WRTSIL SMART POWER

GENERATION

UNIVERSIDADE FEDERAL DE
PERNAMBUCO
Renewables and the need of Flexible Power Plants

Wrtsil
 This is Wrtsil

A global leader in advanced technologies

and complete lifecycle solutions for the
marine and energy markets

2 Wrtsil I N T E RN A L Corporate presentation 2016

THIS IS WRTSIL

Our business areas

SERVICES

ENERGY SOLUTIONS

MARINE SOLUTIONS

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THIS IS WRTSIL

Production and services globally

Services network
Production facilities (fully owned)
Production facilities (joint ventures)

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THIS IS WRTSIL

Our personnel

Approximately 18,800 professionals

In over 200 locations

In more than 70 countries

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 Energy Solutions

Our mission is to provide superior value

to our customers with distributed, flexible,
efficient, and environmentally advanced
energy solutions

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ENERGY SOLUTIONS

Strategy

Grow strongly in large utility gas power plants

market by capturing market share from gas
turbines
Maintain our leading position in HFO & dual-fuel
power plants
Gain market share in utility-scale solar PV
business with EPC capability
Grow in the small to medium scale LNG terminal
business by introducing a new value proposition
to selected markets

7 Wrtsil Corporate presentation 2016

ENERGY SOLUTIONS

Offering

Flexible baseload power plants

Capacity for grid stability, peaking and load-
following generation, and back-up power for
integrating wind and solar energy
Utility-scale solar PV power plants and solar-
engine hybrid solutions
Multi-fuel solutions enabling use of any gas or
liquid fuels
LNG terminals and distribution systems
Project development and EPC capability

8 Wrtsil Corporate presentation 2016

ENERGY SOLUTIONS

LNG Solutions

We provide our full range

of project and lifecycle
support to LNG receiving
terminals. We have the
capability to develop
the entire LNG fuel supply
chain in partnership with
our customers.

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O&M OFFERING

Contrato de Gerenciamento Contrato de Gerenciamento

Fornecimento Tcnico Manuteno do Patrimnio

Mo-de-obra Planejamento de Mo-de-obra Operao &

Peas Manutenes dedicada Manuteno
Servios de reparo Avaliao de Risco Peas Mo-de-obra
em oficina Inspeo Fornecimento e dedicada
Solues Online Coordenao Equipamento
global Instalao

Wrtsil
Wrtsila Energy Solutions - Unidade de Negcios GNL
Usina Termeltrica + Terminal de Regasificao de GNL

Desenvolvimento Fornecimento da EPC turn-key, Operao &

de projetos e engenharia, com montagem Manuteno das
suporte para equipamentos e completa das instalaes,
financiamento materias instalaes com equipe
prpria

Terminais de Liquefao e Regasificao de GNL

Usinas termeltricas gs natural

Wrtsil
BRAZIL INSTALLED BASIS

A diviso Energy Solutions

possui uma significativa
capacidade instalada no
Brasil (~2.7 GW)

Escritrio Central - Rio de Janeiro/RJ

Fbrica Porto do Au/RJ

Usinas Termeltricas (Clientes)

(31) UTEs ~2.7 GW
Workshops (Niteri/RJ, Suape/PE
e Manaus/AM)

Wrtsil
 Wrtsil Energy Solutions Gerao Solar Fotovoltaca
1# usina Solar FV da Wrtsil 46 MWp AES Jordania

250 MW ENGINE UNIT

46 MW SOLAR PV UNIT

INTERCONNECTING CABLES

Wrtsil
Wrtsil Energy Solutions Algumas referncias no Brasil

UTE Viana / ES: 20 x 20V32 (175 MW, OC)

Wrtsil
 Wrtsil Energy Solutions Algumas referncias no Brasil

UTE Linhares / ES: 24 x 20V34SG (204 MW, Gas Natural)

Wrtsil
 Wrtsil Energy Solutions Algumas referncias no Brasil

UTE PARNAIBA IV / MA: 3 x 18V50SG (56 MW, Gas Natural)

UTE NOVA VENECIA EXT / MA: 1 x GasCube 20V34SG (9 MW, Gas Natural)

Wrtsil
 Wrtsil Engines for Flexible Power Production

Wrtsil I N T E RN A L Energy Solutions 2016

WRTSIL UNITS FOR POWER PRODUCTION

Two frame sizes of turbocharged, inter-cooled, heavy duty

medium speed engines.

