?
Operations Mgmt
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Performance
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February 2014
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Tom Haarala
612-202-0765
thaarala@cdims.com
Todd Bradley
810-229-7900
tbradley@cdims.com
www.cdims.com
Layup Desiccant
Dehumidification
& Filtration Units
for long term layup
of power generation
equipment. For over
35 years of drying
solutions contact:
3905 Power Connect Classified_Power Connect Clas
CONDENSER OR GENERATOR AIR COOLER TUBE PLUGS
THE CONKLIN SHERMAN COMPANY, INC.
Easy to install, saves time and money.
ADJUSTABLE PLUGS- all rubber with brass insert. Expand it,
install it, reverse action for tight t.
PUSH PULL PLUGS-are all rubber, simply push it in.
Sizes 0.530 O.D. to 2.035 O.D.
Tel: (203) 881-0190 Fax:(203)881-0178
E-mail: Conklin59@aol.com www.conklin-sherman.com
OVER ONE MILLION PLUGS SOLD
Turbine Controls
Woodward, GE, MHC
Parts and Service
TurboGen (610) 631-3480
info@turbogen.net
George H. Bodman
Pres. / Technical Advisor
Ofce 1-800-286-6069
Ofce (281) 359-4006
PO Box 5758 E-mail: blrclgdr@aol.com
Kingwood, TX 77325-5758 Fax (281) 359-4225
GEORGE H. BODMAN, INC.
Chemical cleaning advisory services for
boilers and balance of plant systems
BoilerCleaningDoctor.com
24 / 7 EMERGENCY SERVICE
BOILERS
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50 - 25,000 KW
GEARS & TURBINES
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WE STOCK LARGE INVENTORIES OF:
Air Pre-Heaters Economizers Deaerators
Pumps Motors Fuel Oil Heating & Pump Sets
Valves Tubes Controls Compressors
Pulverizers Rental Boilers & Generators
847-541-5600 FAX: 847-541-1279
WEB SITE: www.wabashpower.com
FOR SALE/RENT
444 Carpenter Avenue, Wheeling, IL 60090
POWER
EQUIPMENT CO. wabash
READER SERVICE NUMBER 207 READER SERVICE NUMBER 209
Media Blasting Services
www.molemaster.com
Toll Free: 800.322.6653 Fax: 740.374.5908
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Regardless of the surface,
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This guidebook exclusively features
benchmarking articles, including full charts,
photographs, graphs and step-by-step
instructions, previously featured in POWER
magazine.
Table of Contents:
Profiling your plant engineering staff
Whats that scrubber going to cost?
Estimating SCR Installation costs
Whos doing coal plant maintenance
Update: Whats that scrubber going to cost?
Update: Benchmarking boiler tube failures
Benchmarking nuclear plant operating costs
Benchmarking nuclear plant staffing
Benchmarking nuclear plant capital requirements
Benchmarking fossil plant performance measures, Part I: Station-level metrics
Benchmarking fossil plant performance measures, Part II: Fleet-level metrics

Available in a PDF format. 46 pages.
Benchmarking
Guidebook
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
0
Corporate
level
Fossil fleet
level
Generation
technology
level
Plant/station
level
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department
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17
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Order your copy online at http://store.powermag.com
or call 888-707-5808
22393
February 2014
|
ADVERTISERS INDEX
Enter reader service numbers on the FREE Product Information Source card in this issue.
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POWER
Subscribe today: subscribe@coalpowermag.com
Applied Bolting Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48. . . . . . . . 17
www.appliedbolting.com
Braden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15. . . . . . . . 8
www.braden.com
Brandenburg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover 4 . . . . . 18
www.brandenburg.com
Burns & McDonnell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . 3
www.burnsmcd.com
Corrpro Companies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 . . . . . . . . 5
www.corrpro.com
Elgin Sweeper. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27. . . . . . . . 13
www.elginsweeper.com
Fibrwrap Construction Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 . . . . . . . . 5
www.fibrwrap.com
General Electric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . 2
www.ge-mcs.com
Hach.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31. . . . . . . . 14
www.hach.com
Hawk Measurements America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. . . . . . . . 9
www.hawkmeasure.com
KIMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21. . . . . . . . 10
www.kimae.de
Magnetrol. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. . . . . . . . 7
www.magnetrol.com
Marrone Bio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23. . . . . . . . 11
www.gotmussels.com
MD&A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. . . . . . . . 6
www.mdaturbines.com
Power & Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45. . . . . . . . 16
www.piburners.com
Siemens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . . 4
www.siemens.com/energy/controls
Swan Analytical Instruments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43. . . . . . . . 15
www.swan.ch
Westinghouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CV2 . . . . . . . 1
www.westinghousenuclear.com
Page
Reader
Service
Number Page
Reader
Service
Number
15_PWR_020114_classifieds_p60-63.indd 63 1/15/14 10:22:18 AM
|
February 2014 64
COMMENTARY
James Newcomb Ben Paulos
Are You Ready to
Compete with Your
Customers?
N
ew technologies and consumer demand for cleaner energy
are rapidly transforming the power sector. This transforma-
tion is most evident in the advent of distributed energy
resources (DER)a marriage of information technologies with
the power grid. Some call it the internet of electricity.
