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August 2016 Vol. 160 No.

BUSINESS & TECHNOLOGY FOR THE GLOBAL GENERATION INDUSTRY SINCE 1882
Vol. 160 No. 8 August 2016

2016 Plant of the Year:


Lausward Power Plants
Fortuna Unit
U.S. Coal Plant Wins
Reinvention Award
Water Award Goes to
Chinese Plant
Smart Grid Award for Battery
Storage in Northern Ireland

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ON THE COVER

Established 1882 Vol. 160 No. 8

August 2016

The new Fortuna Unit at the Lausward


plant, owned by the municipal utility in
Dsseldorf, Germany, is not only striking
on the outsideits also getting attention for its record-setting performance,
which earned it POWERs Plant of the
Year Award. Courtesy: Siemens

SPEAKING OF POWER
The Progress of Power Technology

GLOBAL MONITOR
Abolished Nuclear Tax Is Relief for Unprofitable Nuclear Operators
in Sweden
South Korea to Partially Liberalize Power Sector
Indian Water Crisis Shuts Down Multiple Power Plants
THE BIG PICTURE: Nuclear Retirements
Poland Shuns Wind, Doubles Down on Coal-Reliant Future
TenneT Proposes Central Island Hub for North Sea Electricity
Interconnection
POWER Digest

8
8
9
10
12
13
13

FOCUS ON O&M
TVA Uses Advanced Technology to Store and Monitor Coal Ash
All About Lubricant Additives

16
17

LEGAL & REGULATORY


More Communities Choose Their Own Energy Future

20

By Patrick Ferguson, partner, Davis Wright Tremaine

COVER STORY: PLANT OF THE YEAR AWARD


Dsseldorfs Lausward Power Plant Fortuna Unit Wins POWERs
Highest Award

22

The quest to deliver the most efficient power plant is never-ending, and this
year the most efficient gas-fired combined cycle plant is earning its keep in
Germanys challenging market by also supplying district heating.

SPECIAL REPORTS
REINVENTION AWARD
Longview Power Plant Rehabilitation Results in Most Efficient U.S.
Coal Plant

26

A mobile onsite liquefied natural gas system at a coal plant? Thats just one
of the unique approaches this plants owners used to turn a new mine-mouth
plant with a host of problems into a record-setting one.

SMART GRID AWARD


Kilroot Power Station, Carrickfergus, Northern Ireland, UK

32

Smarter grids are evolving. New advanced technologies, including battery


storage, are strengthening grids that have increasing levels of intermittent
renewables, from one end of the line to the otherstarting at this traditional
thermal power station.

August 2016 POWER

www.powermag.com

WATER AWARD
Huaneng Powers Changxing Station ZLD Project, China

35

A first-of-its-kind implementation of forward osmosis for brine concentration


is minimizing water use and wastewater generation at this zero-liquid discharge (ZLD) project in a country that is experiencing severe water quality
and quantity stresses.

FEATURES
PROJECT MANAGEMENT
New Best Practices for Power Project Planning and Construction

13

38

Just as technology and work practices have evolved within the plant, so too
have the tools and techniques used by companies responsible for construction at new and upgraded facilities.

GENERATION TRANSITIONS
Southern Company Bets Big

42

Southern Company is one of the largest investor-owned utilities in the U.S.,


with a firm foothold in traditional generation but also a notable research and
development arm and evolving interest in new options for remaining financially viable into the future.

WIND POWER
Time to Catch the Sea Breeze? Offshore Wind Power Development
in China

42

46

China has been a leader in deploying massive amounts of solar and onshore
wind capacity, but even bigger prospects lie offshore. Several factors are
combining to suggest the country may be ready to launch a substantial offshore development program.

WATER
Prevent Purified Water from Putting a Damper on Your Next
Commissioning

50

Managing water during commissioning may be the last thing on your mind,
but its no place to cut corners. From testing to treatment to wastewater handling, heres what you should prepare for.

ELECTRICAL
Consider Busway When Replacing Electrical Cable and Conduit

54

Although cable and conduit has been the primary method to distribute power
in plants, busway can offer several advantages, including space savings and
easier reconfiguration.

54

COMMENTARY
Climate Change and Energy: We Need a Bigger Boat

60

By Armond Cohen, executive director, Clean Air Task Force

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EXCLUSIVE EVENT COVERAGE AND MORE, ONLY AT POWERMAG.COM


World Nuclear Exhibition Addresses Challenging Markets and New Solutions
Grid Edge and Digital Technologies Take Center Stage at EEI Convention
District Energy Systems Improve Efficiency and Reduce Carbon Emissions
EEI Convention Opens with Call to Work with Friendly Hackers
Brexit Implications for UK Nuclear Power
GE-Powered Combined Cycle Plant Sets New Efficiency Record
Siemens, Gamesa to Combine Wind Business to Form New Major
Market Player
Fort Calhoun Nuclear Power Plant to Close by Year-end
PG&E Moves to Retire 2.3-GW Diablo Canyon Nuclear Plant
Lightning a Suspected Contributor to Power Plant Fire
Boiler Explosion Shuts Down Philadelphia CHP Plant

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POWER August 2016

A name you can trust.


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coal retroit, power delivery, renewable energy and nuclear markets.
From concept to commercialization, we offer clients a full suite of engineering, procurement,
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solutions to projects of every size.
Kiewit Power Group Inc.
9401 Renner Boulevard
Lenexa, KS 66219
(913) 928-7000

KIEWIT.COM
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EDITORIAL & PRODUCTION


Editor: Dr. Gail Reitenbach
editor@powermag.com
Consulting Editor: Dr. Robert Peltier, PE
Associate Editor: Thomas Overton, JD
Associate Editor: Sonal Patel
Associate Editor: Aaron Larson
Senior Graphic Designer: Michele White
Production Manager: Tony Campana, tcampana@accessintel.com
Contributors: Lee Buchsbaum, Armond Cohen, Patrick Ferguson, Peng Lilin,
Steve Lovell, Kennedy Maize, Zeng Ming, Max Swoboda, Wang Xin,
Liu Yang, Li Yuanfei

GENERATING COMPANY ADVISORY TEAM


T. Preston Gillespie, Jr., Senior Vice President-Nuclear Operations, Duke Energy
Pat McCarty, Generation Manager, Tacoma Power
Mark C. McCullough, Executive Vice President, Generation, American Electric Power
Sarah P. Orban Salati, Managing Director, New Energy Solutions, AES

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POWER August 2016

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commercial operation:
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Siemens, 2016. All Rights Reserved.

Outstanding flexibility meets groundbreaking


efficiency.

Siemens is meeting the demands of the global energy markets with


the latest product line of 50 Hz and 60 Hz gas turbines: the SGT-8000H
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reduced emissions per kWh produced. The air-cooled SGT-8000H series
exceeds expectations of plant operators around the world with high
operational flexibility as well as proven reliability and availability.

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SPEAKING OF POWER

The Progress of Power


Technology
ve developed something of a love/hate
relationship with awards. Initially, its
exciting to spot outstanding or unusual projects for our POWER awards, but
over time, any number of things can happen to those plants, making them appear
less than stellar. Sometimes its changing
policy or market conditions that make a
record-setting plant completely uneconomic (see the discussion of Germanys
Irsching 4a 2011 Top Plantin the
story about this years Plant of the Year
Award winner). In other cases, mechanical or structural flaws may become apparent only after startup, as was the case
with last years Plant of the Year winner,
SaskPowers Boundary Dam Carbon Capture
Project, and our 2014 winner, the Ivanpah Solar Electric Generating System. Although its usually impossible for anyone
to anticipate what sorts of problems such
exemplary projects will develop, first-of-akind technologies are almost guaranteed
to experience teething pains.

No Risk, No Progress
Despite the challenges that even
award-winning projects face, it remains important for the industry to
keep striving to envision, design, and
develop cutting-edge power projects
because, as this months Commentary
author reminds us, we need more of
all the best low-carbon options we can
getas quickly as possible.
For example, the technology deployment breakthrough that we recognized
with last years Plant of the Year Award,
carbon capture and sequestration (CCS)
at an operating coal power plant, is central to prospects for the continued use
of coal as a fuel globally if international
commitments to a lower-carbon future
are to be met. (Incidentally, Im happy
to share that my August 2015 cover story
detailing SaskPowers CCS achievement
won an award of its own this June: Best
Scientific Writing or Technical Reporting,
from the Specialty Information Publishers Association.)
6

After addressing some unexpected


challenges, the Boundary Dam project is
now able to operate more reliably. Meanwhile, new CCS approaches continue to
advance. For example, in June, Quebecbased CO2 Solutions presented thirdparty-verified pilot test results of its
enzyme-based carbon capture process for
stationary sources. During summer 2015
the company ran its 10 metric tons/day
carbon capture demonstration unit successfully for over 2,500 hours, mostly
with autonomous operation. Engineering
firm Tetra Tech validated the companys
claims that CO2 Solutions packed tower process configuration, when applied
at large scale, would reduce the cost of
carbon capture to below $40 per tonne
(including compression) and below $30
per tonne (without compression). These
numbers, as announced in 2015, are
10 years ahead of the U.S. Department
of Energys cost target for 2025 of $40
(including compression), according to a
press release.
But the industry cant place all its bets
on CCS. We also need more efficient generation across all fuel types, as well as
increasingly affordable clean energy options. Youll read about several projects
that are setting the pace in this issue and
in the September through December issues, which cover our Top Plant winners.

Modeling Excellence
Each of the award winners we profile this
year offers at least one technology or development approach thats ripe for picking
by future projects. Heres one that stands
out for me this month: the building envelope design for our Plant of the Year,
Lausward Power Plants Fortuna unit in
Dsseldorf.
As shown on our cover and in the article, the Fortuna unit is housed in an
attractive, intriguing structure. You may
argue that good design is more important
for a plant like this one because it sits
in an urban environment, but good design
doesnt necessarily have to cost more than
www.powermag.com

ugly design. Power plants may be a practical necessity, but so are phones. It took
Apples Steve Jobs to realize that a mobile phone can offer enhanced functionality (power) in a design-savvy package
that people want to be seen with. Power
generators, who are increasingly aware of
their public image, might also do well to
think about the visual statements their
facilities make.

Profiles in Practicality
One way to assess trends in any industry is to look at its award winners. Based
on the nominations we received for this
years award categories, and the other
projects the editorial team threw into
the pool for consideration, the past year
in power project execution has been one
of largely incremental improvement. Although that may be less obviously exciting than a year in which brand new
technologies are introducedconcentrating solar power or carbon capture
or fusion (no, were not there yet)it
should inspire everyone to achieve excellence. After all, few have the stomach
to be the first to adopt a new technologywhich has repeatedly proven risky,
as youll see from the story of this years
Reinvention Award winnerbut most
generators are looking for ways to deploy
the latest best practices.
This years award winners do include
projects where the first of a new turbine
model, or a new process, or new digital
tools were used, but the stories are as
much about owners and developers solving problems creatively to deliver exemplary new generation or make cleaner
power from existing plants. Some award
winner profiles present aspirational projects that may be feasible only for a few;
other project successes are clearly achievable for many. They all demonstrate some
sort of edge that merits recognition. We
hope you will enjoy reading about this
years winners.
Gail Reitenbach, PhD is POWERs
editor.

POWER August 2016

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Abolished Nuclear Tax


Is Relief for Unprofitable
Nuclear Operators in
Sweden
Sweden, which has been contemplating
the role of its 10 nuclear reactors in its future power mix, said in June it will phase
out a tax on nuclear power over the next
two years and replace aging plants with
new ones.
The agreement by the Social Democrats,
the Moderate Party, the Green Party, the
Centre Party, and the Christian Democrats
in parliament takes account of Swedens
much-publicized goal to get 100% of its
power from renewables by 2040, but it
also underscores that the goal is not a
termination date for the countrys nuclear
generation. Significantly, the agreement
also reduces a real estate tax on hydropower.
The measure is a boon for nuclear operators like state-owned Vattenfall, Germanys E.ON, and Finlands Fortum, which
have struggled to keep their three nuclear
plants profitable: the 3.2-GW Forsmark
plant, owned jointly by Vattenfall, E.ON,
and Mellansvensk Kraftgrupp; the 1.7-GW
Oskarshamn plant, owned by OKG, a venture between E.ON and Fortum; and the
3.9-GW Ringhals plant, owned by Vatten-

fall and E.ON.


Sweden got 34% of its power needs
from nuclear in 2015, but the sectors
future was thrown into doubt after the
government in December 2014 decided to
nearly double fees paid by utilities into
the countrys nuclear waste fund over
the 20152017 period. According to Vattenfall, the variable production tax on
nuclear power was introduced at 0.2 re
/kWh in 1984, and in 2000, when it was
replaced by a tax on installed capacity, it
had jumped to 2.7 re /kWh. Today, the
tax is about 7 re/kWh (0.08/kWh). E.ON
and Vattenfall fought the tax through the
courts, but the European Court of Justice
ruled in October 2015 that Sweden could
continue to tax nuclear power.
Adding to the burden are hefty financial worries from low wholesale power
prices and safety mandates for costly new
investments. Unless the tax on installed
nuclear capacity was scrapped, the power
companies warned, they would be forced
to shutter more reactors early.
Market woes have so far set four reactors in Sweden for permanent closure by
2020: Oskarshamn 1 and 2 (the former by
June 2017, while the latter never resumed
operations after it was shut down for
maintenance in 2013), and Ringhals 1 and

1. Clarity to proceed. Swedish utility Vattenfall in mid-June announced that it would


proceed, if its minority partners approve, with investments to install independent core cooling at the three boiling water reactors at Forsmark. The company said that parliaments recent
announcement to scrap a nuclear tax on installed capacity was a big factor in its decision to
continue with the costly installations, even as low wholesale power prices continue to plague
its nuclear business. Courtesy: Vattenfall

www.powermag.com

2 (which will be decommissioned between


2019 and 2020).
Vattenfall CEO Magnus Hall lauded parliaments June announcement for giving
the sector the predictability it needs to
continue long-term operation of its aging
reactors. Yet he warned, Even with the
abolishment of the capacity tax, profitability will be a challenge. Low electricity prices put all energy producers under
pressure and we will continue to focus on
reducing production costs.
However, in light of the nuclear tax decision, the company decided to abide by
a 2014 safety mandate and install independent core cooling for all three reactors
at the Forsmark plant (Figure 1) to allow
them to continue operating beyond 2020.
These systems will direct water into the
reactor core if other cooling systems fail
to function. Vattenfall plans to decide
whether or not it will install independent
core cooling at Ringhals Units 3 and 4 in
early 2017.

South Korea to Partially


Liberalize Power Sector
In a major shakeup of a power sector
currently monopolized by a state-owned
giant, South Korea has moved to partially open its electricity generation market
to private companies in a bid to improve
efficiency, cut debt, and improve transparency.
The incremental liberalization measure
means that state-owned Korea Electric
Power Corp.s (KEPCOs) five generating
subsidiariesKorea South-East Power, Korea Midland Power, Korea Western Power,
Korea Southern Power, and Korea EastWest Powerwill be listed on the stock
market. It also includes KEPCOs wholly
owned subsidiary Korea Hydro and Nuclear Power, the company that owns and
operates South Koreas 21 nuclear power
plants and produces a third of the countrys power. In addition, the government
may require KEPCO to shut down its resource development business overseas and
sell nine assets abroad. It also wants to
partially privatize the Korea Gas Technology Corp. and KEPCO KDN, a company that
provides electric power information technology services.
South Korea last embarked on privatizing KEPCO after the currency crisis of
1997, seeking to increase private holdings
of the companys shares to 40%. But privatization didnt prove easy owing to the

POWER August 2016

companys size and the low price of power.


Since then, reportedly, the government
has been discouraged from continuing its
electricity market restructuring process by
anti-nuclear activism and labor and environmental issues. Today, transmission
and retail services are still monopolized
by KEPCO, and South Koreas government
holds about 51% of the companys shares.
While details of the measure announced
in mid-June are sparse, it has been reported that it could cap the private sectors
stake in KEPCO entities at 20% to 30% to
preserve the governments majority share.
However, it may also allow renewable energy companies to sell power directly to
consumers. Currently, private companies
and individuals must trade and distribute
power through KEPCO.
KEPCO has pushed back against the
liberalization measure. An internal report
made public this June warns that introducing competition in the power supply
market could push up power prices and
compromise quality of service over time.
The report also predicts that consumers
will find it difficult to enjoy benefits of a
diverse rate system as they have insufficient information about an individual rate
system. Rather, consumer fatigue may increase because of the retail market being
dominated by a handful of suppliers and a
complicated rate system.

have estimated that at least $350 million


in profits have evaporated for the coal
power sector alone. The plants afflicted
owners are the National Thermal Power
Corp. (NTPC), Indias giant state-owned
generator, as well as Adani Power, GMR,
Mahagenco, and Karnataka Power Corp.
The affected plants include five units (totaling 1.6 GW) at NTPCs 2.1-GW Farakka
plant in West Bengal, which has implications for neighboring states that depend
on the plant for power: Bihar, Jharkhand,

and Odisha. Also affected were four units


(2.6 GW) at Adanis 3.3-GW Tiroda plant
in Maharashtra. Units at Mahagencos
1.1-GW Parli power plant in Maharashtra
have been shut down repeatedly since
2013, as the plant has been paralyzed after the nearby Khadka dam almost dried
up. Mahagenco is reportedly mulling a
plan to use reclaimed water from a water treatment facility about 60 kilometers
away but may shun the solution for its
high costs.

Indian Water Crisis Shuts


Down Multiple Power
Plants
A severe water crisis gripping India this
year has forced several of the countrys
hydroelectric and thermal power plants to
shut down.
At least 10 of Indias 29 states have
been stricken by severe drought after the
monsoons failed for two seasons in a row
(as of the start of July, the monsoons had
still not arrived, though meteorologists
have predicted an above-normal season).
More than 330 million peopleabout a
quarter of the countrys populationhave
been affected by the drought, including
farmers, who have suffered debilitating
crop losses.
Just as damaging to Indias recent economic triumphs is how the water scarcity
has affected its power sector. Minister of
Power Piyush Goyal in May told parliament
that India had sufficient power overall to
serve its citizens but listed several plants
that had been forced to close in eastern,
central, and southern Indiasome for
days, others for weeks, and at least a few
of them for months.
Considering lost generation, analysts
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August 2016 POWER

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THE BIG PICTURE: Nuclear Retirements


About half of the nations 99 nuclear reactors operate in competitive wholesale electricity markets. Over the last five years,
low natural gas prices, market dynamics, technical issues, and policies that favor renewables have precipitated the closure
or announced retirement of 14 U.S. nuclear reactors, some well-ahead of planned lifetimes. More retirements are in the
offing: Over 80 commercial reactors have garnered federal licenses to operate for 60 yearsbut 41 of these are more than
40 years old. The next few years will see only five new nuclear reactors begin production. See a related slideshow, U.S.
Nuclear Power Plant Closures, at powermag.com. Sources: FERC, POWER
Copy and artwork by Sonal Patel, a POWER associate editor
WASH.
MAINE
N.D.

MONT.

VT.
MINN.

ORE.

S.D.

IDAHO

N.Y.

WIS.

N.J.

PA.

IOWA

NEV.

ILL.

UTAH
COLO.

OHIO

IND.

K
KAN.

MO.

MD.
W.VA.

J
TENN.

ALA.
MISS.

GA.

Retirement
announced
Under
construction

California (CAISO)

SPP

Markets that
foster
New England (ISO-NE) competition
Texas (ERCOT)

LA.

TEXAS

Traditional markets,
typically with
vertically integrated
utilities

MISO
S.C.

ARK.

Retired

Northwest

Southeast

KY.

OKLA.
N.M.

DEL.

ELECTRIC POWER MARKETS


Southwest

N.C.
ARIZ.

VA.

New York (NYISO)


PJM
FLA.

G. November 2013South Carolina Electric and Gas and Santee Cooper start
construction of two AP1000 PWR units at the V.C. Summer Nuclear Station.
The units are estimated to be completed in August 2019 and August 2020.

*Icons on map are sized by


relative plant capacity
A. December 2010Exelon says it will close its 625-MW Oyster Creek
BWR in 2019, a decade before its current operating license ends, to
avoid costs associated with the installation of cooling towers.
B. February 2013Duke Energy retires the 860-MW Crystal River PWR
after being unable to repair damage to the containment structure when
new steam generators were installed in 2009. The reactors operating
license was due to expire in 2016.
C. March 2013Construction begins on Southern Co.s Plant Vogtle
Units 3 and 4, the nations first Westinghouse AP1000 PWR units. First
operation has been delayed to June 2019 and June 2020.
D. May 2013Dominion Energy retires the 39-year-old 566-MW
Kewaunee PWR after it failed to find buyers for the single-unit plant,
citing low power prices caused by declining gas prices. The reactor had
in 2011 gotten the NRCs approval to operate until 2033.
E. June 2013Southern California Edison retires two PWR reactors
(1,070 MW and 1,080 MW) at the San Onofre nuclear plant after leaks
were discovered in the steam generators of both units, which had been
replaced in 2009. Regulatory delay and uncertainty were also factors
that shut down the reactors. The units licenses would have expired in
2022.
F. August 2013Entergy Nuclear announces that it will permanently
close the 620-MW Vermont Yankee BWR by December 2014, owing to
increased costs and market conditions. The unit had received a license
renewal to operate until 2032.

10

MASS.
CONN.

NEB.

N CALIF.

MICH.

WYO.

FN.H.