10 MW 20 MW
Gas, Liquid, Dual-Fuel Gas, Liquid, Dual-Fuel

Wrtsil
 INSERO DE NOVAS FONTES RENOVVEIS NO
PLANEJAMENTO ENERGTICO NACIONAL
The Role of Flexible Power Plants

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 Market trends and challenges

Market trends and drivers

Economic growth, electrification and improving
standard of living
Growth in sustainable energy, reducing carbon
emissions
Rapid growth of intermittent renewable
generation and escalating demand fluctuation
Natural gas replacing other fossil fuels
Ageing installed capacity driving investments in
new technologies

The world needs clean, affordable,

and reliable power generation

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World electricity consumption

Reasons for growth of electricity demand

Electrification (heat pumps, appliances...)
GDP growth
Increasing standard of living

World Electricity Consumption

GWh
8.00%

6.00%

4.00%

2.00%

0.00%

-2.00%

Electricity yearly cons. growth % GDP yearly growth rate %

Source: Enerdata

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 It is not different in Brazil

Electrical energy demand (TWh / year)

Annual change in GDP vs. increase in
electrical energy consumption (% p.a.)
%

2013-2050 CAGR: 3.2%

2013-2050 CAGR: 3.2%

2001 Rationing
2008 Financial Crisis Grid Demand Self-Generation Total (TWh)

The Brazilian Energy Research Office

The historically strong correlation between real (EPE) has estimated that the annual
GDP growth and the annual increase in electrical energy demand will more than triple during
energy consumption suggests that the strong the 2013-2050 period, from 513 to 1624
demand for electric power will continue in the TWh per year, but these figures are under
coming years,after the recovery of the Brazilian evaluation to capture the impact of the
GDP.. economic crisis.
LNG is recognized as a bridge to link today's period to the future. 9.4 GW gas fired PP is the planned increment by 2023
Source: EPE Demand for Energy 2050; IBGE; MME

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The growing importance of renewables

Globally:
Demand for renewable energy continue to rise
2012: 1470 GW capacity
2011: 19% of final energy consumption

Renewables (RES) accounted for >50% of total net

additions to electric generating capacity from all
sources in 2012
Solar photovoltaics (PV)
2007: <10 GW
2012: >100 GW

Wind power
2007: <100 GW
2012: 275 GW

Source: RES21: Renewables 2013 Global Status Report

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Wind power cumulative capacity

Sources: GWEC,

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 Wind power cumulative capacity

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Solar power cumulative capacity

Sources: statista.com/

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 World capacity mix 2010 & scenario 2030

++44
5533
G
2030

GW
2010

W
+7
26
G W
W
Solar PV; 6% Oher (Geothermal, CSP, Marine); 1%
Oher1%
Bioenergy; 1%Wind; 4%Solar PV; (Geothermal, CSP, Marine); 0% Wind; 11% Coal; 26%

Hydro; 20% Coal; 32% Bioenergy; 2%

5 183 GW
Nuclear; 8% Hydro; 18%
8 588 GW Oil; 3%
Oil; 8%
Gas; 26%
Nuclear; 6% Gas; 26% +8
83
GW

Source: World Energy Outlook 2012 IEA, New Policies Scenario

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Again, not different here...

Fonte: PDE 2022 (http://epe.gov.br/PDEE/20140124_1.pdf).