DER is a package of customer-side technologies including en-
ergy efficiency, demand response (DR), distributed generation,
storage (both thermal and electric), and smart electric vehicle
charging. Thanks to digital controls and wireless communica-
tions, these demand-side resources are becoming controllable
enough to look to the grid just like a power plant. Supply and
demand are becoming interchangeable to grid operators.
As part of Americas Power Plan (americaspowerplan.com),
Rocky Mountain Institute looked at the potential for DER and the
barriers standing in their way.
Losing Control
The growth of DER is a wildcard in the power sector. With central-
station power plants and transmission lines, regulators have a
high degree of control over how much gets developed and where.
Even in competitive markets, independent power plant develop-
ers are keenly aware of market trends and do not risk billion dol-
lar investments lightly.
But demand-side technologies are driven by consumers, who make
decisions to meet their own needs, not those of the whole system.
As long as efficiency, distributed generation, and smarter controls
deliver value to consumers, their use will continue to grow.
How big a contribution can they make? Some examples sug-
gest we are in the early stages of a revolution.
A New Type of Capacity
The PJM Interconnection, serving 60 million customers from the
Mid-Atlantic to Chicago, has enthusiastically embraced demand re-
sponse. With DR, customers respond to calls for conservation and the
market price of electricity in real time. Automated controls change
the temperature of thermostats, dim lights, briefly turn off water
heaters and refrigerators, and otherwise give the grid a break.
DR is an evolution of what utilities have for years called direct
load control. But information technology has refined it to be faster,
more reliable and transparent, and more attractive to consumers.
Now that DR has become reliable enough to count as a utility
system asset, its value has been quantified and an industry of
DR aggregators has grown up, led by companies like Enernoc and
Comverge. These companies recruit customers, bundle the DR to
make it look to the utility system like a power plant, and then
sell negawatts to the market.
Each year PJM holds auctions to buy capacity three years
ahead of time. Starting in 2009, PJM allowed efficiency and DR
to compete in the auctions with new power plants. Last May, PJM
signed up 169,000 MW of capacity for 2016. Most of this was
existing power plants, but for new resources DR was the biggest
winner, with 12,400 MW accepted. This was over two times as
much as new power plants.
We can reduce our peak loads in this country by 20 percent
using demand response, according to Jon Wellinghoff, recently
retired chair of the Federal Energy Regulatory Commission. Its
happening and its coming very quickly.
Big customers, like factories and campuses, have been the first
to adopt DER technologies. Companies like Amazon, AT&T, and
Home Depot are beginning to test products for residential cus-
tomers. Meanwhile, Ford has launched MyEnergi Lifestyle with
Whirlpool, SunPower, and others to integrate its Cmax Energi
electric car with smart appliances and solar, delivering a 60%
reduction in energy costs for a typical home.
Paving the Way for Innovation
These innovations no doubt are just the beginning. But they
are confronting regulations that are not equipped to incorporate
them gracefully.
A paper for the Edison Electric Institute, Disruptive Chal-
lenges, drew on parallels with the telecom industry to evoke
a vicious cycle triggered by DER that would undermine util-
ity profits. The threat to the centralized utility service model
is likely to come from new technologies or customer behavioral
changes that reduce load, it argued.
In many places the rules penalize utilities with lost profits for
every kilowatt-hour not used and for every generator put on the
customer side of the meter. Our century-old legal, economic, and
regulatory structures are thwarting innovation.
To address the mismatch between evolving electricity system
needs and the rules and regulations constraining that system, we
recommend the following set of policy changes:
Better analysis. Policymakers need to better measure DER costs and
benefits to provide a foundation for designing effective incentives,
pricing structures, and markets, as well as to compare centralized
and distributed options in resource planning processes.
Create a level playing field. As long as DER play a different game
than centralized options, there will be unintended results that
could undermine the quality of service, financial viability, and
innovation. We need to put them on the same field, competing
fully and fairly, to provide energy and ancillary services.
New technologies and service models. Distributed technologies
are like square pegs in the round holes of current regulations.
Regulators must remove this barrier to innovation by setting
up appropriate metering and cost accounting, and allowing in-
novative ownership and billing structures. Permitting, financ-
ing, and interconnection procedures can all be streamlined to
avoid wasted money and effort.
These changes will allow for a graceful transition to the clean-
er, more efficient, more resilient, and more affordable future cus-
tomers are seeking with distributed energy resources.
James Newcomb is a program director for Rocky Mountain
Institute and lead author of Policy Implications of Decentraliza-
tion. Ben Paulos is the director of Americas Power Plan.
Register now to reserve your seat at
www.energyocean.com
VIP Code:
23050
Every year, hundreds of the most infuential players in the industry attend Energy Ocean to
strategically collaborate on new technologies, regulation, fnancial opportunities, case studies and
research to work towards the advancement of ocean energy.
You should be there too.
Across 3 days, youll gain access to:
Cutting-edge presentations led by speakers from key offshore renewable energy development
projects and organizations such as Flumill, BOEM, Schottel Tidal and the Cape Wind Project.
Premier exhibitors showcasing the newest innovations in products and services for the industry.
A highly interactive format to deliver unprecedented networking opportunities between thought
leaders, executive-level attendees and industry leading companies.
Take advantage of this once a year opportunity and come join the industry on June 3-5, 2014 to
discover whats next.
June 3-5, 2014
Atlantic City, NJ Sheraton Atlantic City Convention Center Hotel
Dedicated to the Advancement of the
Offshore Renewable Energy Market

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