H. October 2015Entergy announces it will retire its 680-MW Pilgrim BWR by


June 2019, citing poor market conditions exacerbated by low wholesale power
prices and the increased production of shale gas. Its current license ends in
2032.
I. November 2015Entergy announces it will retire its 838-MW FitzPatrick
BWR in January 2017, citing continued deteriorating economics. The plants
current license ends in 2034.
J. June 2016After the state of Illinois stalls on a provision to help make
Exelons Illinois units profitable, the company officially announces it will close
its 1,069-MW Clinton BWR by June 2017, nearly a decade before its license
expires.
K. June 2016Exelon also says it will close its dual-unit 1,871-MW Quad
Cities BWR plant by June 2018, though that plants license expires in 2032.
L. June 2016Omaha Public Power announces it will close the 476-MW Fort
Calhoun PWR, the smallest operating unit in the U.S., for economic reasons, by
December 2016. Its current license ends in 2034.
M. June 2016The Tennessee Valley Authoritys 1,123-MW Watts Bar 2 PWR
generates power for the first time. The company embarked on continuing the
long-stalled construction of the reactor in April 2012.
N. June 2016Pacific Gas and Electric says it will not seek license extensions
for two units at the 2,240-MW Diablo Canyon PWR plant to focus on a plan
that promotes renewables and phases out nuclear power. Unit 1 will retire
when its current license expires in November 2024, with Unit 2 following in
August 2025.

www.powermag.com

POWER August 2016

CIRCLE 6 ON READER SERVICE CARD

2. Dry descent. The first phase of the Tehri Dam on Indias Bhagirathi River, a headstream
of the Ganges, was completed in 2005 after more than 25 years of construction. The dam has
a height of 260 meters and is the fifth tallest in the world. Yet a severe drought gripping parts
of India has severely reduced the dams generation capacity. Courtesy: India Water Resources
Information System

Indias hydropower plants have been


badly stricken as well. According to the
South Asia Network on Dams, Rivers, and
People, the nations hydropower generation has dropped nearly 20% compared to
2015, even as 1.5 GW of new hydro capacity was installed. At one point in early May,
for example, the 1-GW Tehri hydroelectric
dam, Indias tallest, had no usable water
stored in its reservoir on the Bhagirathi
River in the Himalayas, even though it is
designed to hold 2.6 billion cubic meters
(Figure 2).
Despite the water crisis, India has forecast that it may have a 1.1% power surplus by March 2017, and Minister Goyal
has even told reporters that the Modi administrations target of providing power
for all could be achieved two years ahead
of schedule in 2019. That achievement
would be laudable, considering that the
power deficit was as high as 13% about a
decade ago. But skeptics caution that the
numbers are optimistic because, though
India has made big gains in its coal power
output (despite supply issues) and has
launched measures to reform state distribution companies, state utilities dont
always report their numbers accurately,
presumably for political credit. Also, the
nationwide power surplus number conceals wide regional variations. Only the
western region of India would in 2017 actually boast a surplus at 6.9%. The eastern states still suffer a 10.3% deficit, the
northeastern region, an 8.3% deficit, and
the northern states, a 1.8% deficit.
12

However, the anticipated surplus was


a factor in the governments notable decision this June to cancel plans for four
ultra-mega power plantsa combined
16 GWthat had been planned in Karnataka, Maharashtra, Odisha, and Chhattisgarh. Other factors include community
resistance to compulsory land acquisition
for the plants, along with forced resettlement, and Goyals much-publicized mission to halt the import of thermal coal
into the country.

Poland Shuns Wind,


Doubles Down on CoalReliant Future
Poland, a country where hard coal and
lignite power plants currently generate
about 85% of the power, has passed a
law that stymies a wind power expansion and is now mulling draft legislation
that will help boost investments in new
coal capacity.
The eastern European country has
bucked the trend toward renewable power
that many countries on the continent are
following, citing energy security reasons.
But while Poland is one of the most energy-intensive economies in the European
Union (EU), it has one of the most isolated power systems in the bloc. As a temperature spike last summer demonstrated,
the nations power supply is stretched
tight. In August 2015, when a lasting heat
wave reduced the amount of water available for plant cooling, some power units
were forced to shut down or operate at rewww.powermag.com

3. When a giant falls. During a prolonged heat wave in August 2015 that lowered
water levels in rivers and lakes, some conventional power units in Poland were forced to
shut down or operate at reduced loads due
to cooling problems. The power system reserves of the isolated grid were dangerously
stretched by the abrupt shutdown of the nations largest power plant, the lignite-fired
Bechatw Power Station, shown here, after
a technical failure. Courtesy: Wikimedia Commons/Morgre

duced load. Paired with other unexpected


plant shutdowns (Figure 3), it prompted
state-owned grid operator Polskie Sieci
Elektroenergetyczne to introduce temporary restrictions on power consumption
that affected more than 1,600 mainly industrial customers.
The Polish system will likely continue
to be constrained until new projects come
online. Several new coal units are slated to
begin operating between 2017 and 2019,
including state-owned Polska Grupa Energetycznas 1.8-GW plant in Opole, ENEAs
1-GW project in Kozienice, and Tauron Polish Energys 900-MW facility in Jaworzno.
The government says Poland desperately
needs even more capacity because more
than 75% of its existing fleet is more than
26 years old and demand is surging. But
investment has been limp owing to low
wholesale prices, declining free carbon allowances, and a rising share of renewables
across the EU.
Several coal and natural gas plants
that were under development have been
shelved as a result, and the power sector has urged the government to establish some form of capacity payments to
support the profitability of units under
construction if market conditions remain
subdued, as expected, until 2020. Meanwhile, the government has awarded sizable subsidies to a number of Polish coal
mines that are unable to compete with
imports, and reform is unlikely for a coal
sector that employs up to 130,000 people,
mostly concentrated in the Upper Silesia
industrial region.
Unsurprisingly, the countrys new governmentdominated by the conservative Law and Justice Party that ousted

POWER August 2016

the long-serving liberal-conservative Civic


Platform last Octoberhas resisted the
EUs ambitious climate targets. But lately,
it has also been accused of sabotaging
the countrys renewable energy prospects
in favor of the coal sector.
At the end of June, the president signed
a controversial law that bans the building
of wind farms close to national parks and
residential areas and requires wind farm
operators to get an operational license every two years and secure permits to repair
or modernize turbines.
Credit rating agency Moodys said the
law will curb investment in renewables,
tighten the reserve margin, and complicate Polands efforts to generate 15% of
its power from renewables by 2020 under
an EU mandate (currently, 13% comes
from renewables). Poland will likely rely
on biomass and biogas to fill the gap, it
noted. At the same time, lawmakers are
now drafting legislation designed to help
its coal-fired power sector drum up investment for more capacity. According to Reuters, the draft law will be made public
this fall.

TenneT Proposes Central


Island Hub for North Sea
Electricity Interconnection
Dutch power grid operator TenneT on
June 10 unveiled plans for a large-scale
island transmission hub in the North Sea
that could connect numerous offshore
wind farms and transmit their generated
power to the Netherlands, the UK, Belgium, Norway, Germany, and Denmark via
direct current (DC) cables. Those cables,

or spokes could also serve as international electricity highways that would


connect the countries energy markets,
TenneT said.
The hub and spoke plan is based on
an artificial island with a modular structure, with each module covering about six
square kilometerslarge enough to connect roughly 30 GW of offshore wind capacity, TenneT said (Figure 4). The island
will also be expandable by adding one or
two modules.
TenneT, which has developed and currently operates Germanys and the Netherlands offshore grids, says the vision will
enable relevant cooperation needed to
achieve Europes environmental targets.
A June 6 political declaration on energy
cooperation between the North Sea countries recognized that the success of the
energy transition depends largely on the
extent of a coordinated joint effort in Europe, noted TenneT CEO Mel Kroon.
The vision is realistic and achievable, Kroon added, though he noted
the countries will have to agree to share
their offshore power. It will be very important for the six European North Sea
countries to be willing, in due course,
to make their targets independent of
national borders, which means agreeing
that the electrons generated offshore
must not necessarily be transmitted to
their own country, he said.
The island would have to be built in a
centrally located area with a lot of wind
and relatively shallow waters. Dogger
Bank is an ideal site, Kroon said.
One reason the hub is necessary is

4. An island transmission hub. Dutch power grid operator TenneTs hub and spoke
proposal unveiled this June foresees the installation of a modular island, about six square kilometers in sizewhich can be expandedthat will connect countries on the North Sea via
a number of international electricity highways. The direct current cable interconnections between those countries energy markets would also connect numerous offshore wind farms.
Courtesy: TenneT

that Europe will soon be forced to look


far out to sea to develop enough offshore
wind power to reach its goals. The disadvantage here is that the costs will be
significantly higher, TenneT said. The
construction and maintenance of the
wind farms are higher and these must be
connected via many relatively expensive,
single direct current connections. Alternating current technology cannot be used
for connecting distant offshore wind farms
because of an unacceptably high loss of
electricity during transmission to the onshore grid, it said.
Building the island surrounded by wind
farms closer to land would enable wind
energy obtained further out to assume
the cost benefits of near-shore wind.
The smaller distance will allow use of
the far cheaper alternating current (AC)
connections, it said. The AC power from
the wind turbines would be converted
to DC on the island for transmission to
shore. Thus, the multiple converter stations and long-distance DC lines that are
currently used for offshore wind farms
would not be necessary.
Further considerable [cost] benefits
can be derived from an island, as it offers a permanent place for people and
resources, it added. The island, for example, could house joint storage of components such as turbines, rotor blades,
pylons, and transmission equipment, as
well as provide a permanent base for
builders of wind farms and infrastructure.
Using the concept as an international
connection would also boost utilization
to 100% from the current 40% for a typical connection between a wind farm and
the mainland.
TenneT said it will enter talks with the
EU and its member states to see whether
the required European cooperation can be
set up, anticipating that an island could
perhaps be built on Dogger Bank between
2030 and 2050. It is not clear how Brexit
(the United Kingdoms vote on June 23
to exit the EU) will affect these plans,
though the operator is keen to continue
a joint examination of connecting the
Dutch offshore areas of IJmuiden Ver to a
UK wind energy area, possibly East Anglia,
by 2030.

POWER Digest
Court Forces Bulgaria to Pay for One of
Two Canceled Reactors at Belene. Bulgarias National Electricity Co. (NEK)
should pay Russias Atomstroyexport
nearly $620 million in compensation for
its canceled two-unit Belene nuclear plant,
an international arbitration court in Gene-

August 2016 POWER

www.powermag.com

13

va ruled in mid-June. The 2-GW plant was


in the offing for more than two decades
before NEK contracted with Atomstroyexport in 2006 to start construction of two
AES-92 model VVER units. Construction officially launched in September 2008, only
for Bulgaria to abandon the plant in March
2012, citing soaring costs and a failure to
find new financial partners for the $11
billion project after Germanys RWE withdrew in 2009. At the time, NEK offered to
pay for one already-manufactured reactor
and install it at its Kozloduy site. The firm
announced it would instead build a gasfired power plant at the Belene site. However, Atomstroyexport rejected its offer of
about 500 million, claiming NEK owed
twice as much, including damages for the
abandoned project.
The international court ruling this June
means that NEK will need to pay 550
million for the equipment for one reactor
and work with Atomstroyexport on what
to do with it, Bulgarian Prime Minister
Boyko Borissov said. He also emphasized
that the court had only ruled that the
Russian company be compensated for the
cost of equipment it had produced for the
plant, but rejected its claims for damages
and lost profits. The country must now decide whether to seek the European Commissions guidance on whether to install
the reactor or strike a deal with Russia
that will allow it to resell the unit to a
third party.
AREVA Spins Off Mining, Front-End,
Back-End Operations. Troubled French
nuclear equipment giant AREVA SA will
sell the majority of its reactor business
to French power firm EDF and spin off
its nuclear fuel operations to attract investors. A new company, NEW CO, will
take on some of AREVA SAs debt and
focus on uranium mining, conversion,
and enrichment, as well as recycling,
logistics, and dismantling. Other subsidiaries, including AREVA TA, AREVA NP,
and AREVA Energies Renouvelables will
be held by AREVA SA until the date of
their sale, the company announced as
it presented a roadmap for the groups
restructuring in mid-June. (On July 1,
Mitsubishi Heavy Industries and EDF
entered into an agreement to acquire a
minority stake in AREVA NP.) AREVA will
also sell nuclear measurement and instrumentation specialist Canberra. As
a pure player in the nuclear fuel cycle,
NEW CO is in a unique position to play a
dominant role for the redefinition of the
French nuclear industry and in a market
destined to grow, particularly in Asia,
AREVA said in a statement.
14

Beginning in 2017, the French government, which owns over 85% of AREVA, will
inject another 5 billion into the firm to
increase the capital for both AREVA and
NEW CO, though that increase will be
subject to approvals from the European
Commission. It means that after this
transaction, the French government will
hold, directly or indirectly, a minimum of
two-thirds of NEW COs equity. AREVA SA
will also retain the contract for the Olkiluoto 3 EPR, whose construction in Finland
is now nine years behind schedule and
three times over budget.
South Korea to Shut Down Aging Coal
Plants. The Ministry of Energy of South
Korea in July announced that it would
force 10 coal-fired power plants that
are more than 40 years of age to close
by 2025 in an effort to limit air pollution and particulate matter emissions.
It has also introduced stricter rules for
operation and maintenance at existing
coal-fired power plants and projects under construction. The country depends
on coal for more than 40% of its power,
and at least 20 new coal plants are in the
development pipeline. Fifteen of those
are already under construction, and all
are anticipated to come online by 2020.
State-run utilities are expected to spend
$8.68 billion on closures and upgrades by
2030 to meet new rules.
Joint Venture Bags Key Contract to
Develop ITER Fusion Reactor. Momentum, a joint venture comprising Amec
Foster Wheeler, Assystem, and Korea
Electric Power Corp. Engineering and
Construction, has won a 10-year, $194
million contract to manage and coordinate the assembly and installation of
more than a million components for the
ITER fusion reactor project in France.
ITER is an international collaboration between China, the EU, India, Japan, South
Korea, Russia, and the U.S. to explore
and demonstrate the scientific and technological feasibility of commercial fusion
reactors. Project developers are expected
to announce its full scope, schedule, and
cost in November 2016.
Momentum will work on the worlds
largest tokamak, a toroidal electromagnet that will contain the plasma where
the fusion reactions occur. The scope of
services includes contract management,
configuration management, project
management, construction preparation,
site coordination, works supervision,
and activities leading up to mechanical completion, but the contract does
not cover design or fabrication of components (which are being provided by
www.powermag.com

multiple companies in the partner countries), construction of the buildings, or


building services.
Nigerias Power Woes Worsen After Privatization. Generation companies
in Nigeria have been operating at a loss
since privatization of the nations power
sector, and investors are urging the government to take drastic steps or face an
energy crisis that may have grave implications for its economy. Underscoring the
countrys power woes is a July-released
generation report from the Transmission
Company of Nigeria showing that, despite
installing a total of 11.2 GW, available capacity was only 5.5 GW. Power plants with
a total capacity of up to 4.4 GW arent getting enough gas to operate, while water
scarcity and transmission issues are constraining another 230 MW, the Nigerian
Electricity and Regulatory Commission
said.
Minister of Power, Works, and Housing
Babatunde Fashola in June told power
users that electricity generation and supply has dropped significantly because of
militant attacks on oil and gas facilities
in the Niger Delta and that the government is increasingly looking to alternative sources of power such as coal, solar,
and biomass. The 700-MW Zungeru hydropower project will soon be completed,
and construction of the 3-GW Mambilla
hydropower plant is expected to begin
shortly, he said.
GE Unveils Digital Power Plant for
Steam. General Electric (GE) on June
14 unveiled the Digital Power Plant for
Steam, a new suite of technologies for
coal-fired steam power plants that monitors and analyzes data from more than
10,000 sensor inputs across a plant and
is designed to help power operators make
smarter decisions about how to run their
power plants. GE said the digital power
plants advanced controls and cybersecurity software interprets data drawn from
sensors, highlighting key factors that may
affect performance (such as fuel quality,
plant aging, and ambient conditions) and
takes appropriate action through a closedloop control system.
In June, GE inked a deal with the
Hub Power Co. (Hubco), Pakistans largest independent power producer, to provide digital industrial solutions for the
1,292-MW Hubco Power Plant situated in
Baluchistan, Pakistan. The system will be
powered by Predix, GEs cloud-based operating system built exclusively for industrial purposes.
Sonal Patel is a POWER associate
editor.

POWER August 2016

@amec_fw
https://www.linkedin.com/company/amecfw
www.youtube.com/user/amecfw
https://www.facebook.com/amecfw

CIRCLE 7 ON READER SERVICE CARD

TVA Uses Advanced


Technology to Store and
Monitor Coal Ash
At 2:45 p.m., Nicholas McClungs cellphone chirps during a business meeting.
He doesnt bother to look at it; the special chirp says it all. He politely excuses
himself from the meeting and rushes to
the Tennessee Valley Authoritys (TVAs)
Advanced Technology for Impoundment
Monitoring (ATIM) center in the basement of the companys Chattanooga
headquarters.
When he arrives at the ATIM center,
McClung, TVAs risk and quality assurance
manager and a licensed geotechnical engineer, looks at the LED-monitor-filled wall
(Figure 1) and sees that the situation is
serious. The screens indicate that the Tennessee Valley has received over 10 inches
of rain in a short period of time200%
more than the region normally receives in
a month. His team has been studying the
ash pond data for a week. Now its time to
take action before an even more serious
problem arises.
Coal Ash Mission Control
While this event was just a drill, McClung
said that the TVA takes coal ash safety
very seriously. It spent about $2 million
developing the ATIM center to help identify and respond to any coal ash issues
before they become emergencies.
The TVAs ATIM center is the only facility of its kind in the U.S. utility industry.
The centers massive screen-packed wall
can display geographic information system maps, weather details, earthquake
information, sensor data, and even live

1. Keeping a literal eye on ash. The


Advanced Technology for Impoundment Monitoring center has screens to display geographic
information system maps, weather details, earthquake information, coal ash sensor data, and live
video. Courtesy: Tennessee Valley Authority

16

video. The ATIM center provides McClung


and his team a place to collaborate and
share real-time information with all of
TVAs decision-makers.
Think of the ATIM center as TVAs coal
ash mission control, McClung said. With
a few clicks we can pull up sensor data
and see real-time data or watch whats
happening at our impoundments via live
video. Whats most important is that we
can share information with everyone who
is working on the problem.
The federal government mandates safe
coal ash storage. The TVAs ash impoundments are classified as dams and must adhere to the TVAs Dam Safety Governance
safety program procedures (TVA-SPP-27
series).
To ensure it meets these strict federal
standards, the TVA installed more than
7,000 real-time sensors to monitor ash
impoundments. Every hour of every day,
sensors send data to a centralized computer monitoring system.
My team receives texts and emails if
there is any irregularity, said McClung. If
it is serious, we can immediately activate
the ATIM center.
To date, the TVAs ATIM center has never
been activated in response to a real event.
If the day comes for the ATIM to truly
come to life, the TVA team thinks they are
prepared and they expect to receive the
highest level of support.
Having the ATIM process in place
demonstrates how serious the TVA is
about safe coal ash storage, said McClung. The ATIM center will provide our
executives a single, complete source of
information. We can quickly get the support we need to ensure public and environmental safety.

A New Way to Store Coal Ash


The TVA is in the process of implementing
improvements at each of its coal ash impoundments to reduce the risk of structural instability and surface and groundwater
contamination. The company is closing its
wet ash impoundments over the next four
to six years in favor of dry ash storage.
In addition, the TVA has pioneered intelligent compaction technology for dry ash
storage.
Think of dry ash storage as a parking lot, said Jason Hill, TVAs program
manager for Risk and Quality Assurance
at the Kingston Fossil Plant intelligent
compaction project. We wet the ash
and mix it to the consistency of cookie
dough. Then we lay ash down like pavement and compact it to a density of 95%
or greater.
As ash is laid down, heavy rolling machines drive over it to compact it (Figure
2), much like you would see on a roadpaving project. The compacting machine
is equipped with a vibrating drum and
sensors that send real-time data directly
to the operator and to TVAs engineers
(Figure 3).
Hill noted that the array of sensors outfitted to the compacting machine is the
game changer. We see what the driver is
doing in real-time, said Hill. If an area
needs more compaction, I can immediately send the driver back over the areaits
state-of-the-art.
Traditionally, Hill and other TVA engineers would have had to be at the site
to observe and test the material. Now
Hill can monitor the ash and the compaction rates from his office in Chattanoogamore than 100 miles from the
Kingston facility.

2. Good vibrations. Coal ash is laid down and heavy rolling machines drive over it to
compact it. Courtesy: Tennessee Valley Authority

www.powermag.com

POWER August 2016

3. Building a pyramid of ash, one


layer at a time. Compaction is mapped
in real time. Engineers analyze the data to
ensure the compaction meets specifications.
Courtesy: Tennessee Valley Authority

While compaction technology has


long been used in road construction, the
TVA claims to be the first utility in the
U.S. to apply it to coal ash. However,
deploying compaction technology isnt
cheap; it costs about a million dollars to
outfit each facility. The system surpasses state and federal requirements, but
the TVA believes the rewards in safety
and long-term cost savings outweigh
the startup costs.
The 3-D technology far exceeds state
and federal monitoring standards because
we can monitor 100% of the ash stack for
the life of the project, Hill said.
It will take 40 years to complete the
Kingston ash stack. During that time, the
TVA will create a 3-D compaction map of
each layer, which engineers will be able to
analyze for years to come. The technology
is also being applied at other TVA storage sites across the Valley. Bull Run Fossil
Plant, located near Knoxville, is already
using the equipment.
Scott Fiedler is a public information
specialist for the TVA.

Table 1. Whats in your grease? This table shows characteristics of some common
grease additives. Source: Nye Lubricants Inc.
Additive

Key characteristics

Anticorrosion

Slows deterioration of non-noble metals

Antioxidant

Prolongs life of base oil by increasing the oxidation resistance

Antirust

Slows corrosion of iron alloys

Antiwear

Helps protect loaded metal surfaces by forming a protective film

Color/ultraviolet dye

Visual markers for inspection or assembly

Conductive agent

Adds thermal or electrical conductivity

Extreme pressure

Solids burnish into surface under pressure, forming a protective layer to prevent
seizure and severe damage

Friction modifier

Reduces the coefficient of friction

High-temperature enhancer

Boosts high-temperature limit of oil

Tackifier

Increases ability to adhere to moving parts

Viscosity modifiers

Alters oil viscosity

4. Breaking the cycle. Primary antioxidants (AOs) react with the very reactive radicals, slowing the degradation by breaking the self-propagating radical chains. Secondary AOs react with reactive peroxides that are present to break the oxidation cycle. Courtesy: Nye Lubricants Inc.