Larga expanso de capacidade instalada de fontes sazonais e/ou intermitentes no

sistema eltrico brasileiro, com destaque para a fonte elica (+15GW).
Novas usinas hidreltricas (+36GW) usaro o conceito de fio dgua, no havendo
nova capacidade de armazenamento, sendo a maioria a ser instalada na Amaznia.
O Brasil perder, ao longo dos prximos anos, a capacidade de armazenamento das
hidreltricas que possui. Haver reduo na relao entre energia armazenvel e
carga.
Incerteza quanto as hidrologias futuras no NE brasileiro.

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 GHG emission targets
Typical target for year 2020, e.g. EU and USA:
20% energy share from renewable sources
20% less greenhouse gas emissions
20% increase in energy efficiency
20 % renewable energy in 2020 means 5-7 times more wind power
capacity in the EU!
Wind power capacity will greatly exceed average load
System operation and operation profiles of thermal plants need to
change
Variable wind power and larger day/night load variations increase
demand for dynamic flexibility of generation assets
It is generally agreed that security of supply is at risk, but there has not
been any perceived solution
Present electricity markets are generally based on selling energy
(kWhs) and do not reward dynamic flexible capacity adequately to
encourage investments
New parallel capacity markets must be developed to enable private
investments in fast, flexible system balancing capacity (kWs)

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 System impact of wind power

Source: Vestas

Reaching 20% renewable power requires approximately 285 GW of installed wind

capacity in the EU
A wind speed change from 9 -> 7 m/s could change wind power output with ~100 GW.
Such wind speed changes are barely notable and happen all the time.

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 Experincias EUA, Texas

Texas has experienced 1h wind ramps of 3,039 MW increase and 2,849

decrease of 8,900 MW installed.
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 Experincias EUA, Texas

~3,000 MW gone in <1h

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RELATIVE LOADING CAPABILITY FOR DIFFERENT TECHNOLOGIES

Load % Load %

100 100

90 90

80 80
70 70

60 60
50 50
40 40

30 30
20 20

10 10

0 0
0 5 10 15 20 25 30 35 40 45 50 55 mins

Coal Fired power plant Aeroderivative GT power plant (GTSC)

Combined Cycle power plant (GTCC) Reciprocating Engine power plant
Industrial GT power plant (GTSC)

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PERFORMANCE ON PART LOAD

Wartsila unit efficiency exceeds 48%el @ ISO and part load efficiency also
extremely high when units can be started and stopped one by one

5 units 6 units 7 units 8 units 9 units 10 units

GT performances by GTPro
15 C, 10 bar NG

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GAS ENGINE PLANTS ARE WELL FIT TO MANAGE FLUCTUATIONS

Demand %
100 Regulation
handle sudden starts and
stops as well as varying loads Peak load
80
allow for renewable integration
maximize the use of renewable 60 Intermediate load
capacity
40 Daily load curve
allow baseload plants that are
not designed for such cyclic
20
operation to be relieved of this
Base load
duty 0
contribute to grid frequency 0 6 12 18 Hour 24

regulation and system stability

Improve the total system
efficiency

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 Wind chasing in Colorado, US
Grid operator data from:
Load

Coal power plants

Wind generation

Gas generation

Plains End 1 & 2 power plants

Flexible generation

In systems with high wind penetration, the system faces

Lower average load & more part load operation of installed plants
Faster ramp ups and downs needs
More starts and stops
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 Technical challenge
Quick Stops &
Quick Starts de-loading
& loading
45

40

35
FLEX
30 GEN 1 SOLAR

25

FLEX WIND
GW 20
GEN 2

15

10 COAL

NUCLEAR
0

Hour

Part load & spinning reserves

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Flexibility is key!

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Main topics for discussions

There is no magic solution;

Impacts (in Brazil) of intermitent and stochastic generation needs further study and
developments;
More fluctuations in load and generation will require more system flexibility;
State-of-art forecast methodologies are a must;
Planning of the operation has to be adapt;
Planning of the expansion has to adress the value of flexibility;
Auction process requires constant update;

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