Reactive
radicals

Phase 3:
Branching and
termination

August 2016 POWER

O2

Lubricant
Phase 2:
Propagation

Break in the oxidation cycle

Secondary AOs

Very
reactive
radical

Reactive
peroxides

All About Lubricant


Additives
Lubricant additive technology is a complicated business because it involves several
different chemistries. Often, one additive
can adversely interact with another additive as they both compete for the same
area on substrate surfaces. This kind of interaction can lead to the canceling of the
additives desired properties.
Conversely, the use of different additive
chemistries can, at times, have a positive
synergistic effect on performance. Therefore, understanding the complex chemistries and interactions of various additives
is paramount to properly formulating a
high-performance grease that fits an applications requirements.
Some of the more important additives
used in formulation greases are listed in
Table 1.

Heat and shear

Phase 1:
Initiation

Very reactive
radicals

Primary AOs

Antioxidants
Many synthetic lubricants, especially
hydrocarbon-based lubricating oils, are
susceptible to oxygen degradation. This
oxidation process, which is initiated by
the formation of reactive free radicals and
peroxides, is the major cause of oil thickening and the formation of sludge and
varnish in many applications.
Destructive oxidation of oil can be described as a cyclical process involving initiation, propagation, and branching and
termination (Figure 4). Unless the cycle is
broken or terminated, oxidation will continue to occur until the oil or grease is no
longer usable.
Antioxidants are additives designed to
prolong the life of a lubricant by increasing the oxidative resistance of the base
www.powermag.com

oil. Antioxidants allow lubricants to operate at higher temperatures than would


otherwise be possible without them.
There are two types of antioxidants:
primary and secondary. Primary antioxidants are typically comprised of aromatic amines and hindered phenolics.
Secondary antioxidants are typically
comprised of phosphites and certain
sulfur-containing compounds, such as
thioethers and thioesters. Each type of
antioxidant performs a different function to inhibit oxidation.
The oxidation process begins with the
initiation phase, when free radicals are
formed. Primary antioxidants are radical scavengers that react quickly with
the free radicals during the propagation
phase, slowing down the degradation pro17

cess by forming new radicals that are more


stable.
Secondary antioxidants react with peroxides, which are often present as the
lubricating oil reacts with oxygen. These
antioxidants are responsible for breaking
the cycle and preventing branching and
further propagation. Most often, grease
formulators will use a combination of
primary and secondary antioxidants to
maximize the protection of the oil against
oxidative degradation.

Extreme Pressure and Antiwear


An expert at the Massachusetts Institute of Technology claims that high friction and wear results in the wastage of
resources totaling more than 6% of the
gross national product. Therefore, taking
action to minimize the effects of friction
and wear can save a lot of money.
There are several different types of
mechanical wear mechanisms that can
occur in a lubricating system, including
adhesive wear, abrasive wear, pitting, and

spalling. Wear preventative additives are


a necessary component in lubricants intended for applications that are prone to
such damage.
Wear preventative additives fall into
two categories: extreme pressure agents
and antiwear agents. Extreme pressure
and antiwear additives both function by
depositing a protective barrier via a reaction on the metal surface.
Antiwear additives are generally used
under mild conditions of low loads and
high speeds to reduce the rate of continuous and moderate wear. The additive helps coat the application surface
to protect the metal from wear over
time. Common examples of antiwear additives are triaryl phosphates and zinc
dialkyldithiophosphate.
Extreme pressure additives are usually used under heavier loads, at high
temperatures and low speeds to prevent
catastrophic failure or seizing of the application. Common examples of extreme
pressure additives are molybdenum disulfide, graphite, sulfurized olefins, and dialkyldithiocarbamate complexes.
Anticorrosion and Antirust
Corrosion is defined as the destructive alteration of metal by a chemical or electrochemical reaction between the metal
and its environment, resulting in change
and weakening of the metals properties.
Corrosion is a process, not a property.
All metals except the noble metals are
unstable under atmospheric conditions,
which allows them to be converted into
their oxidized form. There are two primary
types of corrosion: electrochemical corrosion and chemical corrosion.
Electrochemical corrosion involves the
reaction of ferrous (iron-based) metal or
its alloys in a two-step process in the
presence of an electrolyte, most typically
water or moisture. The result of this reaction is commonly known as rust.
Rust inhibitors can be included in a
formulation to slow corrosion of iron alloys. Rust inhibitors function by physically adsorbing onto the metal surface, thus
blocking the surface of the metal from the
effects of water, acids, and air.
Chemical corrosion involves the attack
of aggressive chemical species like acids,
bases, and sulfur. This is often the result of
the oxidation of hydrocarbons and sulfurcontaining additives, or additive by-products, on a metal surface or metal oxide
layer, resulting in the formation of ionic
metallic or oxidized metallic compounds.
Unlike electrochemical corrosion, chemical corrosion does not require an electro-

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18

www.powermag.com

POWER August 2016

5. Four-ball wear test. Lubricants are


tested by placing a 40-kilogram (kg) load on
the top ball and rotating it at 1,200 revolutions
per minute (rpms) against three stationary,
lubricated balls for 60 minutes at 75C. Wear
scars are then measured. Courtesy: Nye Lubricants Inc.

lyte, such as water, and can occur both in


organic and aqueous environments.
Adding corrosion inhibitors to a lubricant will help slow the deterioration
process in non-noble metals. The inhibitors form an inactive film on the metal
surface by complexing with metallic ions
at the surface. Some corrosion additives
work by neutralizing corrosive acids
formed from oil and additive degradation byproducts.

6. Copper corrosion test. This corrosion test requires a copper strip to be submerged
in grease and placed in an oven for 24 hours at either 100C or 150C. The strip is then compared
to a standard, like the one shown here, and rated. Courtesy: Nye Lubricants Inc.

standard and given a rating (Figure 6).


There are several other methods for measuring corrosion, including the fog spray
test, corrosion rate evaluation procedure, the bearing corrosion test, and the
EMCOR test.
Nye Lubricants research and development and applications laboratories have

the capability to run all of these tests.


Nye engineers can work with customers to
tailor test methods to best simulate desired applications. This ensures that the
lubricant chosen provides the protection
that is needed.
Anthony Grossi, PhD is director of
technology at Nye Lubricants Inc.

Lubricant Testing
There are several test methods used to
measure the effectiveness of additive
packages. To determine oxidative resistance, a pressure differential scanning calorimeter is most commonly used. The test
measures the ability of an oil or grease
to resist oxidation in a very demanding
high-pressure oxygen-rich environment at
elevated temperatures. The longer it takes
for an exothermic reaction to occur, the
better the oxidative stability.
A common technique for measuring friction and wear is the four-ball wear test. In
this test, a steel ball is rotated against
three stationary, lubricated balls (Figure
5). Results are presented as wear scars on
the stationary balls, which are measured
and averaged, along with the coefficient
of friction.
Another way to measure friction and
wear is using a schwingung (oscillating),
reibung (friction), verschlei (wear) instrument. The method measures the physical interactions between a lubricant and
two or more solid surfaces in either rotational or linear oscillatory motion.
The ability of a grease to prevent corrosion is most commonly tested using
the copper corrosion test. In this test, a
copper strip is submerged in grease and
placed in an oven for 24 hours. The strip
is then visually compared to a corrosion
CIRCLE 9 ON READER SERVICE CARD

August 2016 POWER

www.powermag.com

19

More Communities Choose


Their Own Energy Future
Patrick Ferguson

s the effects of climate change have increased and renewable energy is becoming cost-competitive with conventional forms of energy generation, more and more towns,
cities, and counties are pushing their local utilities to increase
the amount of renewables in their energy portfolios. While many
utilities are embracing this shift to renewable energy, others are
slow to change due to significant investments in conventional
generation resources and a concern that over-reliance on intermittent renewable generators such as solar photovoltaic and
wind could jeopardize reliability.
Historically, if a town was not satisfied with the mix of energy
that the local utility was providing, it didnt have many options.
The town could try to leave the utility, form its own municipal
utility, and assume responsibility for customer service, power
procurement, and grid operations and maintenance. However,
forming a municipal utility is a major stepwith significant
costs and risksthat is just not practical for most small towns
and cities.

The Rise of Community Choice Aggregation


Over the past 15 years, community choice aggregation (CCA)
policies have emerged as a potential middle-ground approach
for local entities that want to take control of their own energy
destiny while not assuming all of the costs and risks of municipalization. CCA policies enable a local entity to aggregate
the load of customers within its boundaries and assume power
procurement responsibility. While the utility remains responsible for managing the grid, maintaining the transmission and
distribution system, and billing and customer service, the CCA
entity has complete authority to enter into electricity contracts
on behalf of all the aggregated customers that it serves. Generally, a CCA entity can establish rates that support its power mix
(usually comprised of between 50% and 100% clean energy),
while utilities receive a fee for distributing the power to the
CCA entitys customers.
There are three main motivations for CCAs: obtaining cleaner
power, lowering costs, and promoting the development of local
generation resources. Seven states across the countryCalifornia, Illinois, Massachusetts, New York, New Jersey, Ohio, and
Rhode Islandhave now passed laws authorizing CCA formation. CCA entities provide electric service to approximately 5%
of the U.S. population in over 1,300 municipalities, ranging
from small towns and rural counties to large cities such as Chicago and San Francisco.
While CCA policies vary, many include a feature that significantly increases participation in the CCA program: Customers do
not have to affirmatively opt in to the CCA service. Instead, customers are automatically enrolled in CCA service unless they opt
out and remain with their utility.
20

Recent CCA Growth


The recent growth of CCAs has been staggering, particularly in California. For instance, Marin Clean Energy (MCE) is a CCA entity that
has been serving customers within Pacific Gas & Electrics service
territory in northern California since 2010. MCE currently provides
electric service to more than 175,000 retail customers, but this is
expected to increase to 250,000 customers by late 2016.

CCA policies enable a local


entity to aggregate the load of
customers within its boundaries
and assume power procurement
responsibility.
Across California, a multitude of cities and towns are actively
considering CCA formation. By some estimates, more than 17 million Californians could be served by CCA entities within the next
few years (which would be 60% of the residents that were historically served by investor-owned utilities). A contentious CCA
debate is occurring in San Diego, where the city believes that
formation of a CCA is critical to meeting its goal of being 100%
renewable by 2035. If a CCA entity formed in San Diego, however,
San Diego Gas & Electric could potentially lose up to 40% of its
customer base. Ultimately, local and state political considerations
will likely dictate whether and when a San Diego CCA entity is
formed. To improve their political and regulatory strength, the
four major California CCA entities recently announced that they
have formed a trade association to advocate for CCA issues in
Sacramento and before the California Public Utilities Commission.
New York is the most recent state to allow for CCAs. Given that
New York is at the forefront of renewable energy policymost
notably through Governor Cuomos Reforming the Energy Vision
initiativethis is no surprise. In April 2016, New Yorks Public
Service Commission issued an order authorizing the establishment
of CCA programs by municipalities statewide. Given the proven success of CCAs in California and elsewhere, the development of CCA
programs is likely to accelerate quickly across New York. Over the
next few years, we will also likely see more state legislatures across
the country consider the adoption of CCA policies.
Patrick Ferguson (patrickferguson@dwt.com) is a partner in
Davis Wright Tremaines energy practice group in the firms San
Francisco office.

www.powermag.com

POWER August 2016

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PLANT OF THE YEAR

Dsseldorfs Lausward Power


Plant Fortuna Unit Wins POWERs
Highest Award

Courtesy: Stadtwerke Dsseldorf

Dsseldorfs new Block Fortuna at the Lausward Power Plant, owned by municipal utility Stadtwerke Dsseldorf, is setting records and giving Germanys
coal-fired power plants some much-needed competition for backing up the
nations large percentage of variable renewable power.
Lee Buchsbaum

ermanys Energiewende (literally,


energy turn) functions as something
of a living laboratory, where innovation equals survival, because traditional market forcesand policy goalshave been
turned on their heads.
Though the goal of Germanys energy
turnaround is to reduce carbon dioxide
(CO2) emissions while gradually phasing
out nuclear and coal plants in favor of more
renewables, the results have been a mixed
bag. Even though, on most days, Germany
produces a third or more of its 60-plus gigawatts of power from intermittent renewables,
recently, CO2 emissions have actually been
increasing.
Thats because, as nuclear plants are slowly being phased out, Germany is relying more
and more on cheap coal. Though natural gas
burns cleaner, its the most expensive fuel
option and, given Germanys merit order,
even the most efficient gas-fired plants are
the last ones to be powered up on a highdemand day. But as coal and nuclear plants
are shut down over the coming decades, gasfired plants may eventually become both the
22

backup and baseload solution of the future.


However, as of 2015, only 9.1% of the nations electricity came from natural gas, according to the countrys bureau of statistics.
Far in the lead was coal, which generated
41.9% of Germanys total gross electricity.
Renewable energy sources delivered 30.1%
over the year, nuclear power was down to
only 14.1%, while mineral oil products and
other energy sources accounted for the remaining roughly 5%.
Ironically, even as Germany has embarked
on its Energiewende, in recent years several
new coal-fired power plants have come online that are designed to quickly ramp up and
down, thus ensuring grid stability and reliability in the face of renewable intermittency.
To help compete economically with these
plants while ensuring lower CO2 emissions,
engineers at Siemens AG have been developing ever-more-efficient natural gasfired turbines that can also ramp up and down quickly
as demand spikes while significantly reducing fuel usage and emissions.
On January 25 this year, the gas-fired Fortuna unit of the Lausward Power Plant, owned
www.powermag.com

by the municipal utility Stadtwerke Dsseldorf, began commercial operationsalmost


immediately setting several world records for
power generation capacity and efficiency (see
the POWER POINTS sidebar).
For setting a new standard for a highperformance combined cycle gas turbine
(CCGT) plant that also supplies district heating, the Fortuna plant has earned POWERs
Plant of the Year award.

Key Players
As the turnkey provider, Siemens manufactured and provided all of Fortunas major
components, including its gas turbine, steam
turbine, generator, and heat recovery steam
generator (HRSG). The company also installed its SPPA-T3000 instrumentation and
control system, the plants main transformers, and will perform plant maintenance services. Including long-term maintenance for
its equipment, the Siemens contract was reportedly valued at about $562 million.
Several subcontractors constructed the
steel work and faade of the facility and
contributed other components and materials.

POWER August 2016

PLANT OF THE YEAR


1. Green light. LED lights recessed between sections of the Fortuna combined cycle plant illumi-

2. Window on the city. A visitor view-

nate it at night. This shot was taken on official commissioning day, May 22, 2016. Courtesy: Siemens

ing platform at the top of the Fortuna unit


overlooks the curve of the Rhine River in Dsseldorf. The closed framework and joints are
illuminated at night. Courtesy: Siemens

Vallourec S.A. provided 1,000 tons of premium-grade corrosion-resistant boiler tubes.


AkzoNobel Global supplied several thousand
liters of high-performance coatings from its
International range for the plants structural
steel and pipework. Norways Statoil is supplying the natural gas.
Designed by the architectural firm
kadawittfeldarchitektur, the building complex enhances the cityscape by communicating the pioneering nature of the facility.
Fortunas silver-colored steel faade has also
been creatively optimized. The reflective outer shell features hundreds of recessed LED
lights that turn the building into something of
an illuminated work of art at night (Figure 1).
But one of the most unusual design elements
is the 65-meter-high city window (shown
in this issues cover photo during the day and
in Figure 2 at night). Glazed on both sides, it
forms the northeastern end of the plant and
includes an observation deck thats 45 meters
above street level.
Fortuna was completed 18 days ahead of
schedule, on budget, after more than 2 million worker hours of construction. Not a single lost-time accident occurred throughout
the erection phase (see table).

Record-Setting Plant
The Latin word fortuna means luck or
destiny, and when officially commissioned
on May 22 this year, Fortuna represented both
the current technological apex of gas turbine
development and pointed the way forward for
how natural gaspowered plants can compete
with and eventually potentially replace coal
in Germany and in other locations around the
world while continuing to drive down CO2
emissions (see sidebar Never-ending Competition for Greater Efficiency).
Dsseldorfs development strategy was
to economically meet its ambitious climate
goals of achieving carbon neutrality by the
year 2050, which for this city in western

August 2016 POWER

Germany means reducing CO2 emissions to


just 2 tons per capita. Located adjacent to the
Rhine River near the citys harbor, Fortunas
new CCGT and cogeneration system uses the
heat generated by its turbines three times:
twice to make steam to generate electricity
and once to provide district heating for an increasing percentage of Dsseldorfs 600,000
residents.
The centerpiece of Fortuna is a single Siemens Model SGT5-8000H gas turbine, manufactured in Berlin (Figure 3). Together with the
downstream steam turbine of Siemens SST55000 series, operating in combined cycle, the
unit has a capacity of 603.8 MWa world record for a single-shaft CCGT when the plant
was commissioned. The gas turbine can run
at full load in less than 25 minutes after a hot
start, enabling it to ramp quickly, ensure grid
stability, and take advantage of any opportunity to generate both electricity and income.
We selected fully air-cooled technology
for our engines, said Willibald Fischer, Siemens director for gas turbine product management, at an April press event at Fortuna
attended by this POWER freelancer. We
derive 400 MW from the turbine, which is
about two-thirds of the power of the plant.
The other one-third is from the steam turbine.
This is a total one to one at roughly 600 MW.
The overall efficiency increases from 40% to
over 60%, Fischer said. The triple-pressure
Benson HRSG that heats steam to over 600C
at 170 bar clearly supports Fortunas high
electrical efficiency.
Fortunas 61.5% electrical efficiency exceeds the previous world record (also set
by Siemens) of 60.75%, set by the Ulrich
Hartmann combined cycle Unit 4 at Irsching
Power Station in southern Germanya 2011
POWER gas-fired Top Plant Award winner.
Fortunas high electrical efficiency, combined with its efficient use of waste heat
generated in the power production process
for district heatingwhen the plant operates
www.powermag.com

Never-ending Competition
for Greater Efficiency
Since commissioning of Unit 4 at the
Irsching Power Plant, Siemens has sold
nearly 80 other H-class turbines. Including the new Fortuna unit in Dsseldorf,
19 H-class turbines are now in commercial operation worldwide. Additionally,
combined cycle gas turbine (CCGT) plants
are increasingly in demand, particularly
as global gas supplies increase. According to Siemens, combined, the companys
H-class turbines have delivered over
230,000 equivalent hours of operation
as of June 2016, fleet reliability is over
99%, and availability tops 96%.
However, as this story goes to press,
two of Fortunas records have already
been broken. In mid-June, General Electric, which recently purchased Alstom,
announced in combination with French
energy provider EDF that it had set a new
efficiency record of up to 62.22% at the
Bouchain, France, combined cycle power
plant. GEs high-performance HA turbine
was able to generate 605 MW, also surpassing Fortunas capacity.
The Bouchain plant is also designed for
quick starts and stops so it can ramp up as
renewables slow down. Ramp times however, are a little slower than at Fortuna.
Bouchain requires an additional 5 minutes
to fully power up. The technology vendor
battles continue as GE has pledged to surpass the 65% efficiency mark in coming
years as generators increasingly look to
CCGT plants to replace coal, reduce emissions, and ensure grid stability.
in combined heat and power (CHP) or cogeneration modeincreases overall efficiency
of the plant to around 85% and reduces CO2
emissions to 230 grams (g)/kWh. By way
23

PLANT OF THE YEAR


3. Falling into place. The 440-ton gas turbine was transported through Berlin, to the
Charlottenburg Canal, where it began its trip via waterways to the Lausward plant on the Rhine.
Here, the turbine is being positioned at the plant at the end of its journey. The generator is visible at the back of the hall. Courtesy: Siemens

of comparison, Germanys entire generating


fleet (including renewables) produced average emissions of 609g/kWh in 2014.

Merit Order Pushes Gas Plants to


the Bottom of the Stack
Although world records are significant, they
cant guarantee that a plant will operate or
make any money. For decades, the decision
about which power systems to run in Germany
has been determined by fuel costs. The nations merit order system favors renewable
energy first, meaning that at all times, whatever
green power can be generated, is generated.
Germanys demand is generally about 60
GW, and the government hopes renewables
will regularly fulfill about 80% of that demand by mid-century. In theory, Germany can
produce 80 GW from renewables already, but
those sunny, windy days are rare and do not
provide consistent energy. However, 40-GW
peaks are becoming much more common.
Next in the merit order are Germanys nuclear plants, which are slowly being phased
out over the next decade. Nuclears current
20 GW of capacity is on track to eventually be reduced to zero. As the nuclear units
are retired, increasingly, lignite coal plants
are taking over their market share. Locally
sourced lignite is both cheap and plentiful,
though extremely dirty in terms of emissions.
With huge reserves throughout the nation, it
can be purchased for as little as $10 per ton
when mined from vast surface operations.
Ironically, from Fortunas high city window perch, you can easily observe nearly a
dozen coal units on the horizon.
Next up are the nations hard coal plants
24

though only one deep German coal mine is


still operating and is slated for shutdown next
year. But imported coal, with a much higher
energy value than lignite, is still quite cheap
comparativelyroughly $50 a tonand with
todays depressed market, quite plentiful.
So in Germanys merit order, CCGT units
are generally pushed into the role of only
providing peak-load coverage. Gas plants
without cogen capacity have to accumulate
some 4,000 hours of operation per year before investment will pay off. In this scenario,
only the most nimble gas-fired plants have a
chance to step in and support solar and wind
generation. That was something we perceived already in 2000. And we developed on
that path with the SGT5-8000H model gas
turbine, said Fischer.
Either way, according to Siemens, modern plants fitted with the companys F- or
H-class gas turbines are adapting technically
to these new requirements. Startup times of
under one-half hour are achievable without
increasing component wear. These power
plants are perfectly suited as backup units
for the fluctuating grid feed of weather-dependent renewable energy sources, precisely
compensating for shortfalls when needed,
said Lothar Balling, Siemens executive vice
president for global project management at
the Fortuna media event.

Cogeneration Keeps Plant


Competitive
When the city of Dsseldorf approached
Siemens about its desire for a new baseload
but flexible gas-fired plant to replace a coalfired one at the site, city leaders worried that
www.powermag.com

Table 1. Key milestones for the


Fortuna unit. Source: Siemens
Date

Selected milestone

May 16, 2012

Stadtwerke Dsseldorf AG selects


Siemens to build plant

July 31, 2013

Construction site handed over to


Siemens

Oct. 16, 2013

Completion of important
foundations

Sept. 1, 2014

Completion of exhaust gas stack

May 30, 2014

Gas turbine and generator arrive


at site

Apr. 4, 2015

Gas turbine first firing

Jan. 22, 2016

Siemens hands over plant to utility

Jan. 25, 2016

Commercial operation begins

May 22, 2016

Official commissioning

if they chose a combined cycle plant, they


could inadvertently be commissioning another potential white elephant like Irsching Unit
4which, since 2011, had been powered
by a Siemens gas turbine nearly identical to
what was proposed for Fortuna. Irschings
unit, formerly the most efficient power plant
in the world, is currently operating a mere
400 hours (16.66 days) per year and is losing money for its operator, E.ON subsidiary
Uniper. Dsseldorf did not want to go down
the same path.
To ensure its economic viability, Fortunaunlike Irschingis also used for district heating.
The temperature at the turbines front
blades is 1,500C, and its waste heat is extracted by a downstream heat exchanger to
power a steam turbine and generate additional electricity. The steam turbine is located
along the same axis as the gas turbine and the
generator. Steam from the turbine is channeled through three thick pipes to heat exchangers in an adjacent building. From there,
hot water at more than 95C flows through an
insulated pipe underneath the Rhine to the
city center (Figure 4).
The strategy is that when Fortuna is priced
out of the generation markets, it can operate
in a heat-optimized mode to provide district
heating. To maximize this potential, Dsseldorf is constructing a 40-meter-high tank
adjacent to the power plant to hold 35,000 m3
of water. Beginning next winter, the tank will
be able to store hot water for several days,
enabling the power company to freely decide
which mix of electricity and heat the Fortuna
unit should supply.
However, with climate change advancing,
Germanys winters are getting progressively
warmer, and Fortuna depends on its district
heating duties to stay profitable. But, according to the city, on account of the mild

POWER August 2016

PLANT OF THE YEAR


4. City power. The municipal utilitys new Fortuna unit provides both power and district
heating to businesses and residents of Dsseldorf, Germany, which is intersected by the Rhine
River. Courtesy: Siemens

POWER POINTS

Winning Attributes
Combined cycle gas turbine
power plant generation
efficiency record of 61.5% when
commissioned.
Electrical output record of 603.8
MW in single-shaft combined
cycle operation.
Highest thermal energy, 300
MW, extracted for district heating
anywhere in the world from a
single unit.
Visually attractive industrial
facility faade to integrate with
urban setting.

winter, the heating portion of this CHP plant


has not yet been fully utilized. Though the
full district heating extraction is about 300
MWth, we have only achieved about 280
MWth, said Nathalie Gttler, Stadtwerke
Dsseldorfs media coordinator in an email
to POWER.
Though the flexibility is there to run the
plant at low or high loads with more steam
extraction, the fully rated electrical output of
603 MW can only be achieved without steam
extraction. If you use the heat, it goes down
to 520 MW at maximum extraction. We are
extracting the steam out of those three lines,
which allows us to tap into the turbine. However, with this option, we get 40% more utilization of Fortuna compared to plants without
this option. This is a specific advantage for
the city, said Balling.
Germanys government would like to see
about one-quarter of net controllable power
generation coupled with heat production by
2020. The recently amended Combined Heat
and Power Act of 2016 now subsidizes cogeneration plants with outputs exceeding 2 MW.
For these reasons, planners hope to increase
sales of district heat by 15 MW per year.

The Need for Speed


Quick, cold startups help keep Fortuna economic, but quick hot stops make it cleaner.
Fortunas potential profitability is also enhanced by the fact that its 445-ton gas turbine only takes 25 minutes to ramp from no
generation to maximum output and can be
shut down again just as quickly. The power
plant is also capable of accommodating load
changes of 55 MW per minute between minimum and maximum load.
That ability is supported by Siemens new

August 2016 POWER

Flex-Ramp technology, which enables the


plant to ramp up and down at 55 MW/minute.
If an increase in output is desired, in parallel and simultaneously with running up the
gas turbine as quickly as possible, the steam
turbines output is increased markedly higher
than is conventionally possible in traditional
combined-cycle power plants, wrote Siemens engineers. Initial power feed to compensate for grid fluctuations is also available
within 5 minutes after startup when the gas
turbine synchronizes with the grid.
Siemens supplied its Co-Start technology to significantly increase the entire plants
flexibility. Instead of starting the conventional way, as at Irsching and other similar units,
Fortunas steam turbine starts up along with
the gas turbine. It also increases its output at
the highest rate possible until it reaches full
load. As the gas turbine starts and ramps up,
it increases its output at the steepest possible
gradient right up to full load, without waiting for staggered startup of the steam turbine,
as is customary. Waiting periods and holdpoints are thus rendered a thing of the past.
The new hot-start procedure combined with
this Co-Start solution is governed by improved
instrumentation and controls. We consequentially reduce fuel costs during the startup phase
and increase plant responsiveness to rapidly
changing market conditions, enabling plant operators to start units rapidly and precisely at that
point in time when favorable market conditions
are effective, said Wilson.
Warm start timestypically, a unit restart
after a weekend shutdown lasting up to 48
hourshave also been decreased by using the
Co-Start technology. The improved startup
procedure is basically achieved by implementing the same technical measures and modificawww.powermag.com

tions of the startup process as for hot starts,


the only difference being the different temperature and pressure conditions in the heat
recovery steam generator considered by the
instrumentation and control system after the
longer period of shutdown, explains Siemens
in a whitepaper describing Fortuna.
According to the company, if electricity
needs are low, the facility can reduce output
to 35%. At many other power plants, such a
reduction would cause emissions of carbon
monoxide and other pollutants to rise sharply. But at Fortuna, Siemens engineers developed a new system called Clean-Range
that keeps emissions below statutory limits
even when the plant is running at low loads.
According to Siemens, during test runs performed at Fortuna, its engineers determined
the companys new Quick-Stop technology
enabled them to shorten the normal shutdown
time to 25 minutescutting the standard time
of 45 minutes by almost half, thus increasing
fuel savings and lowering emissions.

Continued Good Luck


From start to stop, the new Fortuna plant is
well-suited for an increasingly challenging
power market. POWERs editorial team recognizes the city of Dsseldorf and its utility,
Stadtwerke Dsseldorf, for their commitment
to developing the most efficient, environmentally friendly, and flexible fossil-fueled plant
possible. Congratulations on winning POWERs 2016 Plant of the Year Award! May the
Fortuna plant continue to enjoy good luck.

Lee Buchsbaum (www.lmbphotography.


com), a former editor and contributor to
Coal Age, Mining, and EnergyBiz, has
covered coal and other industrial subjects
for nearly 20 years and is a seasoned
industrial photographer.
25

REINVENTION AWARD

Longview Power Plant


Rehabilitation Results in Most
Efficient U.S. Coal Plant

Courtesy: Longview Power

Weve all probably purchased a lemonan item that didnt work as advertisedbut when that lemon is a $2.1 billion power plant, you cant just
return it. For Longview Powers management team, taking a belts-andsuspenders approach to problem-solving allowed them to identify root
causes, make changes, and convert their lemon into lemonade.
Aaron Larson

ost people expect a new vehicle,


computer, or most other products
that they buy to be free of problems
for at least the first few years after purchase,
but for the owners of the Longview Power
Plant that expectation was a far cry from reality. The 700-MW coal-fired station located in
Maidsville, West Virginia, had a lot of problems after its construction and commissioning were completed in December 2011.
Of course, its rare for a project the size of
Longview to go off without a hitch, especially when it involves a large number of firstof-a-kind designs, but in Longviews case,
the issues were more than just hiccups; they
were serious problems. During operation, it
quickly became apparent that quality control
was questionable in some areas. There were
also several design errors and a few material problems. The plants control logic was
flawed and some equipment was facing obso26

lescence soon after being placed into service.


Considering that this was a brand new plant,
the owners couldnt be blamed if they felt
more than a little buyers remorse.
The idea for a plant was conceived in 2004.
In October 2006, First Reserve Corp.at the
time, the largest private equity firm specializing in the energy industryand GenPower
LLC formed a joint venture (JV) to develop,
own, and operate the plant. The group closed
on partial financing for construction in February 2007 with GenPower Holdings (the
JV) committed to providing the balance of
funding for the project, which ultimately totaled about $2.1 billion.
A consortium of Siemens Power Generation
Inc. and Aker Kvaerner Songer Inc. agreed to
construct the plant, utilizing a supercritical boiler supplied by Foster Wheeler North America
Corp. A contract for 300 MW of output had
been negotiated with PPL EnergyPlus LLC.
www.powermag.com

The remainder of the plants capacity was to be


sold into the PJM Interconnection day-ahead
energy market on a merchant basis.

Boiler Design Modifications


Needed
The plants boiler was a first-of-a-kind oncethrough BENSON low mass flux vertical tube
advanced supercritical design. The vertical
tube arrangement offered a less-tortuous path
for the fluid-side water to travel compared to a
traditional spiral-wound furnace, so it required
less pumping power. In order for the boiler to
achieve the higher temperatures and pressures
produced in a supercritical unit, the tubes were
constructed using some relatively new metal
alloys, including T23 in some areas.
T23 and T24 materials have had some
teething pains in the industry, especially
around welding and rewelding, said Stephen
Nelson, COO of Longview Power, so there

POWER August 2016

REINVENTION AWARD
1. Wholesale replacement. Installing tubes made of T22 with an Inconel overlay solved
the material problems in the boiler nose arch, shown here. Courtesy: Longview Power

2. A big job. More than 1,000 tubes were replaced during the rehabilitation project, some
of which were in the boiler front wall, shown here. Courtesy: Longview Power

were some real concerns about the materials


sensitivity.
As it turned out, the concerns were warranted. The boiler nose arch (Figure 1),
which had a unique design, was found to be
the weakest link. The design caused fluid
flow to be unstable, which resulted in heat
transfer problems, and the T23 material
couldnt handle it. During the first year and a
half of operation, there were a large number
of tube leaks (Figure 2).

August 2016 POWER

To resolve the trouble, Longview had to


go back to the drawing board. The plant even
brought in Babcock and Wilcox at one point
to conduct a third-party analysis so it would
have an independent review of the issues.
Foster Wheeler, to its credit, performed most
of the boiler work under warranty.
We took a belts-and-suspenders approach and basically went through the whole
boiler, Nelson said. We looked at the combustion and fuel preparation systems. We rewww.powermag.com

3. A spaghetti bowl of wires. Replacing a plants distributed control system requires


incredible attention to detail and countless loop
checks. Courtesy: Longview Power

placed the nose arch. We worked with Foster


Wheeler to improve the fluid flow arrangement. And then we improved the material.
The material they chose for the nose arch
was T22 with an Inconel overlay, and the results have been pleasing. But as significant as
the material changes were, refining furnace
combustion may have been an even more important improvement.
Combustion really wasnt controlled in
the manner that it was intended to be, said
Nelson. We had combustion occurring way
too high, not only up into the furnace, but
also into the superheaters.
Part of the problem resided in the coal
millsLongview went through all of its pulverizers and made changesbut there were
also issues with the mass flow measurement.
The plant didnt have an accurate and reliable mass flow measurement device. Once
that was understood, decision-makers chose
to do something very unique: They added
a combustion air measurement scheme that
monitors and controls airflow to each windbox compartment. The plant now has very
tight control to each compartment and, thus,
to each burner.
Ive been in this business and been around
power generation for about 35 yearsprimarily focused on boilersand the changes weve
made are really unique. Weve had a lot of
people take a long look at exactly what we did,
and theyre pretty impressed, Nelson said.

Changing Control Systems


Airflow wasnt the only control scheme that
wasnt working well though; the entire distributed control system (DCS) had problems.
27

REINVENTION AWARD
Table 1. Primary vendors involved in the rehabilitation project. Source:
Longview Power
Vendor

Equipment

Babcock and Wilcox

Third-party engineering review

Black and Veatch

Owner's engineer and assistance with project and outage management

Emerson Process Management

Distributed control system

Foster Wheeler North America

Supercritical boiler, bottom ash system, and air quality control system

Howden

Bottom ash system

Siemens

Turbine generator

There were logic glitches, hardware issues,


and software bugs. And to make matters worse,
the plant didnt feel it was getting the support it
needed to resolve the troubles. But the plants
owners demonstrated their commitment to the
cause by making another bold decision: They
chose to completely replace the DCS.
It was probably the single most important
thing we did, said Nelson. It was our biggest
risk, but it also caused our greatest reward.
The plant installed an Emerson Ovation system. It was a 12,000-input/output
point replacement (Figure 3). Fortunately,
most of the field instruments could be left
in place, but a very detailed logic review
had to be conducted and a lot of logic was
ultimately recreated.

Because the DCS is the central nervous


system for the whole plant, and there were
some pretty serious issues, we needed to start
with a fresh slate to assure ourselves that
we would end up with a fully viable control
system, Nelson said. It was a pretty large
undertaking, but it was well worth it because
the results were significant.
Emerson turned out to be a great partner
for Longview on that project. The plant also
hired Black and Veatch as its owners engineer. Nelson noted that Black and Veatch
was not only instrumental in the successful DCS replacement, but it also provided
Longview with deep bench strength in
other project and outage management areas
(Table 1).

Teaming with Black and Veatch allowed


us to bring in air quality control, boiler, and
other system subject matter experts, Nelson
said. In fact, our key outage manager was a
Black and Veatch employee.

Solving Vibration Issues


Siemens supplied an SST6-6000 steam turbine and an SGen6-3000W generator for the
plant. At the time of installation, it was the
companys latest design for that frame size.
The machine had an acceptable track record
in 50-Hz applications, running at some of
the most efficient plants in the world, but
Longviews unit was Siemens first 60-Hz
machine, and it had a few glitches.
Although the turbine ran flawlessly, the
generator did not. The most significant issue
was vibration, but there was also a problem
with excessive hydrogen leaking through the
generator seals. However, Siemens committed to fixing the machine under warranty.
The solution basically amounted to a major overhaul of the generator. The unit was
fully disassembled, and Siemens completed
shop repairs and modifications. Some field
modifications were also required, including
to the foundation. The results were excellent.
The generator vibration readings are now

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POWER August 2016

REINVENTION AWARD
4. More bags needed. Longviews pulse jet fabric filter required expansion because the
original design was based on the wrong fuel specification. Courtesy: Longview Power

POWER POINTS

Winning Attributes
Best net unit heat rate (highest
efficiency) in the U.S. coal fleet:
8,999 Btu/kWh.
Completed rehabilitation project
addressing major design errors in
only 18 months.
Equivalent availability factor of
98.5% since project completion.

more typical of a new machine, and hydrogen leakage is well under limits.
The steam turbine generator is a great Siemens machine that is extremely efficient and
reliable, said Chad Hufnagel, Longviews
reliability and performance manager. It is a
significant contributor to our extremely low
heat rate.

Improving the AQCS


As a plant conceived in the mid-2000s,
Longview had advanced pollution controls
integrated into its original design. The air
quality control system (AQCS) consisted of
a pulse jet fabric filter (baghouse) to remove
particulate matter, a wet flue gas desulfurization system (scrubber) for SO2 control, and
low-NOx burners and a selective catalytic

August 2016 POWER

reduction system with ammonia injection to


limit NOx emissions. Acid was removed from
the flue gas using a hydrated lime injection
system, which combined with the wet scrubber and baghouse also controlled mercury.
But the AQCS was not without its flaws
either. The catalyst was handled incorrectly,
so it got wet, which caused it to degenerate
quickly. It had to be fully replaced.
The AQCS was also sized incorrectly. The
design was based on the wrong fuel specification, so at the end of the day, everything on
the back end was too small.
Longview completed some modeling to
determine how things could be improved.
Combustion tuning resulted in a reduction in
thermal NOx, so at least that was a plus. The
control scheme and logic for the ammonia inwww.powermag.com

jection system could also be modified, so that


too was a step in the right direction.
However, the baghouse and scrubber were
simply too small. The baghouse needed to be
expanded by about 30% (Figure 4) to accommodate the necessary flue gas flow, while a
second dual-flow tray was required in the
scrubber. The scrubbers original design did
not include a method for removing fines
from the liquor either, so Longview added a
decanting basin to handle that task and improved the dewatering system too.
There were a lot of other thingsa lot
of other equipmentwe ended up adding to
that scrubber system, but in short, what we
did was we hot-rodded the scrubber, and
were getting 99.5% removal out of it now,
said Nelson. Were pretty proud of what we
got out of that.
Much like the scrubber and baghouse,
the boiler bottom ash system was smaller
than required. The original design was also
very complicated. When slag fell, it often
caused structural damage, or it would plug
up the system.
Longview worked with Foster Wheeler
and Howden to design and fabricate simpler, more robust equipment. In the end, the
plant replaced the entire bottom ash system.
Like all of the other changes, the results
made it worthwhile.
Its just a world of difference down there
now. We dont have the problems we had,
and to be honest with you, we dont have
problems that a lot of other bottom ash systems have, said Nelson.

Adding Autonomy
Although Longview is a coal-fired plant, the
unit starts up using natural gas. That fact has
also allowed the plant to capitalize on the
low price of natural gas. Earlier this year, the
plant cofired up to 20% of its heat input using
natural gas simply because it was cheaper.
The surprising thing about that is that
Longview is a mine-mouth facility. The
plant is fully integrated with Mepco LLC,
29

REINVENTION AWARD
5. Ready to fire on demand. To ensure natural gas pipeline
curtailments wouldnt prevent the plant from operating, Longview installed the worlds largest mobile liquefied natural gas system. Courtesy: Longview Power

heating load on the natural gas system is high. Nelson noted that
the gas pipeline to the plant is subject to a lot of curtailments. So
Longview again took matters into its own hands; the plant installed
the worlds largest mobile liquefied natural gas (LNG) system (Figure 5).
We have a set of mobile LNG tanks that come to the plant loaded,
and we have vaporizers and infrastructure that allow us to complete
two full starts on LNG, said Nelson. That feature is imperative in
light of PJM Interconnection capacity performance requirements.

Efficiency Leader

its source of fuel, and is designed to utilize run-of-mine coal, avoiding the added cost and environmental impacts of fuel preparation.
Mepco transports coal from its underground mines to Longview using a 4.5-mile-long conveyor that minimizes transportation costs and
avoids the environmental and local traffic impacts that trucking or rail
delivery would invite. Yet, even with that arrangement, natural gas
was the more economic choice this spring.
However, starting up on gas can pose problems in the winter when

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The $120 million spent on improvements by Longview and its contractors has turned the facility into the most efficient coal-fired power
plant in the U.S. According to U.S. Energy Information Administration
data, Longviews net unit heat ratea common performance metric
that represents the energy input required to produce a plants electrical outputwas 8,999 Btu/kWh during the first three months of 2016.
For comparison, American Electric Powers John W. Turk Jr.
Power Plant (a former POWER Plant of the Year, see AEPs John
W. Turk, Jr. Power Plant Earns POWERs Highest Honor in the
August 2013 issue and at powermag.com), which has an ultrasupercritical boiler and is assumed by many people to be the most efficient
plant in the country because of its design, had a net unit heat rate
of 9,234 Btu/kWh during the same period, more than 2.5% higher
than Longviews. The average net unit heat rate for the U.S. coal
fleet during the time was 10,525 Btu/kWh, nearly 17% higher than
Longviews.
The data from 2015 were also consistent with these results, so
Longviews recent performance is no flash in the pan. Operating a
more efficient plant means costs and emissions are reduced. Nelson
said Longview has the lowest dispatch cost of all coal-fired units in
the PJM market.
Were cheap. Were down with wind and hydro on our dispatch
costs, he said.
And being a low-cost electricity generator also means the plants
equivalent availability factor (EAF) has been positively affected. Before Longview went through its rehabilitation, tube leaks and other
problems caused the plants capacity factor to be in the low 70s
EAF was driving a poor capacity factor. Since all the modifications
were completed, Longviews EAF has been 98.5% and capacity factor is now being driven by the market.

West Virginia is the heart of coal country, so Longview has had a lot
of public support. Both of the states U.S. senators and several other
lawmakers, as well as public service commission members, have visited the site. Many left with the impression that the technology utilized at Longview could be the future of coal generation.
Look at Germany, Nelson said. They went through their renewables build-out and decided to close their nukes. For baseload power,
theyve been building coal plants recently, and the coal plants that
theyre building are like Longview.
Although Longviews early operation may not have been as stellar as
hoped for, in the end, things have worked out pretty well. Having the right
expertise, committing to continuous improvement, working tirelessly on
solutions, and developing effective implementation plans have all helped
the Longview team successfully overcome the challenges faced.
I cant say enough about how the whole team came together, said
Nelson. We planned the work and we worked the plan.
For the teams effort and the exceptional end result, Longview
Power Plant is a worthy recipient of POWERs 2016 Reinvention
Award.

Aaron Larson is a POWER associate editor.

CIRCLE 11 ON READER SERVICE CARD


30

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28225

SMART GRID AWARD

Kilroot Power Station,


Carrickfergus, Northern Ireland, UK

Courtesy: AES UK & Ireland

The governments of Ireland and Northern Ireland have big ambitions for their
unified electricity market, including a wind-heavy 40% renewable generation target by 2020. Making that happen while delivering safe, reliable
electricity to customers across the island means a sea change in how the
grid is operated. One of the first big steps is installation of the largest battery storage system in the UK and Ireland.
Thomas W. Overton, JD

he history of the electricity market on


the island of Ireland in many ways mirrors the history of the island as a whole.
Along with greater economic and political
integration following the peace process at the
end of the 1990s, the System Operator Northern Ireland (SONI) and EirGrid, the state
transmission operator for the Republic of
Ireland, began work to develop a single integrated wholesale electricity market in 2004.
After several years of discussion and planning, the Single Electricity Market (SEM)
was launched in November 2007. The SEM
is a mandatory pool into which all electricity generated on or imported onto the island
must be sold, and from which all wholesale
electricity for consumption or export must be
purchased. It serves about 2.5 million customers, slightly less than one-third in Northern Island and the remainder in the Republic.
Both Northern Ireland and the Republic
of Ireland have aggressive renewable energy
targets, seeking to meet 40% of gross electricity demand from renewable energy by
32

2020. The large majority of this generation


(roughly 37% of total demand) will come
from wind, leveraging the regions abundant
wind resources. The Republic currently has
about 2,400 MW of installed wind capacity,
while Northern Ireland has about 600 MW.
Both are well on their way toward meeting
their targets, with renewables having reached
about 20% of the mix in 2015.
In Northern Ireland, the Northern Ireland Renewables Obligation subsidy system has driven high installation rates for
both on- and offshore wind, which has in
turn driven a need for robust balancing
services to integrate such high levels of
intermittent generation. Unfortunately, the
regions aging conventional fleet is struggling to keep pace.
Northern Ireland has three major power
plants relying on a mix of fossil fuels. Gasfired Ballylumford in County Antrim is the
largest at 1,246 MW. Kilroot, south of Ballylumford in Carrickfergus near Belfast, is the
second-largest, with 520 MW of dual-fired
www.powermag.com

coal and oil boilers and 140 MW of gas turbines. The third, the 400-MW Coolkeeragh
combined cycle plant, is in the regions west,
near Derry/Londonderry.
The Kilroot station began construction
in 1974 as an asset of the state-run utility
Northern Ireland Electricity (NIE). Originally intended as a four-unit, 1,200-MW oilfired plant, it was scaled back to two units
in the early 1980s as a result of government
budget cuts. Commercial operations began
in 1981, with the second unit coming online
the following year. When oil prices rose later
in the decade, the decision was made to add
dual-fuel capability, and the conversion was
completed in 1989. Since then, the plant has
burned mostly coal.
When NIE was privatized in 1991, it
moved to sell all of its power plants. AES
Corp. and Belgian firm Tractebel purchased
Kilroot in a 50/50 joint venture. Tractebel
would later sell its share to AES, leaving
AES as the sole owner. (AES would also purchase Ballylumford.)

POWER August 2016

SMART GRID AWARD


1. Snug fit. The 10-MW Kilroot Array was installed inside an unused turbine hall in the
Kilroot Power Station and is integrated into the stations electrical infrastructure. Courtesy:
AES UK & Ireland

POWER POINTS

Winning Attributes
Largest battery storage system
in the UK and Ireland and first
system operating at grid scale
Serving as key test bed for
studying effects and benefits of
battery storage for the islandwide Single Electricity Market
First phase in planned 100MW battery array that will help
Northern Ireland and the Republic
of Ireland meet their 40%-by2020 renewable energy target

Over its 35-year history, Kilroot has supported its responsibility as a critical leg of
the regions generation through repeated upgrades in its technology and environmental
controls. A flue gas desulfurization system
and selective non-catalytic reduction technology were added in the 2000s. A variety
of other improvements have helped boost the
plants heat rate and efficiency. And while
the installation of two 42-MW gas turbines
in 2009 gave Kilroot additional peaking capacity, the islands ever-increasing renewable
generation meant more than that was needed.

Secure, Sustainable Power


To maintain grid stability, SONI has currently set a 50% cap on real-time penetration of
non-synchronous generation (which is typically wind and solar). However, SONI also
estimates that to reach 40% renewable generation, the grid will need to be able to operate at levels of non-synchronous penetration
up to 75%, something it cannot currently do.
In 2011, EirGrid, SONI, and other stakeholders on the island launched the DS3
initiative: Delivering a Secure, Sustainable
Electricity System for Northern Ireland and
the Republic. According to EirGrid, The
aim of the DS3 Programme is to meet the
challenges of operating the electricity system in a secure manner while achieving
the 2020 renewable electricity targets. The
DS3 Programme is designed to ensure that
we can securely operate the power system
with increasing amounts of variable nonsynchronous renewable generation over the
coming years.
DS3 has three pillars: Performance, pol-

August 2016 POWER

icies, and tools. Energy storage was identified early on as a critical element of system
performance.
AES is one of the world leaders in large
battery integration, and AES Energy Storage has deployed and operates the worlds
largest fleet of grid-connected batteries,
with 136 MW in operation and another 258
MW under construction or in late-stage development around the world. AES began
exploring possibilities for energy storage in
Northern Ireland even before DS3 was formally launched, as the market signalsin
particular, growing curtailment payments
to the islands wind farms as a result of the
grids inability to accept all the electricity
they were generatingmade storage economically promising.
John Zahurancik, president of AES Energy Storage, explained to POWER, Northern
Ireland is installing a significant amount of
renewable energy and is a leader in creating a
market-based mechanism that pays resources
for their performance and the value they deliver. That meant a market opportunity for
first movers.
In November 2014, AES co-hosted an energy storage seminar in the Northern Ireland Assembly with the All-Party Group on Science
and Technology to boost understanding of the
different types of energy storage, their applications, and capabilities. Among the speakers
was Mike Kormos, executive vice president
of operations at PJM, which oversees more
grid-connected storage than any other system
operator in the U.S. Kormos stressed that electricity storage was becoming an increasingly
important tool in grid management.
www.powermag.com

Kilroot already had a Harmonised Ancillary Services (HAS) contract in place with
SONI. AES in late 2014 proposed to install a
10-MW battery storage system at Kilroot using its Advancion 4 technology (which won
the Edison Electric Institutes International
Edison Award in Junesee 2016 Edison
Award Winners Announced at powermag.
com). The proposed Kilroot Array would
provide up to 9.9 MW of Primary Operating
Reserve, Secondary Operating Reserve and
Tertiary Operating Reserve 1 system services
at the existing regulated tariff rates under a
modified HAS contract.

Aggressive Start
Because of the impending changes under DS3,
AES set ambitious deadlines for installation of
the array to ensure that key stakeholders had
sufficient time to become familiar with the
technology. With DS3 releasing interim tariffs
in Q4 2016, AES set a January 1, 2016, target
for completion to ensure its partners could gain
experience with an operating system as the new
market structures were being developed. This
meant a mere six months from project kick-off
to commercial operation.
The battery array was not simply installed next to the existing plant. Rather, it
was built inside it and integrated into the
existing infrastructure. The vacant hall built
for the never-installed turbine 4 was chosen
for the site of the array to allow it to interconnect through the existing distribution
boards and transformers of the operational
Unit 2 (Figure 1). The presence of asbestos
in the area meant that some remediation efforts were necessary.
AES supplied the fourth generation of its
Advancion energy storage technology. Batteries were supplied by LG Chem and the inverters by Parker-Hannifin, with construction
and balance of plant components by Scotts
33

SMART GRID AWARD


2. Fast start. The Advancion battery system was installed in a brisk six months from start of
construction to commercial operations. Here, Carla Tully, president of AES UK & Ireland, leads a
tour of the facility during construction. In the background is one of the unfurled racks that form
the basis of the AES Advancion node design. Courtesy: AES UK & Ireland

with the full 10 MW of generation.


When interim DS3 tariffs are phased in
(expected in October 2016), the battery
will transition to these new arrangements
along with other HAS providers on the
system. The new ancillary service market
under DS3 is designed to properly compensate the advanced performance that the
Kilroot Array will be optimizing during the
initial period.

Looking Forward

3. Narrow band. The Kilroot Array provides mostly frequency regulation services. Because Northern Ireland grid operator SONI wants to learn more about the potential of large
grid-connected storage, it operates inside a narrower, more aggressive band than conventional
generation, kicking in any time system frequency strays more than 1% outside nominal. Courtesy: AES UK & Ireland
Full power discharge

49.9 Hz

Dead band
recharge zone

Frequency

50.5 Hz
49.5 Hz
50.1 Hz

Full power charge

Electrical Services of Belfast. Construction


began on July 1, 2015, with substantial completion in November (Figure 2). Commissioning of the battery system took place from
mid-November to mid-December. The project was declared operational on December 21
and was fully grid-connected and available
for service on January 5.
During the first few months of operation,
AESworking alongside SONIfocused
on refining the operator interface and optimizing performance to meet the needs of the
SEM. As the Kilroot Array is the first battery
storage facility on SONIs system, it was decided that in order to explore its full potential, Kilroot would adopt a reserve/response
34

profile that was much more aggressive than


that of conventional generators. In practice,
this means that the batterys full output is
available at a 1% deviation (droop) from
nominal frequency (which is 50 Hz, so the
battery outputs at +/0.5 Hz), compared to a
4% droop for conventional generation (Figure 3).
During normal operation, the battery is
held at 70% charge, since low-frequency
events that require discharge are more frequent and likely than high-frequency events
that the battery would draw a charge from.
Within a small dead-band, the battery can
recharge when necessary. In an emergency
situation, the battery can also supply SONI
www.powermag.com

Carla Tully, president of AES UK & Ireland,


said of the projects installation and initial
operation, Northern Ireland needs a secure,
affordable and sustainable electricity system
for now and in the future. Our investment
in the largest battery energy storage array
on these islands represents an important advancement for the region.
The 10 MW in the Kilroot Array, if all
goes well, will only be the start. AES has announced plans for a 100-MW storage array
at Kilrootwhich would be one of the largest in the worldslated for an early 2018
installation. This array is predicted to provide annual savings of 8.5 million ($12.4
million) and avoid 123,000 metric tons of
CO2 per year. The proposed expansion will
operate in the new Integrated Single Electricity Market, a substantive reform of energy, capacity, and ancillary service markets
for the island-wide system that is planned
for rollout in October 2017.
Research into how best to use energy
storage on the Irish grid is ongoing. Using
funding from Innovate UK Energy Catalyst,
AES is working with Queens University
Belfast to study the impact and performance
of the Kilroot Array on the Northern Ireland
system. AES is also working with Queens,
SONI, and other stakeholders to open up the
market to grid-scale energy storage. AES is
running the Array in a variety of test modes,
as directed by SONI, to replicate the 14 new
service definitions to be introduced in late
2017 and to understand the full potential for
energy storage in the system.
Robin McCormick, general manager of
SONI, noted, Integrating battery storage
solutions onto the system is an important
development which should bring real benefits to customers across the island. As the
transmission system operator, this innovation provides a significant learning opportunity. We will assess the role that battery
storage will play in the increasingly diverse
portfolio of generation sources, as we continue to ensure a safe, secure, reliable and
cost efficient electricity supply throughout
Northern Ireland.

Thomas W. Overton, JD is a POWER


associate editor.

POWER August 2016

WATER AWARD

Huaneng Powers Changxing


Station ZLD Project, China

Courtesy: Oasys Water

To satisfy Chinas more stringent water use and air pollution rules, developers of
the new 1.3-GW ultrasupercritical coal-fired Changxing Power Plant used a
novel forward osmosisbased brine concentration and water reuse process
to treat flue gas desulfurization wastewater for zero liquid discharge (ZLD).
It is the worlds first commercial application of this technology.
Sonal Patel

hinas current economic development has been marred by complex


water resource constraintsboth of
quantity and qualitythat span a number of
geographical, political, economic, and social
factors.
Large areas of northern China, including
parts of Handong, Henan, Hebei, Shanxi,
Inner Mongolia, Liaoning, Xinjiang, and
Shaanxi, are extremely water-stressed, yet
these are the same regions where the countrys coal power boom is happening. According to the Platts World Electric Power Plant
Database and the World Resources Institutes
Aqueduct water risk analysis model, power
plants located in those red-list areas had
an annual water consumption of 3.4 billion
cubic meters (m3), with an estimated water
withdrawal of 29 billion m3.
Meanwhile, the data suggest that 48%
of proposed coal-fired power plants in the
country237 GW worthare slated for
construction in water over-withdrawal
areas and could consume an additional 1.8
35

billion m3 of water per year, withdrawing


6.5 billion m3 annually. Thats equivalent to
the basic annual needs of about 100 million
people. If business proceeds as usual, the
country will see 25% of its freshwater use
go to power plants by 2030, Bloomberg New
Energy Finance projected in 2013. However,
water scarcity and water quality challenges
have already left Chinas five biggest stateowned power generators heavily exposed to
water supply disruptions.

A First-of-its-Kind Project Takes


Shape Amid the Chaos
Recognizing the risks that water scarcity and
quality poses to its energy futureand faced
with a predicament of also ensuring food
securityChinas government has clamped
down hard.
In 2012, as part of its 12th Five-Year Plan,
Beijing adopted new industrial water rules
(detailed in the State Council document No.
[2012]3) that applied the strictest limits ever
to water intake and discharge. During that
www.powermag.com

period, it also enacted legislation to curb


emissions of nitrogen oxides, sulfur dioxide,
particulates, and mercury from coal-fired
power plants, essentially mandating electrostatic precipitators and flue gas desulfurization (FGD) technology be installed across its
massive fleet.
For key government-owned power generation enterprise China Huaneng Group, the
measures ultimately shaped how it designed
its Huaneng Changxing Power Plant, a 1.3GW two-unit ultrasupercritical power plant
it was developing around that time. Final
plans for the state-of-the-art plant in Zhejiang province, about three hours southwest
of Shanghai, called for twin 660-MW steam
generators (Units 7 and 8), as well as flue gas
pollution controls, including wet limestone
slurry FGD units built by Chinese power engineering firm Wuhan Kaidi, based on technology licensed from Babcock & Wilcox.
China Huaneng Group says it is driven to
enhance profitability, but it also holds industry-leading competitiveness and sustainabil-

POWER August 2016

WATER AWARD
1. Designed for flexibility. The Changxing zero liquid discharge (ZLD) flue gas desulfurization (FGD) water treatment process is designed for flexibility. Blowdown water from the FGD
scrubber is pretreated via contact clarifier with rapid mixing of soda ash and lime to remove the
typical 8,000 to 15,000 milligrams per liter of hardness (as calcium carbonate). The softened
wastewater is then filtered and polished using weak acid cation ion exchange (CAC IX) beds
to reduce hardness to single-digit levels. Reverse osmosis (RO) then concentrates the stream
from approximately 20,000 parts per million (ppm) of total dissolved solids to 60,000 ppm. The
membrane brine concentration (MBC) forward osmosis system used for brine concentration is
designed as three parallel trains supported by a single draw solution recovery system. This allows flexibility to handle a flow range of 30% to 110% of design flow, while the system provides
consistent quality of feed to the final ZLD step of crystallization. Source: Oasys Water
Media filters WAC IX polisher

POWER POINTS

Winning Attributes
The coal-fired power plants
novel forward osmosisbased
zero liquid discharge system
desalinates its wastewater from
flue gas desulfurization for reuse
in the boiler feedwater loop.

MBC product water

Raw water

The first commercial application


of its kind anywhere, it serves
as a reference for other power
producers in China and around
the world.

RO polishing Preconcentration

Chemical softening
Pretreatment system
Three-train
design

The impressive technical


achievement in the field of
industrial water could have a
larger role in the energy-water
nexus, where water scarcity is
becoming an alarming concern.

Thermal draw
recovery system
ClearFlo MBC system
MBC product
brine
Solids
Crystallizer
Crystallizer

ity as key values and is devoted to providing


a strong guarantee for economic and social
development in China.
Huaneng is no stranger to quick development or new technology. The companys installed capacity base has grown exponentially
since it was founded in 1985, swelling from a
meager 113.2 MW to 100 GW at the end of
2009, 150 GW by the end of 2014, and a stunning 160 GW by the end of 2015. Today, the
company, the first in China to join the ranks
of Fortune 500 companies, has assets scattered
all over China and abroad, and it has expanded
its operations to encompass power plant development, investment, construction, operation, and management as well as finance and
technology research and development.
With Chinas new air pollution and water
intake/outflow requirements under consideration, for its Changxing units, Huaneng opted
to source water for cooling and other purposes from the nearby Lake Taihu. But, in a
departure from its more conventional projects,
the company also committed to install a new
wastewater treatment plant to treat a combined
waste stream, including the FGD blowdown
wastewater stream and cooling water blowdownand to make it a zero liquid discharge
(ZLD) system, with recovered water being recycled in the boiler feedwater loop.
In a world first, the system was also de-

August 2016 POWER

signed to use forward osmosis (FO) technology as the brine concentration technology for
the ZLD train.

was therefore planned for in the design of the


system, a company spokesman said.
The company also said that several important design decisions were made to optimize
the system for stable performance over the
expected wide range of water quality and
flow conditions. They included:

A Unique Process Flow Design


Huaneng considered various project proposals
for the novel plant application, eventually selecting Boston, Mass.based Oasys Water Inc.
and its Chinese partner, Beijing Woteer, to
deliver the worlds first commercial application of FObased ZLD. Oasys Water, a company founded in 2008, provided its patented
and trademarked ClearFlo membrane brine
concentrator (MBC) system with pre-concentrating reverse osmosis (RO), while Beijing
Woteer supplied physical-chemical filtration,
ion exchange pretreatment, and a crystallizer
package.
According to Oasys, the guiding philosophy in designing the ZLD process flow for
Changxing was for the pretreatment and
MBC sections of the system to be able to absorb the wide swings in wastewater flow
and water quality arising from variations
in the FGD scrubber process. Because the
wastewater treatment plant was built with the
new facility and not a retrofit, the ZLD process flow was designed based on projected
water quality data. Ability to treat a variety
of waters across a wide range of hardness,
alkalinity, and total dissolved solids [TDS]
www.powermag.com

Complete softening of the FGD wastewater was required due to the high concentration factor required for ZLD, in order
to minimize opportunities for scaling in
the pre-concentrating RO system and for
premature saturation of minerals in the
crystallizer. Stoichiometric softening in a
contact clarifier was combined with weak
acid cation ion exchange polishing.
MBC process flexibility was maximized
so that the wide range of feed flow and
water quality could be managed. To accomplish this, the team defined four design cases for flow and incoming TDS.
The RO and FO components of the MBC
were then designed to produce stable brine
TDS, allowing flow and overall recovery
to float as necessary.
To maximize turndown ratio, the FO component of the MBC was split into three
parallel trains (Figure 1), a configuration
that allows operation of the MBC at flows
from 60% to 110% of design maximum.

One, two, or three trains may be in service


at one time. The cross-flow nature of the Oasys Water FO system aids in the wide range
of operating flow within each train and also
is critical to the system reaching the target recovery levels, the company said. According
36

WATER AWARD
2. The new skid on the block. The membrane brine concentrator systems forward
osmosis skids at the Changxing plant. Courtesy: Oasys Water

stage crystallizer at a target TDS concentration of 220,000 mg/l or higher. Currently, the
crystallizer processes 2.5 m3/hour of brine,
operates at pH 8.08.5, and concentrates the
brine to saturation. A pusher centrifuge and
hot air dryer system then remove remaining
water to less than 0.5%. Finally, produced
mixed salt crystals of more than 95% (NaCl
+ Na2SO4) are bagged and palletized for sale
to chemical manufacturers in the region.

Lessons Learned

Table 1. MBC design specifications and operational data. Source: Oasys


Water
Parameter
Raw feed flow
Raw feed total dissolved solids (TDS)

Design basis
15.026.4

m3/h

Actual conditions
27.030.0 m3/h

25,00040,000 mg/l

8,6009,500 mg/l

>220,000 mg/l

>220,000 mg/l

MBC product water TDS

<100 mg/l

3550 mg/l

Overall water recovery

79%88%

93%97%

MBC brine TDS

to Oasys Water, the FO MBC concentrates


wastewater dissolved solids from approximately 60,000 milligrams per liter (mg/l) in
the RO concentrate to 220,000 mg/l or higher. The MBC does the brine concentration
work of a thermal or mechanical evaporator
with the simplicity and modularity of a membrane system, while consuming a fraction of
the energy, it explained.

How It Works
The FO trains are driven by an osmotic pressure gradient created across a semi-permeable membrane to achieve spontaneous and
preferential diffusion of water molecules
from a saline feed into a proprietary draw solution. As water crosses the FO membrane, it
dilutes the draw solution. At the draw solution exit of the FO array (Figure 2), it has extracted the prescribed amount of clean water
from the wastewater stream and a separation
process must be performed to reconcentrate
the draw solution and to separate the clean
water stream for reuse.
To reconcentrate the draw solution, it must
be heated to between 45C and 65C above
37

the inlet dilute draw solution temperature to


volatilize and subsequently recondense and
absorb ammonia and carbon dioxide.
For the Changxing system, the energy requirement is less than 90 kWth/m3of wastewater processed, Oasys Water said. The draw
solution recovery was designed to use steam
as the energy source for volatilization and
water cooling for condensation, but the company noted that mechanical vapor recompression system designs are also an option.
The freshwater stream exiting the MBC
draw solution recovery loop combines with
the pretreated wastewater stream and passes
through the RO system. It leaves the system
in the second-pass RO permeate stream with
TDS of less than 100 mg/l. It is then stored
in the product water tank and is reused in the
power plants boiler makeup water system.
The MBC system is designed to recover up
to 23 m3/houror up to 87% recoverybut
it is actually performing at more than 90% in
operation thus far, said Oasys Water.
Notably, the salt byproduct from the process is also collected and sold. Concentrated
brine exiting the MBC system feeds a twowww.powermag.com

The Changxing Power Station Units 7 and


8 were new builds that came online in late
2014, which meant there was no actual water analysis on which to base the design of the
ZLD process train to treat FGD blowdown
wastewater, noted Oasys Water. This fact
guided the design team to conservatively design the pretreatment and the FO brine concentrator as described, it said, noting that
since startup, the flow per day to the plant
has been in range of the design basis, but
TDS levels have been lower than expected
(see table). This has resulted in lower flow to
the MBC system and overall higher recovery
prior to the ZLD crystallizer.
Startup and commissioning of the new
plant, and the first-of-its-kind water treatment technology, was also challenging, as
could be expected. Notably, the Chinese and
American team dealt with language barriers as it trained operators to run the system.
Startup, commissioning, and training related to the project that is of much interest
to developers of new power plants and coalto-chemical projects in China were also complicated by frequent tours and visitors. But
that interest ultimately paid off for Oasys
and Chinese partner Beijing Woteer, which
have since secured three additional projects
in China. They include another coal power
FGD wastewater project and two projects for
ZLD treatment of streams at coal-to-chemical process complexes.
Today, the solution continues performing as expected to transform Changxings
complex, high-salinity waste stream, which
includes FGD blowdown wastewater and
cooling tower blowdown. Oasys Waters
technology is now transforming 630 m3 per
day of wastewater, reducing both the intake
of local surface water and the outflow of
industrial wastewater. The draw solution recovery, designed to use steam as the energy
source, also continues to reduce overall energy requirements and overall costs.
For adopting a novel solution to pressing environmental concerns, the impressive achievement at the much-watched Changxing Power
Plant earns POWERs 2016 Water Award.

Sonal Patel is a POWER associate


editor.

POWER August 2016

PROJECT MANAGEMENT

New Best Practices for Power


Project Planning and Construction
Effectively managing time, budget, and resources has always been the goal of
companies involved in constructing power generation projects, but today
the challenges in meeting those goals can be greater than ever.
Gail Reitenbach, PhD

ny power generation company involved in new construction or an upgrade or retrofit project hopes it will
see completion safely, without exceeding
schedule or budget. But whether the project
involves first-of-a-kind or familiar technology, it seems there are frequently projectspecific complications to overcome. To learn
what new tools and techniques construction
firms are using to deliver successful projects,
POWER reached out to half a dozen companies. Two, Kiewit and Fluor, responded. Both
work on projects involving all fuel types,
from fossil to nuclear to renewables.

Current Project Planning and


Construction Challenges
In response to POWERs question about the
most significant current challenges in the
power infrastructure construction business,
Dave Flickinger, executive vice president
of Kiewit Energy Group (Kiewit), whose
headquarters are in Omaha, Neb., responded,
Speed-to-market is a top priority for our clients, who continue to challenge us with aggressive schedules that compress the overall
duration from notice to proceed to the commercial operations date.
At the same time, he added, plant equipment is getting larger and more sophisticated, which can require longer lead times for
design, coordination, and integration. We
also remain steadfast in our commitment to
safety and quality, which can affect project
timelines. Fortunately, we have been able to
counterbalance these impacts with new technologies that streamline our operations and
maximize efficiency.
Fluor, based in Irving, Texas, sees different challenges depending on the locale. Jack
Penley, president of Construction & Fabrication, responded, Globally, the most significant
project challenge is reducing the capital costs of
projects to enable them to move forward. In the
current business climate, clients are cautious
about deploying their capital to support new
projectsthey need cost and schedule certainty, with an improved rate of return, before they
move forward with new investments.
38

What drives those capital costs varies. In


North America, demand for skilled craft professionals is a major factor. In other locations,
Penley explained, there may be available
skilled labor, but if it is a remote area, there are
other additional expenses, such as higher logistics and workforce housing costs.

Working Smarter, Faster


Every firm in the construction business has
some version of a productivity regime. Penley said Fluor has a broad range of execution resources. Every phase, from concept
to commissioning and operations and maintenance, is executed with a constructiondriven mindset; for example, engineering and
procurement activities are based on creating
a better-build approach.
One of those better-build approaches is
what Fluor calls advanced work packaging
(AWP). AWP improves construction and
productivity in the field through close engagement with engineering. Through inten-

sive planning, starting in the front-end stage,


the project determines the path of construction, developing engineering and construction work packages in accordance with the
construction sequence and significantly improving efficiency.
Fluor has used AWP on multiple projects in
North America and has seen reductions in direct craft hours between 15% and 18%, as well
as improved safety, schedule performance, and
execution predictability. Penley said the company is currently implementing AWP on three
power projects in the U.S. (Figure 1).
Kiewit also focuses on identifying ways
to accelerate work in the early stages of a
project, particularly in regard to procurement
and engineering. For example, Flickinger
said, the faster we purchase equipment, the
more quickly we can access critical technical
information that influences engineering and
design. Furthermore, the faster we can get
engineering work complete, the faster we can
get moving on construction.

1. New responsibilities. Late last year, Fluor was brought in to replace the previous
contractor for construction of two new nuclear projects, Plant Vogtle Units 3 and 4 in Georgia
and V.C. Summer Units 3 and 4 in South Carolina. Here a containment vessel ring is placed at
V.C. Summer Unit 3 in April 2016. Courtesy: South Carolina Electric & Gas

www.powermag.com

POWER August 2016

PROJECT MANAGEMENT
Throughout all phases of the project,
productivity is key. With careful analysis
using cutting-edge technology we can significantly level manpower curves by trade,
he said. Additionally, we use manpower and
field density tools to ensure that work is sequenced as effectively as possible.

Benefits of Modular Construction


Not Fully Realized
Several years ago, modular construction
techniquesespecially for nuclear new
buildswere touted as the latest and greatest innovation in power plant construction
practices. When asked if modular techniques
have lived up to their promise, the two firms
gave somewhat different answers.
Fluor hasnt seen a significant amount of
modular construction on power projects, but
believes it holds tremendous potential for
the power industry, based on the success we
have seen in other industries, such as oil and
gas, Penley explained. A significant portion of a power project, perhaps with the exception of the heat recovery steam generator,
could be modularized.
Fluors own, patented approach to modularization, called 3rd Gen Modular Execution,
significantly increases the level of modular-

ization on a project, reducing plot plan, onsite labor, and material requirements, Penley
said. On one oil and gas project, we were
able to reduce the plot plan requirements by
40% versus a traditional design approach.
On another project, use of 3rd Gen Modular
Execution helped reduce the projects capital
costs by 30% from initial estimates.
Kiewits Flickinger said, In our experience, off-site modular construction has not
proved to be cost effective. We have performed countless studies on various projects
and have yet to find an opportunity where
it makes sense. However, he added, we
have utilized on-site modularization that has
proved effective. Specifically, we have been
able to better streamline the use of specialty
craftsmen and, in many cases, reduced the
amount of rework in the field.

New Productivity Tools


As in power plants themselves, new automation tools and other technology-based solutions are making construction planning and
execution more efficient and predictable.
A well-planned project drives out work,
said Penley, and, in addition to AWP and
modularization, we have seen great improvements with automation tools to improve

planning and field construction schedules.


Scaffolding is another area where upfront
planning can significantly reduce project
costs, he added. On a typical, large-scale industrial project, scaffolding can account for
20% to 40% of direct labor hours. By incorporating scaffolding into a projects detailed
design, scaffolding quantities and onsite
productivity are optimized, with scaffolding
hours potentially cut in half when compared
to other projects.
Fluor implemented this type of solution on
the North West Redwater Partnerships Sturgeon Refinery Project in Alberta, Canada,
which was recently recognized with a Celebration of Engineering & Technology Innovation
Award by Fiatech, an international organization
dedicated to the betterment of the capital project industry. This solution can also be implemented on power projects, Penley said.
Other ways Fluor is striving to be more
sustainable while improving project execution include developing a fully paperless construction project and seeing how innovations
like 3-D printing can support projects.
Kiewit has developed a fully integrated,
component-based tracking system that it says
has been a game changer. We have the ability to track the installation of each and every

CIRCLE 12 ON READER SERVICE CARD

August 2016 POWER

www.powermag.com

39

PROJECT MANAGEMENT
2. Eyes in the sky. Drone technology was used to plan and arrange site materials on the
confined site of the new Woodbridge Energy Center in New Jersey. Courtesy: Kiewit

component that goes into the construction of


a power plantwhich can equate to more
than 100,000 pieces, Flickinger explained.
The system provides real-time insight on
how installation aligns with our estimate and
how that ties to our schedules. Beyond tracking past progress, it also allows us to analyze
future manpower needs and sequence work
over the short and long term.

REMBE | All rights reserved

T +49 2961 7405-0 | info@rembe.de

EXPLOSION SAFETY
and
PRESSURE RELIEF
for Power Plants

Consulting. Engineering. Products. Service.

Gallbergweg 21| 59929 Brilon, Germany


F +49 2961 50714 | www.rembe.de

Inc.
3809 Beam Road Suite K | Charlotte, NC 28217, USA
T +1 704 716 7022 | F +1 704 716 7025
info@rembe.us | www.rembe.us

Drones are another tool Kiewit has used


to solve project challenges. In mid-2013,
Competitive Power Ventures (CPV) hired
Kiewit to engineer, procure, construct, and
commission Woodbridge Energy Center
(WEC), a 725-MW combined cycle power
plant in Woodbridge Township, N.J. (Figure
2). Completed ahead of schedule in January
2016, the plant met the owners budget and
exceeded performance requirements thanks
to innovation solutions that included using recycled wastewater for facility cooling
needs and utilizing drone technology to plan
and arrange site materials on a confined site.
Although the development area sits on
more than 180 remediated acres, the WEC
occupies only 27 of those acres, making for
a tight workspace for such a large plant. One
way the project addressed this complex challenge was by using drone technology to see
exactly where to land materials, if the team
was storing too much material in a certain
place, or if materials could be consolidated.
Innovation can also be required for renewable power projects. On a recent large solar
power project handled by Fluor, the grounding clips being used were difficult and timeconsuming to install, which was affecting
productivity in the field. Penley explained,
Our engineers partnered with a manufacturer to re-design a commercial, off-the-shelf
grounding clip, increasing the installation efficiency of the more than 600,000 photovoltaic modules on the project. This innovative
solution has since been used on other solar
power projects, resulting in significant efficiency improvements.

Workforce Training
A firm can have the latest, coolest technologies and processes, but without people, even
automated solutions cant get a project

built, so its no surprise that both firms dedicate significant resources to their workforce.
Our people are what separate us in our industry, Flickinger said, and weve worked
hard to retain our employees through up and
down cycles. While every company in our
sector has experienced some workforce challenges, weve generally been able to hold our
workforce number steady and add strong talent when needed.
Flickinger attributes his companys retention success to the significant investments made in training and development
of staff and craft employees: Kiewit spends
nearly $80 million on training and development annuallywell above the national
average per employee. That includes ongoing efforts on projects and through Kiewit
University, a long-standing training center
that provides more than 100,000 hours of
training each year through a wide range of
technical, leadership, and professional development curriculum. Construction on a new
62,000-square-foot Kiewit University building is under way in Omaha. The company
also provides hands-on skilled training at
its new center in Denver to support ongoing
craft and staff employee needs.
Fluor is focused on training as well. To
develop our skilled craft workforce, Penley said, we offer training at every stage of
a workers career, including free, entry-level
training in four trades, after-hours skills upgrade training at our jobsites, welder upgrade
training, and supervisory training. At the
recently completed Dominion Brunswick
County Power Station project in Virginia, Fluor offered tuition-free, after-hours skills training to craft professionals. In 2015 alone, the
company provided more than 12,000 hours
of training at that site, in disciplines ranging
from carpentry to pipefitting and welding.
Fluor also focuses on development of construction management professionals, placing new graduate employees immediately in
field assignments. Through this intensive
rotational process, employees train under
experienced superintendents and management, accelerating their understanding of our
industry and ability to effectively manage
work, Penley explained.
However, development alone will not
solve all of the labor challenges, he added,
which is why we are increasingly using techniques such as AWP and modularization to
improve project efficiency. For example, with
modularization, we can reduce onsite craft labor requirements. Fluor has fabrication yards
located at five locations across the globeby
using these yards, we can fabricate modules
where there is available labor and create cost
and schedule advantages for our clients.

Gail Reitenbach, PhD is POWERs editor.

CIRCLE 13 ON READER SERVICE


40

www.powermag.com

POWER August 2016

GENERATION TRANSITIONS

Southern Company Bets Big


Southern Co., one of the nations largest investor-owned utilities, appears torn
between enormous recent investments in advanced coal and nuclear technologiesthe companys successful strategy in the pastand a competing sense that natural gas and distributed energy might be the companys
ultimate future.
Kennedy Maize

he Southern Company, based in Atlanta, Ga., is a regional utility behemoth,


mostly operating in state-regulated
markets (Georgia, Alabama, Mississippi, and
Florida), that is anxious to update its successful heritage in 20th-century generating technologiescoal and nuclear. The company
believes that developing new approaches to
coal and nuclear will lead it into the future
(see sidebar).
21st century coal and new nuclear are
a big part of the companys vision for the
future, CEO Tom Fanning told POWER in
early June. The troubled Kemper County integrated gasification combined cycle project
in Mississippi (Figure 1), which incorporates
carbon capture and storage, should be fully
operational around the end of September, he
said. Fanning added that Kemper will demonstrate a future for coal in the U.S. and elsewhere because, The issue of coal and carbon
is worldwide.
The two new nuclear units at the Vogtle
station in Georgia have been a tremendous
success, despite a two-year schedule delay
and increased costs, according to Fanning.
When Vogtle was approved, we calculated
it would result in a 12% price increase. The
price increase will not be 12%, even with
schedule changes and cost increases. Instead,
it will be 6% to 6.5%. Vogtle will prove to
be one of the great engineering successes
of all time, by Fannings reckoning.
But Southern is also taking steps to explore an alternative future, including a major
foray into natural gas distribution and supply,
a bit more modest flyer into energy efficiency and distributed energy as a business, and
utility-scale solar generation.

compared to $508 million in earnings (56/


share) on $4.18 billion in earnings for Q1
2015.
A Southern Co. press release noted,
Kilowatt-hour sales to retail customers in
Southern Companys four-state service area
decreased 3.0 percent in the first quarter
of 2016, compared with the first quarter of
2015. Residential energy sales decreased 7.2
percent, commercial energy sales decreased
0.7 percent and industrial energy sales decreased 0.8 percent. Total energy sales, including the companys wholesale business,
decreased 1.7%. In the same press release,
Fanning said, Southern Co. performed superbly in executing its business plan in the
first quarter of 2016.
Wall Street didnt buy Fannings positive
spin, as the companys shares declined sharply following the Q1 report. Zacks Investment
Research put a sell rating on the compa-

nys stock, noting, About a third of Southern


Companys retail sales come from industrial
customers. The company, therefore, is much
more affected by a sluggish economy than
other utilities that are less dependent on the
industrial component. Moreover, the challenging economic environment and delays
associated with existing construction projects
may hamper Southern Companys results in
the next few quarters. Also, Southern needs
to shell out hefty amounts to comply with environmental controls and regulations.
Moodys Investors Service followed the
earnings report with a credit downgrade to
Baa2 from Baa1 for long-term senior secured
debta junk bond ratingaffecting about
$4 billion in company debt. Moodys based
the downgrade on the companys $12 billion
purchase of Atlanta-based AGL Resources, a
large natural gas distribution company based
in Atlanta, and continued woes at the Kem-

1. Troubled road. Southern Co. rolled the dice on cutting-edge technology with its Kemper
County integrated gasification combined cycle plant in Mississippi, but the results have not
been favorable. When completepossibly this yearthe coal-fired plant will capture much of
its CO2 emissions with a first-of-its-kind system. Problems with the gasification and carbon
capture technology have caused the project to run years behind schedule and see dramatic
cost overruns that have ballooned the total price tag to more than twice the original estimate.
Courtesy: Southern Co.

Financial Clouds
Despite Fannings overall ebullience, Southern Co.s financial results have been showing
some strain. The impact of the companys
drive to adapt 20th-century generating technologies to the 21st century showed up in its
first-quarter (Q1) 2016 earnings. The company reported $485 million in Q1 earnings
(53/share) on $3.97 billion in revenues,

August 2016 POWER

www.powermag.com

41

GENERATION TRANSITIONS

The issue of coal and carbon is


worldwide.
Tom Fanning, chief executive officer, Southern Co.

technology does not exist anywhere else in


the world, he said.
The Kemper plant is currently running on
natural gas, generating considerable power
for the grid, but has had difficulty with the
lignite gasification. Fanning said that successful lignite fluidization and gasification
was just a matter of weeks away at the time
of our June interview.

Nuclear Delays and Overruns

Southern Co.s Generating Profile


Southern Co. has 46,549 MW of generating
capacity, with 40% from coal, 40% from
natural gas, 16% nuclear, and 2% hydro,
according to the companys website.
The holding company operates through
four regional, state-regulated, vertically
integrated utilities: Alabama Power, Georgia Power, Gulf Power (Florida), and Mississippi Power, Georgia Power being the
largest. The company also includes Southern Nuclear, operator of six nuclear units
at three sites: Georgia Powers Plant Vogtle, with two operating units (for a combined 2,430 MW); two units at the Hatch
site in Georgia (1,848 MW total capacity);
and Alabama Powers two Farley units (totaling 1,800 MW).
The nuclear units in Georgia are jointly
owned with Oglethorpe Power Corp., Municipal Energy Agency of Georgia, and Dalton Utilities, although Georgia Power is
per County project. Fitch Ratings also dinged
Southern with a one-notch downgrade to below-investment-grade.
Mississippi Power has seen the Kemper
County project turn into what the Wall Street
Journal called a costly mess. Southern now
faces a Securities and Exchange Commission
(SEC) investigation related to Kemper and a
project price tag that has ballooned to nearly
$7 billion, more than double the original cost
estimate. Rebecca Smith, the Wall Street
Journals long-time utility beat reporter,
wrote, The SEC is looking into Southerns
financial controls and disclosures for the
Kemper County Energy Facility in Mississippi, the company disclosed in a regulatory
filing this month, amid claims by a former
project manager that it misled the public
about how long construction would last.
The company in 2010 forecast that the
project to gasify local lignite for power generation and capture the carbon dioxide emissions for use in enhanced oil recovery would
cost $3 billion. Since then, Kemper has seen
costs escalate dramatically as the project
42

the licensee and operator.


The company has one of the largest
coal-fired generating fleets in the U.S.,
providing over 18,500 MW of capacity.
The systems largest coal-fired plant is
the Scherer plant in Georgia, at about
3,600 MW. According to the U.S. Energy
Information Administration, Scherer is
the largest coal-fired plant in the U.S.,
followed by Southerns 3,400-MW Plant
Bowen. Scherer burns Powder River Basin
coal and Bowen burns Central Appalachian
and Illinois Basin coal.
Among Southern Co.s approximately
18,500 MW of gas-fired capacity, Georgia
Powers McDonough-Atkinson plant is the
largest, at 2,500 MW. The Southern system also features many gas units, both
combustion turbines and combined cycle
units, added to locations at existing coalfired plants
consistently missed construction milestones.
Smith reported, To date, Southern has paid
back $368 million in federal tax credits for
missing deadlines, but believes it will be able
to keep $407 million in grants from the Energy Department.
On April 26, the day before Southern Co.s
Q1 earnings announcement, Mississippi
Power revealed another $61 million Kemper
cost overrun. The Jackson, Miss., ClarionLedger said, Although the unit of Atlantabased Southern Co. will absorb about $35
million of the cost, customers could pay for
$26 million in interest if the Mississippi Public Service Commission eventually approves.
The utility is absorbing $2.7 billion in overruns so far, and Southern Co. will write off
$53 million before taxes from its quarterly
earnings.
We have had bumps in the road in Kemper, Fanning told POWER. He added that at
the time of the original cost estimate, only
about 10% of the engineering design for
the project had been completed. Thats not
unusual for advanced technologies. This
www.powermag.com

Southerns other large conventional investment is the addition of two new 1,000-MW
Westinghouse pressurized water reactors at
the existing, two-unit Vogtle station (Figure
2). That project has also seen major cost
overruns and project delays. Vogtle Units
3 and 4 are the product of the much-hyped
but little-realized nuclear renaissance the
nuclear industry envisioned late in the administration of President George W. Bush. It
was cut short by the major recession of 2008,
along with falling natural gas prices as a result of the success of hydraulic fracturing.
The Vogtle project got an $8 billion federal loan guarantee under the terms of 2007
energy legislation. It won Nuclear Regulatory Commission approval for a combined
construction and operating license in 2012.
At the time, Southern said the two units
would be commercial in 2016 and 2017, at a
cost to the company of $6 billion. Today, the
best estimate is that the two units could be
commercial around 2020 at a cost of nearly
$10 billion. Those figures are from the companyother assessments put Southerns
share of the project at around $14 billion.
The Georgia Public Service Commission
(PSC) in May began hearings on whether
the investments in Vogtle were prudent, a
term of utility law that allows the company
to recover its investments from customers,
even as they have escalated. Its unlikely that
state regulators will rule against the utility.
Commissioner Stan Wise indicated at a Platts
nuclear conference earlier this year (see The
Global Nuclear Power Industry Faces Localized Outlooks in the April 2016 issue or online at powermag.com) that he believes the
cost overruns and schedule delays have been
prudent.
But veteran energy journalist Dennis
Wamsted, writing for The Energy Collective,
recently argued that the state regulators have
been asleep at the wheel on Vogtle. He wrote,
The real question though isnt whether
George Power has spent customers money
(and believe you me it is customers, not the
utility, that are paying for this long-delayed,
much over-budget project) prudently, but
where in the hell the adults were when the
decision was made to go ahead with construction in the first place.

POWER August 2016

GENERATION TRANSITIONS
2. Nuclear redux. When Southern Co.s two-unit expansion at Plant Vogtle in Georgia began construction in 2012, it was the first new nuclear reactor project to break ground in the U.S.
in decades. But the project has seen repeated delays that have pushed its in-service date back
to at least 2020. Courtesy: Southern Co.

related facilities in Tennessee.


A dynamic 41-year-old New York attorney
named Wendell Willkie became C&S chief in
1933 (he would later become the Republican
nominee to challenge President Franklin
D. Roosevelt in the 1940 presidential electionlosing, and dying, in 1944). In 1935,
Congress passed the Public Utility Holding
Company Act, resulting in the breakup of
many large electric utilities, including C&S.
The companys southern utilities were reorganized under a holding company, and the
modern Southern Co. was born.
Following the 1980s trend toward nonutility generating companies in the wake of
the 1978 Public Utility Regulatory Policies
Act, Southern in 1981 formed an unregulated
subsidiary and, a year later, spun it off as Mirant Corp. Mirant eventually went bankrupt
and was acquired by NRG.

Challenges and Transitions


Perusing Georgia Powers prudence filing with the PSC, Wamsted noted red flags
aplenty when someone, anyone in the decision making process would have been justified in standing up and saying, Hey, wait a
minute, what are we thinking? The company had basically the same experience with
the first two Vogtle units in the mid-1980s, as
the cost escalated to $9 billion and the construction schedule consistently slipped.
But Georgia Power CEO Paul Bowers insisted, according to press accounts, Every
dollar, and every day, that has been invested
has been necessary to complete these new
units safely and correctly. Our reports will
establish that the new units could not have
been built for less money or in less time than
it has taken.
So far, the problems at Vogtle have not
cost Georgia Power shareholders money.
State law provides for construction work in
progress financing, which means that customers pay the costs of the ongoing project
while it is being built, presumably yielding
lower rates once the project comes online.
But that all depends on the PSC concluding
that the utilitys spending has been prudent.
If not, the company eats the costs.

A Long History
Southern Co.s roots reach back into the late
19th century. Thomas Edisons Pearl Street
station in Manhattan, the nations first central station generation unit, started in 1882
(the same year that POWER was launched).
In 1883 in Atlanta, the Georgia Electric
Light Co. organized and began building its
first generating station. At the same time,
Savannah, Ga., and Montgomery, Ala., in-

August 2016 POWER

stalled street lights.


Four years later, Pensacola Electric Co.
in Florida, predecessor to Gulf Power, was
born and began building its first generating station. 1894 marked the incorporation
of Biloxi Electric Light Co., the first in a
series of business events that would form
Mississippi Power. 1902 saw the formation
of Savannah Electric Co., as a decade-anda-half of consolidations of small electric
companies began.
The U.S. entered World War I in 1917,
and the War Department selected Muscle
Shoals in Alabamawith its plentiful
hydro capacityas the site for factories
making nitrates used in explosives. Muscle
Shoals would become a legendary legal
and legislative battle over the coming three
decades, waged between Southern Co. and
the federal governments Tennessee Valley
Authority (TVA).
The modern Southern Co. began to come
together in 1924, with Alabama Power, Mississippi Power, and Gulf Electric becoming
subsidiaries of Southeastern Power & Light
(SP&L). Two years later, SP&L would buy
Georgia Power. In 1929, Georgia Power spun
off Atlanta Gas Light, which 76 years later it
would reacquire as AGL Resources.
1930 saw the creation of giant utility
conglomerate Commonwealth & Southern
(C&S), including six southern electric utilities and five northern companies. In 1932,
Eugene Yates became head of the southern
utility group, and later would be a major figure in the politically explosive Dixon-Yates
territorial dispute with TVA in the 1950s over
who would build new capacity to serve the
Atomic Energy Commissions atomic bombwww.powermag.

In addition to dealing with its challenges at


the Kemper County project and the Vogtle
expansion, Southern faces a serious transition if the Obama administrations Clean
Power Plan passes federal court review. Given its position as one of the nations largest
users of coal, Southern already faces competition from low-priced natural gas. The company views the Obama regulatory plan using
the Clean Air Act to reduce CO2 emissions
as draconian.
A Brookings Institution analysis of 2014
utility comments on the Obama plan said
Southern Co.s strongly worded condemnation of the Clean Power Plan is striking and
unusual even compared to other critical voices. Southern asserts that the Plan extends
beyond EPAs authority under the Clean Air
Act, is unworkable and would increase electricity prices to customers while jeopardizing
reliability. This will result, Southern says,
in a complete deconstruction of the nations
electric sector and negatively impact Americas energy security. Implementing the Plan,
according to Southern, could cost $1 trillion.
As it contemplates the possibility of a new
regulatory regime to control CO2 emissions,
the company is moving toward ways to reduce the regulatory impact. One of those is to
get deeper into natural gas, although Southern has already moved considerable generation into gas. A year ago, Southern made a
successful bid for AGL Resources, its nextdoor neighbor in Atlanta and a major gas distribution company. Southern paid $12 billion
for AGL, including assumption of $4 billion
in debt.
The New York Times commented that the
AGL deal represents an important step for
Southern as it moved from coal to natural
gas. Once combined, the company will be
43

GENERATION TRANSITIONS
the second-largest United States utility, with
about nine million customers. The largest is
Chicago-based Exelon.
The AGL deal has encountered little resistance from the myriad state and federal
agencies that had a piece of the regulation
action. It is expected to close this summer.
Nasdaq observed, Once merged, the companies would operate close to 200,000 miles
of electric transmission and distribution lines
and would also integrate more than 80,000
miles of gas pipelines.
Yet there could be a few dark clouds on
the horizon, beyond the inevitable problems
of merging two large companies into an
even larger, coordinated entity (about half
of mergers of publicly traded companies
turn out to be failures, according to government statistics).
Southern tried to get into gas distribution
in 2002, according to the companys website,
launching Southern Company GAS with
200,000 retail customers. That didnt work,
and three years later, the company sold the
gas distribution business to Cobb EMC, a rural electric cooperative based in Marietta, Ga.
Cobb formed an Atlanta-based subsidiary,
Gas South, to run the gas distribution business serving some 280,000 retail customers.
Gas South is currently doing well.

Publicly traded AGL, however, is not performing up to estimates. Zacks reported in


May that the company reported weak firstquarter 2016 results as warmer-than-normal
weather dampened its gas distribution business, not much different than the direction
of Southern Co.s Q1 earnings.
AGL, noted Zacks, Announced adjusted
earnings per share of $1.30. The bottom line
missed the Zacks Consensus Estimate of
$1.64 and also deteriorated from the yearago adjusted profit of $1.34. Total operating
revenues, at $1,334 million were also below
the year-ago figure of $1,721 million.
Southern in May also closed on a $425
million deal to buy PowerSecure, a North
Carolina firm that focuses on distributed
generation, energy efficiency products, and
utility infrastructure. Southern agreed to
pay an 88% premium over PowerSecures
publicly traded share price when the deal
went down in February. ElectricityPolicy.
com commented that PowerSecure, with
activities in energy efficiency and distributed infrastructure technologies, has had
strong growth in recent years, and the deal
with Southern would expand its ability to
provide customized energy products and
services to customers.
Southern has also been getting into utili-

ty-scale solar. At the end of April, Southern


subsidiary Mississippi Power broke ground
on a $100 million, 50-MW photovoltaic installation in Hattiesburg in Forrest County.
Mississippi Power CEO Anthony Wilson
said, This is the second of three major solar projects that have been approved by the
Public Service Commission, demonstrating
Mississippi Powers continuing commitment
to cost-effective solar development.
While Southern Co. has major challenges,
including the Kemper County and Vogtle
projects, along with declining demand and an
aging population of consumers, the company
still wins the support of many securities analysts. In mid-May, Horizon Investments said
that Southerns long-term growth prospects
stay healthy despite short-term challenges.
Horizon said, The company has a robust planned capital expenditure profile,
which is expected to fuel its long-term
earnings growth. The analysis noted the
companys solid dividend yield of 4.3%.
On the negative side, Horizon said that
cost overruns and delays in the current
construction projects will negatively affect
investors confidence and the stocks valuation in the short run.

Kennedy Maize is a long-time energy


journalist and frequent POWER contributor.

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POWER August 2016

WIND POWER

Time to Catch the Sea Breeze?


Offshore Wind Power Development
in China
After years of planning and sluggish development, 2016 may be the year that
offshore wind power development takes off in China. Once it does, the
market will be large.
Zeng Ming, Peng Lilin, Li Yuanfei, Wang Xin, and Liu Yang

Status Quo
In the past decade, wind power has achieved
rapid development in China. Installed capacity
jumped from less than 75 MW in 2004 to 145
GW in 2015. Wind powers share of total installed capacity has exceeded 7%, which means
wind power has become the third-largest power
source, behind thermal power and hydropower.
After many years of preparation and development of policy and industry, Chinas
offshore wind power sector is expected to
accelerate, beginning in 2016. Specifically,
offshore wind power may start to move into
actual business operation at the end of this
year. According to the 12th Five Year Plan
of Wind Power presented by the National
Energy Administration of China, 5 GW
of offshore wind power was planned to be
operational by the end of 2015, increasing
to 30 GW by the end of 2020. However, as
Figure 1 shows, the 2015 target was missed
by 4 GW.

Offshore Wind Power Potential


Compared with inland, onshore wind power,
there are stronger and more stable wind re-

August 2016 POWER

sources at sea, and offshore turbines have greater unit capacity and higher utilization hours.
Meanwhile, offshore wind farms are closer to
load centers, which makes wind curtailment
less likely. Therefore, offshore wind power is a
certain direction for future development.
According to surveying and mapping by
China Meteorological Administration, the
amount of wind energy resources that can
be developed technically in China is about
500 GW in the range of 5 to 50 meters water
depth, as shown in Table 1 (areas for waterways, fisheries, and other purposes, as well
as areas where strong and super typhoons
passed three times or more historically, are
excluded). Although the exploitable wind resources offshore are only one-fifth of those
onshore, when you consider the rate of devel-

opable/developed resources and the exploitable resources per unit area, the potential of
offshore wind power is greater. Consequently, the average annual growth rate is also expected to be greater for offshore than onshore
development in the future.
Considering the advantages and the potential of offshore wind power (Figure 2), both
the government and companies have started
to attach importance to its development and
construction.
Development and construction of offshore wind facilities in China was relatively
slow in 2014 and 2015. The main reasons
included these:
Pre-approval of projects is complex due to
multiple management responsibilities be-

1. Chinas offshore wind capacity. The 12th Five Year Plan of Wind Power planned
for 5 GW of offshore wind power by the end of 2015, but that goal was not reached. Source:
Chinese Wind Energy Association, www.cwea.org.cn
New installed capacity Total installed capacity
1,200
1,000
800

MW

ffshore wind power has a very important role to play in easing power
shortages in coastal areas of China
and in responding to climate change effectively. Chinas abundant offshore wind energy resources, coupled with todays improved
technology and the support of national policies, indicate that offshore wind farms will
become a rapidly growing energy market.
At the same time, the offshore wind power
equipment industry will become a significant
economic growth sector.
In 2016, Chinas offshore wind power
development is expected to accelerate after years of preparations in both policy and
industry levels. This article analyzes the
current situation of offshore wind power development in China as well as its development potential and driving forces.

600
400
200
0

2009

2010

2011

2012

2013

2014

2015

Table 1. Wind energy resources in China. Source: China Meteorological Administration, www.cma.gov.cn
Area
Onshore: height of 70 meters
Offshore: height of 100 meters,
depth of 550 meters

www.powermag.com

Resource area (x
10,000 km2)

Potential wind energy


development capacity (GW)

Developed
amount (GW)

~960

2,600

124.00

39.4

500

0.82

45

WIND POWER
2. Wind power resource. Annual average wind power density distribution of 5 to
20 meters water depth and 100 meters height
in coastal waters of China. Source: China
Wind Power Development Roadmap to 2050

There are four main ways to lower the cost


of offshore wind power:

Offshore wind turbine manufacturing develops toward large scale and specialization.
Increasing competition in links on the industrial supply chain.
Experience is accumulated with optimized
installation methods and new types of
foundation support.
Achieving economies of scale in manufacturing.

China has cheaper labor costs, shipping


rent (transportation costs), and some other
production factors compared to England.
Therefore, the total costs and the LCOE will
be lower in the future.
On-Grid Power Tariff Is Established. In
the early stage, offshore wind power demonstration projects were examined and approved separately in China, and so was the
price. For example, a demonstration project
completed in 2010 named Donghai Bridge
Offshore Wind Farm in Shanghai (Figure 3)

April 1013, 2017


McCormick Center West | Chicago, IL

tween departments such as marine, environmental protection, military, and others.


Installation costs are high and do not
match the on-grid power tariff currently,
which makes it hard to profit from offshore projects.
The industrial supply chain is imperfect,
and all aspects of the supply chain lack
experience.

As the European experience shows, all


these problems can be solved by government
support, technology improvement, and improvement of the industrial supply chain.

Driving Forces
There are several driving forces for offshore
wind power development in China.
Cost Reductions Are Driven by Technology Progress and Optimization of
the Industrial Supply Chain. The offshore

wind power sector is new, which means components and equipment used in China are
mostly adapted from other industries. Therefore, the industrial supply chain for offshore
wind power is immature and imperfect. Also,
there is tremendous room for progress in
technology and installation methods.
With increased research and investment
in related fields, cost reductions may be realized. For example, as is forecasted by the
Crown Estate, the levelized cost of electricity
(LCOE) of offshore power in England can, in
a variety of ways, drop by 39% compared to
2011 by the year 2020. That would be a drop
from 140/MWh in 2011 to 85.4 /MWh in
2020.
46

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POWER August 2016

WIND POWER
3. First launch. Chinas first offshore
wind farm demonstration project was put into
operation in 2010. Shanghai Donghai Bridge
100-MW offshore wind farm project was also
the first large-scale offshore wind farm in Asia
and provides power for 400,000 households.
Courtesy: Baidu

5. Offshore wind power capacity planning of coastal provinces in China. Source: Shanghai Geotechnical Investigations and Design Institute, www.sgidi.com

Hebei (2020)
Hebei
(2020)
(5,600 M W)
(5,600
MW)

Heilongji ang

J ili n

L i aoning

X inJ i ang

Beij ing
T i anj in

I nner M ongoli a

Shandong
(2020)
Shandong ( 2020
)
W)
(7(7,000
,000MMW)
Jiangsu
J iangsu(2020)
(2020)
(9,450MW)
M W)
(9,450

Hebei
Ningxi a

Shanxi

Shandong

Qinghai

J iangsu

G ansu
Henan
Shaanxi

T i bet
Si chuan

Shanghai

A nhui
Hubei
Zhej iang

C hongqing

4. Getting larger. China Guangdong


Nuclear Power Group independently developed the 150-MW Jiangsu Rudong offshore
wind farm demonstration project. Its technology and construction process recorded a
number of Chinas firsts. To date, the Rudong
project has completed all 38 offshore wind
turbine foundations and one offshore substation single pile foundation steel tube pile; two
110-kV transmission cables respectively using the head-end landing and terminal landing
construction program have been put into operation successfully; the offshore substation
was put into operation in 2015; installation of
12 wind turbines has been completed and are
expected to be put into operation in September 2016. Courtesy: Baidu

August 2016 POWER

J iangxi

G uizhou

F uj ian

Y unnan
G uangxi

Z hejiang(2020)
(2020)
Zhejiang
(3,700 M W)
(3,700
MW)

FujFuj
i an
i an(2020)
(2020)
( 1,100
MW )
(1,100
MW)

G uangdong

GGuangdong
uangdong(2030)
(10,710 M W)

Hainan

low bidding price, which may be caused by


malicious competition, has actually hindered
the development of the offshore wind power
industry. Whats needed by developers is a
more stable expectation of price.
Therefore, in order to promote further development of offshore wind power in China,
a uniform offshore wind power on-grid power
tariff was established in June 2014. Although
its still lower than the subsidy standard in
European countries, the on-grid power tariff
has at least reversed the situation in which
the income level for offshore wind power investment is fuzzy. The remaining problems
should be solved by the enterprises ability to
control risk and improve technology.
Development Planning Is Established
by Coastal Provinces. In August 2014, the

implemented a price of 0.978 CNY/kWh.


Another project, named the Intertidal Zone
Wind Farm of Rudong, Jiangsu (Figure 4),
implemented a price of 0.778 CNY/kWh. In
general, earlier prices are relatively higher
than what is expected later.
After that, bidding of the first offshore
wind power projects in China is carried out
by means of the concession tender. The price
for these projects is only 20% higher than the
price onshore, while the investment cost is
twice as much as for onshore wind projects.
Therefore, profitability has become a major
concern of developers.
The intention behind the idea that the
price of offshore wind power be determined
by tender is to cut the subsidies gradually
through competition, so as to realize technology progress and healthy development of
the market and industry. However, the too-

Hunan

Shanghai
Shanghai
(1,750 M
W)
(1,750
MW)

National Development and Construction of


Offshore Wind Power Planning (20142016)
was published by the National Energy Administration of China. Forty-four offshore wind
power projects with a total capacity of 10.53
GW are included in the development and construction program. In addition to the national
level, the coastal provinces actively carry out
research work as well and develop their own
offshore wind power installation planning, as
shown in Figure 5, which shows 39.3 GW of
planned capacity by 20202030 in total.
The developers will tend to be diversified.
Currently, the domestic offshore wind
power developers in China include Guodian
Group, China Guangdong Nuclear Power, State Power Investment Corp., Datang
Group, the Three Gorges Group, State Grid,
and many other central enterprises in the
power industry. China Longyuan Group is
walking in the front of this group.
www.powermag.com

(2030)
(10,710 MW)

Compared with onshore wind power, there


is a higher barrier in offshore wind power, so
the type of developers is now limited. However, with the development of a free market
in China, this limitation will be gradually
liberalized. In the future, state-owned power
enterprises and foreign enterprises with experience in the offshore wind power industry
will join the queue of offshore wind power
developers in many ways such as joint ventures (Figure 6) or sole investment.
The Target for Installed Offshore Wind
Power Capacity in 2020 is 30 GW. By the

end of 2015, Chinas cumulative installed


capacity of offshore wind power was about
1,017.88 MW. The stage of pilot demonstration has passed and the era of early commercialization has come.
By the end of July 2015, according to the offshore wind power industry monitoring system,
among all the offshore wind power projects that
are included in the National Development and
Construction of Offshore Wind Power Planning, two of them with a total capacity of 65
MW had been finished and been put into production; five of them, with a total capacity of
170.2 MW, had been approved and were under
construction; six of them, with a total capacity
of 154 MW, were approved to be built; and the
rest of the projects were carrying out preparatory work. In general, progress is slow.
With the establishment of the on-grid
power tariff for offshore wind power, improving coordination between departments,
perfection of the industry supply chain, and
the accumulation of experience, Chinas
offshore wind power industry will gradually break the ice and come to a burst in the
13th Five-Year period. The 30-GW target of
47

WIND POWER
6. Joint venture. Shanghai Electric Wind Energy Ltd. and Siemens Wind Power Equipment
(Shanghai) Co., Ltd. are two joint ventures between Shanghai Electric and Siemens. Shanghai
Electric is holding 51% of the shares in both companies, while Siemens is holding 49%. By the
end of 2015, these two companies had taken more than 300 MW of offshore wind turbine orders.
Its said in the annual report of Shanghai Electric Wind that both companies will start bidding for
offshore wind power investment and operation projects in 2016. Courtesy: Baidu

installed offshore wind power capacity in the


year 2020 might be reached after all.

A Promising Outlook
Offshore wind power technology has been
greatly improved after nearly 20 years of development. However, its main problem lies in

the high costs and inconvenient installation and


transportation conditions. With the maturity of
offshore wind power technology, the cost of
offshore wind power will continue to decline.
Offshore wind resources are a type of
clean and sustainable energy. With the active
support of national policies, the improvement

of offshore wind power technology, and the


decline in wind power development costs,
large-scale development of offshore wind energy will be more widely utilized.
Based on development in the global offshore wind power industry and existing problems in onshore wind power consumption,
China will accelerate its efforts to create a
package of policies that promote the development of the offshore wind power industry,
including scientific planning, reasonable pricing, power grid construction, trading system,
capital access threshold, and so on by coordinating the interests of all parties on the basis of
further clarifying the overall strategic thinking
and actively introducing market trading mechanisms. In short, the sea breeze is coming.
The work described in this article was
supported by the National Natural Science
Foundation of China (Grant no.71271082)
and the Fundamental Research Funds for
the Central Universities in China (Grant no.
2015XS37).

Prof. Zeng Ming, Dr. Peng Lilin


(penglilinbj@126.com), M.A. Li Yuanfei,
M.A. Wang Xin, and M.A. Liu Yang are in
the School of Economics and Management, North China Electric Power University, Beijing, China.

Together,

We Can.
One size does not always fit all your challenges are unique and
your solution should be too.
U.S. Water works as a member of your team to
understand your unique operating challenges
and dynamics. By combining our innovative
equipment and sustainable chemical programs,
we are able to offer integrated water treatment
solutions designed to prevent unscheduled
downtime, improve system reliability
and support your environmental goals.

www.uswaterservices.com
(866) 663-7633
CIRCLE 14 ON READER SERVICE CARD
48

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POWER August 2016

WATER

Prevent Purified Water from


Putting a Damper on Your Next
Commissioning
When commissioning a new power plant, requirements for purified water can
be largeoften more than an unfinished plant can supply. When its time
to bring in outside help, proper planning can help avoid problems and
keep budgets under control.
Max Swoboda

ith all the complexity inherent in the commissioning of a


power plant, the last thing anyone needs is an interruption in the supply
of purified water. A little planning, however, can assure engineers and managers
that they will have all the water that meets
their quality and quantity requirements,
while eliminating inefficiencies and unnecessary costs.
Whether its hydrotesting the pipes and
tanks or conducting steam blows to clean the
new system before its startup, a power plant
commissioning requires a lot of demineralized water. Furthermore, the quantity of water required often exceeds the capacity of the
onsite water treatment system, which may be
either still under construction or still being
tested in conjunction with the commissioning. As a result, commissioning managers
must often turn to water purification suppliers and their mobile technologies to meet water requirements.

Know Your Feedwater


Knowing whats in the feedwater is the
first step to designing a proper treatment
system. Thats why a comprehensive understanding of the water source is critical
to developing a purification process that
can meet specifications. Water purification
firms typically collect a sample of the feedwater during the planning phase and submit it to a laboratory for an analysis, which
should include:

Turbidity, a measure of the cloudiness or


haziness caused by individual particles
suspended in the feedwater.
The pH, for selecting the chemical pretreatment that will be used in the filtration
process.

August 2016 POWER

A list of the cations, anions, and their concentration levels.


Conductivity, which can serve as a
proxy for and be calculated from the
previous item.

All of these measures play a role in designing a purification process, and all are
important for designing a cost-effective temporary treatment system.
Turbidity is expressed in NTU, or nephelometric turbidity units, using a turbidimeter,
which measures the intensity of light scattered at 90 degrees as a beam passes through
the water sample.
If the feedwater contains iron, manganese,
or especially high levels of organics, then a
total suspended solids (TSS) analysis is highly recommended. TSS can provide a more
accurate assessment of purity because iron,
manganese, and organics can impart color to
the feedwater. This can create a false sense of
how much material is suspended in the water
and cause engineers to use more purification
equipment than necessary.
TSS is a measure of the dry weight of the
suspended particles. A measured volume of
feedwater is poured through a pre-weighed
filter, which is dried and re-weighed. TSS is
often measured in milligrams per liter from
the volume of water filtered. TSS can then be
correlated with turbidity, and turbidity can be
easily and quickly measured with a handheld
device in the field.
Sources of suspended solids, which are
common in surface water, include decaying
tree branches and leaves; sediments from
storm water runoff; storm water pollution
from paved surfaces such as roads, bridges,
and parking lots; and colloidal rock particles
from quarrying, mining, and coal recovery.
If not reduced to required levels, this organic
www.powermag.com

matter can form acids when heated in power


plant boilers, causing corrosion.
The pH and alkalinity are critical to
the effective selection of proper coagulation chemistry. Inorganic coagulants are
typically selected for short-term projects
due to the ease of deployment and lower
cost. These chemicals are more sensitive
to pH ranges and the amount of alkalinity
than organic chemistries. A representative
sample of feedwater can be tested against
a batch of different chemicals to achieve
a proper floc formation for the filtration
process.
Total dissolved solids (TDS) is primarily a
measure of the inorganic cations and anions
dissolved in the water. Gravimetric methods
are the most accurate measure of TDS. This
involves evaporating the liquid solvent and
measuring the mass of residues left. These
methods, however, are time-consuming and
must be performed in a laboratory. Conductivity, meanwhile, is another measure of
TDS, which quantifies the electric current
from the cations and anions. Conductivity
can be measured in the field with a handheld
device and generates results that are within
approximately 10% of the accuracy of gravimetric methods. As a result, many water purification professionals correlate conductivity
with gravimetric methods to ensure that purification processes in the field are meeting
requirements.
Primary sources of dissolved solids include agricultural and residential runoff,
leaching of soil contamination, and pointsource water pollution discharge from industrial or sewage treatment plants. The
most common inorganic constituents are
calcium, magnesium, sodium, potassium,
iron, alkalinity, chloride, sulfate, nitrate,
and silica.
49

WATER
1. Exchange services. Demineralization removes dissolved inorganics through the use of
an ion-exchange process. Feedwater is passed through tanks containing specially manufactured
resin beads, which attract and remove the dissolved minerals. Courtesy: MPW Industrial Services

Look Beyond the Lab


Laboratory data collected from feedwater
samples is important, but it is by no means
the only source of information that can assist with developing a purification process.

For example, does the plant have any analytics on the feedwater based on the operations
of its permanent system on site? These can
shed light on seasonal variations, which can
be helpful if the commissioning takes longer

than expected, which is not uncommon.


Gathering historical data for the supply water reveals trends in the amount of
deviation from normal and the length of
time before it reverts to the norm. Rainfall,
seasons, and other weather conditions all
influence turbidity.
Engineers can also check with the local
municipal water authority for analytics if the
agency uses the same feedwater.
Finally, its a good idea to check with
neighboring industrial facilities that use the
same feedwater in their processes. Assuming
theyre not competitors, they might be willing to share their data.
In the end, the better the quantity and
quality of data, the more effectively the water
purifier can minimize costs and meet requirements during commissioning. Any misstep
in the chemical evaluation of the feedwater,
however, can have dramatic impacts on the
purification process. If, for example, the purified water doesnt meet requirements, then
the water firm might need to bring additional
resources on site, which could consume valuable time and delay the commissioning.

Consider All Your Options


In virtually every feedwater scenario, there is

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50

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POWER August 2016

WATER
2. Reverse approach. Reverse osmosis technology, which passes feedwater through a
semipermeable membrane under pressure, can lower total dissolved solids by 98% or more.
Courtesy: MPW Industrial Services

more than one way to generate the required


quality and quantity of purified water. Nonetheless, most approaches comprise a twostep process: coagulant filtration followed by
demineralization.
To more effectively filter out suspended
solids, coagulants/flocculants are added to
the feedwater. Relatively inexpensive inorganic coagulants have a positive electrical
charge when dissolved in water, opposite
of the negative electrical surface charge of
some suspended solids. As a result, this neutralizes the colloidal solids, allowing them
to fall out of suspension. However, smaller
particles often need to be gathered together
to have enough size to be effectively filtered. Flocculants are used to do just that,
providing a larger precipitant that attracts
the smaller particles. Alum is typically the
most cost-effective inorganic coagulant
when there is an adequate amount of alkalinity of the feedwater.
Removing dissolved inorganics, or demineralization, is often conducted through the
use of an ion-exchange process (Figure 1).
Demineralization removes minerals through
a chemical process of exchanging one ion
for another using ion-exchange resins. These
resins are small, specially manufactured
plastic beads that contain electrically charged
exchange sites. They selectively attract ions
and replace them with hydrogen or hydroxide ions.

will sometimes employ reverse osmosis


(RO) technology before the water is treated
with demineralization.
Osmosis is the natural movement of water
molecules from a low-ion concentration to a
higher-ion concentration across a semipermeable membrane. RO reverses that process
by applying pressure to the feed side of the
membrane, pushing water back across the divide to the less-concentrated permeate side,
reducing TDS by 98% or more (Figure 2).
The remaining dissolved solids can then be
easily addressed with demineralization.
As a result, this minimizes the number of
demineralization trailers needed for a commissioning, significantly reducing costs. The
job duration and TDS play a role in the costbenefit analysis.
Another way to save money is to locate
the mobile water purification systems as
close to existing water treatment facilities
as possible. This reduces the cost of moving the feedwater to the temporary water
purification process and back. Additional
hoses and pumps can add to the costs and
the complexity of installing the mobile purification system.
Its also a good idea to locate the purification technology near existing electrical
service. Depending on the duration of the assignment, the use of generators to power the
purification technology can add significant
cost and environmental issues related to the
use of diesel fuel.

Reverse Osmosis Can Help Reduce


Total Costs

Dont Forget the Waste Stream

If the feedwater contains high levels of


TDS, and if large volumes of purified water are required, water purification firms

One of the least-appreciated aspects of supplying water for hydrotesting and steam
blows is addressing the wastewater generated

August 2016 POWER

www.powermag.com

from the purification process. Regardless


of the purification method, the material removed from the feedwater must be removed
from the power plant site.
Materials captured by the filters in the
coagulation-filtration process are removed
via a backwashing step. This wastewater
is collected, and in some cases it can be
processed at the power plants existing
wastewater treatment system, such as a
settling pond, which can save money. If
the plants wastewater system isnt available, then the backwash is often placed in
a settling tank brought on site, allowing
the particles to accumulate on the bottom.
When settled, the water can be discharged
and the solids removed and hauled away
for disposal.
The concentrated waste stream from the
RO technology can be handled in a similar manner. RO systems recover approximately 75% of the feedwater. Put another
way, 25% of the water treated through RO
becomes wastewater, and if the power plant
doesnt have a discharge permit, then the
wastewater will have to be collected and
transported offsite, which in many cases
makes RO infeasible.
The good news with demineralization
trailers is that the resin beds that collect the
unwanted ions are taken offsite for regeneration, meaning there are no regeneration
waste streams to consider and no regenerate chemicals needed on site. With the use
of a pretreated feedwater supply, such as a
drinking water supply, a demineralization
trailer can be deployed as a zero liquid discharge system.

Making It All Work


Purified water is critical to a successful commissioning. Any interruption in the quantity
or quality of water can generate additional
costs and cause significant delays in a complex and highly interrelated process.
As a result, water purification personnel
and commissioning professionals need to
possess a comprehensive understanding of
a power plants feedwater and thoroughly
review the multiple methods for meeting
purity requirements. In addition, they need
to develop an approach for disposing the
wastewater generated from the purification
process that is compatible with the power
plants regulatory requirements and yet
minimizes costs. The energy and time devoted on these and related topics during the
planning stage can prevent water from putting a damper on the commissioning of any
power plant.

Max Swoboda (mswoboda@


mpwservices.com) is technical services
manager for MPW Industrial Services.
51

ELECTRICAL

Consider Busway When Replacing


Electrical Cable and Conduit
Electrical cable and conduit offers a reliable and proven way to get power
where it needs to go, but that doesnt mean it is always the best method.
Busway can save space, while offering a less-expensive, more-flexible
power distribution solution for applications where change and adaptation
are important.
Steve Lovell

s is the case in many other industries,


power generation facilities are perpetually short on capital, space, and time.
Though economic conditions have improved
in the years since the downturn, one thing that
hasnt changed is the fact that operators are
continually challenged to maximize existing
budgets and plant space, while identifying new
efficiencies and minimizing operational costs.
One area many power facility and plant
managers have identified as a way to increase
efficiencies is in power distribution, specifically, the equipment used to distribute electricity throughout the facility. By investing in
the right low-voltage distribution equipment,
operators have been able to optimize the physical space within their facilities while also reducing energy costs and ensuring that power
is being distributed with the utmost efficiency.
A good example of equipment that has
emerged to deliver on this promise is busway,
which is increasingly seen by many operators
as an attractive alternative to traditional cable
and conduit installations for a number of reasons. By using busway in place of cable and
conduit, operators have been able to realize
tangible savings in terms of capital, space,
and installation time.
This article provides an overview of busway technology for power generation facility operators. In it, we look at the types of
busway technology available, specific advantages of the technology over traditional cable
and conduit solutions, and some key features
to look for when implementing a busway solution in your facility.

A Busway Primer
Busway is a highly efficient method for distributing electrical power throughout a facilityparticularly when it comes to loading
or extending power from an existing distribution system. It comes in various shapes,
sizes, and forms (Figure 1), but in general, all
busway solutions feature the same core elements (Figure 2).
52

First, there are the conductors, also known as


busbars, which are solid bars of either copper or
aluminum that transfer electrical current. Next,
theres the housing, the metal enclosure that
contains the conductors. Finally, there is insulation, the key component that protects against
electrical faults by separating conductors from
one another and from the units housing. Most
busway products feature either air-insulated or
epoxy-insulated designs.
Busway comes in two basic styles:

Feeder busway: Available in a wide variety of configurations, these are the main
building blocks of a busway system and
include both straight lengths as well as fittings, such as elbows, tees, and offsets.
Plug-in busway: Available in straight
lengths only, these pieces feature the added
ability to support one or more bus plugs at
fixed positions. Bus plugs allow for power
to be tapped off the busway system through
overcurrent devices (such as breakers or
fuses) to feed downstream loads easily.

conduit is complex, labor-intensive work


that only highly specialized electricians
can perform. Busway, by contrast, is far
simpler technology that most electricians
with only rudimentary mechanical skills
can assemble without expert help. Busway
assembles quickly, with as few as one bolt
per connection (Figure 3). Installers can
add up to 10 feet of busway at a time as
compared to routing multiple runs of conduit, and having to go back and pull cable
through the pipes.
Reduced implementation cost. Paying
specialized electricians for the hours of
effort required to bend and route conduit
is a costly proposition. Facilities that use
busway can save money.
Space savings. Space is frequently at a
premium in power facilities. Busway offers a compact technology relative to cable
and conduit that leaves more room within
the existing space for other, potentially
revenue-generating uses. For example, a

1. Variety is the spice of life. BusBusway is especially attractive for power


facilities, because they are typically packed
with heavy-duty machinery and other electrical equipment. Historically, cable and conduit has been the primary method used to
distribute power to this equipment. Often, the
cable and conduit is embedded in concrete
beneath the shop floor, making moves, additions, or changes more expensive and timeconsuming. In contrast, busway can support
new or rearranged systems easily by adding
more pieces, relocating bus plugs, or replacing feeder segments with plug-in sections.

way fittings come in various styles, such as


upward elbows (top left), tees (top right), standard switchboard flanges (bottom left), and
end cable tap boxes (bottom right), to meet
unlimited design requirements. Courtesy: Eaton Corp.

Benefits of Busway Over Cable


and Conduit
Beyond the benefits already mentioned, the
use of busway in lieu of cable and conduit offers several other advantages. They include:

Ease of installation. Installing cable and


www.powermag.com

POWER August 2016

ELECTRICAL
2. Sized to meet application needs. Busway components are constructed with
a lightweight and durable, two-piece, aluminum-extruded housing. The nonventilated design
prevents moisture and dust penetration. Courtesy: Eaton Corp.

typical 2,000-amp service installed using


cable and conduit requires up to 99 square
inches of space versus less than 38 square
inches using a busway solution.
Cost-effective adaptability. Once cable and
conduit are in place, moving, expanding,
and reconfiguring systems in response to
growth or new requirements is both expensive and disruptive to daily operation. With
busway, facilities installing new equipment
can simply add new bus plugs to their existing busway, while companies that need
to move equipment can quickly and easily
reconfigure their existing busway or even
replace feeder busway with plug-in busway, where required. This flexibility provides minimal interruption of service as
compared to a traditional cable solution.

In all, these benefits can prove highly


attractive to facility operators challenged
to maximize available facility space while
reducing capital expenditures, with a demonstrable benefit that helps improve the
companys bottom line.

Checklist: 10 Key Busway Features


Now that weve established some of the advantages of busway technology over cable
and conduit, its important to understand the
features to consider when choosing equipment for your facility. When looking to
capitalize on busways considerable benefits,
make sure to seek out products that feature
the following attributes.
Certified Safety. At the bare minimum,
any busway product worth using should be
certified by Underwriters Laboratories, the
Canadian Standards Association, or the International Electrotechnical Commission. Products that dont meet these standards have not
been tested for safe operation and may pose a
risk to the facility if utilized.
Indoor and Outdoor Options. Depending on the needs of your facility,
youll likely want busway to serve your

August 2016 POWER

needs both inside and outside the plant


buildings. Reputable busway technology
manufacturers typically offer options for
both types of applications, so make sure to
seek out those that do.
Wide Variety of Current Ratings. Varying applications require varying current
ratings, which can shift over time as the facility grows and needs for power distribution
change. The best busway solutions support
any current rating the facility might need,
both now and in the future.
High Fault Current Ratings. To protect
sensitive electrical equipment, busway must
be capable of handling the available fault
current rating a given power distribution system is capable of throwing at it.
Broad Range of Plug Options. Look for
product families whose bus plugs offer breaker, fusible switch, contactor, and starter options for every requirement, as well as multiple
surge protection and metering alternatives.
Flexible Configuration Options. Variety is equally important when it comes
to power distribution options, so be sure to
choose busway products capable of handling
both single-phase and three-phase power,
with or without a neutral bar, or even with
a 200% neutral option. Selecting products
that support integral, internal, and isolated
grounding options is also critical.
Ease of Installation. All busway products are easier to install than cable and
conduit, but best-in-class offerings further
simplify deployment by providing thoughtful
extras like alignment pins that prevent operators from installing bus plugs out of rotation,
and clearly labeled stickers that illustrate
where segments connect.
Alternative Options for Connecting
Directly to Other Electrical Equipment.

Most busway manufacturers require facilities and contractors to connect other products like group metering and panelboards via
cable runs between bus plugs and distribution
equipment. The most sophisticated busway
www.powermag.com

3. Easy installation. Busway fittings


connect quickly and securely using a sandwich design and a torque-indicating bolt. Courtesy: Eaton Corp.

solutions, however, save money and floor


space while shortening installation times by
allowing companies to connect group metering and panelboards directly into a nearby
busway segment instead.
ENERGY STAR and LEED Certification. Facilities certified under the Leader-

ship in Energy and Environmental Design


(LEED) standard for environmentally sustainable construction are often eligible for
tax breaks and other financial incentives, so
look for busway products that qualify for
LEED credits. And using busway bearing
a SMaRT certification can qualify facilities
for additional utility rebates, while reducing
operating expenses by lowering power bills.
Comprehensive Services and Support. Finally, while busway is an intuitive,

largely do-it-yourself technology, users


sometimes require planning and implementation assistance. Make sure to buy only from
vendors with the experience and resources to
offer expert support and services when needed (such as busway measurement services,
final field fit services, and commissioning).

Reflect on Options
Though cable and conduit has been the default choice for distributing power to electrical equipment for many years, busway offers
an extensive list of practical and financial advantages for power facility operators. Those
plants looking to simplify power distribution
and increase agility while saving money and
conserving space should take a close look at
carefully designed and equipped busway solutions with the features, support, and capabilities to meet their unique and evolving needs.

Steve Lovell is a product line manager


for busway at Eaton Corp.
53

ADVERTISERS INDEX
Enter reader service numbers on the FREE Product Information Source card in this issue.

Page
3M Industrial

Reader
Service
Number

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Reader
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AMEC Foster Wheeler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 . . . . . . . . 7

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Check-All Valve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 . . . . . . . .11

Siemens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . 3

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CIRCOR

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................................................... 9 ........ 5

U.S. Water Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 . . . . . . . .14

www.circorenergy.com

www.uswaterservices.com

Grisley ASC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover 3 . . . . .16

Victory Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . . 4

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www.victoryenergy.com

Hilliard Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 . . . . . . . .12

Winsted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 . . . . . . . . 8

www.hilliardcorp.com

www.winsted.com

Indeck Power Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 . . . . . . . . 6


www.indeck.com

POWER
FromtheeditorsofPOWER:Thee-newsletterdevotedto
thecoal-firedpowergenerationindustry
Technicalarticles,coalpowernews,blogs,opinion,
andinformation.
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POWER PLANT
BUYERS MART
POWER PROFESSIONALS

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For over 35 years of drying solutions contact:

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612-202-0765
thaarala@ctrdh.com

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810-229-7900
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READER SERVICE NUMBER 204

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55

COMMENTARY

Climate Change and Energy:


We Need a Bigger Boat
Armond Cohen

eaders of a certain age will recall a scene in the movie Jaws


when the local police chief, having glimpsed the gigantic
shark up close from the back of the deck, reels back into
the cockpit to observe: Youre going to need a bigger boat.
In climate change, we have reached the bigger boat moment.
The December 2015 Paris Agreement committed 195 nations to
limit global warming to 2.5 degrees Celsius, with a further aim
of 1.5 degrees. That will require completely eliminating carbon
emissions from the worlds energy system sometime soon after
2050. Thats virtually tomorrow in energy system terms.
Wringing all the carbon out of the system would be hard
enough if world energy demand were flat. But it is slated to grow
by more than half to 2050. We need a zero-carbon energy system
much larger than the entire system we have today, which is 85%
powered by fossil fuels and has no carbon abatement.

Cargo for the Big Boat


We have many options in theory: energy efficiency, renewable
energy, advanced nuclear energy, carbon capture, and carbon
removal from the atmosphere. But all of these options are, relatively speaking, in their early stages, or face real barriers to
scale and cost. Most studies, from the Intergovernmental Panel
on Climate Change to the United Nations Deep Decarbonization
Pathways Project, have for this reason urged diversity and substantial innovation to create more and better optionsin short,
a very big boat. A brief look at the horizon suggests why.
Energy Efficiency. Energy efficiency has improved significantly since the 1970s. But substantial further efficiency improvements are already assumed in the growth figures cited
above. While some studies have suggested flat demand, they
assume annual end use efficiency improvement rates of 3% to
4% per year, while actual global improvement has averaged 1%.
And recent field tests have suggested energy efficiency performance may not always match optimistic engineering estimates.
An important part of the flotilla, yes. A destroyer? Maybe not.
Carbon Capture. Capturing carbon has been commercially
demonstrated on gasified coal and refining for decades, and its
application to electric power at commercial scale is now under way. Three projects are built or under construction in North
America (see SaskPowers Boundary Dam Carbon Capture Project
Wins POWERs Highest Award, POWER, August 2015). But not all
fossil fuel plants can be retrofitted, and costs remain a barrier
to wider adoption absent tighter carbon regulation. Advanced
lower-cost power cycles that integrate carbon separation, such
as NetPowers Allum Cycle (a demonstration project is being built
in Texas), are the kinds of options needed.
Renewables. Wind and solar will undoubtedly comprise a
large share of the decarbonization strategy, but claims that they
can provide all or most global power needs at reasonable cost
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should be viewed with great caution.


A variety of detailed studies, from the National Oceanic and
Atmospheric Administration, to Europes Zero Emissions Platform, have shown that, even with the availability of low-cost
battery storage, and unlimited and unconstrained transmission,
very high renewable electrical systems will continue to require
lots of firm, dispatchable energy for the weeks and even months
when wind and solar are not available at scale. This parallel system of firm capacity will add substantially to costs.
Physical build-out also cannot be blithely assumed. A recent
study calling for 100% renewable energy in the U.S. posited,
just for starters, that every coastal state would have 72 offshore
wind farms the size of the as-yet-unbuilt Cape Wind project (468
MW), and every state would host 50 Tehachapi-sized (705 MW)
land-based wind farms.
Nuclear. Nuclear energy provides, after hydroelectric power,
most of the worlds carbon-free electricity. Because of its rapid
build-out of nuclear energy in the 1970s and 80s, France is the
only industrial nation that comes close to the Paris Agreements
implied power emissions targets. But for reasons that are welldocumented, repeating a French-style scale-up with current
water-cooled nuclear technology is unlikely. It is typically more
expensive than fossil fuel generation, making it a tough choice
for firm power in developing countries; it is slower to build than
coal or gas; and the need for pressurized water containment
means very large amounts of concrete and steel plus long construction times with associated financing costs.
A new generation of nonlight water designs is now under development that could address these problems. The use of alternative
coolants substantially simplifies and reduces the size of these plants,
allowing them to be mass manufactured at lower cost, like airplanes,
rather than laboriously constructed on site. Many have fuel cycles
needing much less host country attention, and much smaller, lesstoxic, and less-weaponizable waste streams. But these options must
be commercially proven, and that will not happen by itself.

Full Speed to Zero


The challenge is not easy, but it is straightforward. We need
aggressive innovation and commercialization across all zerocarbon options. In particular, we need faster development of
zero-carbon firm capacity options such as advanced nuclear and
decarbonized fossil energy, which have to date received, comparatively speaking, almost no attention.
Success in tackling climate change is not assured. But without
a diverse strategy, failure is likely. Small may be beautiful, but in
this case we need a bigger boat.
Armond Cohen is executive director of the Clean Air Task
Force, an environmental organization that advances policies and
commercial innovation to fight climate change.

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